During this year’s Buen Fin, Mexican businesses are expected to capture revenues of MX$141 billion (US$7.8 billion), a number shared during a press conference hosted by Google Trends in collaboration with AMVO and Ipsos, which was previously reported by the CONCANACO SERVYTUR. The institution calculated this figure using historical data from previous years and this year’s economic projections.
A survey conducted by Google Trends and Google Strategy and Insights teams reveals that the discount season, encompassing Buen Fin, Black Friday and Cyber Monday, has become more popular than Christmas shopping.
According to the press release, one in three shoppers plans to allocate their spending across these three events. Last year, the average spending amounted to MX$1,020 (US$56.65), with credit card users spending an average of MX$1,792 (US$99.59) and debit card users an average of MX$617 (US$34.29). Additionally, 51% of shoppers intend to do their Christmas shopping during these 11 days of discounts.
Juan Vallejo, Retail Lead, Google, was optimistic about the profitability of the 2023 discount season, citing three reasons for this. First, Buen Fin will maintain the same duration as in 2022, running from Nov. 17 to 20. Second, this year exhibits greater economic stability compared to previous discount seasons. Last year's Buen Fin generated an economic spillover of more than MX$134 billion (US$7.44 billion), a 23% increase from 2021. Third, there has been an increase in consumer trust, which grew by 3.8% between January and May 2023.
“If brands do not capitalize on this period during November, they could potentially miss out on sales for the rest of the quarter,” warned Vallejo.
Another indicator is the 16.8% increase in credit card issuance in Mexico this year, according to Mexico's Central Bank (Banxico). Javid Franco, Finance Lead, Google, pointed out a 40% increase in searches related to credit cards over the last five years.
Pierre-Claude Blaise, CEO, AMVO, emphasized the power of campaigns like Hot Sale and Black Friday in boosting the economy and drawing more companies into the digital ecosystem while enhancing profitability and attracting new buyers. The upcoming discount season and online sales hold opportunities, particularly for SMEs middle-class consumers, added Blaise.
Regarding searches, 40% of customers consult Google or YouTube before making a purchase. Searches related to Black Friday and Cyber Monday account for 30% of all promotional season searches. However, 37% of clicks on brand sites do not result in sales.
“A customer who engages through omnichannel is three times more valuable than one who exclusively utilizes a single channel,” says Jorge Gurza, Head of Retail, Google.