Elektra, the Mexican domestic appliance chain has entered into a five year strategic alliance with local internet portal Todito.com in a bid to entice more middle-class Mexicans online.
Explains Todito director general Tim Parsa: "Latin American online business will remain small unless the internet becomes a medium used en masse. Our experience of the internet, combined with Elektra's great presence in Mexico and other Latin American countries, will allow both companies to bring the internet and electronic commerce to the mass market in Mexico."
The deal will see Elektra instore kiosks promoting the Todito brand as part of a package deal offering customers discounted computers, internet connection, training and finance. In return, Elektra has an option to acquire a 3% stake in Todito’s gateway that targets US-domiciled Hispanics. The companies’ respective websites will each promote the joint venture as well as the others’ brands.
Elektra, with nearly 1,000 stores in Mexico and five other Latin American countries, has pioneered a successful strategy of targeting low- to middle-class consumers with credit options for their purchases. Todito hosts some seventy virtual stores plus 33 advertisers
News source: Advertising Age - International Daily