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5 Things You May Not Know About E-commerce Consumers in Latin America
Latin America is one of the world’s fastest growing ecommerce markets, following behind China and tied with the Middle East and Africa.
As internet penetration and financial services become more readily available in the region spanning from Mexico to the Southern Cone of Argentina, e-commerce professionals should educate themselves on the over 650 million potential consumers that inhabit it.
Here are five things you may not know about e-commerce consumers in Latin America.
The Early-Adopter Mindset
Latin American consumers are quick to embrace new technology when compared to the rest of the world. If you’re not convinced, consider this: According to Americas Market Intelligence, Latin American users spend 7.5 hours each day online.
That is one third more than the rest of the world on average. And they use the internet to accomplish more tasks than the global average as well.
The region is not commonly perceived as a hub for innovation where consumers crave the latest gadgets and technology but this “early adopter mentality” may give Latin America’s online businesses a significant boost in the years to come.
The Potential for Influencer Marketing
Not only do Latin Americans embrace new technologies quickly, they also view social media influencers more favorably than elsewhere in the world.
According to insights by Google and one of its partners, internet users in Argentina, Chile, Colombia, and Mexico have mostly positive opinions when it comes to influencers and influencer marketing.
Nearly half of consumers in Mexico and Chile said they decide to buy things based on the recommendations of YouTubers, and more than half of users in Argentina said they consider influencers more authentic than traditional marketing. Not only that, but a vast majority of respondents said influencers have high credibility when recommending products.
Comfort and Sustainability Are Key for Latin Americans
Latin Americans crave products that make their life more comfortable and are simple to use, such as delivery services, mobile payments, meal services, and self-checkout options, according to a recent study by Nielsen.
Consumers on the continent also want companies to offer healthy and sustainable products and produce in an environmentally friendly way. Companies that tick these boxes can gain significant competitive advantages.
Not only that, but Latin American consumers are attracted to companies that are trying to have a positive impact. According to a recent study, some 60% of people in Mexico and Brazil believe brands could do more to solve social issues than their governments, significantly more than the global average.
Impressive Growth of Online and Mobile Sales
Millions of consumers in Latin America are ditching their desktop computers to browse the internet and are switching to mobile phones instead, according to some recent usage data. And more and more are using mobile internet to do their shopping.
While e-commerce penetration rates are still below the levels seen in more developed economies, online and mobile retail sales are expected to increase rapidly in the coming years and e-commerce is one of the fastest-growing segments in Latin American markets. According to a whitepaper by global shipping giant DHL, more smartphone and mobile internet usage, along with more advanced payment options, are key drivers of this growth.
The rapid shifts of consumers and their preferences means only more opportunity for Latin American businesses. Keeping the above key points in mind, priorities should be centered around regional needs rather than more universal, global patterns.