The Rise of Online Sales: How Catalog Sellers in Mexico Are Embracing Chinese E-commerce Platforms

In recent years, door-to-door saleswomen in Mexico have been instrumental in fueling the growth of Shein, a Chinese e-commerce platform. These saleswomen, mostly low- or middle-income housewives over 45, have incorporated Shein’s products into their offerings, often selling them to their customers at a markup.

According to industry insiders, six out of ten catalog sellers in Mexico now sell products from online platforms like Shein and Temu. By doing so, they have inadvertently contributed to the decline of traditional catalog sales companies in the country.

Mariana Garfias Torres, a 30-year-old nutritionist, has been making an additional income by selling housewares from Betterware, a Mexican catalog company. However, she recently started including Shein’s products in her offerings, citing their competitive prices and innovative designs as major draws for her customers.

“I’ve seen that Shein and Temu are putting out more innovative and cheaper products than Betterware,” Garfias Torres said in an interview with Rest of World. “My customers have noticed too.”

The inclusion of online platform products in catalog sellers’ offerings has been a deliberate strategy to offset the decline in sales, according to Fernando Jiménez Velázquez, former director of communications and content at Tupperware.

However, this shift has also put pressure on traditional catalog companies, which are struggling to compete with the prices and convenience offered by online platforms. Many catalog sellers have begun using social media platforms like WhatsApp and Facebook to promote their products and connect with customers, often including photos of items from Temu and Shein in their catalogs.

Lizbeth Sánchez, an office secretary who resells Shein items to her colleagues, has seen her business grow significantly since she started selling online. “I’m selling the practicality of buying for a population that cannot or does not want to shop online,” María del Pilar Montero, senior researcher at Bitácora Social, said.

Shein and Temu have been among the top three most downloaded apps in the shopping category in Mexico for the past year, according to Data.ai. The popularity of these platforms has led to a significant shift in consumer behavior, with many customers preferring the convenience and affordability offered by online shopping.

While catalog company owners struggle to compete with the prices and convenience offered by online platforms, sellers claim they are simply responding to their customers’ changing preferences. “I still sell a lot of Betterware items to my older customers, but younger ones want Shein and Temu,” Garfias Torres said.

In conclusion, the rise of online sales in Mexico has been driven in part by the actions of catalog sellers who have incorporated Shein’s products into their offerings. While this shift has put pressure on traditional catalog companies, it has also provided opportunities for entrepreneurs like Sánchez to build successful businesses. As consumer behavior continues to evolve, it remains to be seen how the Mexican e-commerce market will adapt and change in response.

Source: Rest of the World