E-Commerce In Latin America
Where Is It Now, Where Is It Going, Who Is Taking It There?
In recent years, the media has made much of the growing consumer markets in Latin America. North Americans have to come to understand that much of the health of the U.S. economy is tied to the economic well-being of Latin countries such as Brazil and Mexico. Yet even with our awareness of the market size of our neighbors and awareness of our increasing interdependence, most North Americans consider the emerging Latin American markets to be underdeveloped, backwards, comprised of technologically unprepared people. How accurate is this conception, and specifically, what is the status of the Latin American market for e-commerce?
In order to understand any market for the first time, one must answer several basic questions:
How large is the market? How fast is it growing?
What are the buying patterns in the market? How might they change?
When will the market “take off?” What is blocking or helping market growth?
Who is already in the marketplace? Who is likely to enter?
This paper outlines the answers to these initial questions, and makes the case that North Americans need to pay attention to emerging Latin ecommerce markets- whether as advertisers, consumers, or trendwatchers.
Market Size and Growth Rate
As recently as August 1999, the Boston Consulting Group stated that on-line retailing in Latin America will reach $77 million in 1999. This figure represents web sales earned by Latin American based e-tailers. The same report states that an additional $90 million in revenues will be earned by U.S.-based online merchants this year. This results in a total of $167 million in domestic and international ecommerce r...
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...n America, I will continue to follow these related trends with increased interest.
[1] Emarketer, August 2, 1999, www.emarketer.com/estats/080299_beg.html.
[2] Emarketer, June 28, 1999, Is Latin American eCommerce Ready to Take Off?, www.emarketer.com/estats/062899_latam.html.
[3] Ibid.
[4] eMarketer, Latin American Retail Ecommerce to Reach $160 Million, August 2, 1999, www.emarketer.com/estats/080299_beg.html.
[5] Ibid.
[6] eMarketer, March 22, 1999, Latin America Gets Fired Up for EC, www.emarketer.com/estats/032299_latin.html.
[7] Emarketer, “Telephone Costs Holding Back Access In Latin America,” September 28, 1998, www.emarketer.com.
[8] Ibid.
[9] Emarketer, “UOL,” October 1999, www.emarketer.com.
[10] Ibid.
[11] “Building the First Web Brand in Latin America,” From metasearch using keyword “StarMedia.”
[12] Ibid.
Bianchi, C. & Ostale, E. (2006). Lessons learned from unsuccessful internationalization attempts: Examples of multinational retailers in Chile. Retrieved January 11, 2011, from http://www.carlospitta.com/Courses/Gestion%20Financiera%20Internacional/Cases/Failed%20retail%20attempts%20in%20Chile.pdf
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