AMIPCI Study of Electronic Commerce in Mexico 2010

E-Commerce Survey 2010

Prepared by: Market Research Vice President Diana Arboleya, TGI Kantar Media

Presented by:

Index

1. Introduction and Background

2. Methodology

3. E-commerce in Mexico 2009 and

main patterns of the shopper on the Internet

4. Conclusions

Introduction

Mexican Internet Association (AMIPCI) integrates the companies they represent

an influence on the development of the Internet Industry in Mexico.

Each year, the AMIPCI undertakes the task of developing studies on the use of Internet

in Mexico to guide and encourage the growth of the internet.

The AMIPCI, conscious of the need to understand and analyze the issues that may

affect e-commerce in our country, involves the Trade Study

E-2010, sixth consecutive year that performed under the auspices of Visa and

information Select.

The results of this analysis allow us to have a better perspective on the

evolution of electronic commerce in Mexico and the opportunities

presents this new sales channel in our country in order to highlight the achievements and

opportunities in the field in Mexico.

Market Research Vice President, Asociación Mexicana de Internet.

Mexican Market

Data and methodology Mexican Market

AMIPCI Study of Electronic Commerce in Mexico 2010, the sixth of its kind, measures the magnitude of sales of products made in Mexico by

internet.

25 companies participated by providing relevant information, same as

was subjected to a process of analyzing and presenting data consolidation

more relevant in this study.

In order to have a uniform basis for comparison are

asked these companies to both its historical figures and their prospects

2010.

Overall numbers of electronic commerce in this study are

result of analysis of this information and trends.

Participating companies

CONSUMPTION

•

•

•

•

•

•

•

•

•

•

•

•

•

•

•

•

•

Bwin

Cinépolis

Shopping

Dell Emotion Sports

Esmas

Gandhi Liverpool MercadoLibre

Nine West Palacio de Hierro

VIP Square

S Insurance

Sony

Tec Draw

Telefónica

Ticket Master

TOURISM

•

•

•

•

•

•

•

•

Aeromexico

Aerocar Clickhoteles

Interjet Mexicana

Price Travel RCI Volaris

E-commerce: growth above

the economy in 2009 and strong growth in 2010

Figures in MUSD $ 2.387

Annual sales of B2C e-commerce Annual Growth 31%

$ 1.817 $ 1.768 3%

$ 955

$ 537

$ 209 $ 315

2004 2005 2006 2007 2008 2009 2010 * * Estimated

Source: Select, Electronic Commerce Study, October 2010

Figures in millions of pesos

Annual sales of B2C e-commerce Annual Growth 25% $ 30.292

$ 24.545

$ 19.713 23%

$ 10.438

$ 5.853 $ 2.360 $ 3.430

2004 2005 2006 2007 2008 2009 2010 * Source: Select, Electronic Commerce Study, October 2010 * Estimated (Type Change: $ 12.69)

Consumption growth in tourism over

in 2009 and 2010

102% Annual Growth of dollar amounts

91%

51%

43%

24% 33% 31%

-3%

2007 2008 2009 2010 *

* Estimated Consumption

Source: Select, Electronic Commerce Study, October 2010

Tourism

E-commerce participation vs. winning.

Traditional business

2008

Trade electronic 8%

2009

Trade electronic 12%

Other means 92%

Other means 88%

Source: Select, Electronic Commerce Study, October 2010

Source: Select, Electronic Commerce Study, October 2010

Virtual stores are not considered n = 18

Continues Strong Sales

growth

Destination of sales of business e-commerce in Mexico

5% 14% 23%

International

95% 86%

77%

National

2007 2008 2009 n = 19 Source: Select, Electronic Commerce Study, October 2010

In the consumer segment, computing is

the highest turnover

Distribution of consumer sales

Accessories vehicles 4%

Consoles and Games 6% Clothing & acc. Persons 8%

Sport 3%

Home appliances 3%

Pets and Animals 3%

Photography and cameras Digital 2%

Movie tickets 2% Cell Acc. 2%

Others 29%

Airtime 1% Books and magazines 1% Baby Items 1% Furniture and equipment 1%

Collectibles 1% Insurance 1%

Music and Movies 0.4%

Health and Beauty 3%

Electronics 8%

Cell 13%

Computing 26%

Others 11%

Source: Select, Electronic Commerce Study, October 2010

Tourism: the national ticket weight is

boosting trade

International Average price: $ 215 USD National average price: $ 155 USD

Distribution of sales in tourism

Airline Tickets International 28%

Airline Tickets National 72%

Source: Select, Electronic Commerce Study, October 2010

Gaining ground deposits or transfers vs. TDC

Other: Credit and non- Banking / Payment Deferred

9%

6%

5%

8%

Deposit / Online Transfer 15%

12%

8%

COD / Cash 12%

9%

74%

Credit card 66%

74%

2008 Source: Select, October 2010

2009 2010

Internet Buyer

Data and methodology of the Internet Buyer

It has realizadouna online survey of a database

(Www.consupermiso.com.mx) of Mexican Internet users to know their habits

purchase. 1.024 cases were obtained representing the universe of surfer

Mexican in the variables Seco, NSE, age and geographical area. The aim dinal of this study is to know the most important aspects that takes into account the

Internet users to shop online as security, the main portals

and especially the level of confidence.

