Ecommerce Marketing Strategy Boosts Grocery Sales in Mexico

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What: E-commerce marketing strategy revealed by retailers Walmart and Soriana. It shows how they are capturing the e-commerce home delivery grocery market in Mexico with alternative digital payment strategies.
Why is this important: Fear of fraud prevents many Mexican consumers from shopping online with a credit card. Therefore, Walmart and Soriana are on it. Therefore, they are rolling out cash on delivery, branded digital payment cards, loyalty programs for mobile phones, and PayPal options..

Race is on as grocers roll out e-commerce marketing strategy in Mexico. Grocery store and general merchandise retailer Walmart took the lead. But in Mexico, its competitors, including Soriana, are fighting to develop their online delivery business.

The way customers pay for their purchases online could make all the difference.

High credit card commissions and fear of fraud are a significant barrier to online sales in Mexico. Digital purchases represent only 3% of all sales of consumer goods nationwide. As a result, it’s well below the average seen in other countries, according to branding expert Vilma Vale-Brennan. She is Deputy Managing Director of Vale Network in Mexico.

Mexico’s new president, Andres Manuel Lopez Obrador, has pledged to get banks to cut commissions on credit cards. But grocery retailers like Walmart don’t have time to waste.

E-commerce marketing strategy with digital payment app

Last year, Walmart launched its own digital application. As a result, it allows customers to pay for goods in stores with the Walmart digital app “Cashi.”

After downloading the app on their mobile phone, customers can top it up with cash at any Walmart-owned store. It’s a fast and easy way to convert cash to a secure digital payment option. As a result, customers use it for their purchases at Walmart, Superama, Sam’s Club, and Bodega Aurrera stores.

Cashi can be used to pay utility bills and services like Netflix, Spotify, and Uber.

The idea here is to make shopping with Walmart easier and give people more options.

But perhaps more importantly, Walmart told Portada that it plans to expand the Cashi digital payment system later this year to allow its online customers to use Cashi for their online grocery purchases, according to Gabriela Buenrostro, deputy director of corporate communications. “The idea here is to make shopping with Walmart easier and give people more options,” she said.

Walmart’s online marketing strategy overtakes the online market with 4.5 million online shoppers in Mexico, followed by grocer Soriana at 1.1 million, according to a study by the American media measurement and analysis company Comscore, as reported by Portada.

Cash, PayPal options available

Walmart offers online shoppers the option of using PayPal, and Soriana added the PayPal payment option on its online sales site this year.

Soriana also allows her online customers to pay the home delivery person in cash., Where use your bank card on the delivery man’s portable card reader, E-commerce director Rafael Castelltort told Portada.

Most of Soriana’s online grocery customers shop online using the Soriana branded mobile app on their cell phones. A Soriana loyalty card program has more than 9,000 users, and to build loyalty even more, Soriana, deploying her own e-commerce marketing strategy, launched her own mobile phone service “Soriana Movil” in 2017, which allows users to earn loyalty points redeemable for free products, said Castelltort.

The trends are very clear. Mexicans prefer to use a cell phone when visiting online grocery store sites.

Soriana’s decision to launch her own mobile phone service in Mexico may seem tangential to an effort to expand online shopping, however, this could be perfect for attracting more online shoppers.

“The trends are very clear”, ComScore’s Alejandra Ibarra, comScore’s Latin America service manager, told Portada when asked about e-commerce marketing strategies among grocers in Mexico. “Mexicans prefer to use a cell phone when visiting online grocery store sites. “

And over time, mobile apps are becoming more and more important to grocery e-commerce market leaders like Soriana and Walmart.

Just last year Walmart announced the acquisition of the Cornershop online marketplace. Users download the Cornershop app to shop online using their mobile phones at supermarkets, specialty food stores and drugstores in Mexico and Chile, according to Forbes.

“The acquisition of Cornershop by Walmart shows the importance that applications have for the company and the performance that it must provide to maintain its leadership” Ibarra told Portada.


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