Mexican convenience stores’ income dropped 70% as they faced post-pandemic changes and rising insecurity. In a separate development, Nike initiated a lawsuit against both New Balance and Skechers for alleged patent infringement, marking the fourth lawsuit of this nature. Meanwhile, fast fashion apps Temu and Shein are experiencing continued growth, notwithstanding the mounting controversies surrounding them.
Read about this and more this week in retail:
Nike has filed patent infringement lawsuits against New Balance and Skechers, accusing them of using Nike's Flyknit technology without authorization. This follows similar lawsuits against Adidas, Puma, and Lululemon over the same issue. At the center of the lawsuit is Flyknit, a fiber developed by the company and used in the upper part of shoes, covering the foot, and extending above the sole. According to Nike, Flyknit is a high-strength lightweight fiber that provides support and breathability.
Mexican convenience stores have faced a 70% loss of income in the last five years, citing factors such as rising insecurity, utility costs, and eroding trust in the government, according to the National Small Business Alliance (ANPEC). The report also reveals that almost 80% of store owners lack trust in law enforcement, and 83.42% perceive an increasing level of insecurity over the last five years. Tortilla shops are among the most affected, as 20,000 of these businesses are forced to pay racket fees, according to the National Tortilla Council (CNT).
Despite facing controversies, Temu has outpaced Shein in Japan and South Korea, becoming the leading shopping app in these regions with record-breaking download speeds. Temu's focus on affordable clothing and a bidding system to secure lower-cost products has contributed to its success, recording about US$635 million in gross merchandise volume in May 2023.
The Mexican fashion e-commerce sector is projected to reach US$5.37 billion by 2023, constituting 20.9% of Mexico's total e-commerce market, with further growth to US$6.66 billion by 2027, according to ECDB. While major retailers like Liverpool and Amazon have significant market positions, Shein leads in Top of Mind with 21% spontaneous brand recall, emphasizing the importance of convenience, practicality, and trust in shaping online shopping trends in the Mexican fashion and beauty market.
Unlimit distinguishes itself in the e-commerce space through its payment-centric approach, providing borderless payments that enable businesses in Mexico and globally to operate seamlessly, Ignacio Morales, Country Director Mexico, Unlimit, tells MBN.
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