Mexico Social Commerce Market Report 2022: GMV will rise from US$1,591.7 million in 2022 to US$6,488.4 million by 2028 – ResearchAndMarkets.com

DUBLIN–(BUSINESS WIRE)–The report “Mexico City 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” has been added to the report from ResearchAndMarkets.com offer.

The social commerce industry in Mexico is expected to grow 29.2% on an annual basis to reach US$1,591.7 million in 2022.

The social commerce industry is expected to grow steadily over the forecast period, registering a CAGR of 26.8% during the period 2022-2028. The GMV of social commerce in the country will grow from US$1591.7 million in 2022 to US$6488.4 million by 2028.

The trend of social commerce has grown significantly in the Latin America region, especially in Mexico over the past couple of years. Growing adoption of digital channels along with increasing penetration rate of smartphones and internet among consumers is supporting the growth of the social commerce market in the country. The global pandemic outbreak has also led to a change in consumer shopping habits, with consumers being confined to their homes, spending most of their time online. This shift in consumer buying behavior has contributed to the growth in the penetration rate of social shoppers in the country over the past four to eight quarters.

With changes in consumer buying behavior expected to persist in the post-pandemic era, the publisher expects the penetration rate of social shoppers to see strong near-term growth in the country. According to the Q1 2022 Social Commerce Market Survey, Mexico’s social shopper penetration rate reached 31% in 2021, putting it behind Brazil with 39% in the Latin America region. As more and more shoppers purchase products and services online, the publisher expects a strong inflow of investment from global investors, including venture capital and private equity firms, at the over the next four to eight quarters.

Growing use of social media platforms by consumers is driving the social commerce industry in Mexico

In Mexico, social commerce has started to gain traction in the e-commerce industry in recent quarters. More than half of consumers across the country have made purchases from social commerce. One of the reasons driving social commerce shopping is the growing use of social media platforms by Mexican consumers.

It is estimated that 80 million people use Facebook in the country in 2021. Additionally, the country has more than 30 million active Instagram users. The publisher’s recent survey found that of the 55% who made a purchase through social commerce, more than 85% said they bought products on Facebook, nearly 40% did so via WhatsApp and 30% via Instagram.

With the number of users on these social platforms expected to grow further over the next four to eight quarters, the publisher expects more and more consumers to opt for social commerce, which will subsequently drive growth. sector in the short and medium term. .

Innovative social commerce startups bring e-commerce to non-digital consumers in Mexico

In Latin America, a large portion of consumers still do not have access to digital channels, such as e-commerce platforms and mobile wallets. Additionally, consumers are also wary of growing concerns about online fraud. Social commerce platforms are innovating with their product offerings in Mexico to tap into this consumer population. For example,

  • Launched in 2021, Neta is a Mexican social commerce startup that brings e-commerce to non-digital consumers in the country. Notably, Neta’s business model leverages mom-and-pop stores, the most dominant retail channel having a density of around 20 people for each store in Mexico. The mom-and-pop stores serve as the company’s initial entry point to a stable base of hundreds of weekly customers.

  • To increase the popularity of its social commerce platform among consumers, the company uses a gamification feature inspired by Pinduoduo. Mom-and-pop stores also operate as a pickup point for deliveries. Rather than delivering to each individual customer, the company is fulfilling customers’ weekly orders in a single drop from every store nationwide. Thanks to its innovative business model, the company has gained popularity among consumers.

The publisher expects more innovative social commerce platforms to emerge over the next four to eight quarters in Mexico.

Innovative local social commerce startups seek to capitalize on growing trend in Mexico

The social commerce industry continues to grow and find its place in the country. Over the past few quarters, several innovative local social commerce startups have sprung up as they realize the potential of the industry and move quickly to capitalize on this opportunity. For example,

  • Vendora, the social commerce platform in Mexico, leverages the use of instant messaging applications, such as WhatsApp and other social networks, to complete business transactions and promote products and brands. The platform was launched with the aim of supporting micro-entrepreneurs in the country in their digital transformation.

  • Notably, the platform can be used by anyone looking to increase their income and generate a new source of income. With a catalog of products and brands already available on the platform, all you have to do is share the product with potential customers on social platforms and resell the products. Since December 2021, thousands of resellers have been using the platform to share and resell products through social channels such as WhatsApp, Facebook and Instagram.

The publisher expects more local social commerce platforms to emerge and take advantage of the opportunity over the next four to eight quarters. This will further promote competition and innovation in the social commerce industry in Mexico in a short to medium term perspective.

Scope

This report provides an in-depth, data-driven analysis of social commerce in Mexico. Below is a summary of the main market segments:

Mexico E-commerce 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

  • Clothes and shoes

  • Beauty and personal care

  • Food and groceries

  • Appliances and Electronics

  • Home improvement

  • Others

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

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

  • Payment

  • Prepaid card

  • Digital and mobile wallet

  • Other digital payment

  • Species

Mexico Social Commerce Industry Market Size and Forecast by Demographics and Consumer Behavior, 2021

  • By age

  • By income level

  • By gender

For more information on this report visit https://www.researchandmarkets.com/r/9125k6

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