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Study of Ecommerce Mexico 2015

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Objective and Vision of the StudyThe Mexican Internet Association, A.C. (AMIPCI) integrates the companies that represent aninfluence on the development of the Internet industry in Mexico. Every year, the AMIPCIundertakes the task of carrying out studies based on the use of Internet in Mexico to guide andpromote market growth.

Aware of the need to understand and analyze the aspects that can affect the e-commerce in ourcountry, AMIPCI presents the Study of Ecommerce Mexico 2015, which is already the 10thversion and is divided into two sections, that investigates components Ecommerce: OnlineBuyers and Ecommerce Landscape.

The study was conducted through the auspices of the Mexican Association of Online Sales(AMVO), IBM, VISA, Prosoft 3.0 and the Ministry of Economy. The realization was conducted bycomScore.

Analyses were performed by interviewing online buyers in Mexico and the leading e-commerceplayers in the country to have the vision of both supply and demand.

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Estimated market value of e-

commerce in Mexico 2014

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Development of Ecommerce in Mexico

$24.50 $36.50

$54.50

$85.70

$121.60

$162.10

2009 2010 2011 2012 2013 2014

Billions of Pesos (MXN)

34%42%

(*)

USD

12

.2 B

illo

ne

s

(*) Average Exchange rate: MXN 13.28 x 1 USD

USD

9.2

Bill

on

es

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Analysis of Consumer Experience

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Table of Contents

Objectives & Methodology 8

Digital Purchase Behavior 9

Digital Spending 14

Payments & Transactions 17

Digital Shopping Experiences 20

Mobile Shopping Experiences 23

Executive Summary 27

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Objectives & Methodology

Research Objectives:• Quantify e-Commerce value and volume in Mexico by device type and category. • Understand preferences and satisfaction of digital shoppers.• Understand barriers to digital shopping and how merchants can overcome them.• Know the most important factors to make an online purchase.• Identify the problems for which a transaction is not completed.

Study Methodology:• Members of an online survey panel were contacted via email by comScore.• A total of 1,243 respondents completed the survey.• Qualified respondent: Made an online purchase using a computer, smartphone, or tablet in the past 3

months (January 2015-March 2015).• 52-question survey, which took an average of 21 minutes to complete.• Data weighted to comScore Media Metrix audience prior to analysis.• Confidence level of 95%, standard error: +/- 2.53%

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Digital Purchase Behavior

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Three-quarters of online Mexicans made an online purchase during the first quarter of 2015.

Q1B. How many online transactions did you make using each device in the past 3 months? Please provide your best estimate of the number of times you have paid for something online. Base: Total respondents (n=1,243) + screened respondents (n=417)

Yes, 75%

No, 25%

Overall Online Purchase Incidence(Past 3 Months)

The growth of online shopping is heavily influenced by mobile shopping (tablet and smartphone), especially in the category Digital Downloads

Consumers aged 18 to 34 years bought more digital content than

those of 35 years or more.

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50%

28%

11%4%4%

3%Smartphone andtablet or tablet only

Smartphone only

Computer andtablet

Computer only

Computer andsmartphone

All 3 devices

93%84%

57%

Computer Smartphone Tablet

Shoppers 18-34 years of age

use smartphones more than

those aged 35+; those with SEL

AB use smartphones and

tablets more their counterparts.

Device ownership is high, and half of online shoppers have all three devices (computer, smartphone, and tablet).

S1. Among the devices listed below, which do you own or regularly use? Please select all that applyBase: Total respondents (n=1,243)

Device Usage

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Over half of shoppers purchased from an international retailer, with the U.S. being the top source for imported items.

