Developed by: Study of Ecommerce Mexico 2015 Sponsored by: Objective and Vision of the Study The Mexican Internet Association, A.C. (AMIPCI) integrates the companies that represent an influence on the development of the Internet industry in Mexico. Every year, the AMIPCI undertakes the task of carrying out studies based on the use of Internet in Mexico to guide and promote market growth. Aware of the need to understand and analyze the aspects that can affect the e-commerce in our country, AMIPCI presents the Study of Ecommerce Mexico 2015, which is already the 10th version and is divided into two sections, that investigates components Ecommerce: Online Buyers and Ecommerce Landscape. The study was conducted through the auspices of the Mexican Association of Online Sales (AMVO), IBM, VISA, Prosoft 3.0 and the Ministry of Economy. The realization was conducted by comScore. Analyses were performed by interviewing online buyers in Mexico and the leading e-commerce players in the country to have the vision of both supply and demand. Developed by: Developed by: Estimated market value of ecommerce in Mexico 2014 Sponsored by: Development of Ecommerce in Mexico 34% 42% $85.70 $54.50 $24.50 2009 $36.50 2010 2011 2012 USD 9.2 Billones $121.60 2013 Billions of Pesos (MXN) (*) Average Exchange rate: MXN 13.28 x 1 USD Desarrollado por: (*) USD 12.2 Billones $162.10 2014 Developed by: Analysis of Consumer Experience Sponsored by: Table of Contents Objectives & Methodology 8 Digital Purchase Behavior 9 Digital Spending 14 Payments & Transactions 17 Digital Shopping Experiences 20 Mobile Shopping Experiences 23 Executive Summary 27 Developed by: Objectives & Methodology Research Objectives: • Quantify e-Commerce value and volume in Mexico by device type and category. • Understand preferences and satisfaction of digital shoppers. • Understand barriers to digital shopping and how merchants can overcome them. • Know the most important factors to make an online purchase. • Identify the problems for which a transaction is not completed. Study Methodology: • Members of an online survey panel were contacted via email by comScore. • A total of 1,243 respondents completed the survey. • Qualified respondent: Made an online purchase using a computer, smartphone, or tablet in the past 3 months (January 2015-March 2015). • 52-question survey, which took an average of 21 minutes to complete. • Data weighted to comScore Media Metrix audience prior to analysis. • Confidence level of 95%, standard error: +/- 2.53% Developed by: Developed by: Digital Purchase Behavior Sponsored by: Three-quarters of online Mexicans made an online purchase during the first quarter of 2015. Overall Online Purchase Incidence (Past 3 Months) The growth of online shopping is heavily influenced by mobile shopping (tablet and smartphone), especially in the category Digital Downloads Consumers aged 18 to 34 years bought more digital content than those of 35 years or more. No, 25% Yes, 75% Q1B. How many online transactions did you make using each device in the past 3 months? Please provide your best estimate of the number of times you have paid for something online. Base: Total respondents (n=1,243) + screened respondents (n=417) Developed by: Device ownership is high, and half of online shoppers have all three devices (computer, smartphone, and tablet). Device Usage 93% 84% Shoppers 18-34 years of age use smartphones more than those aged 35+; those with SEL AB use smartphones and tablets more their counterparts. 57% 3% 4% 4% 11% 28% Smartphone and tablet or tablet only Smartphone only Computer and tablet Computer only 50% Computer Smartphone Tablet Computer and smartphone All 3 devices S1. Among the devices listed below, which do you own or regularly use? Please select all that apply Base: Total respondents (n=1,243) Developed by: Over half of shoppers purchased from an international retailer, with the U.S. being the top source for imported items. International Purchases Country Purchased From 64% United States No, 43% Asia Yes, 57% 36% Latinoamerica 13% Europe 11% Other Q2. In the past year, have you made an online purchase from an internationally-based