Alibaba is helping to push the digital transformation in Mexico
Economy

How Alibaba is helping to push the digital transformation in Mexico

The Chinese giant signed an agreement to train entrepreneurs in the country, in the first deal of this kind ever signed by Alibaba in Latin America

In Mexico, e-commerce is strengthened year after year, and, on average, 46% of Mexican Internet users have purchased a product or service online, according to the 15th Study on the Habits of Internet Users in Mexico 2019 of the MX Internet Association.

The growth of companies that focus on e-commerce is evident. Every day we see more advertising of them and their services cover greater economic sectors, but this way of buying and selling, which is constantly evolving, presents new challenges for the Mexican SMEs, since if they do not have a digital presence in their strategy, they will hardly be able to reach a greater number of potential clients.

The arrival of the new government in Mexico introduces changes and drives markets to adjust. Usually, international markets also need to modify certain economic standards due to new mandates, but investment does not necessarily have to be reflected in the purchase and sale of products and services, it can also be about educating the talent of a country.

During the GO3 Forum, held on August 14 and 15 of this year, the Foreign Trade Promotion Coordinator (COFOCE) of the entity of Guanajuato, a state located in the center of the country with great economic movement, the Financial Education Institution (Educafin) and the Chinese giant Alibaba signed an agreement to train entrepreneurs in this state about e-commerce and digital transformation, so that they can enter the Chinese market to sell their products. The purpose is that SMEs in Guanajuato generate greater wealth, position their brand worldwide and boost their economic development. In short, support is offered to improve the profit margin with digital tools.

In this first round, 300 companies will take part in a 100-hour total training program during which they will learn everything they need to export their products to this Asian market. For now, only Guanajuato companies can be trained, but this alliance will definitely leave a precedent for what can be done in digital matters so that more SMEs across the country can expand their market.

This agreement is historic, as it is the first one signed by Alibaba in Latin America and can open the doors to more countries given that Alibaba has a reach of 2,000 million consumers worldwide.

It is very likely that we will keep seeing this kind of trade alliances with China since, for the first time in history, its economic balance is deficient, which translates into possible strengths for countries that export products to them. Take into account that, once again, due to changes in political administration, China was forced to modify its exports to the United States, which means better opportunities for businesses in other nations.

When thinking about investing in a project, despite being small or large, we must consider what is happening on the global landscape. Constant changes in government and import/export laws can be a clear indicator of the global supply-demand of the product or service we are seeking to sell.

There is no doubt that the best complement to a general knowledge of the world economy is the digital presence of a brand. If we have strong online tools, our companies can have visibility in a wider territory and be considered attractive to clients or investors from other countries.