Mexico’s answer to Black Friday, El Buen Fin, is coming up!
Even with the ongoing pandemic still laying waste to Mexico’s economy, Buen Fin sales outpassed US’ Black Friday with US$11 billion generated revenue compared to the United State’s new, record-breaking US$9 billion Black Friday in 2020.
Latin America’s eCommerce grew by 63.3% to $104.60 billion in 2020, where Mexico accounts for 29% of the region’s eCommerce sector as the second largest revenue generator. On November 19, Mexico will kick off its biggest weekend-long sales event, the annual Buen Fin event where local retailers sell their products under massive discounts during three days.
What is El Buen Fin?
Buen Fin is short for Buen Fin de Semana, which translates to “Good Weekend.” It started in 2011 to support Mexican retailers by encouraging shoppers to buy locally. Based closely on the North American tradition of Black Friday, Buen Fin takes place each year on the weekend before the Mexican Revolution holiday.
Why is Buen Fin relevant?
Buen Fin is the country’s second most relevant shopping event among online buyers, just behind Christmas. Besides already being a bigger event than Mexico’s Black Friday or “Hot Sale” event, the weekend occasion allows shoppers across the country to take advantage of huge discounts on everything. Some businesses use the shopping event as a way to drive up pre-Christmas sales, whereas other businesses attract foreign customers seeking to cash in on the massive discounts.
Last year, despite COVID-19, Buen Fin sales reached approximately MXN239 billion (US$11 billion). This rise in Mexico’s eCommerce sales reflects a national trend that has been building where in the first half of 2021, according to the Mexican Online Sales Association (AMVO), small and medium sized businesses experienced a 100% growth in sales from digital channels.
How can merchants get the most out of El Buen Fin?
Here are three tips for how international and local businesses can have a profitable year:
1. Adapt locally
This event is one of the country’s biggest fairs, while occurring once a year amidst other regional shopping days. People in Mexico wait all year for this one-off event; therefore, buyers expect massive discounts.
For new eCommerce brands, quickly learning about the region and its trends is imperative, because localizing and settling in swiftly allows buyers to familiarize themselves with brands and the brand products.
2. Have a variety of local payment solutions
If you can’t accept the payment methods that Mexican shoppers are used to, you risk losing customers. Around 60% of shoppers prefer to pay with alternative payment methods, such as local debit cards or cash based solutions.
There is a growing appetite for online purchases, especially with the ongoing COVID-19 pandemic, however, despite Mexico’s continued steady growth in online shopping, J.P. Morgan identified low banking alongside internet and smartphone penetration as potential barriers to growth within the country.
Therefore, to cater to Mexican buyers without bank accounts or cards, merchants need to provide potential buyers a variety of local payment solutions, such as OXXO or through 7Eleven stores, in order to avoid alienating shoppers. International commerce expert Lightspeed, for example, has provided independent merchants with more local payment solutions in Mexico to keep up with the digital growth across Latin America.
3. Be mindful of online fraud
According to a report on cyber security in Mexico by the Wilson Center, the country ranks second in Latin America as the country with the most cyber-attacks.
Mexican online shoppers are aware of these high levels of fraudulent behavior. As a result, they are extremely concerned and cautious about online security. To protect your business and customers, ensuring you are using trusted and competent eCommerce solutions is pivotal.
Have a safe and profitable Buen Fin
If you’d like to know how we can help your business accept local payments, comply with local regulations, and adapt to local markets to reach your full potential, let’s talk about your business.