E-commerce in Latino America@elmonederofernando.monedero@havasmedia.com

Second-highest growth in online buyers worldwide 2012 = 26.4%

but B2C ecommerce is still in its infancy

(total sales reaching only $36.82 billion this year)

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Source: eMarketer

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Brazil is the main player with more than half of Latin America’s ecommerce

sales

expansion in mobile internet usage in recent years, one of the success keys.

have the highest average spend per online buyer at $838—more than $250 higher than Latin America’s regional average.

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Market - Brazil

Source: eMarketer 2012

Brazilians are experiencing an increase in disposable income, and have high usage of credit cards compared to other countries, mainly with VISA or Mastercard.

By 2015, 19.4% of the country’s population will be making online purchases (31.6 million Brazilians)

Purchase deliveries to lower and middle class consumers outside of Brazil’s major cities present a challenge, though solutions are slowly being put in place.

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Market - Brazil

Source: eMarketer 2012

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Mexico’s internet population is big but its online retail industry is immature.

This represent a huge opportunity…Mexico’s gains will come from new internet users turning into online buyers.

Market - Mexico

Source: eMarketer 2012

Market - Argentina

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Argentina defaulted on its debt in 2001, and since then many people have been hesitant to trust the country’s banking system, choosing instead to operate outside of it, making traditional online payments difficult.

Also, online retailers in the country face obstacles with delivery and payment options, though as more individuals in Argentina become internet users, the community of online buyers will grow in size.

Despite these factors, the country’s population of internet users is much more intense than other LATAM countries when it comes to ecommerce participation. Source: eMarketer 2012

The online buyer

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They begin the purchase process directly on retailer websites.

When decides to shop online, they have a sense of what they’re looking for.

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Main concerns of online buyers

taxes at time of delivering and Product time delivery

Shipping costs

Pricing is not in my currency

Merchant doesn't accept my credit cards

Unable to read the descriptions of products (foreign language)

Easy, quick and intuitive checkout

the ability to track the order

Online return policies and processes

But the most important…is the price

They still care about shopping around for the best price

price comparison led the online retail categories, with 25% reach among all internet users.

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MercadoLibre, an online auction site and eBay partner, is the dominant retail site in Latin America, and the website where much of that price comparing is happening.

The online retailer

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The retailer

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the retailer must consider:

Be clear with landed costs

Pricing in preferred currency

Language translation

Payment & Delivery options

Customer service

There are two basic models for engaging in international ecommerce:

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International E-commerce Companies

CentrallyCross-border trading (CBT), whereby retailers accept foreign orders on their website and ship them internationally.

LocallyThe second is going local, which entails setting up county websites and operations

Source: eMarketer 2012

Centrally VS Locally

What functions should be managed centrally?

efficiencies of scale or require standardizationbranding responsibilities

core ecommerce technology

global partnerships like global carrier agreements.

What functions require country expertise?

ensure relevancy and take advantage of lower costs

product sourcing, merchandise assortment, website language and translation

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E-commerce International Expansion

Source: eMarketer 2012

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What can be a good ecommerce business?

what Latinos are more looking for buying online is apparel and

accessories.

The clothing and footwear segment constituted the most purchased items among online

buyers at 43%

Ana Lizz Pardo; Marketing Manager @ Privalia México

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E-commerce in Latino America@elmonederofernando.monedero@havasmedia.com