Growing Online Industries in Latin America
By DANIEL SANDOVAL | Digital Marketing | No Comments
Latin America is one of the world’s fastest growing markets for online industries, second only to the Asia Pacific Region. According to the Latin America 500, the fastest growing industries aren’t simply talented start-ups, but also online industry giants like Amazon.com. The e-commerce industry is still young in Latin America, but seeing record growth through a blend of new online retailers from both inside and outside the area.
Brazil ranks as the largest market in Latin America for emerging online industries, and only continues to grow. Mexico is second largest in Latin America for e-commerce industries and is experiencing continued growth. Third in line is Argentina, which may soon surpass both Brazil and Mexico as the fast-growing online market in the coming years.
Latin America’s top online industries are growing faster than similar U.S. online industries. Among the fastest growing web merchants in Latin America, in addition to Amazonc.com (headquartered in the U.S.), include B2W Digital, (headquartered in Brazil), SACI Falabella (based in Chile), Nova Pontocom (also in Brazil), Netshoes (Brazil), Walmart Latin America (headquartered in the U.S.), and Dell (U.S. based). Others quickly emerging as online industry leaders are Máquina de Vendas, Magazine Luiza, and Saraiva e Siciliano, all based in Brazil. In addition, a number of other e-commerce players are expanding including the U.S. based Netflix, adidas America, and AutoDesk, Inc. as well as France’s Oxylane Group, the U.K.’s Farfetch, and Brazil’s Gallerist.
Retailers from the United States continue to invest in the growth of their e-commerce businesses in Latin America. Walmart and Amazon are supporting their growing online presence in Latin America with plans to build additional new e-commerce facilities in Brazil and Mexico, respectively.
Sonda, founded in Chile, continues to grow, pressing forward in its efforts to enhance information technology in Latin America and her companies. Genomma Lab Internacional is also a rising cosmetic and pharmaceutical star based in Mexico with international expansion on the rise. As companies like these model success and innovation, they offer guidance and value to start-ups seeking to grow in the Latin American market.
Following the growing online industry trends in Latin America, Argentina is the emerging leader, followed closely by Brazil, who has been the regions leader for a number of years. Mexico’s e-commerce growth remains strong, while Chile, Columbia, and Ecuador are close behind in online industry growth. Guatemala and Paraguay are experiencing substantial e-commerce growth. Uruguay has experience exponential growth after experiencing some setbacks earlier on.
It is interesting to note, the growth of e-commerce in Latin America is closely linked to the growth of m-commerce (mobile commerce). Because Latin America has a vast population who access the internet via their mobile phones and tablets, individuals are recognizing the security of online purchases, thus enhancing the growth of online industries in the region. As the region continues to embrace e-commerce and m-commerce, online industries in Latin America
