May 23, 2022, 11:45 ET
DUBLIN, May 23, 2022 /PRNewswire/ -- The "Mexico Social Commerce Market Intelligence and Future Growth Dynamics Databook - 50+ KPIs on Social Commerce Trends by End-Use Sectors, Operational KPIs, Retail Product Dynamics, and Consumer Demographics - Q1 2022 Update" report has been added to ResearchAndMarkets.com's offering.
Social commerce industry in Mexico is expected to grow by 42.0% on annual basis to reach US$1,749.5 million in 2022.
The social commerce industry is expected to grow steadily over the forecast period, recording a CAGR of 37.0% during 2022-2028. The social commerce GMV in the country will increase from US$1,749.5 million in 2022 to reach US$11,136.7 million by 2028.
The social commerce trend has grown significantly across the Latin American region, especially in Mexico in the last two years. The growing adoption of digital channels along with the increasing smartphone and internet penetration rate among consumers are supporting the growth of the social commerce market in the country.
The global pandemic outbreak also resulted in a shift in consumer shopping habits as consumers were confined to their homes, thereby spending most of their time online. This change in consumer shopping behavior has aided the growth of the social buyer penetration rate in the country over the last four to eight quarters.
With changes in consumer purchasing behavior expected to persist in the post-pandemic era, the publisher expects the social buyer penetration rate to record strong growth from the short-term perspective in the country. According to the Q1 2022 Social Commerce Market Survey, the social buyer penetration rate in Mexico reached 31% in 2021, which is second only to Brazil at 39% in the Latin American region. As more and more shoppers buy products and services online, the publisher expects a strong inflow of investment from global investors, including venture capital and private equity firms, over the next four to eight quarters.
The growing use of social media platforms among consumers is driving the social commerce industry in Mexico
In Mexico, social commerce has started to gain relative ground in the e-commerce industry over the last few quarters. More than half of the consumers across the country have made social commerce purchases. One of the reasons driving social commerce purchases is the growing use of social media platforms among consumers in Mexico.
An estimated 80 million people are using Facebook in the country in 2021. Moreover, the country has more than 30 million active Instagram users. The publisher's recent survey revealed that out of the 55% who made a purchase through social commerce, more than 85% have claimed to buy products from Facebook, nearly 40% did it through WhatsApp, and 30% through Instagram.
With the number of users on these social platforms expected to grow even more over the next four to eight quarters, the publisher expects more and more consumers to opt for social commerce, which will subsequently drive the industry growth from the short to medium-term perspective.
Innovative social commerce startups are bringing e-commerce to the non-digital consumers in Mexico
In Latin America, a large proportion of consumers still do not have access to digital channels, such as e-commerce platforms and mobile wallets. Moreover, consumers are also wary of the growing concerns around online fraud. Social commerce platforms are innovating with their product offerings in Mexico to tap into this consumer demographic.
- Launched in 2021, Neta is a Mexican social commerce startup that brings e-commerce to non-digital consumers in the country. Notably, the shopping model of Neta leverages mom-and-pop stores, the most dominant retail channel having a density of approximately 20 people for every shop in Mexico. The mom-and-pop stores serve as the initial entry point for the firm to a steady base of hundreds of weekly clients.
- To further the popularity of its social commerce platform among consumers, the firm uses a Pinduoduo-inspired gamification feature. The mom-and-pop stores also function as a pick-up point for deliveries. Rather than delivering to each individual client, the firm fulfills weekly client orders in a single drop to each shop in the country. Through its innovative business model, the firm has gained increasing traction among consumers.
- The publisher expects more innovative social commerce platforms to emerge over the next four to eight quarters in Mexico.
Homegrown innovative social commerce startups are looking to capitalize on the growing trend in Mexico
The social commerce industry is still developing and finding its place in the country. Over the last few quarters, several homegrown innovative social commerce startups have emerged as they realize the potential of the industry and are moving quickly to capitalize on this opportunity.
- Vendora, the social commerce platform in Mexico, leverages the use of instant messaging apps, such as WhatsApp and other social networks, to close commercial transactions and promote products and brands. The platform was launched with the aim to support micro-entrepreneurs in the country in their digital transformation.
- Notably, the platform can be used by anyone looking to increase their revenue and generate a new source of income. With a catalog of products and brands already available on the platform, one is just required to share the product with potential customers on social platforms and resell the products. As of December 2021, thousands of resellers are using the platform to share and resell products through social channels such as WhatsApp, Facebook, and Instagram.
The publisher expects more homegrown social commerce platforms to emerge and capitalize on the opportunity over the next four to eight quarters. This will further promote competition and innovation in the social commerce industry in Mexico from the short to medium-term perspective.
Mexico Ecommerce Industry Market Size and Future Growth Dynamics by Key Performance Indicators, 2019-2028
Mexico Social Commerce Industry Market Size and Future Growth Dynamics by Key Performance Indicators, 2019-2028
Mexico Social Commerce Industry Market Size and Forecast by Retail Product Categories, 2019-2028
- Clothing & Footwear
- Beauty and Personal Care
- Food & Grocery
- Appliances and Electronics
- Home Improvement
Mexico Social Commerce Industry Market Size and Forecast by End Use Segment, 2019-2028
Mexico Social Commerce Industry Market Size and Forecast by End Use Device, 2019-2028
Mexico Social Commerce Industry Market Size and Forecast by Location, 2019-2028
- Cross Border
Mexico Social Commerce Industry Market Size and Forecast by Location, 2019-2028
- Tier-1 Cities
- Tier-2 Cities
- Tier-3 Cities
Mexico Social Commerce Industry Market Size and Forecast by Payment Method, 2019-2028
- Credit Card
- Debit Card
- Bank Transfer
- Prepaid Card
- Digital & Mobile Wallet
- Other Digital Payment
Mexico Social Commerce Industry Market Size and Forecast by Consumer Demographics & Behaviour, 2021
- By Age
- By Income Level
- By Gender
Reasons to buy
- In-depth Understanding of Social Commerce Market Dynamics: Understand market opportunities and key trends along with forecast (2019-2028).
- Insights into Opportunity by end-use sectors - Get market dynamics by end-use sectors to assess emerging opportunity across various end-use sectors.
- Develop Market Specific Strategies: Identify growth segments and target specific opportunities to formulate social commerce strategy; assess market specific key trends, drivers, and risks in the industry.
For more information about this report visit https://www.researchandmarkets.com/r/98df7y
Research and Markets
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