Consumer Attitudes and Online Retail Dynamics in Mexico02 Nov 2011 • by Natalie Aster
London – According to the report “Consumer Attitudes & Online Retail Dynamics in Mexico” by iCD Research, 36.7 million Mexicans or 33.8% of the population had internet access in 2010. Despite low online penetration, Mexico has the second largest internet population among the Latin American countries. Between 2008 and 2010, Mexico recorded a strong 20% increase in the number of internet users which was attributed to the growth in the popularity of the internet from the youth population and the promotion of internet access by the Mexican government. As the internet penetration in the country is forecasted to increase, the online retail industry is expected to continue to record strong growth.
Total Internet Users and Penetration, 2005–2010
Source: ICD Research
In 2009, the Mexican economy contracted by 6.1% which was attributed to the adverse effects of the global economic recession. However, the Mexican economy recovered and is forecast to record growth to 2015. The low levels of inflation, falling unemployment rates and rising consumer confidence are anticipated to support retail expenditure in Mexico during the forecast period.
Consumer Attitudes & Online Retail Dynamics in Mexico
Published: October, 2011
Price: US$ 1,450.00
The growth in the online retail market is expected to exceed the growth recorded in the overall Mexican retail industry. The growth in the online retail channel is expected to reflect the increase in consumers looking for cheaper and convenient shopping alternatives to traditional channels, retailers increasing profit margins by reducing overhead costs, and the Mexican government promoting e-commerce in the country.
Mexican consumers prefer to shop at US based online stores such as Amazon, EBay, and Best Buy, who are able to provide products at comparatively cheaper prices as a result of their economies of scale. Therefore, local Mexican retailers have been unable provide competitive online offerings.
Between 2008 and 2010, Mexico recorded a strong 20% increase in the number of internet users which was attributed to the growth in the popularity of the internet from the youth population and the promotion of internet access by the Mexican government.
The Mexican broadband market is adversely affected by the low levels of competition and subsequent high broadband tariffs. Telmex, subsidiary of telecom giant America Movil, has an 80% share of the fixed line Mexican telecommunications market, while other smaller operators such as Cablemas and Megacable operate in the quasi-monopoly. As a result, broadband tariffs in Mexico are the highest compared to other Organization for Economic Co-operation and Development (OECD) countries.
More information can be found in the report “Consumer Attitudes & Online Retail Dynamics in Mexico” by iCD Research.
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