retailer (i.e. located outside of Mexico) and had it shipped to you or someone else in Mexico? | Base: Total respondents (n=1,243) Q2b. In which country or countries were those internationally based retailers located? Please select all that apply. | Base: International online shoppers (n=707) Developed by: 2% Shopping and buying are expected to increase around all holidays except for Halloween/Día de Muertos More shoppers with SEL AB said their shopping would increase at Christmas and HotSale than those with SEL C or below. Expected Change in Shopping Habits by Holiday Net Change: Christmas HotSale El Buen Fin Mother’s Day Valentine’s Day Back to school Cyber Monday Halloween 12% 25% 13% 63% 30% 20% 45% 42% 21% 32% 52% 41% 18% 44% 57% 28% 14% 51% 49% 25% Decrease 22% 40% 50% 23% 31% 29% 8% 28% 5% 56% Stay the Same 19% Increase Q6. Comparing your everyday online shopping habits with your habits around holidays, how did or do you expect your online shopping and buying to change around each of these holiday periods in 2015? Base: Total respondents (n=1,243) Developed by: -6% Developed by: Digital Spending Sponsored by: The three top categories purchased online were Apparel & Accessories, Digital Downloads, and Event Tickets; the most money was spent within the Computer and Furniture categories (excluding travel). Category purchased and Amount Spent Across All Devices Category Purchase Incidence The percentages can not be added because of duplication Average Quarterly Spend MXN* Average quarterly spend across categories excluding travel 53% Apparel & Accessories 49% Digital Downloads 35% Event Tickets Video Games, Consoles & Accessories 23% Books & Magazines (physical copies only) 21% Toys & Hobbies 20% Music, Movies & Videos (physical copies only) 19% Computer Software (excluding PC Games) 19% Furniture, Appliances & Equipment 19% Consumer Electronics (excluding PC Peripherals) 18% $5,575 $1,383 $581 $1,179 $1,555 $480 $1,086 $448 $922 $2,643 $1,652 Q3. Please take a close look at the table below. Under each category, enter the amount of money in pesos you spent online in the first 3 months of the year, January 2015 – March 2015, from each type of device you have used for online transactions. Base: Total respondents (n=1,243); *Actual base size for the mean of each category varies and is determined by the incidence of that category. Developed by: Three in ten shoppers made a travel purchase in the past three months. The highest average spend was MXN$9,284, almost 67% above the average of other non-travel-related categories. Category Purchased and Amount Spent Across All Devices (continued) The percentages can not be added because of duplication Category Purchase Incidence Average Quarterly Spend MXN* Average quarterly spend across categories excluding travel Sport & Fitness 18% Jewelry & Watches 17% Computers / Peripherals / PDAs 17% $5,575 $1,340 $1,735 $3,714 Consumer Packaged Goods 14% General Services (photo printing, shipping, etc.) 14% $1,523 Office Supplies 11% $1,449 Flowers, Greetings & Misc. Gifts Home & Garden Other category not listed Travel $858 10% $560 7% $1,210 13% $2,143 30% $9,284 Q3. Please take a close look at the table below. Under each category, enter the amount of money in pesos you spent online in the first 3 months of the year, January 2015 – March 2015, from each type of device you have used for online transactions. Base: Total respondents (n=1,243); *Actual base size for the mean of each category varies and is determined by the incidence of that category. Developed by: Developed by: Payments & Transactions Sponsored by: Funding payments from a bank account (Credit Card, Debit Card, PayPal, MercadoPago, SafetyPay and Bank Transfer) dominate in Mexico Payment Types Used Past 3 Months Across any Device (n=1,243) Net: Payments with Bank Credit/Debit Cards as support 53% Debit card 52% PayPal 28% MercadoPago 19% Prepaid card 16% Gift card 15% Cash on delivery 22% 78% Offline 7 Eleven 29% 8% Pharmacy 8% Other offline channel 7% 14% 26% 9% 9% 10% 9% 13% 38% 33% 9% 8% 24% Oxxo 14% 5% 25% 26% 12% 44% 11% 15% 4% 12% 12% Bank deposit Electrónico 24% BC 9% Net: Offline Payments 38% 51% 12% 18% 