Latin American e-commerce is booming

Latin American e-commerce is booming

Core reading

　　 During the epidemic prevention and control period, the demand for online shopping in Latin America increased significantly, and the e-commerce economy rose against the trend. Countries in the region have taken measures to actively support the development of e-commerce, and some e-commerce companies continue to accelerate the construction of logistics and other infrastructure. Analysis believes that the vigorous development of e-commerce is conducive to stable employment and economic transformation in Latin America.

　　 A report released by eMarketer, a market research organization, shows that e-commerce sales in Latin America will increase significantly in 2020, reaching US$84.95 billion, an increase of 19.4% over 2019. It is estimated that by 2022, this figure will exceed 100 billion US dollars. Analysis believes that online sales will become one of the main forms of retail in Latin America. In the future, at least 25% of retail orders in regional countries will be completed online.

　　 Multinational e-commerce market is growing rapidly

　　 "The daily volume of express delivery is very large, and I have become friends with many express delivery brothers." Flavio, a security officer in a community in Rio de Janeiro, Brazil, told reporters. In order to ensure express delivery services during the epidemic prevention and control period, this community began to collect express delivery and perform simple disinfection.

　　 During the epidemic prevention and control period, more and more people in Latin America began to "connect to the Internet", and more and more business sales models were shifted to online. Many companies have begun to use online platforms to open up sales channels, retain old customers and open up new sources of customers. The fast-growing express delivery industry also provides more and more jobs.

　　 Among the 32 Latin American countries and regions tracked by eMarketer, the retail e-commerce market in Argentina has the fastest growth, with an increase of 79%, Brazil has an increase of 35%, ranking fourth, and Mexico has an increase of 27%.

　　Other statistics show that since the epidemic prevention and control, the installation of e-commerce applications in Brazil has increased by 99.3% over the same period last year, followed by Chile with an increase of 58.5% and Peru with an increase of 29.4%. 49% of the interviewees said that online shopping expenses were increased during the epidemic prevention and control period, and 17% of them were trying online shopping for the first time. A recent survey released by the Brazilian E-Commerce Association shows that 56% of consumers are shopping online for the first time, and 94% of them are willing to maintain this consumption habit.

　　 Julia Avila, head of Nielsen Market Research Brazil, who is engaged in market monitoring and data analysis, pointed out that e-commerce companies know how to act quickly to meet demand and have formulated basic growth strategies. Smarter applications, faster logistics, better regulations, etc., support the development of the e-commerce industry.

　　 Take multiple measures to improve the e-commerce ecosystem

　　In order to promote the improvement of the e-commerce ecosystem, the governments of Latin American countries have taken various measures to increase investment in e-commerce logistics infrastructure and other fields, and at the same time regulate the development of the industry through legislative and administrative means.

　　 Mercado Livre, one of the major e-commerce companies in Latin America, invested about 4 billion reais (1 U.S. dollar or 5.3 reais) in Brazil’s logistics sector last year, and built five new distribution centers to ensure that the variety of products delivered on the same day continue to expand. At the end of last year, global retail giant Amazon added 3 logistics centers in Minas Gerais, Rio Grande do Sul and the capital Brasilia, increasing the company's number of logistics centers in Brazil to 8.

　　 In order to help more SMEs join the ranks of e-commerce and bring more convenience to consumers, the Argentine government relies on the postal system to build its own logistics system. In October 2020, the "Postal Shopping" platform was officially launched. The platform only allows small and medium-sized enterprises in Argentina to sell products, allowing the producers or distributors of the products to directly face consumers.

　　Recently, the Chilean Ministry of Economy and the Santiago Chamber of Commerce (CCS) jointly established an online platform to provide SMEs with training and services in online shop setting, marketing, logistics, and security assurance. CCS Chairman Hill said that helping small and medium-sized enterprises to quickly transfer their business online can save a large number of enterprises and jobs.

　　 The Ministry of Economy, Industry and Trade of Costa Rica issued the "Guidelines for Strengthening the Authenticity of Online Promotional Content of "Internet Celebrities" to protect consumers' rights and interests. The guidelines regulate the illegal behaviors of “net celebrities” when they bring goods, such as promotion content that does not conform to reality and misleading consumers. The guide also provides suggestions for promotional content, for example, the relationship between "net celebrities" and the company must be clearly stated, and the use of confusing acronyms must be avoided.

　　 The Brazilian E-Commerce Association believes that with the development of e-commerce and the advancement of the digitalization of related industries such as retail and financial services, the digital transformation of the overall economy of Latin American countries will gain more driving force.

　　China-Latin America e-commerce cooperation coincides with the time

　　 The booming e-commerce industry has narrowed the gap between China and Latin America. Nowadays, an "air e-commerce bridge" has been erected between China and Brazil-charter flights four times a week, continuously delivering goods to Brazilian consumers. The e-commerce platform has also established a cooperative relationship with Brazil Post to optimize the customs clearance process. Thanks to the development of cross-border e-commerce, products from Latin American countries have quickly entered China's millions of households.

　　 Chile has established a "national pavilion" on many mainstream e-commerce platforms in China to promote Chile's products, companies and image through live webcasts and other forms. "Chile has already enjoyed the trade convenience brought by e-commerce." said Ignacio, director of global marketing for Chilean Fruit Exporters Association. E-commerce provides a more convenient and broader platform for Chilean products to enter China. To understand consumer needs more accurately, and to provide differentiated and personalized services.

　　 The Colombian Export, Tourism and Investment Promotion Agency stated that e-commerce trade is an effective way to enter the Chinese market. The organization has compiled the "China E-Commerce Guide", actively introducing the current situation of China's e-commerce to the country's enterprises, and promoting e-commerce cooperation between the two countries. Santoro, the person in charge of the agency, said that Colombia's fashion, cosmetics, flowers and other products have been recognized in the Chinese market, and many coffee brands have entered the Chinese e-commerce platform.

　　 Figuegredo, professor of economics at the University of São Paulo in Brazil, said that China's huge domestic demand market and innovation in the digital economy will bring huge opportunities to Latin American e-commerce companies and provide impetus for regional countries to promote economic recovery. "Cross-border e-commerce cooperation has benefited a large number of SMEs in Latin America and China, and the cooperation between Latin America and China is just right."

Transfer: People Author: Li Xiaoxiao