Q2. In the past year, have you made an online purchase from an internationally-based retailer (i.e. located outside of Mexico) and had it shipped to you or someone else in Mexico? | Base: Total respondents (n=1,243)Q2b. In which country or countries were those internationally based retailers located? Please select all that apply. | Base: International online shoppers (n=707)

Yes, 57%

No, 43%

64%

36%

13%

11%

2%

United States

Asia

Latinoamerica

Europe

Other

International Purchases Country Purchased From

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25%

23%

21%

18%

14%

20%

13%

12%

56%

49%

50%

42%

41%

28%

30%

25%

19%

28%

29%

40%

45%

52%

57%

63%

Halloween

Cyber Monday

Back to school

Valentine’s Day

Mother’s Day

El Buen Fin

HotSale

Christmas

Decrease Stay the Same Increase

Shopping and buying are expected to increase around all holidays except for Halloween/Día de Muertos

Q6. Comparing your everyday online shopping habits with your habits around holidays, how did or do you expect your online shopping and buying to change around each of these holiday periods in 2015? Base: Total respondents (n=1,243)

Expected Change in Shopping Habits by Holiday

Net Change:

51%

44%

32%

31%

22%

8%

5%

-6%

More shoppers with SEL AB said their shopping would increase at Christmas and HotSale than those with SEL C or below.

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Digital Spending

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18%

19%

19%

19%

20%

21%

23%

35%

49%

53%

Consumer Electronics (excluding PC Peripherals)

Furniture, Appliances & Equipment

Computer Software (excluding PC Games)

Music, Movies & Videos (physical copies only)

Toys & Hobbies

Books & Magazines (physical copies only)

Video Games, Consoles & Accessories

Event Tickets

Digital Downloads

Apparel & Accessories

Category purchased and Amount Spent Across All Devices

$1,652

$2,643

$922

$448

$1,086

$480

$1,555

$1,179

$581

$1,383

$5,575

The three top categories purchased online were Apparel & Accessories, Digital Downloads, and Event Tickets; the most money was spent within the Computer and Furniture categories (excluding travel).

Category Purchase Incidence Average Quarterly Spend MXN*

Average quarterly spend across categories excluding travel

Q3. Please take a close look at the table below. Under each category, enter the amount of money in pesos you spent online in the first 3 months of the year, January 2015 – March 2015, from each type of device you have used for online transactions. Base: Total respondents (n=1,243); *Actual base size for the mean of each category varies and is determined by the incidence of that category.

The percentages can not be added because of duplication

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Category Purchased and Amount Spent Across All Devices (continued)

Three in ten shoppers made a travel purchase in the past three months. The highest average spend was MXN$9,284, almost 67% above the average of other non-travel-related categories.

Category Purchase Incidence Average Quarterly Spend MXN*

30%

13%

7%

10%

11%

14%

14%

17%

17%

18%

Travel

Other category not listed

Home & Garden

Flowers, Greetings & Misc. Gifts

Office Supplies

General Services (photo printing, shipping, etc.)

Consumer Packaged Goods

Computers / Peripherals / PDAs

Jewelry & Watches

Sport & Fitness

$9,284

$2,143

$1,210

$560

$1,449

$1,523

$858

$3,714

$1,735

$1,340

$5,575Average quarterly spend across categories excluding travel

Q3. Please take a close look at the table below. Under each category, enter the amount of money in pesos you spent online in the first 3 months of the year, January 2015 – March 2015, from each type of device you have used for online transactions. Base: Total respondents (n=1,243); *Actual base size for the mean of each category varies and is determined by the incidence of that category.

The percentages can not be added because of duplication

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Payments & Transactions

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95%

53%

52%

58%

28%

19%

7%

31%

18%

16%

15%

44%

12%

24%

29%

8%

8%

7%

Net: Payments with Bank Credit/Debit Cards as support

Personal credit card

Debit card

PayPal

Bank account transfer

MercadoPago

Safety Pay

Net: Other Non-Banking Cards

Commercial credit card

Prepaid card

Gift card

Net: Offline Payments

Cash on delivery

Bank deposit

Oxxo

7 Eleven

Pharmacy

Other offline channel

93%

52%

43%

51%

24%

15%

4%

25%

14%

9%

9%

38%

9%

20%

23%

5%

5%

3%

81%

29%

32%

38%

11%

14%

5%

26%

9%

10%

13%

29%

6%

11%

11%

5%

4%

8%

Funding payments from a bank account (Credit Card, Debit Card, PayPal, MercadoPago, SafetyPay and Bank Transfer) dominate in Mexico

