Online Grocery in Mexico: Status Quo and Key Strategies

Online grocery in Mexico is small but growing

Online sales accounted for just 3% of all retail sales in Mexico in 2017, but consumers increasingly turn to the internet to discover, research, and find the best places to purchase items of all types, including grocery products. Retailers should be prepared to make online sales, and also build out online capabilities to support store-based sales.

Walmart, delivery platforms lead online grocery in Mexico

Walmart, with a comparatively long experience selling online in Mexico via Superama, and delivery platforms such as Rappi and Corner shop led online grocery sales in 2017 in Mexico. The delivery platforms generally offer a better user experience, stronger customer service, and high levels of convenience via the ability to order from many different retailers.

Brands begin to sell direct online in Mexico

Beyond retailers, fast-moving consumer goods brands in Mexico are increasingly selling directly to consumers via the internet. Nestlé, GrupoModelo and My Coffee Box are three examples of companies thinking creatively about how to reach Mexican consumers via the internet.

Retailers and brands alike must continue to innovate and build relationships

Both established grocery retailers and food and beverage brands must think creatively about how to use the internet to support their strategic goals.Companies should not seek to retrofit offline strategies into an online context, but rather identify differences in the offline and online consumer, tailor promotions, pricing, and pack sizes for each channel, and be proactive in building stronger, direct relationships with loyal customers via the internet.