Internet Market Environmentin Colombia

Siteengine Inc. (Tokyo, Japan)12nd June, 2014

http://www.siteengine.co.jp/en/

info@siteengine.co.jp

About Colombia

Area 1.141.748 km2

Population 46.245.297 (2014 est.)

GDP(ppp) $553.462 billions (2014 est.)

Internet TLD .co

Official Language Spanish

Religion Catholicism 90%

Currency use Peso (COP)

Calling code +57

Mobile subscribe 50,3 million lines (Dec 2013)

Internet User 21,6 millions (3Q 2013)

Source: Wikipedia

Ethnic group in Colombia

Ethnic group % of total*

Mestizo 49%

White 37%

Black and

Mulatto10,6%

Amerindian 3,4%

Ethnic group

Mestizo

White

Black, Asian or Other

Amerindian

49%

37%

10,6%

3,4%

Source: Wikipedia

Colombia Age Structure

Age Structure% of total*

(2014 est.)

0-14 25,3%

15-24 18%

25-64 48,3%

65- 6,5%

Source: www.cia.gov

Internet subscribers in Colombia

Internet subscribers (Fixed and mobile) : 9 millions (19,2% of total population) in 2013

Internet subscribers in Colombia has been increasingly constantly during this last year.

Source: http://colombiatic.mintic.gov.co/

Mobile Subscribers

In Colombia, the amount of mobile subscribers is increasing every year. They already have more subscribers than population.

Mobile subscribers: 103,6 million subscirbers(87% of total population) in Dec 2013.

40

42

44

46

48

50

2010 2011 2012 2013

Millions

subscribers

50.295.114

subscribers

Source: http://colombiatic.mintic.gov.co/

Fixed Phone Subscribers

In Colombia, the amount of fixed phone subscribers isn't varying much through the last years.

Fixed phone subscribers: 20,6 million subscribers (17,5% of total population) in Dec 2013.

-

1

2

3

4

5

6

7

8

2010 2011 2012 2013

Millions

subscribers

7.144.157

subscribers

Source: http://colombiatic.mintic.gov.co/

Internet Monthly Rate in Colombia

Home use internet Mbps $ (USD) / month

ETB 1,5 21,43

Movistar 1 GB 21

Mobile Internet Package Data Plan Price

Claro 1 GB 15,75 (US $) / month

Tigo 1 GB 14,15 (US $) / month

Movistar 1 GB 15,75 (US $) / month

Source: http://colombiatic.mintic.gov.co/

Telecom Statistic, end of Q4 2013

- Mobile subscription : 50,3 million Subscribers- Fixed and Fixed WLL : 4,5 millions- Internet user : 21,6 million users- Mobile Broadband users: 19,2 millions

Top websites in Colombia by alexa.com

1 Google.com.co

2 Google.com

3 Facebook.com

4 Youtube.com

5 Live.com

6 Yahoo.com

7 Wikipedia.org

8 Blogspot.com

9 Twitter.com

10 Eltiempo.com

1 Google.com.co

2 Eltiempo.com

3 Elespectador.com

4 Mercadolibre.com.co

5 Todo1.com

6 Semana.com

7 Grupobancolombia.com

8 Canalrcnmsn.com

9 Elcolombiano.com

10 Linio.com.co

Top local sites in Colombia by alexa.com

Facebook User in Colombia

From all the Colombian internet users, 6 out of 10 have an account on Facebook.

The highest percentage of population that uses Facebook is between 18-24 years old. And 51% are male and 49% female.

Source: IPSOS NAPOLEON FRANCO

Twitter vs Facebook in Colombia

Twitter has become very popular in Colombia.

While 31% of the social network users have an account on Twitter, 98% have an account on Facebook.

Facebook is still more popular than Twitter in Colombia.

Source: IPSOS NAPOLEON FRANCO

Top Facebook Page in Colombia

Page Type Local Fans Fans

1 Coca-Cola Entretainment 1.721.737 83.116.114

2 Juan Valdez Café Media 1.433.134 2.004.176

3 Converse Celebrities 1.430.850 40.079.148

4 Red Bull Entretainment 1.328.118 4.636.861

5 BlackBerry Celebrities 1.259.183 30.061.727

6 Cerveza Aguila Entretainment 1.221.821 1.301.713

7 PlayStation Celebrities 1.215.189 11.170.541

8 PlayStation Brands 1.215.165 37.232.993

9 Corona Brands 1.117.195 1.558.243

10 Totto Celebrities 1.072.795 36.345.605

Source: http://www.socialbakers.com

Colombian Popular Youtube Channel

Source: http://www.socialbakers.com

Fastest Growing Channels in May 2014

Source: http://www.socialbakers.com

Online Business in Colombia

+ On 2013, Colombia registered 2.500 millions of US in E-commerce sales. 40% more compared to 2012.

+ Online Business in Colombia is increasing every year.

+ If this trend continues, it’s believed that in 2021 the E-commerce sales will match the trading cash sales in the country.

Source: http://ccce.org.co

Online Business in Colombia

At the end of 2013, there was survey about Internet users from CCCE (Colombian Chamber of E-Commerce).

52%Bought within the

last 12 months

48%Didn’t buy within the

last 12 months

59%Didn’t have any

problems with the

purchase

20%Are going to buy within

the next 3 months

55%May buy within the next

3 months

Source: http://ccce.org.co

Online Business in Colombia

From those who did an online purchase...

