Effects of Digital Consumption on Retail Businesses in Chaco: Initial Approaches

Abstract

There is no doubt that new digital technologies are radically transforming the way goods and services are acquired. Driven by the proliferation of the Internet, consumers now have the possibility to shop online from anywhere in the country (or the world) at any time of day. This trend is impacting business, labor, and commercial dynamics.
The aim of this report is to analyze the effects of this new reality on businesses in the province of Chaco, considering the importance of commerce for the province’s economic activity—reflected both in its contribution to the gross geographic product (GGP) and in the number of jobs it generates. In this context, the growing popularity of e-commerce could contribute to the concentration of commercial activity in major urban centers (essentially Buenos Aires), directly threatening the development of this sector in the province. We will also examine the role of the multinational company Mercado Libre in this process, the adaptation strategies of local businesses, and the approach taken by public policy.