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News Article

Companies in Mexico Bet on E-Commerce for Back-to-School Season

By Andrea Villar | Mon, 08/17/2020 - 11:45

Although the health and economic crisis brought by COVID-19 has forced people to change their consumption habits, mobile phone companies are confident that the government's strategy of offering online classes through broadcast television is an opportunity to boost sales.

“We understand that the user is making an increasingly rational purchase, they have to watch their budget and seek for the best options at the best cost and our proposal fits very well in this scenario,” said Juan Manuel Athié, Director of Alcatel for America Latina in an interview with Expansión. According to data from The Competitive Intelligence Unit (CIU), the telecommunications market grew 11.8 percent in the 1Q20.

Alcatel's goal is to be in the Top 3 in Mexico and Latin America. "We are sure that the goal is achievable with these new market dynamics and in 2021 we are going to have a situation in which people have to think more about where to put their spending. The virtual back to school gives that opportunity. We are going to make our smartphone connectivity ecosystem available but also the rest of our ecosystem with routers and tablets. That gives us an advantage over other competitors,” said Athié.

Another company that has reinvented itself to not lose market share and prepare for the return to classes is Librería Porrúa, which renewed its e-commerce channel to boost its sales during this season. The company updated its catalog and included new products within the reach of a click, including physical books, e-books, audiobooks, school supplies, stationery, educational gifts, among other things.

Meanwhile, Oggi Jeans, the Russian retail company with more than 25 years in the market, decided back to school, one of its most important seasons, is the best time to bet on the future and become an e-commerce company. Oggi Jeans considers that part of its value proposition is providing its users with access to different payment methods that guarantee security and an excellent shopping experience.

The return to school has put under pressure not only small stationeries, which already lost 20 percent of their sales in the previous months, but the entire paper industry and school, uniforms and electronic equipment suppliers that represent more of 200,000 companies, according to the Confederation of National Chambers of Commerce, Services and Tourism (CONCANACO-SERVYTUR).

Andrea Villar Andrea Villar Journalist and Industry Analyst