El Buen Fin is the most popular shopping event in Mexico and has traditionally been the discount weekend of the year. It is the Mexican version of The Black Friday and is held, since 2011, around November the 15th.
Over the years, sales revenues have been growing from USD 2.03 billion in 2011 to USD 5.25 billion in 2018 [currency conversion rates from MXN to USD on 10/15/2019], including online sales revenues.
As Mexico is ranked #1 among the fastest-growing retail e-commerce markets worldwide in 2019, international merchants must be aware of its own dynamics and familiarize themselves with phenomena like El Buen Fin.
El Buen Fin’s Dynamics
El Buen Fin was planned in Mexico, back in 2011, as an initiative to boost sales during which retailers offered a wide range of advantages, such as discounts and promotions.
This is one of the best shopping events for the Mexican people to acquire most desired goods and services for the best price, contributing, therefore, to the family’s economy, as pointed out by Ernesto Acevedo, the current Mexican Undersecretary for Commerce and Industry.
According to Eric Pérez-Grovas, President of the Mexican Association of Online Sales (AMVO), it is also an opportunity to develop e-commerce in Mexico, enabling merchants to engage with consumers who are not yet shopping online (due, for example, to the lack of alternative payment methods in the online checkout) and also to improve the relationship with their customer base.
Why is El Buen Fin a business opportunity for e-commerce merchants?
- Digital channels are increasingly relevant in the buying decision: 57% of physical store purchases were due to previous online research;
- Consumers start searching for product information one month before the beginning of the event; it is a window of time for merchants to convert website visitors into e-customers;
- In 2018, online shopping was a positive experience for consumers during El Buen Fin because:
El Buen Fin is leading the increment expected for online sales on selected dates – such as Christmas, HotSale and Cyber Monday – with a share of 92% in 2017, which corresponded to a revenue of USD 4.89 billion, which surpassed the USD 4.66 billion transacted in 2016.
This boost in online sales was provided by an increase in e-commerce consumers and a set of most-purchased products, which ranged from tech devices to cosmetics.
Who Is Buying during El Buen Fin?
Indeed, over the years, a crescent number of Mexicans became online consumers. According to Statista, Mexico had 60.6 million e-commerce users in 2018 and are forecasted to have 78.8 million in 2023.
Regarding the El Buen Fin’s consumers’ profile, mainly young adults between the age of 18 and 29 years old, and women were planning to buy something during the shopping event in 2018.
Concerning the preference for online shopping, it is the younger population who mostly buys in e-commerce websites. In 2018, 39.1% of the Mexican online consumers during El Buen Fin were aged between 15 and 24.
Despite the majority of El Buen Fin consumers (89% in 2018) still prefer to buy directly from physical stores, 43% of consumers who shopped in physical stores searched online for discounts and participating retailers, to compare prices and check the product availability.
Mexico’s E-Commerce Status
With USD 18 billion in sales revenues in 2018, Mexico is the second most important market in Latin America. In recent years, the country has seen a significant and steady increase in the number of e-commerce users, and this line is projected to continue in an ascending rhythm, as shown in the following table:
As the internet penetration rate is increasing, the e-commerce penetration rate will tend to increase, therefore the forecast for the coming years regarding sales revenues is very positive reaching USD 28 billion by 2022.
Expanding to Mexico
Facing such an encouraging panorama that is Mexico’s e-commerce, international companies may consider investments and consequent expansion into the country. To do so, merchants must take into consideration the fact that Mexico has its own set of regulations, cultural nuances and local payments preferences, which can compromise the success of your business expansion.
Therefore, it is recommended to partner with a local expert such as BoaCompra, whose expertise and knowledge of the Latin American markets can help you to overcome potential adversities and help you achieve this goal in the most effective way possible. Get in touch with us to learn how BoaCompra can help your company expand to this promising market: