Mexico Embracing Ecommerce:
An Emerging Market
Mexico sits between two very different economies: the money rich north borders of the USA, and the less economically stable countries of South America. This shift in from one side of the country to the next contributes to a wide diversity of wealth within Mexico ranging from the mega rich to those living in poverty.
Of a population of approximately 117 million people, 49.7% have regular access to the internet (according to Statista). This equates to an estimated 59 million users across the country, leaving a large proportion of the population without access. However, having given the internet net neutrality status, the USA has set the precedent for internet access to be viewed as a right by neighboring countries.
At a recent technology conference, Mexican president Enrique Peña Nieto announced that the federal government’s target of 100,000 public hotspots with free internet access across Mexico will be surpassed by the end of 2015. In light of the government’s efforts to offer internet connections to those without, it exposes a potential market for ecommerce businesses to benefit.
The number of hotspots currently stands at 65,000 giving free connections in public spaces, schools, hospitals, and libraries. The scheme is part of a larger telecommunications reform program, which sets out the goal of 250,000 free internet hotspots by the end of 2018.
In 2013 B2C ecommerce turnover was at $33.2 billion, placing it at the fourth strongest ecommerce region in the world behind Asia-Pacific, Europe, and North America. The ecommerce turnover in Latin America grew significantly by 21.5% in comparison to 2012, higher than the rates in both Europe and North America.
The online market relies on infrastructure, both in internet availability and traditional services like mail, to complete purchases and transactions. With the continuing improvement of this infrastructure, the greater the potential market for businesses to move into.
Figures all point to Mexico growing online, with a consistent growth of online display ad revenues in between 2009 – 2013 increasing to $439 million. This highlights the growing trust in the online market from both customers and brands looking to tap into the potential market.
See the latest stats on Internet Usage in Mexico in the infographic below, created by Search Laboratory:
