Since its arrival in 2013 to Mexico, Amazon has been rapidly growing and aiming for more. Just a year after it began operations in the country (by only selling eBooks and electronic reading devices), the mega e-commerce company is focusing on expanding their business in Mexico.
Content Director for Amazon Kindle in Latin America, Pedro Huerta, mentioned that the company is expanding their digital offer, by adding independent publications as well as academic and university contents.
In addition, the President of the American Institute of Electronic Commerce, MarcosPueyrredon stated that Amazon is planning to install the first warehouse and distribution center in Mexico, and the strategy is to reach southern countries, decrease shipping costs and broaden product offerings.
The plan is to get everything done in two stages: the first stage should be finalized by the end of the 1st semester of 2015, and the second stage should be completed by the end of the year and everything should be up and running to work in full speed. The product offering and establishment of new warehouse is not clear yet, and Amazon hasn’t issued an official declaration yet, however the company is currently looking for a recruiter to build up the human workforce, as stated in El Economista.
In previous interviews, Pedro Huerta has assured that the firm is constantly analyzing the evolution of the Mexican market to outline its strategy. It is expected that the e-commerce industry in Mexico will be surpassing $12,000 million USD in 2014. The Mexican Publishers Association (CANIEM) registered in 2012 an increase of 3.2% of annual sales of books, while the eBook sales increased by 59.3%, generating $16.6 million MXN (approximately $1.2 million USD).
Amazons’ arrival in Mexico will promote e-commerce and encourage traditional retailers to hop on the online sales industry. In fact, this is where the real challenge begins, since Amazon has already done this in other countries like China, France, Germany and United Kingdom, meaning the company has a broad experience in this operating mode and is in full advantage of obtaining maximum results. On the other hand, traditional retailers would need to expand their business and adapt their products to the online world, which is an industry in constant evolution and expansion, that guarantees success and progress.