32% 43% 39% 31% Commercial credit card Classification According to Number of Payments 38% 5% Net: Other Non-Banking Cards 81% 29% 52% 17% 7% Tablet (n=442) 93% 30% 58% Bank account transfer Smartphone (n=681) 83% 95% Personal credit card Safety Pay Computer (n=1,101) 20% 15% 23% 17% 5% 6% 5% 6% 3% 5% 29% 6% 11% 11% 5% 4% 8% Q4A. Which payment types/channels did you use for the online purchases you made in the past 3 months? Please select all that apply for each column. Base: Device purchasers A Developed by: Security concerns are the leading reason for not storing information with online retailers. Reasons for Not Storing Credit/Debit Information with Online Merchants 77% Security concerns I don’t purchase enough from a company to warrant storing my card information 28% I didn’t know that I could store my credit or debit card information It helps curb my spending I don’t want to set up an account Other I don’t shop with retailers who store cards 14% 13% 7% 2% The percentages can not be added because of duplication 2% Q10b. What are your reasons for not storing your credit or debit card information (e.g., card number, billing address, etc.)? Base: Do not store any information with online merchants (n=430) Developed by: Desarrollado por: Developed by: Digital Shopping Experiences Sponsored by: Shoppers are highly satisfied with shopping both online and in a physical store. Shoppers 35 years and older are more satisfied with online shopping in general, smartphone shopping and shopping in a physical store than those 18-34. Satisfaction with Shopping Overall online (n=1,243) 8% 6% Computer (n=1,101) 7% 5% Smartphone (n=681) 7% 10% Tablet (n=442) 7% 9% Physical Store (n=1,243) 8% 7% Extremely Dissatisfied 40% 38% Net Satisfied: 46% 50% 43% 40% 41% 40% Somewhat Dissatisfied 43% 45% Somewhat Satisfied Q5A. How satisfied are you with your overall shopping experience(s) in the last three months? Base: Device purchasers Developed by: Desarrollado por: 86% 88% 83% 84% 85% Extremely Satisfied The majority of all shoppers are likely to purchase across devices; however, intent is highest on a computer and lowest on a smartphone. Males are more likely to make purchases on a computer in the next three months than females (92% vs. 85%). 88% Intent to Purchase in the Next 3 Months 64% 67% Likely (Top 2 Box) 14% 15% Neutral 4% 8% 22% 18% Unlikely (Bottom 2 Box) Computer (n=1,156) [A] Smartphone (n=1047) [B] Tablet (n=705) [C] Q5B. How likely are you to make a purchase using each of these devices in the next three months? Base: Device users . Developed by: Desarrollado por: Developed by: Mobile Shopping Experiences Sponsored by: Mobile device purchasers indicate they do so because of time-saving applications and the ability to access the Internet from anywhere and anytime compared with a computer. Males trust security more than females on a Smartphone (45% vs. 36%) and Tablet (49% vs. 33%). Reasons for Device Choice for Online Purchases The percentages can not be added because of duplication Computer (n=1,101) [A] Smartphone (n=681) [B] Easy to make purchases on this device 73% Internet access on this device is fast 71% Easy to compare prices and find the best deal 68% I trust the security online on this device 67% 65% Easy to save my receipts on this device Available time-saving applications Able to access the Internet from this device from anywhere and anytime 52% 54% 46% 46% 34% 43% 41% 41% 30% 31% 41% 48% Available special offers/coupons Tablet (n=442) [C] 35% 65% 34% 50% 75% 32% 50% Other 2% 2% 2% None of the above 1% 3% 3% Q7. Why do you use each of the following devices to make purchases online? Base: Total respondents (n=1,243) . Developed by: Desarrollado por: About three in five mobile device users have used their device to research product details, compare prices, and find nearby stores. Shopping Activities Conducted on Mobile Device(s) The percentages can not be added because of duplication Researching product details 63% Comparing prices before shopping for an item 62% 59% Finding nearby stores 50% Searching for product reviews/recommendations from a website 45% Comparing prices while shopping for an item in person at a store 44% Accessing deal of the day apps 37% Sharing product recommendations via a social networking site or app 26% Mobile barcode scanning to compare prices 24% Sharing product recommendations via email Other None of the above Shoppers 18-21 use their mobile devices to research product details (71%) more than those who are 22 years and older. 