E-Commerce: Winner of El Buen Fin 2020
El Buen Fin 2020 ended last Friday after offering consumers discounts and promotions between Nov. 9 and 20. According to the Federal Consumer Protection’s Office (PROFECO), an increase in e-commerce was expected this year as the COVID-19 pandemic led people to seek more contactless and online transactions. "Without a doubt, the new pandemic context generated drastic changes in consumers and their interaction with the digital channel," said the Mexican Online Sales Association (AMVO) in its El Buen Fin Purchase Intention Report.
In 2019, 52 percent of shoppers during El Buen Fin were between 25 and 44 years of age. Of those, 13 percent purchased through online channels. In 2020’s edition, AMVO revealed that 41 percent of interested buyers wanted to buy online within the same group. In addition, Head of PROFECO Ricardo Sheffield explained during President Andrés Manuel López Obrador’s morning conference that the number of consumers using El Buen Fin app increased from 50,251 in 2019 to 77,442 this year. Padilla also pointed out that 71 percent of those who bought something during this year’s edition spent between MX$1,000 (US$49.67) and MX$10,000 (US$496.70).
The reason for this change is that consumers have realized the benefits of e-commerce beyond the context of a pandemic. "E-commerce is a key channel for Mexicans. People are realizing that it is a very practical channel where they can find an endless number of products without leaving home, at any time and with at-store pickup solutions," said Pierre-Claude Blaise, General Director of AMVO.
Despite the rapid momentum that e-commerce is experiencing in Mexico, there are also side effects that come with this boom, explained Eduardo Medeiros, Chief Digital Officer in LATAM of Office Depot. “With exponential growth in online sales, companies saw an impact on their operation with internal processes, internal systems capacity, customer service capacity, quality of in-house talent, knowledge about their customer and flexibility to adapt in the middle of chaos all being challenged,” said Medeiros to MBN.
Quick, uncontrolled growth can also lead to loss of customers. Medeiros explains that the exponential growth of e-commerce has once again demonstrated the need for a team with a sense of urgency regarding the importance of digitization and customer service. "The side effect of this exponential growth is that many do not see the loss of customers in the medium or long term because as they get new customers much faster, they lose others in the digital world from poor aftersales service," said Medeiros. After El Buen Fin 2020, PROFECO revealed that Walmart, Elektra, Chedrahui and Home Depot received the highest number of consumer complaints. The products most related to complaints were smartphones, home appliances and major appliances.
Under these circumstances, Medeiros recommends open-mindedness and adaptability. “CEOs and C-level executives must not forget that growth was caused by a global event. They should continue to invest in the digital and cultural transformation but with greater commitment and a new speed of implementation,” he said.