Q4A. Which payment types/channels did you use for the online purchases you made in the past 3 months? Please select all that apply for each column. Base: Device purchasers

Payment Types Used Past 3 Months

83%

30%

38%

39%

17%

12%

5%

26%

12%

12%

9%

33%

8%

15%

17%

6%

6%

5%

Across any Device(n=1,243)

Computer(n=1,101)

Smartphone (n=681)

Tablet(n=442)

BC

A

78%22%

Classification According to Number of Payments

Electrónico

Offline

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Security concerns are the leading reason for not storing information with online retailers.

Reasons for Not Storing Credit/Debit Information with Online Merchants

Q10b. What are your reasons for not storing your credit or debit card information (e.g., card number, billing address, etc.)? Base: Do not store any information with online merchants (n=430)

77%

28%

14%

13%

7%

2%

2%

Security concerns

I don’t purchase enough from a company to warrant storing my card information

I didn’t know that I could store my credit or debit card information

It helps curb my spending

I don’t want to set up an account

Other

I don’t shop with retailers who store cards

The percentages can not be added because of duplication

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Digital Shopping Experiences

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Shoppers are highly satisfied with shopping both online and in a physical store.

Q5A. How satisfied are you with your overall shopping experience(s) in the last three months?Base: Device purchasers

Satisfaction with Shopping

8%

7%

7%

7%

8%

6%

5%

10%

9%

7%

40%

38%

43%

41%

40%

46%

50%

40%

43%

45%

Overall online (n=1,243)

Computer (n=1,101)

Smartphone (n=681)

Tablet (n=442)

Physical Store (n=1,243)

Extremely Dissatisfied Somewhat Dissatisfied Somewhat Satisfied Extremely Satisfied

86%

88%

83%

84%

85%

Net Satisfied:

Shoppers 35 years and older are more satisfied with online shopping in general, smartphone shopping and shopping in a physical store than those 18-34.

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The majority of all shoppers are likely to purchase across devices; however, intent is highest on a computer and lowest on a smartphone.

Q5B. How likely are you to make a purchase using each of these devices in the next three months? Base: Device users.

Intent to Purchase in the Next 3 Months

18%22%8%

15%14%

4%

67%64%88%

Tablet(n=705)[C]

Smartphone(n=1047)[B]

Computer(n=1,156)[A]

Likely (Top 2 Box)

Neutral

Unlikely (Bottom 2 Box)

Males are more likely to make purchases on a computer in the next three months than females (92% vs. 85%).

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Mobile Shopping Experiences

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Mobile device purchasers indicate they do so because of time-saving applications and the ability to access the Internet from anywhere and anytime compared with a computer.

Q7. Why do you use each of the following devices to make purchases online? Base: Total respondents (n=1,243).

Reasons for Device Choice for Online Purchases

73%

71%

68%

67%

65%

48%

34%

32%

2%

1%

Easy to make purchases on this device

Internet access on this device is fast

Easy to compare prices and find the best deal

I trust the security online on this device

Easy to save my receipts on this device

Available special offers/coupons

Available time-saving applications

Able to access the Internet from this device from anywhere andanytime

Other

None of the above

52%

46%

34%

41%

30%

41%

65%

75%

2%

3%

54%

46%

43%

41%

31%

35%

50%

50%

2%

3%

Computer(n=1,101) [A]

Smartphone (n=681) [B]

Tablet(n=442) [C]

Males trust security more than females on a Smartphone (45% vs. 36%) and Tablet (49% vs. 33%).The percentages can not be added

because of duplication

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About three in five mobile device users have used their device to research product details,compare prices, and find nearby stores.