1% 4% Q8a. Which of the following activities have you conducted on your mobile device? Base: Mobile device users (n=1,103) Developed by: Desarrollado por: Over a third of mobile device users say they have purchased products using a mobile app. Mobile Device Transactions Conducted Purchased products using a mobile app (such as electronics, apparel, shoes, etc.) 38% Booked a rental for lodging using a mobile app (such as Best day, Despegar, PriceTravel, Airbnb, booking.com, hotels.com, etc.) 23% Used a mobile app on your mobile device to purchase goods at a coffee shop (such as Starbucks, Krispy Kreme, etc.) 22% Booked a flight 21% Booked and/or paid for a taxi, private car or rideshare using a mobile app (such as Uber, Yaxi, Easy Taxi, Smart Taxi, Taxi Beat, etc.) Booked a grocery delivery using a mobile app (such as Superama, La Comer en tu casa, etc.) Paid for a restaurant order using a mobile app (such as OpenTable, Sin Delantal, Hello Food, Pedidos Ya, etc.) None of the above Younger shoppers have done these activities more than shoppers 35 years and older. 18% 17% 14% 33% Q13d. Which of the following activities have you done using your mobile device? Base: Mobile device users (n=1,103) Developed by: Desarrollado por: Executive Summary • • • • Three-quarters of online Mexicans are online purchasers based on reported purchase activity from January to March 2015. • More than one-half made non-domestic purchases during this period. • The volume of online buyers has grown strongly influenced by the purchase of digital downloads from mobile devices Average quarterly spending across all devices and non-travel categories was MX$5,575 approximately MXN$1,860 pesos spent online per month . Two-thirds of shoppers use a mobile device (smartphone and/or tablet) for their online purchases, with just one-third using a PC device exclusively. Mexicans like using mobile devices for their ease in accessing the Internet, as well as for the ability to use retailer apps, which can save time. • Seven in ten mobile users have shopped within retailers’ apps, and more than one-third have made in-app purchases. Developed by: Executive Summary • 95% of online buyers have used some type of payment funded with bank accounts or credit or debit cards, and 44% also continue using Offline payment methods. • Overall satisfaction with online shopping is high, on par with consumers’ satisfaction with shopping in physical stores. Online purchasers are very likely to continue buying online in the future, particularly using a PC. • Shoppers expect their shopping to increase around all holidays except Halloween/Día de Muertos. The largest increases are expected around Christmas, HotSale, El Buen Fin, and Mother’s day. Developed by: Developed by: Analysis of the retailer’s experience Sponsored by: Table of Contents Objectives & Methodology 31 E-commerce Landscape 32 Website Features 36 Digital Marketing & Promotions 41 Executive Summary 44 Developed by: Objectives & Methodology Research Objectives: • • • • • • Quantify the value and volume of e-commerce sales in Mexico Understand expected sales increases and decreases around holidays Determine payment types accepted Determine promotions used by retailers Understand website features Quantify the value of the physical store versus online store. Study Methodology: • Online merchants were sent an email invitation by AMIPCI with a link to the survey. • The survey had up to 20 questions and took an average of 10 minutes to complete. • 75 respondents who work in e-commerce sales completed the survey. Developed by: Developed by: E-commerce Landscape Sponsored by: Apparel, sports & fitness, other and consumer electronics are the top four categories sold among these retailers. Categories of goods and services sold online Apparel & accessories