Internet Market Environmentin Mexico

Siteengine Inc. (Tokyo, Japan)2nd June, 2014

http://www.siteengine.co.jp/en/

info@siteengine.co.jp

About Mexico

Area 1,972,550 km2

Population 120,286,655 (Sep 2014 est.)

GDP(ppp) $1,845 trillion (2013 est.)

Internet TLD .mx

Official Language Spanish

Religion Catholicism 82,7%

Currency use Peso (MXN)

Calling code +52

Mobile subscribe 63 million lines (Jul 2013 est.)

Internet User 24,8 millions (3Q 2013)

Ethnic group in Mexico

Ethnic group % of total*

Mestizo 65%

Amerindian 17,5%

White 16,5%

Black, Asian or

Other1%

Ethnic group

Mestizo

Amerindian

White

Black, Asian or Other

65%

17,5%

16,5%

1%

Mexico Age Structure

Age Structure% of total*

(2014 est.)

Population

(2014 est.)

0-14 27,9%

Female: 16,423,421

Male: 17,188,577

TOTAL: 33,611,998

15-24 18,1%

Female: 10,741,999

Male: 10,999,445

TOTAL: 21,741,444

25-64 47%

Female: 29,727,585

Male: 27,236,113

TOTAL: 56,963,698

65- 6,9%

Female: 4,374,840

Male: 3,954,675

TOTAL: 7,969,515

Age Structure

0-14

15-24

25-64

65-

47%

27,9%

18,1%

6,9%

Internet Usage in Mexico

Internet user : 46 millions users (43,5% of total population) in 2013

* population from 6 years old

Internet usage in Mexico is increasing constantly every year.

Mobile Subscribers

In Mexico, the amount of mobile subscribers is increasing every year. In 2015 it’s expected to reach 100% of mobile usage penetration (same amount of subscribers as population.

Mobile subscribers: 103,6 million subscirbers(87% of total population) in Dec 2013.

Mobile Subscribers in Dec 2013

Contract

Prepaid

16 million subscribers

(15,4%)

87,6 million subscribers (84,6%)

Fixed Phone Subscribers

In Mexico, the amount of fixed phone subscribers increased thanks to the bundled services. However, the fixed phones subscribers represent only a 20% of the mobile phone subscribers.

Fixed phone subscribers: 20,6 million subscribers (17,5% of total population) in Dec 2013.

0

5

10

15

20

25

2012 2013

Fixed phone subscribers

Fixed phone subscribers (millions)

20,620,1

Internet Monthly Rate in Mexico

Home use internet Mbps $ (USD) / month

Telmex 3 30

Telecable 1 12

Yoo 3 41*

Megacable 3 16

Mobile Internet Package Data Plan Price

Iusacell 2 GB 23,3 (US $) / month

Nextel 1 GB 19,4 (US $) / month

Telcel 1 GB 19,4 (US $) / month

The maximum mobile internet connection speed in Mexico is 2Mbps.

* It includes TV, Telephone and Internet services.

Number of telecom operators in Mexico

No Services Operators

1 Mobile(2, 2.5, 3G) 5

2 Fixed WLL 3

3 ISP 5

4 VoIP 16

5 VSAT 41

Telecom Statistic, end of Q4 2013

- Mobile subscription : 103,6 million Subscribers- Fixed and Fixed WLL : 4,14 millions- Internet user : 46 million users- Mobile Broadband subscribers : 12,4 millions

Top websites in Mexico by alexa.com

1 Google.com.mx

2 Facebook.com

3 Google.com

4 Youtube.com

5 Live.com

6 Yahoo.com

7 Wikipedia.org

8 Twitter.com

9 Blogspot.mx

10 Msn.com

1 Google.com.mx

2 Blogspot.mx

3 Mercadolibre.com.mx

4 Eluniversal.com.mx

5 Unam.mx

6 Mediotiempo.com

7 Milenio.com

8 Excelsior.com.mx

9 Banamex.com.mx

10 Banorte.com

Top local sites in Mexico by alexa.com

Facebook User in Mexico(2013)

There is aproximately 47 million monthly users in Mexico. 95% of the Internet users in the country have an account on Facebook.

There are more than 28 million daily users through the web and more than 20 millions through the mobile.

Facebook vs Twitter in Mexico

Almost everybody knows about Twitter and Facebook.

While 56% of the social network users have an account on Twitter, 95% have an account on Facebook.

Facebook is still more popular than Twitter in Mexico.

Top Facebook Page in Mexico

Page Type Local Fans Fans

1 Facebook for Every Phone Entretainment 28,337,293 444,466,547

2 Facebook Media 10,681,469 149,026,726

3La Arrolladora Banda El

LimónCelebrities 9,596,469 11,805,363

4 WEREVERTUMORRO Entretainment 7,129,597 9,703,072

5 Shakira Celebrities 6,687,095 95,737,678

6 The Simpsons Entretainment 6,509,095 73,425,698

7 Calibre 50 Celebrities 6,205,960 7,528,049

8 Corona Brands 5,980,839 6,991,952

9 Corona Brands 5,980,540 5,982,062

10 Banda El Recodo Celebrities 5,870,699 7,242,387

Mexican Popular Youtube Channel

Fastest Growing Channels in May 2014

Online Business in Mexico

+ Online Business in Mexico is increasing every year, even though it isn't still very popular.

0

2

4

6

8

10

2009 2010 2011 2012 2013

thousands of millons of US Dollars

thousands of millons of US Dollars

Online Business in Mexico

In 2013, a 40% of the online sales were done in May and Dec.