Q8a. Which of the following activities have you conducted on your mobile device? Base: Mobile device users (n=1,103)

63%

62%

59%

50%

45%

44%

37%

26%

24%

1%

4%

Researching product details

Comparing prices before shopping for an item

Finding nearby stores

Searching for product reviews/recommendations from a website

Comparing prices while shopping for an item in person at a store

Accessing deal of the day apps

Sharing product recommendations via a social networking site or app

Mobile barcode scanning to compare prices

Sharing product recommendations via email

Other

None of the above

Shopping Activities Conducted on Mobile Device(s)

Shoppers 18-21 use their mobile devices to research product details (71%) more than those who are 22 years and older.

The percentages can not be added because of duplication

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Over a third of mobile device users say they have purchased products using a mobile app.

Mobile Device Transactions Conducted

Q13d. Which of the following activities have you done using your mobile device? Base: Mobile device users (n=1,103)

38%

23%

22%

21%

18%

17%

14%

33%

Purchased products using a mobile app (such as electronics, apparel, shoes,etc.)

Booked a rental for lodging using a mobile app (such as Best day, Despegar,PriceTravel, Airbnb, booking.com, hotels.com, etc.)

Used a mobile app on your mobile device to purchase goods at a coffee shop(such as Starbucks, Krispy Kreme, etc.)

Booked a flight

Booked and/or paid for a taxi, private car or rideshare using a mobile app(such as Uber, Yaxi, Easy Taxi, Smart Taxi, Taxi Beat, etc.)

Booked a grocery delivery using a mobile app (such as Superama, La Comeren tu casa, etc.)

Paid for a restaurant order using a mobile app (such as OpenTable, SinDelantal, Hello Food, Pedidos Ya, etc.)

None of the above

Younger shoppers have done these activities more than shoppers 35 years and older.

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Executive Summary• Three-quarters of online Mexicans are online purchasers based on reported purchase activity from

January to March 2015.

• More than one-half made non-domestic purchases during this period.

• The volume of online buyers has grown strongly influenced by the purchase of digital downloads frommobile devices

• Average quarterly spending across all devices and non-travel categories was MX$5,575 approximatelyMXN$1,860 pesos spent online per month .

• Two-thirds of shoppers use a mobile device (smartphone and/or tablet) for their online purchases, withjust one-third using a PC device exclusively.

• Mexicans like using mobile devices for their ease in accessing the Internet, as well as for the ability to useretailer apps, which can save time.

• Seven in ten mobile users have shopped within retailers’ apps, and more than one-third have madein-app purchases.

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Executive Summary• 95% of online buyers have used some type of payment funded with bank accounts or credit

or debit cards, and 44% also continue using Offline payment methods.

• Overall satisfaction with online shopping is high, on par with consumers’ satisfaction with shopping in physical stores. Online purchasers are very likely to continue buying online in the future, particularly using a PC.

• Shoppers expect their shopping to increase around all holidays except Halloween/Día de Muertos. The largest increases are expected around Christmas, HotSale, El Buen Fin, and Mother’s day.

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Analysis of the retailer’s

experience

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Table of Contents

Objectives & Methodology 31

E-commerce Landscape 32

Website Features 36

Digital Marketing & Promotions 41

Executive Summary 44

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Objectives & Methodology

Research Objectives:• Quantify the value and volume of e-commerce sales in Mexico• Understand expected sales increases and decreases around holidays• Determine payment types accepted• Determine promotions used by retailers• Understand website features • Quantify the value of the physical store versus online store.

Study Methodology:• Online merchants were sent an email invitation by AMIPCI with a link to the survey.• The survey had up to 20 questions and took an average of 10 minutes to complete.• 75 respondents who work in e-commerce sales completed the survey.

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E-commerce Landscape

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Apparel, sports & fitness, other and consumer electronics are the top four categories sold among these retailers.

