Retailers, Online Platforms Prepare for Buen FinBy Sofía Hanna | Fri, 11/06/2020 - 16:04
The Mexican Black Friday or "Buen Fin" is approaching (Nov. 9–Nov. 20) and with it old and new challenges brought by COVID-19. Retailers and online stores have been preparing for this as they believe that Buen Fin sales will be key to their recovery.
According to Business Insider, the most common mistakes businesses can make are not being protected against online fraud, centralizing inventory, offering bad customer service, not having enough stock for the entire event and not having a clear logistics plan for any sort of problem or situation that may arise.
At stores, companies have to deal with product losses. According to ANTAD, supermarkets and stores can face losses of more than MX$13 billion (US$628.7 million) a year from theft, which has a negative impact on their inventory and revenue. These incidents, which are sometimes misunderstandings, can be solved by increasing security at stores. According to ANTAD, the best way to solve the problem is by using electronic solutions.
On the e-commerce side, new threats come with online sales. According to Rodrigo Olivera, Leader of Professional Services at VTEX Mexico, "online stores should prepare security strategies for an increase in transactions that will come with the Buen Fin." According to ANTAD, many of the businesses that delved into e-commerce since the pandemic started may not be as familiar with phishing or how to handle a growing number of users. One of the recommendations given by Jorge Fernández-Gallardo, CEO of Ecomsur North Latin America, is to have anti-fraud security for their websites and to add artificial intelligence that can filter orders and payments.
According to AMVO, four out of 10 businesses expect growth of over 50 percent in their online sales, reports El Financiero. Forecasts indicate that online sales will represent approximately 30 percent of Buen Fin's total sales. AMVO highlights the importance for businesses to have additional options for delivering products purchased online to avoid overcrowding of customers.
According to Forbes, this Buen Fin is essential for small businesses because it could be what impulses them to be part of this new commercial reality. "It is important to prioritize online sales but also to reform health protocols at stores to avoid crowds of people," said Gabriel Aguirre, Vice President of Public Communications and Strategy for COPARMEX, in an article from Forbes.
Even though expectations are high for this Buen Fin, with Miguel Torruco, Minister of Tourism, saying the goal is to reach the same level of sales as in 2019, the Chamber of Small Trade, Services and Tourism (CANACOPE) anticipates an economic revenue of MX$14 billion (US$677 million) against the MX$120 billion (US$5.8 billion) from 2019, reports Forbes. To incentivize consumption, according to El Financiero, ABM members will offer economic incentives like 24-month payment schemes without interest in credit card purchases, discount certificates and up to 40-month schemes with preferential rates.