The eCommerce Day was held from June 19 to 21 in Peru, organized by the eCommerce Institute and the Cámara de Comercio de Lima. . MAKE was present and these are the highlights of the meeting.
E-commerce is no longer a new concept for the consumer, it is now the main place where products are sold. Today, it is best to have both physical and digital channels integrated to provide a seamless, omnichannel experience.
The most successful companies are those that adopt a customer-centric mindset, invest in understanding and adapting to their needs, and exceed their expectations.
1. eCommerce trends in the region and the world:
- Asia, led by South Korea, is approximately 10 years ahead of the rest of the world (including the United States) in terms of e-commerce usage and consumption trends, especially in FMCG (Fast Moving Consumer Goods) products, which are fast-moving consumer products, for example products with high turnover that are bought, consumed and re-purchased on a regular basis.
- In Latin America, the contribution of e-commerce to omnichannel sales (especially for FMCG products) is still low, at less than 10% (Peru is around 4%).
- The traditional channel is still the most widely used in the world, but this gap is decreasing, particularly in Asia.
2. The most important data in Peru:
Young people are willing to spend more on products that give them pleasure, while adults and older adults are willing to spend and value good quality products. The latter generation, which was not born with technology, has adapted out of necessity but very well.
In general, consumers are willing to pay more for what matters most to them and for faster delivery, accordingly this is what makes the difference when it comes to working out a value proposition.
- More than 15 million Peruvians make transactions online. Before the pandemic, this number was less than 7 million.
- More than 60% of online purchases are made with a bank card.
- This year, online transactions are expected to exceed 23 billion dollars.
- The distribution of purchases between the male and female genders is practically equal (approximately 55% vs. 45% respectively).
- 75% of people who shop online do it at least once a month.
3. Artificial Intelligence and data analytics:
- Artificial Intelligence has the power to improve the efficiency of business operations and personalize customer interaction. Therefore, organizations must adapt to change and innovation.
- It should start iteratively by using used cases, prioritizing what gives the most value to the company, never trying to implement everything at once.
- Artificial intelligence and predictive analytics projects should be an initiative of the business areas, who are the ones called to lead them. The technology areas must accompany and facilitate the implementation. The power lies in the combination of the business expert and the technology.
- The ethical use and security of such data becomes a priority, along with the best user experience that can be provided.
My conclusion:
The eCommerce Day Peru 2023 has been an opportunity to learn about the trends and the current state of the sector. Peru is on the right track, the growth of e-commerce has accelerated, although not as much as in Asia, which continues to lead this trend and is usually the mirror of what will happen in Latam in 10 years.
The speed of delivery, product quality and omnichannel are key factors for consumers and their preference.
On the other hand, applying Artificial Intelligence and data analysis is the next step to achieve efficiency and what they now call the “hyper-personalization” of the offer. It is important to always iterate, prioritize what delivers the most value and not get overwhelmed with trying to implement everything at once.
And finally, although it sounds contradictory, it is the business areas that are called upon to drive AI projects that can contribute and improve their decision making. Together with the technology team, they create an ideal combination for success in any implementation.