Sport & fitness Consumer electronics (excluding PC Peripherals) Computers / peripherals / PDAs Furniture, appliances & equipment Home & garden Toys & hobbies Video games, consoles & accessories Books & magazines (physical copies only) Consumer packaged goods Office supplies Jewelry & watches Music, movies & videos (physical copies only) Computer software (excluding PC Games) Digital downloads Flowers, greetings & misc. gifts Event tickets General services Other category not listed Travel 37% 33% 25% 23% 21% 20% 20% 16% 15% 15% 15% 13% 13% 12% 11% 7% 4% 4% 33% 13% Q1. Which of the following categories of goods and services do you or your organization sell online? Base: All retailers (n=75) Developed by: Consumer electronics and computers / peripherals / PDAs represented 40% of the share, and other categories not listed represents a third of the share of online sales in the first quarter of 2015. Share of Sales (excluding travel) Consumer electronics (excluding PC Peripherals) Computers / peripherals / PDAs % MXN Sales Q1 2015 Retailers Event tickets 21% Apparel & accessories Consumer packaged goods 39% Travel 61% No Travel 34% (Other) Home & garden Sport & fitness Furniture, appliances & equipment 19% If Travel were included, it would represent 61% of the sales dollars even though only 13% of retailers sell travel. 1% 1% B 1% 5% 1% 2% 2% 2% 3% Office supplies Computer software (excluding PC Games) Video games, consoles & accessories 8% Other listed categories combined* Other category not listed Q3. Please take a close look at the table below. Under each category, enter the amount of money in pesos you have sold online in the first 3 months of the year, January 2015 – March 2015, Please list the amount spent from domestic (in Mexico) vs. International (all other countries) in separate columns. Base: All retailers (n=75) | Note: Domestic and International sales are shown together. * Includes the following categories: books, magazines (physical copies only), digital downloads, flowers, greetings & misc. gifts, General services, Jewelry & Watches, music, movies & videos (physical copies only), and toys and hobbies Developed by: Retailers expect sales to increase the most around El Buen Fin, Christmas and HotSale. Expected Change in Sales by Holiday El Buen Fin Christmas 3% 5% HotSale Cyber Monday Mother’s Day 1% 9% Vacaciones… Halloween Net Change: 77% 80% 80% 79% 35% 75% 79% 64% 57% 33% 24% 31% Back to School Valentine’s Day 17% 15% 21% 29% 57% 60% Decrease 48% 47% 37% 33% 29% 32% 9% 11% 63% Stay the Same Increase Q4. Comparing your typical sales volume with your sales volume around holidays, how did/do you expect your sales to change around each of these holiday periods in 2015? Base: All retailers (n=75) Developed by: 23% 6% 24% 19% Developed by: Website Features Sponsored by: Most retailers control their own online storefront. Debit/credit cards and PayPal are the most accepted types of payment. Type of Online Storefront Payment Types Accepted Online Debit card 83% Personal credit card Through a website/app that you or your company owns 92% 80% PayPal 78% Commercial credit card 73% 61% Bank account transfer MercadoPago Prepaid card Through a website/app that you do not own or control 17% Gift card Safety Pay Other online channel 29% 20% 20% 17% AB 22% A A Bank deposit Oxxo Other 4% 51% C C 7 Eleven 36% Cash on delivery 32% Pharmacy Other offline channel Q5. How do you sell your products/services online? | Base: All retailers (n=75) Q5A. Which payment types/channels do you offer/accept for the online purchases on your website? Base: Retailers who own their own online storefront (n=69) 20% 15% A AB Developed by: 58% Almost nine in ten retailers are aware of the AMIPCI Trustmark, and almost all retailers are aware of the HotSale and El Buen Fin sales events. Awareness of AMIPCI Trustmark Awareness of Mexico’s HotSale event 3% Awareness of El Buen Fin event 3% 12% 88% 97% 97% Aware Not Aware Q6A. Are you aware of the AMIPCI Trustmark? Q6B. Are you aware of Mexico’s HotSale online sales event? Q6C. Are you aware of El Buen Fin online sales event? Base: All retailers (n=75) Developed by: Seven in ten have