January 11, 2021
6 minutes to read
Opinions expressed by Contractor the contributors are theirs.
2020 will be presented as a “unique” year in history. While the past year has presented us with significant challenges in almost every aspect of our lives, it has also tested our abilities and resilience in the face of adversity. For many, this year has given us the motivation to take a new step in our business .
In 2020, small business owners and entrepreneurs in Mexico were forced into a digital acceleration as more consumers began to use digital channels to shop and stay connected to the outside world. These hard times have created a window for business of all sizes to consider entering the digital world to reap its rewards in a new and somewhat uncertain economy.
Overall, according to GoDaddy’s Global Entrepreneurship Survey 2020 , interest in online sales among entrepreneurs has increased due to the pandemic; 24% of those surveyed have started or improved their digital marketing business and 17% have added an online store in response to the pandemic. In our country, online retail sales are expected to grow by 31% compared to 2019, according to the Industry Report: Electronic Commerce in Mexico 2020 by BlackSip.
Mexican micro and small businesses have been immersed in a process of constant adaptation and learning to help them survive and maintain their businesses during this global pandemic. While 2021 is expected to see an increase in the digitization of businesses, it goes hand in hand with changes in consumer behavior.
Here are some trends small businesses should consider in 2021:
The digital push continues
Although there have been significant advances in digitization in our country in recent years, 2020 has sounded the death knell as we begin to adopt digital tools out of necessity. According to Mexican Online Sales Association (AMVO), the Good End 2020, the last big season of shopping discounts in Mexico, generated 36.1 billion pesos in internet sales (a 225% increase over last year) and 40, 1 million online sales transactions. Likewise, it was also recorded that almost 7 in 10 internet users made purchases during this campaign, and around 5 in 10 shoppers did so exclusively online. But perhaps more importantly, 54% of shoppers plan to buy more online in the coming years.
These numbers can largely reflect what has happened in Mexico in recent months, where International data company (IDC) predicted that e-commerce would increase by 60% by the end of this atypical year, with a penetration of 39.3%, according to BlackSip . Additionally, 2 in 10 businesses expect e-commerce to account for over 30% of their total sales by 2021, as evidenced by Report 4.0 Impact of COVID-19 on Mexico Online Sales , and the data of Industry Report: Ecommerce in Mexico 2020 show that e-commerce is expected to reach a penetration rate of 55% by 2024.
As we have experienced throughout 2020, technology has changed the rules of the game and the importance of digital platforms will continue into 2021. Therefore, it is strongly recommended that micro and small businesses decide to join this wave. digital to continue to connect with your customers and seek new opportunities.
The omnichannel buying process will be the new normal
Social media or website? Marketplace or own online store? As we have seen throughout the months of the pandemic, brands have opted for an omnichannel strategy. This approach is to ensure that your business can be available on multiple digital channels (depending on you and your business). In the Mexican market we can cite examples in which the leaders of their industry have set the standard: Nike has opened its official store in the Mercado Libre, which will allow them to have excellent visibility, but, of course, it continues to sell through its official website, where you can personalize the shopping experience. The same has happened with Miniso, which started out on the Claro Shop Marketplace, but has its online store on its website.
Among the advantages of having a online store on your own website is that you can link to your company’s social networks. With an integrated online tool, entrepreneurs can set up an online store and start selling their products easily and quickly.
Through social media and marketplaces, small businesses can gain visibility, and by having a store on their website, they can personalize the shopping experience for their customers.
Payment methods without borders
One of the main reasons people buy online today is due to the different payment methods available on digital platforms. It is therefore now more essential than ever to offer several payment options. When shopping online, we might automatically think about using a credit or debit card; however, only 47% of Mexicans have a bank account. For this reason, other options are indispensable, such as electronic wallets and even the possibility of finalizing the purchase with cash deposits or bank transfers. In other words, your online store should be inclusive and allow multiple payment methods for all preferences and needs. An example of this would be the addition of Apple Pay or PayPal as payment methods for the convenience of the customer.
Mobile devices: the kings of e-commerce
As consumer confidence in online shopping increases, more and more purchases are made through mobile devices. Globally, it is expected that by 2021 72.9% of total e-commerce sales will be made via a mobile device, where smartphones have the upper hand. Currently, 70.8% of Mexicans have access to the Internet, and among them, most connect through a smartphone, according to the Study of media and device consumption among Mexican Internet users . For Mexican entrepreneurs, it is crucial to consider this trend, especially since approximately 30% of online shoppers are likely to abandon their shopping cart if they find the website is not “mobile friendly”. Additionally, Google starts prioritizing mobile optimized websites even higher in its search engines.
Although the current economic situation may be difficult, Mexican entrepreneurs are resilient. Having an online store or a website for a small business is a good start. They also need to think about how to give their customers the best experience, and part of knowing where and how your potential customers are buying. Currently, there are solutions on the market that provide the online tools needed to help a micro or small business grow online. AT Come on daddy , we’re ready to help entrepreneurs and small business owners in Mexico achieve their goals in the new year.