Q1. Which of the following categories of goods and services do you or your organization sell online? Base: All retailers (n=75)

Categories of goods and services sold online

37%

33%

25%

23%

21%

20%

20%

16%

15%

15%

15%

13%

13%

12%

11%

7%

4%

4%

33%

13%

Apparel & accessories

Sport & fitness

Consumer electronics (excluding PC Peripherals)

Computers / peripherals / PDAs

Furniture, appliances & equipment

Home & garden

Toys & hobbies

Video games, consoles & accessories

Books & magazines (physical copies only)

Consumer packaged goods

Office supplies

Jewelry & watches

Music, movies & videos (physical copies only)

Computer software (excluding PC Games)

Digital downloads

Flowers, greetings & misc. gifts

Event tickets

General services

Other category not listed

Travel

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Q3. Please take a close look at the table below. Under each category, enter the amount of money in pesos you have sold online in the first 3 months of the year, January 2015 – March 2015, Please list the amount spent from domestic (in Mexico) vs. International (all other countries) in separate columns.Base: All retailers (n=75) | Note: Domestic and International sales are shown together.* Includes the following categories: books, magazines (physical copies only), digital downloads, flowers, greetings & misc. gifts, General services, Jewelry & Watches, music, movies & videos (physical copies only), and toys and hobbies

Share of Sales (excluding travel)

Consumer electronics and computers / peripherals / PDAs represented 40% of the share, and other categories not listed represents a third of the share of online sales in the first quarter of 2015.

B

21%

19%

8%5%

3%2%2%2%

1%1%

1%1%

34%(Other)

Consumer electronics (excluding PCPeripherals)Computers / peripherals / PDAs

Event tickets

Apparel & accessories

Consumer packaged goods

Home & garden

Sport & fitness

Furniture, appliances & equipment

Office supplies

Computer software (excluding PCGames)Video games, consoles & accessories

Other listed categories combined*

Other category not listed

If Travel were included, it would represent 61% of the sales dollars even though only 13% of retailers sell travel.

61%

39%

% MXN Sales Q1 2015 Retailers

Travel

No Travel

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11%

9%

31%

24%

9%

1%

5%

3%

60%

57%

32%

29%

33%

35%

21%

15%

17%

29%

33%

37%

47%

57%

64%

79%

80%

80%

Halloween

Valentine’s Day

Vacaciones…

Back to School

Mother’s Day

Cyber Monday

HotSale

Christmas

El Buen Fin

Decrease Stay the Same Increase

Retailers expect sales to increase the most around El Buen Fin, Christmas and HotSale.

Q4. Comparing your typical sales volume with your sales volume around holidays, how did/do you expect your sales to change around each of these holiday periods in 2015? Base: All retailers (n=75)

Expected Change in Sales by Holiday

Net Change:77%

75%

79%

63%

48%

23%

6%

24%

19%

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Website Features

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83%

80%

78%

73%

61%

29%

20%

20%

17%

22%

58%

51%

36%

32%

20%

15%

Debit card

Personal credit card

PayPal

Commercial credit card

Bank account transfer

MercadoPago

Prepaid card

Gift card

Safety Pay

Other online channel

Bank deposit

Oxxo

7 Eleven

Cash on delivery

Pharmacy

Other offline channel

Most retailers control their own online storefront. Debit/credit cards and PayPal are the most accepted types of payment.

Q5. How do you sell your products/services online? | Base: All retailers (n=75)Q5A. Which payment types/channels do you offer/accept for the online purchases on your website? Base: Retailers who own their own online storefront (n=69)

Payment Types Accepted Online

AB

AB

A A

C

C

A

92%

17%

4%

Through a website/app that you oryour company owns

Through a website/app that you donot own or control

Other

Type of Online Storefront

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Almost nine in ten retailers are aware of the AMIPCI Trustmark, and almost all retailers are aware of the HotSale and El Buen Fin sales events.