4%4%

8%

2%

18%

2%

9% 10%

7%

4%

12%

22%

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Monthly distribution of 2013 online sales (estimation)

Online Business in Mexico

About Mexican customers:+ They rather buy products or services from national sites.

- 44% only in national sites- 39% national or foreign sites- 5% only in foreign sites

+ They feel more attracted for offers including:- Without monthly interest- With discount- Free shipping cost

+ They spend an average of 30 to 80 US Dollars for each purchase.+ Most of them buy once every 1 to 3 months.

Online Business in Mexico

About Mexican customers age:

31%

32%

17%

14%

6%

More than 55

From 45 to 54

From 35 to 44

From 18 to 24

From 25 to 34

E-banking in Mexico

Currently there are 18 online banks in Mexico.

All of them offer VISA card or Master Card and also both Debit Card and Credit Card.

Visa and Master Card are both used indistinctly.

E-banking in Mexico

Peso (MXN) is the official currency. The amount of ATM has been doubled within the last decade.

0

5

10

15

20

25

30

35

40

45

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

(th

ou

san

ds)

(year)

ATM

ATM IN MEXICO

E-banking in Mexico

- The usage of credit and debit cards in Mexico is increasing. Although the 2009 World Crisis, we can see an increasing trend in the number of bank cards in Mexico.

-

2

4

6

8

10

12

14

16

18

2009 2010 2011 2012 2013

Mil

lio

ns

year

TOTAL

BANK CARDS IN MEXICO

From E-banking to Internet Market

+ The E-banking is very important for the expansion of the e-commerce. They still need to work on the "easy going" and truthfulness of the pay systems so the customers choose the online method to purchase.

+ Debit Card or Credit Card is the most used payment method.

Starting a new business in Mexico

The following URL provide the information to Start a new business in Mexico.

http://www.doingbusiness.org/data/exploreeconomies/mexico/starting-a-business

Popular in Mexico

Portal Bank

MobileCarrier

NewspaperTV Channel

Internet Market(C2C)

www.blogspot.mx

Owner: Google Inc.

+ It is a blog-publishing service that was bought by Google from Pyra Labs in 2003.

+ usually the blogs are hosted unedr the subdomain of blogspot.mx

+ It’s a tool that allows users to create blogs withouth installing any program.

+ Every blog can be managed up to 100 users.

+ Every user can manage up to 100 blogs. There is no official limit of number of publications or comments.

+ Users can create their own website design even without any knowledge of HTML.

www.santander.com.mx

+ The group originated in Santander ( city in Spain). In the recents years, the group has expanded across Europe, Latin America, North America and Asia. So it reached also Mexico.

+ In April 2013, Santander was ranked as te 43rd

world’s largest companies in the Forbes Global 2000.

CEO: Emilio Botín

+ Santander is one of the largest banks in the world. Nowadays, it is expanding its business around the world.

Countries where Santader operates.

+ “Mercadolibre” in Spanish means “free market”.

+ It’s eBay’s Latin American partner. And it’s the number one e-commerce site in Latin America.

+ Mercadolibre was established in 1999 in Argentina and rapidly expanded to other countries of South America and Mexico.

+ Traded as NASDAQ: MELI

+Type: e-commerce

www.mercadolibre.com.mx

+ It‘ wirless telecommunications company owned by América Móvil. It is the leader provider of wireless communications services in Mexico.

+ On August 2011, Telcel reported it has 66.9 million cellular subscribers.

+ Telcel provide voice services and data services for mobile phones. It’s the biggest company in Mexico.

+ As it is considered to be a monopolistic company, it has received a great deal of criticism for its practices.

+ Owned by América Móvil

+Founded in 1989.

+Type: mobile carrier

www.telcel.com.mx

+ It’s a Mexican multimedia mass media company. It is the first company in the Spanish-speaking world.

+ It is also airing in USA through its partner Univision.

+ They provide 4 terrestrial networks and many others through Cable.

+ Traded as BMV: TLEVISA

+Founded in 1955.

+ Founder: Emilio Azcárraga Vidaurreta

+Type: TV chanel

www.televisa.com

+ The online version is the most popular in Mexico.

+ It was created to cover the end of the Mexican Revolution and the creattion of the new Mexican Constitution.

+ They have a new sign-up system where they can comment, but sometimes the anonymous system is used by political operators to pass as average readers and influence the audience.

+ CEO: Juan Francisco Ealy Ortiz

+Founded in 1916.

+Type: Newspaper

www.eluniversal.com.mx

References

Notes: 1. www.wikipedia.org2. www.cia.gov3. www.inegi.org.mx4. www.telesemana.com5. www.tudecide.com6. http://www.export.gov7. www.alexa.com8. http://www.export.gov9. www.netmedia.mx10. noticias.universia.net.mx11. www.socialbakers.com12. www.amipci.org.mx13. www.bancosmundo.com14. www.banxico.org.mx

About us

Website: http://www.siteengine.co.jp/en/

Facebook: http://www.facebook.com/siteengine (Japanese)

Email: info@siteengine.co.jp

SITEENGINE INC. is a global webmarketing agency based in Tokyo, Japan.

We help brands to expand their business in South East Asia. We translatewebsites and ads into Thai, Indonesian, Vietnamese, Tagalog, Malay, Burmese,Khmer and Japanese.

We have an affiliate in Bangkok, Thailand.