The Rising E-commerce Powerhouse: Mexico
With 50% of the global population shopping online, Mexico has emerged as a significant player in e-commerce due to its population and growing GDP per capita. The 12th edition of eRetail Day Mexico, held from July 2 to 4 in a hybrid format, brought together retailers, leaders, and brands to highlight Mexico’s crucial role in this dynamic industry.
Currently, 15.8% of retail sales in Mexico occur online, painting an optimistic outlook for the future. However, Pierre-Claude Blaise, General Director of the Mexican Online Sales Association (AMVO), emphasized that to harness Mexico’s potential in e-commerce, “good public policies, investment from companies, implementation of new technological solutions, and professionalization of talent are required.”
Key Success Factors for the Mexican Market
Daniela Orozco, Director of Market Intelligence and Studies at AMVO, outlined the key factors for success in the Mexican e-commerce market: high digital adoption, advanced logistics infrastructure, expanding digital payments, and a robust, professionalized ecosystem.
Amazon Global Selling: Expanding Mexican Market Reach
As part of expanding the Mexican market, Amazon Global Selling was introduced. This program, launched in 2021, enables businesses and independent sellers to reach new consumers without setting up overseas operations. María Paula Martínez, Head of Program LatAm, encouraged action and internationalization through Amazon’s internationalization platform.
Artificial Intelligence: A New Ally in E-commerce
Artificial intelligence (AI) is redefining e-commerce rules due to the competitive advantages it offers. Pablo González Luna, Sales Manager at Radial Llantas, explained that AI application in business provides comprehensive solutions. “Predictive models help understand future purchase behavior based on sales history,” he said.
Francisco Alatorre, Director of Digital Commercial at Farmacias del Ahorro, added that using predictive, conversational, contextual, and automated technologies enables targeted strategies like customer experience personalization. This leads to brand loyalty and efficient spending aligned with real audiences.
Notable Strategies
Experts from leading companies shared successful strategies to scale their business models and improve profitability:
- Omnichannel: Aims to provide an integrated, coherent, and fluid customer experience across all available contact channels—both physical and digital. However, Cristian Serrano, Chief Digital & Experience Officer at Advantage Digital, stressed that achieving unified commerce requires three threads: mindset, offering what the consumer wants; processes, making life easy for the consumer; and customer centricity, going above and beyond to meet customer expectations.
- Collaborative Commerce: Santiago Nájera, Director eCommerce & Digital Marketing at The Coca-Cola Company, noted that sales channels have evolved into more than just conduits. Marketplaces and superapps now serve as communication mediums, enabling transversal communication, comprehensive multi-vertical user understanding, and innovative solutions for partners. Silvia Ramírez Arenas, Global Strategy Monetization head at RappiAds, further added.
- Hyperpersonalization: Leveraging AI advancements in data processing, computing power, and sophisticated algorithms, businesses can utilize technology to benefit both customers and companies. “28% of Amazon sales occur in under 3 minutes, not due to rapid consumers but because the system understands and predicts consumer desires,” said Héctor Jaramillo, LATAM RRCG Business Development at Amazon Web Services.
The Future of Retail in Mexico
During plenaries, while Mexico was recognized as a regional leader in online retail sales, challenges and obstacles were also identified:
- Non-native digital brands like Samsonite have transformed their organizational structures by seeking logistics partners and operators to expedite deliveries.
- Businesses like Office Depot have sought digital relevance in the physical world by updating their apps to offer inventory and price checks.
- Platforms like Mercado Pago have offered alternative payment methods due to low bankarization rates and interest-free installment options to boost sales.
- Companies like Samsung Electronics have adapted to offer added value in online, service center, and physical store experiences to prevent customer attrition.
Beyond in-person activities at Espacio R (Mexico City), on-demand thematic workshops, live conference streams, and technical visits to leading companies were offered for detailed “end-to-end” operation insights. Furthermore, the eCommerce Awards ceremony highlighted over 300 Mexican companies as finalists across 19 categories.
eRetail Day Mexico aims to contribute to human capital development in Mexico, generate more investment, and foster networking and ecosystem evolution.
Key Questions and Answers
- Q: What is the current state of e-commerce in Mexico?
- Q: What strategies are essential for success in the Mexican e-commerce market?
- Q: How can businesses expand their reach in the Mexican market?
- Q: How is AI impacting e-commerce?
- Q: What notable strategies have been shared for scaling business models and improving profitability?
- Q: What challenges does the future of retail hold for Mexico?
A: 15.8% of retail sales in Mexico occur online, with an optimistic outlook for the future.
A: High digital adoption, advanced logistics infrastructure, expanding digital payments, and a robust, professionalized ecosystem are key success factors.
A: Amazon Global Selling enables businesses and independent sellers to reach new consumers without setting up overseas operations.
A: AI offers comprehensive solutions through predictive models, conversational technologies, and contextual automation, enabling personalized customer experiences and efficient spending.
A: Omnichannel, collaborative commerce, and hyperpersonalization are key strategies discussed by industry experts.
A: Challenges include adapting non-native digital brands, maintaining physical relevance in a digital world, offering alternative payment methods, and providing added value across online, service center, and physical store experiences.
