Mexico has positioned itself as a strong retail market through sustained growth in categories, distribution channels, and market reach. It is driven by a combination of economic and socio-demographic trends, offerings, and business models to appeal to Mexican consumers who are increasingly optimistic about the economy. Mexico’s middle class is expanding as there is greater internet accessibility and disposable incomes rise across socioeconomic and regional fronts, allowing customers to purchase more clothing, health, or beauty products.
As a result, retailers are expanding across geographies and offering a wider array of products at various price points due to the strong levels of competition in the country. Over the past decade, trade has increased from 5%-10%, representing a higher percentage of sales and a growing trend in the retailing industry.
Modern format retail stores and multinational franchises, such as those seen in the United States and Europe, are constantly growing and developing, alongside the resilient ‘changarros’ and adapted concepts traditional to Mexico. Additionally, e-commerce is growing exponentially, bringing new growth opportunities for the consumer goods and retail industries. Consequently, new technologies and innovations in the market are leading companies to amplify their presence by tapping new markets.
The Mexican e-commerce market had an estimated value of $12.3 billion in June 2018, representing 18 percent growth over 2017. The market continues to grow due to improvements in internet accessibility, enhanced financial inclusion, more streamlined logistics, and increased digital literacy. In 2019, the country had 80.6 million Internet users, representing 70% of the population over the age of six. As a result of the COVID-19 pandemic, multichannel retailers have seen their online sales grow to account for 25% of their overall sales.
In 2018, 47% of Mexican online shoppers reportedly purchased from international retailers, and 72% of those purchases were made on U.S. sites. The USMCA establishes that Mexico will continue to provide $50 tax free de minimis and also provide duty free shipments up to the equivalent level of $117. Additionally, it ensures that data can be transferred cross-border, and that limits on where data can be stored and processed are minimized, which enhances and protects the global digital ecosystem.
With Nexus, companies are also able to work with a team of experts to make their processes more efficient with the latest software and hardware technologies, as well as energy solutions that reduce utilities costs up to 50%. Additionally, our trade specialists ensure that companies comply with Mexico’s complex and ever-changing regulatory system, as well as designing supply chain solutions that prioritize efficiency, increase security, and reduce times and costs.
Furthermore, our supply chain team can design the ideal warehousing & distribution network to make your cross border e-commerce operations more efficient and less costly.
With information from the International Trade Administration