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News Article

Hot Sale Wants to Exceed MX$11 Billion Results

By Daniel González | Wed, 05/13/2020 - 16:49

Hot Sale, an initiative that began in 2014 to boost online sales in Mexico, already has a date for 2020. The online sales campaign, considered the longest in its history, will be held on May 22 through June 1 and will feature some of the country’s most important companies, which will offer promotions and discounts to try to alleviate the economic turmoil caused by the expansion of COVID-19 in Mexico. The retail industry has placed all its efforts into boosting its e-commerce departments and the Hot Sale, like El Buen Fin, has become a key event for the sector in times of COVID-19.

The objective of the campaign, as stated by the organizers to Notimex, is to surpass last year’s figures, which amounted to MX$11 billion in sales (US$450 million), representing 30 percent growth compared to sales made in 2018. In addition, the goal is to increase the number of buyers by 11 percent compared to the 2019 event. Current forecasts are good, since COVID-19 has boosted sales through these types of platforms. According to the Association of Supermarkets and Department Stores (ANTAD), the Hot Sale could mean a new start for sales of products considered non-essential by the Mexican government. “The campaign could be a turning point for those sectors that reduced their sales as a result of the COVID-19. We have to take care of ourselves, but we also have to take care of the economy,” Vicente Yáñez, President of ANTAD, told Notimex.

Walmart, which abandoned this program a few years ago to promote a similar initiative inside its stores, will return to the Hot Sale together with Bodega Aurrerá and Sams. The American giant joins other companies such as Mercado Libre, Elektra, Sanborns, Samsung, Movistar, Cinépolis, Telcel, Motorola, Gandhi, Office Depot, El Palacio de Hierro, BestBuy, LG and MacStore, among many others. Amazon will be the great absentee of this e-commerce event.

According to the Mexican Association of Online Sales (AMVO), Hot Sale can become an opportunity to change consumer habits. In Mexico, these types of sales represent 4.9 percent of GDP, while in some Asian markets online sales exceed 30 percent of GDP. A survey conducted by the association reports that 24 percent of buyers surveyed will spend more than MX$10,000 (US$412.9) during the ten days of the Hot Sale 2020 in Mexico. According to studies by AMVO, 25 percent of the companies that sell through online channels are SMEs, an economic stratum on which the future of e-commerce in Mexico must be based on.

The data used in this article was sourced from:  
Notimex, Fashion Network, Dinero en Imagen, Xataka, El Financiero
Photo by:   Unsplash
Daniel González Daniel González Senior Writer