VTEX, a Brazil-based company specializing in e-commerce and SaaS, has commenced operations in Argentina with a new office in Buenos Aires.
The company, which was founded in 1999, already has offices in São Paulo and Rio de Janeiro, and it plans to set up in Chile, Colombia, Peru and Mexico later down the line.
This expansion is the culmination of the US$12 million VTEX garnered in revenues last year from its more than 350 clients, including Walmart, Nokia, Electrolux, L’Oréal, TIM, Leader Magazine and Staples. These retailers bring in around US$1.5 billion each year – 15% of all transactions generated by e-commerce in Latin America.
VTEX provides solutions for Latin American online retailers of all sectors and sizes based on three fundamental axes: CRI (customer repurchase intention), increased conversion rates and profitability. It offers a wide range of products and services, including integrated telemarketing, mobile commerce, social networks, advanced search tools, intelligent and automatic product recommendations, multi-sites, merchandising tools and offers, express shopping carts, purchase retention and customer recovery, engagement, design and more.
Commerce Suite is a platform for the constant improvement of virtual stores. The differentiator: clients don’t experience interruptions in sales processes, nor do they face additional development costs or have to install new functions.
With Engagement Suite, customers have a better overall experience and develop stronger ties with brands. Thus, ROI is increased in marketing efforts, and repurchase rates improve with segmented multi-channel promotions.
VTEX tackles business innovation at the VTEX Lab, its research and development unit. According to company data, VTEX invested roughly US$4 million in R&D last year. It plans to invest US$15 million more over the next two years.
Marcos Pueyrredón, VP Latin America at VTEX, has a noteworthy trajectory in the region’s e-commerce sector. He is currently the head of Latin America’s e-commerce institute, Instituto Latinomericano de Comercio Electrónico, and Director Treasurer of the Argentine Chamber of E-Commerce (CACE). “This comes after 15 years of evolution in the internet business industry. E-commerce isn’t just based on price, variety, convenience and value. It also entails everything consumers look for in offline purchases as well: the right product by way of an unmatched experience. Our objective isn’t to change technologies but to prove that we have the capability to improve revenues by rendering online business a company’s most profitable channel,” he remarked regarding VTEX’s arrival in Latin America.
Latin American E-commerce: The Numbers
According to América Economía Intelligence, this is how e-commerce has evolved in Latin America over the past two years:
-While in 2009 total B2C revenues were US$22 billion, in 2011, they were US$43 billion – a biannual growth rate of 98.5%.
-In 2011, B2C reached 1% of Brazil’s GDP, the first time this has happened in Latin America.
eMarketer reports that in 2012, e-commerce sales in 2012 approached US$37 billion and projected the following:
MercadoLibre estimated in its latest Nielsen report that Latin American companies increased sales by more than 40% last year thanks to e-commerce. Companies reported that 61.7% of their revenues come from online sales.
This text has been adapted and translated into English by Emily Stewart from its original Spanish publication.