Go Online: E-commerce in Latin America 2020
Do You Want to Expand to the LATAM Market? Consider These Three Key Factors
Due to the current situation caused by COVID-19, we can observe an explosive growth in online sales. This ongoing trend brings new business opportunities, as well as new ways to access the Latin American market (LATAM) for entrepreneurs from Europe, the United States, and Canada.
The LATAM e-commerce market is expected to grow by 29% from 2020 to 2024. 25% of online customers made their first online purchase in March of this year. The products with the highest online sales in LATAM include computers and accessories, home appliances, clothing and shoes, tools and building materials, home accessories, and furniture.
But in order to sell successfully online, you have to analyze and study the consumers, their preferences, and local tastes, as well as cultural differences. For this reason, in this week’s Blog I have summarized three key factors to consider when expanding or starting your online business in LATAM:
1. Web Design
In the virtual world, the website of any business, store, or professional service is a business card to the outside world. Just like any restaurant, hotel, dental clinic or law firm tries to create a pleasant physical space to receive their diners, guests, or clients. The creation of a business web space should follow the same concept to receive its virtual clients. When creating a website for the LATAM market local consumers expect its content to be visually pleasing, fast website navigation, and preferably a chatbot that is available 24/7 to answer the most urgent questions. LATAM online consumers appreciate the ability to purchase without registering and a variety of payment methods which, of course, should ensure a safe shopping experience.
2. Marketing and Customer Interaction
The typical LATAM online consumer is young and likes technology. 85% of the population in LATAM is an active user of social networks, the most popular being Whatsapp, Facebook, Youtube, Instagram, and Twitter. This is why network marketing campaigns and constant interaction with customers are key in the online expansion into the LATAM market. The communication methods preferred by consumers are email (57%), text messages (27%), via a business' own mobile app (26%), Facebook (23%), Whatsapp (10%), and Instagram (10%).
3. Seasons and Shopping Campaigns
Let's be honest, we're all bargain hunters. The typical LATAM consumer loves bargains. It's very common to wait for a special campaign or sale to make purchases. In the retail sector, 78% of annual sales are made for Christmas, 68% for Black Friday, 58% for Cyber Monday, 53% for Mother's Day, and 52% for Valentine's Day. Other special occasions for smart spenders are Children's Day, Father's Day, and Back to School.
Before launching a new business or expanding your existing company into the Latin American market, remember to study and analyze the preferences of your market and your future customers. Although LATAM is a large market with a lot of potentials, it is necessary to fragment the various regions taking into account that there are cultural and traditional differences along with specific local characteristics and challenges.
Photo: www.pixabay.com // JeongGuHyeok