•Universe: Mexican Internet users ages 18 and up

•Frequent Internet users (minimum of 2 hours exposure per day)

•Geographical scope: Mexico

•Technique: C.A.W.I. Online Self-Administered Interview

•Displays: 1,024 cases

•Fieldwork Date: October 2010

Mexican Market

Sample profile

Distribution of gender, age and SES are representative of the profile of

Mexican surfer

Gender

18 to 24 years old

From 25 to 34 years old

Age

41%

31%

17%

8%

3%

55%

Men

45% From 35 to 44 years old

From 45 to 54 years old

Women

ABC +

NSE Over 55

40%

21%

28%

11%

C

D

D / E * Base: 1024 respondents

Buying habits

65% of respondents have purchased online. And the main reason for

do not buy online is the lack of confidence.

Have you bought online?

3% 22% Why NOT?

It gives me confidence to my data personal

I'm afraid to provide information My Card

I do not know if I will get the product

I do not trust the shipment arrives

54%

40%

36%

35%

40%

35% I have no credit card

Not interested

I seem high shipping costs

32%

24%

18%

15%

9%

Yes, only Mexican sites

If only foreign sites (Amazon, eBay, Bestbuy)

Yes, Mexican and foreign sites (Amazon, eBay, Bestbuy)

I have not bought online

Do not know how to buy online

Do not find what I want

Long time to get what I buy * Base: 1024 respondents 7%

* Base: 354 respondents who mentioned Not having purchased online.

99% of respondents who have purchased online, please consider making

a purchase.

You think to buy something online in the future?

8%

46%

45%

If, in the next 3 months

1% If, in the next year

Yes, but do not know when

No, I never buy online

* Base: 670 respondents

49% of respondents who have purchased online, have acquired

Electronic Devices.

Electronic Devices

Computers

Airline ticket or bus ticket (air or ground transportation)

Software

Tickets Events, Shows, Concerts, Film, Theatre, etc.

Cell Phones / Accessories

Clothing and personal accessories (Watches / Glasses / Shoes / Bags, etc.).

Hotel Reservations

Music & Movies (downloads)

49%

31% 31% 30% 28% 26% 22% 21% 21% 20% 19% 18% 16% What product / service you bought? 16% 14% 11% 9% 6% 5% 4% 3%

* Base: 670 respondents 2%

Books & Magazines (physical)

Books & Magazines (downloads)

Consoles and Games

Articles w / home

Toys

Music and Movies (physical)

Vehicle Accessories

Perfumes

Online impressions (pictures, documents, etc.., X mail sent)

Animals & Pets

Car rental

Food

Insurance

66% of respondents who have shopped online for

products and / or services, portals have been buying / selling.

Purchase

Online Banking

Entertainment / Shows

66%

35%

34%

31%

26%

19%

18%

14%

14%

10%

10%

What kind of portals you have made online shopping?

Air and land transport

Calculation

Software

Government

Boutiques / Department Stores

Hotel Chains

Office Supplies

Supermarkets

Virtual Travel Agencies

Insurance

8%

3%

* Base: 670 respondents

The average cost of online purchases is $ 401 to $ 1000 pesos and do

every three months.

How much you spend on average each time you shop? How often do you shop online?

More than $ 5001 pesos

$ 3001 to $ 5000 pesos

$ 1001 to $ 3000 pesos

$ 401 to $ 1000 pesos

$ 150 to $ 400 pesos

Less than $ 150 pesos

4%

5%

18%

Every Year 23%

39%

23%

Every three months

Every Month

40%

Every Week 26%

7%

I bought a once

3%

12%

* Base: 670 respondents * Base: 670 respondents

Purchase Intent

Half of the respondents who have purchased online, compare prices

online and physical stores.

Before making a purchase of any type (online or physical store), Do you compare prices?

8% 51%

37%

Yes, I compare prices online

4% Yes, I compare prices in physical stores

Yes, I compare prices online and physical stores

Not

* Base: 670 respondents

45% of respondents who have purchased online, using Internet

as their main source of information.

What is your main source of information?

27%

Others

TV

9%

8%

3%

2%

Online Campaigns

Friends

Family

Previous Experiences

Internet 46%

5%

* Base: 670 respondents

76% of respondents who have purchased online, consider

save time.

Why shop online?

Saving time

It is cheaper

Meeting of models

I take him home

It is more practical

I can buy items from other countries / imported

It is the only way that I find

Assure the product / service

Matched fashion

76%

51%

48%

48%

38%

37%

18%

16%

11%

* Base: 670 respondents

Conclusions

Conclusions

•The E-Commerce reaches $ 1.817 MUSD in 2009

•31% growth Estimated Closing 2010

•12% of Sales Total performed through e-commerce

•Consumption grows aggressively super growth of tourism

•Sales continue to drive segment: 23% of total

•Plane tickets andcomputers drive growth

•Transfers and deposits earn participation in payment

Conclusions

• The 66% of respondents who have shopped online, the

been made in portals purchase / sale.

•The 49% of respondents who have purchased online, have

acquired Electronic Devices.

•Half of respondents who have purchased online,

compare prices online and physical stores.

• The 65% of respondents purchased over the Internet.

•The 76% of respondents who purchased Internet, see

that timesaving.