E-Commerce Growth Slows in Mexican Hardware Sector

The Mexican hardware sector is undergoing a technology-driven modernization, with e-commerce experiencing a 30% increase during the pandemic. However, recent growth has slowed to 8-10%.

Javier Garcia, director, Expo Nacional Ferretera 2024, highlights that the sector is undergoing a significant generational shift. "From the smallest hardware stores to the largest, they are now managed by a new generation of leaders who are more open to digital platforms," Garcia said.

During the pandemic, e-commerce in the hardware sector saw 30% growth, reflecting a global trend toward digital platforms for buying and selling products. However, this growth has moderated recently, according to industry analysis presented at Expo Nacional Ferretera, settling in the 8-10% range.

One factor contributing to this slowdown is the persistent preference for face-to-face sales within the sector.

With over 100,000 hardware stores across the country, according to Expansión, the sector presents both challenges and opportunities for digital technology implementation. Inventory management and administrative systems for small and medium-sized businesses are key areas where technology has made a positive impact. Digital tools in these areas help hardware stores optimize operations and improve inventory control.

However, there are areas within the sector that still require attention. Garcia notes that, despite the growing availability of technological tools, many hardware stores remained focused on direct sales. Other important aspects, such as payment recovery, collections, security, staff training, inventory control, and pricing, have not yet been fully optimized. 

"The diversity of the hardware market also affects the speed of technology adoption," Garcia stated. "The sector includes various verticals with different levels of advancement and specific challenges, making the integration of digital technologies complex." 

Garcia pointed to areas such as lighting and electrical materials, which have seen faster digitization compared to other segments of the sector.

Garcia projects that the sector will end the year with overall growth between 6% and 8%. Additionally, it is estimated that the hardware sector contributes approximately 6% to the country's Gross Domestic Product (GDP).