Online purchase of products for daily use grows and more is paid by debit card – 02/28/2019


"I bought online"It's a phrase heard so lately that it's hard to believe that online commerce represents only 5% of sales across the country. The feeling is different because, in tune with the reconversion that digital technology has made in our lives, e-commerce grows every year and consolidates its format.This is demonstrated by the numbers that the Argentine Chamber of Electronic Commerce (CACE) published on Thursday in its annual report, prepared by the consultancy Kantar TNS: in 2018, 25% more products were sold than in the previous year, and there are more Argentines who shop online at least once a month.

It also gained ground (and promises to continue like this, they said in the presentation) a method of payment that in 2017 still had little presence online: the debit card, whose use on the web rose from 1% to 7%.

But as e-commerce has more relevance in the Argentine reality, reflects the economic crisis. According to the CACE report, leisure-related products left a little room for the need, something expected in an inflationary context and depreciation of real wages.

Thus, several items of daily use or daily necessities reach a quantitative jump compared to 2017. This is the case of beverages, food and cleaning supplies, which increased by 63% over the previous year. In the presentation of CACE, Gustavo Sambucetti, institutional director of that entity, explained that "there are more people who make their programmed grocery shopping online."

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Also more Argentines acquired children's products through the web, instead of going in person to conventional facilities. "Maybe they looked at the prices and products for a business, or for several, and consulted on the web, but they decided to buy online," Sambucetti explained. The increase in this area is remarkable, 82%and includes items such as boys' clothing, baby accessories and toys.

Purchases of Cosmetics and perfumery, which rose 72%. Part of this increase is linked to a small launches among young people. Because while it is still stable – as in the CACE report of 2017 – the very classic division in the purchases of men and women (they, technology, tools, car accessories and sports clothes, concert tickets, personal care clothes), the millennials from textile products and online courses to telephone purchases, cosmetics and personal care. To see this last phenomenon, just chew social networks for a while …

Another item that has increased are building materials and tools: their place in total online sales is small (1%), but year on year they have grown almost 70%. Are they builders who buy in bulk? "No, it is the choice of individuals," CACE Clarin.

Sambucetti designed the line that connects the walks in these areas with a greater offer: "There are not just more people who buy online. There are also many more people and companies that offer these products on the web."

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Obviously, items that represent 50% of all Internet purchases are still (as in other years) tourism, electronics, furniture and decoration. But the increase in billing for these items does not show such significant growth, in line with the decline in mass consumption in 2018 of 1.8% (data from consultancy Kantar Worldpanel).

Although the CACE reports that the sales of the companies it represents increased by 47% 156,300 million pesos were spent in 2917 and 229,760 million pesos in 2018, Sambucetti admitted what is somehow evident: "In the face of inflation, it can be said that we are tied"

How does the Argentine buyer move? The report details that there were 79 million orders, 32% more than the previous year. They searched and made concrete more shopping on the phone than in 2017 (from 39% to 45%), which fits with a increase in the use of shopping applications, although what is still really tracking are the sites. The 83% consumption process starts with them.

Those who buy at least once a month went from 42% in 2016 to 49% in 2018. In the same proportion O and-buyers "Casual", who buys perhaps every six months.

At the presentation, Valeria Forwe, senior consultant at Kantar TNS, focused on " maturity"What Argentine e-commerce is doing:" Before, we asked people about the disadvantages of online shopping and they always reported two problems. Now they only mention one. "He emphasized that" the poor payment security and in the treatment of data, was mentioned by fewer buyers: it fell from 15% to 9% year-on-year. "

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Finally, the average cost of each transaction came from 2,900 pesos, 12% more than in 2017.

But in Argentina everything is not online: the report also indicates that credit card payments fell from 92% to 78%, and that, in addition to earning the debt on the ground, cash payments went up, which now account for 11% of purchases (compared to 7% in 2017).

It is that many, the majority (54%), decide to end this process by withdrawing "at the point of sale". In CACE interpreted these data: "It may weigh an economic issue, but mainly is to treat the times to withdraw the product. Greater comfort is sought"



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