some type of risk analysis/prevention tool or service. Controls and security features on the website 54% Tools of analysis and risk prevention by third parties Own tools of analysis and risk prevention 46% 3D Secure Authentication 32% Online validation system Validation via proof of address Mobile confirmation 17% 13% Other None of the above Net: Have a risk analysis/ prevention tool or service: 71% 20% 17% 4% Q8. Which of the following controls and/security features do you utilize on your website? Base: Retailers who own their own online storefront (n=69) Developed by: Three in five retailers have a mobile app, with most being supported by both Android and Apple iOS. Operating systems for which the business has a mobile app 53% 52% 41% 25% Google Android Apple iOS Windows Mobile / Phone 12% 4% BlackBerry OS Other Q10. Does your business have a mobile app for any of the following operating systems? Base: All retailers (n=75) Developed by: Desarrollado por: None of the above, do not have a mobile app Developed by: Digital Marketing and Promotions Sponsored by: These retailers have several active marketing strategies, including newsletters, Social Media and search engines advertising (banners, subasta de palabras, etc.). Digital marketing activities in the past 12 months Email newsletters/notifications to subscribers 87% Management of social networking profiles 85% Search engine advertising 81% Banners on websites 73% Mobile advertising 53% Lead generation 49% Customer loyalty program 45% 29% Updates/notifications within mobile apps* Geolocation 29% SMS Other 21% Among retailers with mobile apps, 50% send updates and notifications within their app, and 41% use geolocation. 4% Q11. Which of the following digital marketing activities have you conducted in the past 12 months? Base: All retailers (n=75) * This option was only shown to retailers who indicated their storefront has a mobile app. Developed by: Discounts and interest-free credit were the top sales promotions offered in the past 12 months. Online sales promotions/deals on business website in the past 12 months Discounts, coupons, or promo codes on products/services 69% Interest-free credit 64% Free shipping for all online purchases 48% Discounts/deals for social media ‘fans’ or ‘followers’ 48% Free shipping for online purchases above a specific value 48% Free gift with purchase 45% Free shipping on returns 40% Discounts/deals for loyalty program members 38% Ability to pay some of the cost later/monthly without interest 34% In-store returns 25% Free in-store pick-up for online purchases 19% Free shipping for longer/extended delivery times None of the above 18% 3% Q12. Have you conducted or offered any of the following online sales promotions/deals on your website or app in the past 12 months? Base: All retailers (n=75) Note: Sample size for this question for International sales promotions/deals is too small to report. Developed by: Executive Summary Online sales: • The majority of online sales are from within Mexico, and three in four online sales are via a PC. Retailers report an average of five percent chargebacks. The top four categories sold online are apparel, sports, other categories not listed and consumer electronics. • The large number of incidences in "not listed other categories“, indicates the diversification of the ecommerce offers. • By sales value, excluding travel, the top four categories are other categories not listed, consumer electronics, computers / peripherals / PDAs, and event tickets. • Retailers expect shopping to increase around El Buen Fin, Christmas and HotSale. • Almost nine in ten retailers are aware of the AMIPCI Trust Mark, but only two in five offer the Trust Mark on their site. Almost all retailers are aware of El Buen Fin and HotSale events. Developed by: Thank you! Developed by: Iván Marchant VP comScore México imarchant@comscore.com Luis Carracci 146. Col. Extremadura Insurgentes Del. Benito Juárez. C.P. 03470. México D.F. Tel. 5559 8322 Mario Labastida Senior Account Sales Manager comScore mlabastida@comscore.com www.amipci.org.mx informes@amipci.org.mx Tel. 8000 8000 www.comscore.com Sponsored by: Developed by: