E-Commerce Survey 2010

Prepared by: Market Research Vice President Diana Arboleya, TGI Kantar Media

Presented by:

Index

1. Introduction and Background 2. Methodology 3. E-commerce in Mexico 2009 and main patterns of the shopper on the Internet 4. Conclusions

Introduction
Mexican Internet Association (AMIPCI) integrates the companies they represent an influence on the development of the Internet Industry in Mexico. Each year, the AMIPCI undertakes the task of developing studies on the use of Internet in Mexico to guide and encourage the growth of the internet. The AMIPCI, conscious of the need to understand and analyze the issues that may affect e-commerce in our country, involves the Trade Study E-2010, sixth consecutive year that performed under the auspices of Visa and information Select. The results of this analysis allow us to have a better perspective on the evolution of electronic commerce in Mexico and the opportunities presents this new sales channel in our country in order to highlight the achievements and opportunities in the field in Mexico. Market Research Vice President, Asociacin Mexicana de Internet.

Mexican Market

Data and methodology Mexican Market

AMIPCI Study of Electronic Commerce in Mexico 2010, the sixth of its kind, measures the magnitude of sales of products made in Mexico by internet. 25 companies participated by providing relevant information, same as was subjected to a process of analyzing and presenting data consolidation more relevant in this study. In order to have a uniform basis for comparison are asked these companies to both its historical figures and their prospects 2010. Overall numbers of electronic commerce in this study are result of analysis of this information and trends.

Participating companies
CONSUMPTION Bwin Cinpolis Shopping Dell Emotion Sports Esmas Gandhi Liverpool MercadoLibre Nine West Palacio de Hierro VIP Square S Insurance Sony Tec Draw Telefnica Ticket Master TOURISM Aeromexico Aerocar Clickhoteles Interjet Mexicana Price Travel RCI Volaris

E-commerce: growth above the economy in 2009 and strong growth in 2010
Figures in MUSD $ 2.387
Annual sales of B2C e-commerce Annual Growth

31%
$ 1.817

$ 1.768

3%

$ 955 $ 537 $ 209 $ 315

2004

2005

2006

2007

2008

2009

2010 * * Estimated

Source: Select, Electronic Commerce Study, October 2010

Figures in millions of pesos

Annual sales of B2C e-commerce Annual Growth

25% $ 24.545

$ 30.292

23%

$ 19.713

$ 10.438 $ 5.853 $ 2.360 $ 3.430

2004

2005

2006

2007

2008

2009

2010 *

Source: Select, Electronic Commerce Study, October 2010

* Estimated (Type Change: $ 12.69)

Consumption growth in tourism over in 2009 and 2010

102% 91%
Annual Growth of dollar amounts

51% 43% 33% 24% 31%

-3% 2007 2008 Consumption

Source: Select, Electronic Commerce Study, October 2010

2009 Tourism

2010 *
* Estimated

E-commerce participation vs. winning. Traditional business

2008
Trade electronic 8%

2009

Trade electronic 12%

Other means 92%

Other means 88%

Source: Select, Electronic Commerce Study, October 2010

Source: Select, Electronic Commerce Study, October 2010

Virtual stores are not considered n = 18

Continues Strong Sales growth

Destination of sales of business e-commerce in Mexico

5%

14%

23%

International

95%

86%

77%
National

2007
Source: Select, Electronic Commerce Study, October 2010

2008

2009

n = 19

In the consumer segment, computing is the highest turnover

Distribution of consumer sales
Accessories vehicles 4% Consoles and Games 6% Clothing & acc. Persons 8% Sport 3% Home appliances 3% Pets and Animals 3% Health and Beauty 3% Photography and cameras Digital 2% Movie tickets 2% Cell Acc. 2% Airtime 1% Books and magazines 1% Baby Items 1% Furniture and equipment 1%

Electronics 8% Others 29%

Cell 13%

Computing 26%

Others 11%

Source: Select, Electronic Commerce Study, October 2010

Collectibles 1% Insurance 1% Music and Movies 0.4%

Tourism: the national ticket weight is boosting trade

International Average price: $ 215 USD National average price: $ 155 USD
Distribution of sales in tourism

Airline Tickets International 28%

Airline Tickets National 72%

Source: Select, Electronic Commerce Study, October 2010

Gaining ground deposits or transfers vs. TDC

9% Other: Credit and nonBanking / Payment Deferred 6% 5%

8% Deposit / Online Transfer 15% 12%

8% COD / Cash 12% 9%

74% Credit card 66% 74%

2008
Source: Select, October 2010

2009

2010

Internet Buyer

Data and methodology of the Internet Buyer

It has realizadouna online survey of a database (Www.consupermiso.com.mx) of Mexican Internet users to know their habits purchase. 1.024 cases were obtained representing the universe of surfer Mexican in the variables Seco, NSE, age and geographical area. The aim dinal of this study is to know the most important aspects that takes into account the Internet users to shop online as security, the main portals and especially the level of confidence.

Universe: Mexican Internet users ages 18 and up Frequent Internet users (minimum of 2 hours exposure per day) Geographical scope: Mexico Technique: C.A.W.I. Online Self-Administered Interview Displays: 1,024 cases Fieldwork Date: October 2010

Mexican Market

Sample profile

Distribution of gender, age and SES are representative of the profile of Mexican surfer
Gender
18 to 24 years old From 25 to 34 years old

Age

41% 31% 17% 8% 3%

55%
Men

45%

From 35 to 44 years old From 45 to 54 years old

Women
ABC +

NSE

Over 55

40% 21% 28% 11% * Base: 1024 respondents

D/E

Buying habits

65% of respondents have purchased online. And the main reason for do not buy online is the lack of confidence.
Have you bought online? Why NOT?
It gives me confidence to my data personal I'm afraid to provide information My Card I do not know if I will get the product I do not trust the shipment arrives

3%

22%

54% 40% 36% 35% 32% 24% 18% 15% 9% 7%

35% 40%
I have no credit card Not interested I seem high shipping costs Yes, only Mexican sites If only foreign sites (Amazon, eBay, Bestbuy) Yes, Mexican and foreign sites (Amazon, eBay, Bestbuy) I have not bought online Do not know how to buy online Do not find what I want Long time to get what I buy

* Base: 1024 respondents

* Base: 354 respondents who Not having purchased online. mentioned

99% of respondents who have purchased online, please consider making a purchase.
You think to buy something online in the future?

8% 46%

45%
If, in the next 3 months If, in the next year Yes, but do not know when No, I never buy online

1%

* Base: 670 respondents

49% of respondents who have purchased online, have acquired Electronic Devices.
Electronic Devices Computers Airline ticket or bus ticket (air or ground transportation) Software Tickets Events, Shows, Concerts, Film, Theatre, etc. Cell Phones / Accessories Clothing and personal accessories (Watches / Glasses / Shoes / Bags, etc.). Hotel Reservations Music & Movies (downloads) Books & Magazines (physical) Books & Magazines (downloads) Consoles and Games Articles w / home Toys Music and Movies (physical) Vehicle Accessories Perfumes Online impressions (pictures, documents, etc.., X mail sent) Animals & Pets Car rental Food Insurance

49% 31% 31% 30% 28% 26% 22% 21% 21% 20% 19% 18% 16% What product / service you bought? 16% 14% 11% 9% 6% 5% 4% 3%

* Base: 670 respondents

2%

66% of respondents who have shopped online for products and / or services, portals have been buying / selling.
Purchase Online Banking Entertainment / Shows Air and land transport Calculation Software Government Boutiques / Department Stores Hotel Chains Office Supplies Supermarkets Virtual Travel Agencies Insurance

66% 35% 34% 31% 26% 19% 18% 14% 14% 10% 10% 8% 3% What kind of portals you have made online shopping?

* Base: 670 respondents

The average cost of online purchases is $ 401 to $ 1000 pesos and do every three months.
How much you spend on average each time you shop? How often do you shop online?

More than $ 5001 pesos $ 3001 to $ 5000 pesos $ 1001 to $ 3000 pesos $ 401 to $ 1000 pesos $ 150 to $ 400 pesos Less than $ 150 pesos

4% 5% 18%

Every Year

23% 39% 23% 3% 12%

Every three months

Every Month

40%
Every Week

26% 7%
I bought a once

* Base: 670 respondents

* Base: 670 respondents

Purchase Intent

Half of the respondents who have purchased online, compare prices online and physical stores.
Before making a purchase of any type (online or physical store), Do you compare prices?

8%

51%

37%

Yes, I compare prices online Yes, I compare prices in physical stores

4%

Yes, I compare prices online and physical stores Not

* Base: 670 respondents

45% of respondents who have purchased online, using Internet as their main source of information.
What is your main source of information?

27%
Others TV

9%
8%
3% 2%

Online Campaigns Friends Family

46%
5%

Previous Experiences Internet

* Base: 670 respondents

76% of respondents who have purchased online, consider save time.

Why shop online?
Saving time

76% 51% 48% 48% 38% 37% 18% 16% 11%

It is cheaper

Meeting of models

I take him home

It is more practical I can buy items from other countries / imported It is the only way that I find

Assure the product / service

Matched fashion

* Base: 670 respondents

Conclusions

Conclusions
The E-Commerce reaches $ 1.817 MUSD in 2009 31% growth Estimated Closing 2010 12% of Sales Total performed through e-commerce Consumption grows aggressively super growth of tourism Sales continue to drive segment: 23% of total Plane tickets andcomputers drive growth Transfers and deposits earn participation in payment

Conclusions
The 66% of respondents who have shopped online, the been made in portals purchase / sale. The 49% of respondents who have purchased online, have acquired Electronic Devices. Half of respondents who have purchased online, compare prices online and physical stores. The 65% of respondents purchased over the Internet. The 76% of respondents who purchased Internet, see that timesaving.