0%

10%

20%

30%

40%

50%

60%

70%

80%

Total sales (online and not online)

Nº 1

sales

Nº 2

sales

Nº 3

sales

Nº 4

sales

Nº 5

sales

Nº 6

sales

Nº 7

sales

Nº 8

salesNº 9

sales

Nº 10

sales

Nº 11

sales

Nº 12

sales

Nº 13

sales

% Online

sales

from it’s own

sales (online

and not

online)

Nº1 Food

Nº2 Fashion

Nº3 Medicine

Nº4 Electronics/

Informatics

Nº5 Beauty

Nº6 Telecomunications

Nº7 Culture

Nº8 Leisure

Nº9 Sports

Nº10 Home

Nº11 Trips

Nº12 Bank

Nº13 Insurance

% Online

sales from

the TOTAL

online sales

10%

19%

23%

6%

12%

15%12%

16%

15%

10%5%

3%9%

Source: http://ccce.org.co

Online Business in Colombia

Reasons why to Colombians do NOT buy online:

0%

10%

20%

30%

40%

50%

60%

I don't trust

the product

I don't trust

the security

Lack of

usage

I rather a shop

assistant

I don’t

need it

I don't want

to wait

I can’t see the

advantages

I had a bad

experience

Source: http://ccce.org.co

E-banking in Colombia

In Colombia the e-banking is being promoted by the Colombian Government but it’s increasing prudently because the cautiousness of the the local population.

The 41% of the online transactions are done usingCredit or Debit card.

E-banking in Colombia

Peso (COP) is the official currency. The amount of ATM is increasing in the overall but very slowly.

0

5

10

15

20

25

30

35

40

2009 2010 2011 2012

Number of ATM /

100.000 habitants

Source: http://datos.bancomundial.org

E-banking in Colombia

+ The usage of credit and debit cards in Colombia is increasing.

+ In June 2013, the number of Credit cards in Colombia was 11,114,430 cards. From 2000 to 2012, there has been an increase of 469,5% of cards.

+ However, the Credit card has received many complaints. Actually, in 2012 the 33% of the complaints presented were related with Credit cards.

Source: http://www.sic.gov.co

From E-banking to Internet Market

+ The E-banking is very important for the expansion of the e-commerce. They still need to work on the "easy going" and truthfulness of the pay systems in order to convince the customers to choose the online method in their purchases.

+ Debit Card or Credit Card is the most used payment method.

Starting a new business in Colombia

The following URL provide the information to Start a new business in Colombia.

http://www.icaew.com/en/library/subject-gateways/doing-business-in/colombia

http://www.emarketservices.com

Popular in Colombia

Portal Bank

MobileCarrier

NewspaperTV Channel

Internet Market(C2C)

www.blogspot.com

Owner: Google Inc.

+ It is a blog-publishing service that was bought by Google from Pyra Labs in 2003.

+ usually the blogs are hosted unedr the subdomain of blogspot.co

+ It’s a tool that allows users to create blogs without installing any program.

+ Every blog can be managed up to 100 users.

+ Every user can manage up to 100 blogs. There is no official limit of number of publications or comments.

+ Users can create their own website design even without any knowledge of HTML.

www.grupobancolombia.com

+ This is the largest commercial bank in Colombia and one of the largest in Latin America. Thebank is headquarted in Medellín, the second largest city in Colombia.

+ In 2013 they absorbed HSBC Panama.

+ They have 8,18 millions of clients and 25.150 employees.

CEO: Carlos Raúl Yepes Jiménez

+Founded in 1945.

+Type: bank

+ “Mercadolibre” in Spanish means “free market”.

+ It’s eBay’s Latin American partner. And it’s the number one e-commerce site in Latin America.

+ Mercadolibre was established in 1999 in Argentina and rapidly expanded to other countries of South America and Mexico.

+ Traded as NASDAQ: MELI

+Type: e-commerce

www.mercadolibre.com.co

+ It’s a wirless telecommunications company owned by América Móvil. It was born as the result of unification of Comunicación Celular S.A and Telmex Colombia S.A.

+ On December 2013, they had more than 28 millions of mobile subscriber (from 50 millions of the whole country).

+ They also provide fixed communications.

+ Owned by América Móvil

+Founded in 2012.

+Type: mobile carrier

www.claro.com.ar

+ It’s real name is Cadena Radial Colombiana de Televisión S.A. However, it is know as CARACOL (“caracol” in Spanish means “snail”).

+ Their main activity is the operation of private TV channel with its own name. It has 5 cable television.

+ They have the exclusive rights of transmiting “Miss Universo”, “UEFA Champions league”, “World Cup” or games from the Colombian National team or Olympic Games.

+ Traded as Caracol Televisión

+Founded in 1969.

+ Founder: Gonzalo Córdoba Mallarino

+Type: TV chanel

www.caracoltv.com

+ El Tiempo is a Colombian newspaper. Nowadays, it’s the newspapers with the highest circulation in Colombia.

+ El Tiempo enjoyed the monopoly status in Colombian media as the only daily that circulated nationally (between 2001 and 2008). El Espectador in 2001 was set as a weekly newspaper because of an internal financial crisis. In to 2008 they returned to the daily version.

+ Owned by: Luis Carlos Sarmiento Angulo

+Founded in 1911.

+Type: Newspaper

www.eltiempo.com

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