The Latin American e-commerce market is about to usher in the biggest sales season of the year. Are Chinese sellers ready?

The Latin American e-commerce market is about to usher in the peak sales season at the end of 2024, which brings abundant opportunities and challenges to Chinese sellers. We specially invited the Latin American e-commerce platform nocnoc to comprehensively analyze the current status of the Latin American e-commerce market, the key markets to focus on, the upcoming marketing nodes, and how sellers can effectively prepare.

1. Overview of Latin American e-commerce market

The e-commerce market in Latin America has seen significant growth in the past few years, with transaction volumes reaching $509 billion in 2023 and expected to increase to $923 billion by 2026, according to Morgan Stanley.

In Latin America, we can focus on these five markets:

● Brazil: Brazil is the largest e-commerce market in Latin America. According to the Brazilian E-Commerce Association, the market size is expected to reach US$41.9 billion in 2024, accounting for about 29% of the entire Latin American e-commerce market. With the increase in Internet penetration and the growth of the middle class, the number of e-commerce consumers in Brazil is expected to exceed 100 million in 2026.

● Mexico: Ranked second, its e-commerce revenue is expected to exceed US$34 billion in 2024. Its young consumer groups and growing number of Internet users provide strong impetus for the development of its e-commerce.

● Chile : It is one of the fastest growing countries in Latin America for e-commerce, and the market size is expected to reach US$6 billion in 2024. Chile has a high Internet penetration rate and consumption capacity, and is the most powerful developed country in Latin America.

● Colombia: The e-commerce market is booming and is the third largest in Latin America, expected to reach $14.5 billion by 2027. With economic growth and the expansion of the middle class, online shopping is becoming mainstream.

2. Key e-commerce marketing nodes at the end of the year

1. Buen Fin (Good Weekend): From November 15 to 18, it is one of the most important shopping festivals in Mexico. Similar to Black Friday in the United States, many e-commerce platforms and retailers will offer big discounts and promotions.

1.    Market Opportunities Rapidly growing sales: According to the Mexican Association of Online Sales (AMVO), total sales during El Buen Fin reached $6.92 billion in 2022. In 2023, online retail sales increased by 23.7% year-on-year during the event, with electronics and fashion products performing particularly well.

2. Broad consumer base: 60% of internet users made a purchase during El Buen Fin in 2022. The main reason consumers choose to shop online is to save time and avoid going to physical stores, while enjoying exclusive discounts and a more diverse selection of goods.

2. Black Friday: November 29, one of the largest shopping festivals in the world. Latin American consumers are increasingly enthusiastic about Black Friday, and many e-commerce platforms will start preheating activities several weeks in advance.

1.    Market Opportunities

GMV continues to grow : Black Friday GMV continues to grow in different Latin American markets.

■ For example, in Mexico , online sales in November 2021 increased by 45% compared to 2020. In Brazil, despite high inflationary pressures, Black Friday sales in 2021 still increased by 5% compared to 2020. In 2021, Brazilian consumers' online consumption increased by 16% compared to 2020;

2. High consumer awareness and willingness to buy :

■ Every year, major e-commerce platforms in Latin America carry out effective marketing activities to raise consumers’ awareness of Black Friday and increase their willingness to purchase through online channels.

■ In 2021, 98% of consumers in Brazil knew about Black Friday , and about 65% of them had the habit of shopping online.

■ In other Latin American countries, consumers' purchasing intention also reaches 50%-70% , which is a very high proportion.

3. Christmas: December 25 is one of the most important holidays in Latin America. Consumers will buy gifts and household items, and e-commerce platforms will also launch various Christmas promotions.

1.    Market Opportunities High-demand period for gift purchases: A 2021 Deloitte survey showed that most Latin Americans prioritize Christmas gift purchases over planning Christmas dinner or deciding what to wear for the evening. The survey also showed that Latin American consumers buy 4-5 gifts on average, more than 33% typically buy more than 6 gifts, and only 3% do not buy any gifts.

2. High spending : The average value of each gift is between $16 and $31, so the average Latin American spends between $64 and $155 on Christmas gifts.

3. Toys and games are popular categories : The most popular categories are toys and games, especially video games, educational toys and dolls from well-known brands . As Christmas is celebrated in the summer, outdoor games and beach games are also very popular.

3. How Chinese sellers should prepare

1. Off-season Black Friday: Meeting demand for off-season products

In Latin America, Black Friday is not just a shopping festival, but also an opportunity for counter-seasonal promotions. Since the seasons in the southern hemisphere are opposite to those in the northern hemisphere, Black Friday coincides with the beginning of summer in Latin American countries. Therefore, sellers can launch products such as summer clothing, swimwear and outdoor products to attract consumers.

For example, consumers in Brazil and Argentina actively purchase beach-related goods at this time, which provides Chinese sellers with abundant product choices and sales opportunities.

2. Friends and Family Black Friday: Combine festivals with socializing

Latin American consumers pay special attention to family ties, and there are many large family gatherings. Everyone will gather together to celebrate festivals and family birthdays. Sellers can combine these festivals to prepare some festive gift boxes, and use social media platforms to carry out social marketing activities to attract more consumer attention.

For example, sellers can post their own Black Friday promotion information and popular product recommendations on social media platforms, inviting consumers to like, comment, and share. In addition, sellers can also cooperate with social media influencers and invite them to recommend their products to expand brand influence and popularity.

3. Discount Black Friday: Latin American consumers are extremely sensitive to discounts

Latin American consumers are extremely sensitive to discounts, especially in Mexico and Brazil. Although they may be highly interested in the product, price is often the key factor in deciding whether to buy. Large discounts can not only help Chinese sellers increase sales, but also quickly increase brand awareness. Many Latin American e-commerce platforms will also offer platform discounts during Black Friday to attract consumers.

Through simultaneous promotions on multiple platforms, sellers can maximize price advantages and increase exposure.

4. Get ahead of Black Friday: plan ahead and seize the opportunity

In the Latin American market, Black Friday is not just a one-day promotion, but a shopping spree that lasts for weeks. In order to attract consumers to place orders in advance, many Latin American e-commerce platforms will launch "early bird benefits" on the eve of Black Friday, such as limited-time discounts and discounts for purchases above a certain amount. This early layout strategy allows sellers to take advantage of consumers' early shopping psychology and increase sales.

For Chinese sellers, early planning means more preparation time and more sufficient inventory to focus on sales and marketing.

5. Innovative Black Friday: Technology empowers and improves experience

In the Latin American market, Black Friday is not only a promotional event, but also a showcase of technology and innovation. Consumers are beginning to put forward new demands for smart products, which is also an area that Chinese sellers can focus on. Of course, consumers are also increasingly demanding shopping experience, and e-commerce platforms and brand merchants have been improving user experience through technological innovation to win more consumers' favor. By optimizing artificial intelligence and big data analysis of product lists, improving search and recommendation algorithms and other technical means, sellers can help consumers find the products they need faster and more accurately, and improve the shopping experience.

Conclusion

Black Friday in the Latin American market is not only a shopping spree, but also a huge business opportunity. As a Chinese seller, you need to pay close attention to the consumption habits and cultural characteristics of local consumers, make full use of local channels, and achieve precision marketing. Whether it is the anti-season Black Friday, the friends and family Black Friday, the discount Black Friday, the early Black Friday or the innovative Black Friday, it can help you stand out in the fierce market competition and open up unlimited possibilities in the Latin American market.

I hope this article can help you better understand the Black Friday features in the Latin American market. Of course, nocnoc provides one-stop access to 15 e-commerce platforms in Latin America, and we also hope to help you win the Black Friday in Latin America.