Awareness of AMIPCI Trustmark

Q6A. Are you aware of the AMIPCI Trustmark? Q6B. Are you aware of Mexico’s HotSale online sales event?Q6C. Are you aware of El Buen Fin online sales event? Base: All retailers (n=75)

88%

12%

Awareness of Mexico’s HotSale event

97%

3%

Aware Not Aware

97%

3%

Awareness of El Buen Fin event

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Seven in ten have some type of risk analysis/prevention tool or service.

Q8. Which of the following controls and/security features do you utilize on your website? Base: Retailers who own their own online storefront (n=69)

Controls and security features on the website

54%

46%

32%

20%

17%

13%

17%

4%

Tools of analysis and risk prevention by third parties

Own tools of analysis and risk prevention

3D Secure Authentication

Online validation system

Validation via proof of address

Mobile confirmation

Other

None of the above

Net: Have a risk analysis/prevention tool or service: 71%

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53% 52%

25%

12% 4%

41%

Google Android Apple iOS Windows Mobile /Phone

BlackBerry OS Other None of the above,do not have a

mobile app

Three in five retailers have a mobile app, with most being supported by both Android and Apple iOS.

Q10. Does your business have a mobile app for any of the following operating systems? Base: All retailers (n=75)

Operating systems for which the business has a mobile app

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Digital Marketing and

Promotions

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These retailers have several active marketing strategies, includingnewsletters, Social Media and search engines advertising (banners, subastade palabras, etc.).

Q11. Which of the following digital marketing activities have you conducted in the past 12 months? Base: All retailers (n=75) * This option was only shown to retailers who indicated their storefront has a mobile app.

Digital marketing activities in the past 12 months

87%

85%

81%

73%

53%

49%

45%

29%

29%

21%

4%

Email newsletters/notifications to subscribers

Management of social networking profiles

Search engine advertising

Banners on websites

Mobile advertising

Lead generation

Customer loyalty program

Updates/notifications within mobile apps*

Geolocation

SMS

Other

Among retailers with mobile apps, 50% send updates and notifications within their app, and 41% use geolocation.

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Discounts and interest-free credit were the top sales promotions offered in the past 12 months.

Q12. Have you conducted or offered any of the following online sales promotions/deals on your website or app in the past 12 months? Base: All retailers (n=75) Note: Sample size for this question for International sales promotions/deals is too small to report.

Online sales promotions/deals on business website in the past 12 months

69%

64%

48%

48%

48%

45%

40%

38%

34%

25%

19%

18%

3%

Discounts, coupons, or promo codes on products/services

Interest-free credit

Free shipping for all online purchases

Discounts/deals for social media ‘fans’ or ‘followers’

Free shipping for online purchases above a specific value

Free gift with purchase

Free shipping on returns

Discounts/deals for loyalty program members

Ability to pay some of the cost later/monthly without interest

In-store returns

Free in-store pick-up for online purchases

Free shipping for longer/extended delivery times

None of the above

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Executive Summary

Online sales:

• The majority of online sales are from within Mexico, and three in four online sales are via a PC. Retailers report an average of five percent chargebacks. The top four categories sold online are apparel, sports, other categories not listed and consumer electronics.

• The large number of incidences in "not listed other categories“, indicates the diversification of the ecommerce offers.

• By sales value, excluding travel, the top four categories are other categories not listed, consumer electronics, computers / peripherals / PDAs, and event tickets.

• Retailers expect shopping to increase around El Buen Fin, Christmas and HotSale.

• Almost nine in ten retailers are aware of the AMIPCI Trust Mark, but only two in five offer the Trust Mark on their site. Almost all retailers are aware of El Buen Fin and HotSale events.

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Thank you!

Sponsored by:

Iván MarchantVP comScore Méxicoimarchant@comscore.com

Mario LabastidaSenior Account Sales Manager comScore

mlabastida@comscore.com

Luis Carracci 146.

Col. Extremadura Insurgentes

Del. Benito Juárez.

C.P. 03470. México D.F.

Tel. 5559 8322

www.amipci.org.mx

informes@amipci.org.mx

Tel. 8000 8000

www.comscore.com

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