Exciting growth in e-commerce throughout Latin America

In our communications, there have been a  few times that we have delved into the potential of Latin America in the digital world and why companies like LCG have set their sights on a market that has over 500 Million in population and its richness in resources and people.  Let’s take a look at the data about the behavior in this area and what are the expectations concerning E-commerce.

Here are some figures: According to the Latin American Institute of Electronic Commerce, the region has exceeded 32 billion euros in electronic trading, showing a fast growth trend continued in 2012.  But there’s more, an article published by the Mexican multimedia “The Economist. Mx “and dated 21 November 2012, predicts that by 2013 Latin America will see a growth around 28.5%.

Even more promising figures in longer terms were dropped by the new consumer Digital Mobile Tata Consultancy Services, which comes to predict the behavior of e-commerce in LATAM by 2015. This multinational business solutions and outsourcing company based in Mumbai, Maharashtra, indicates that mobile e-commerce will grow exponentially 35% by 2015 in Latin America.

As for the regional rankings of B2C e-commerce use, Brazil still standing at the top, with 59%, 1% of total spending across the region, followed by Mexico with 14.2%, the Caribbean 6.4%, 6.2% and Argentina with Chile with 3.5%. Behind them are Venezuela with 3.3%, 2.4% Central America, Colombia with 2.3% and Peru 1.4%. The rest of the countries share the remaining 1.21%. This, according to the study of electronic commerce in Latin America 2012 presented by the Latin American Institute for Electronic Commerce (ILCE), the Santiago Chamber of Commerce (CSS) and Latin Pacific.

Given this background, companies need to act fast and deploy applications on smartphones as well as tablets. In Latin America, during 2012, 28% of companies have applications available for both smartphones and tablet. However, it is likely to increase by over 20% in 2015, with more than one third (34%) of all planned applications used to be done in both types of devices.

The most successful companies reporting with digital mobile consumers were those who adapted more quickly to new platforms such as tablets. The figures show that the leaders had an average of 25% of its mobile applications designed specifically for tablets. In contrast, companies with less success had only 17%.

Ankur Prakash, President and COO for TCS Latin America states: “Smartphones are becoming the preferred computerized devices of consumers while on the go, and on the other hand, tablets are taking a greater role for these consumers from home. As a result, mobile devices are transforming the consumer experience in contextual interactions from anywhere, anytime, and are becoming the new battleground for attracting and retaining profitable customer segments. “

In the study The New Mobile Digital Consumer, found that across different industries, transportation, travel, entertainment, media, telecommunications, retail, and other senior executives expect sales interactions and service marketing through mobile devices to increase dramatically in the coming years.

Entrepreneurs should look to develop business strategies aimed at generating interactions for consumers through mobile devices.

From the perspective of customers, we also believe that the challenge is to increase the use of online payment with credit cards, especially in Brazil, Argentina and Chile, and also increase the use of mobile devices to make purchases online.

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Paul Lima

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