3megatrends Latin America July 2018 EUROMONITOR PDF

Megatrends and Retail in
Latin America
July 2018
2 2
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MEGATRENDS AND RETAIL IN LATIN AMERICA 3
Euromonitor International
4
OVERVIEW
01. 02. 03. 04. 05.

Introduction Shopping Healthy Living Middle Class Key takeaways
Reinvented Retreat
5
01.
Introduction
INTRODUCTION 6
Three megatrends shaping Latin American

retail
Preparing for retail
growth in Latin America
 Changing shopping habits
 New consumer values impact brand

relationships, purchasing preferences,
and consumer behaviour
8
02.
Shopping Reinvented
SHOPPING REINVENTED 9
What is driving Shopping Reinvented?
Changing shopping
preferences Latin America: Y-o-Y Retail Sales Growth, USD
Millions, Current Terms 2005-2022
60%
Brands need to: 50%
 Be everywhere consumers 40%
are
30%
 Take advantage of every
20%
shopping opportunity
created by immediate needs 10%
or throughout product
0%
research
-10%
 Have an omnichannel
strategy to establish -20%
themselves as the go-to

Internet retailing Store-based retailing
retailer
Connecting with The Paris brand has effectively
shoppers in new ways used the network by creating the
“Día del Fan”.
 Understand and connect with
consumers
 Actively seek out and engage with
consumers via social media
12
Alternate models HelloWine has more than 3,000

subscribers, who monthly pay
gaining ground around USD18.00 to receive four
 Deliver products based on personal 375cc wine bottles.
preference and seasonality
 Test new products lines
13
In Mexico, Privalia will nudge

shoppers to finalise their
Personalisation is key transaction for abandoned carts.
 Reduced time and space
 Greater exposure to international trends
Recommendations for retailers to integrate

Shopping Reinvented
Use digital channels to

engage with consumers Evaluate new business
even if they aren’t models and formats
buying online
Take advantage of
growing data to
personalise the
relationship
15
03.
Healthy Living
What is driving Healthy Living?
Differentiation via
merchandising and
advising
Search for products and services that can
help improve well-being and support health
goals
HEALTHY LIVING 18
Three main groups driving changes in

healthy living
Governments promote healthy lifestyles through a variety of new

regulations and laws, affecting retailers through new taxes and labelling
requirements.
Consumers seek detailed nutritional information as well as other

products with a well-being tie-in.
Companies promote healthy living by linking in-store consumer

experiences with additional information to guide consumers to better
purchases.
HEALTHY LIVING 19
Labelling regulations in governments

promoting healthy living
Educating and In Colombia, Carrulla have added
labels on products that fit select
expanding products criteria as “Bueno Para Ti” (“good
 Growing demand for healthy products for you”).
 Strategies that guide and educate clients
21
Branching into new

categories and In Argentina, Rojas Gluten Free
supermarket is the first gluten-
functionalities free supermarket in the country.
Consumer preferences are increasingly able
to support entire formats that specialise in
products perceived as better for them
22
Opportunities in private In Brazil, Pão de Açúcar has

introduced ethical products into
label its private label portfolio,
 Aspirational component of healthy living including cage-free eggs.
 More access for the middle and lower
classes
HEALTHY LIVING 23

Healthy Living
Act as a gatekeeper Guide for

for brands consumers
Ensure the shopping

experience supports
a healthy lifestyle
24
04.
Middle Class Retreat
What is driving Middle Class Retreat?
Changing shopping preferences
The last few years have been marked by economic

uncertainty and lower disposable income.
Middle Class Retreat:
changing values
 Tight budgets and new spending habits
 Changes in consumer spending and

saving priorities
 Focus on experiential purchases.
Source: Euromonitor International’s Lifestyle Survey 2017

Consumers more
attracted to private Falabella have been investing in
expanding the portfolio of its
labels apparel and footwear private
 Less loyalty to traditional brands labels Sybilla and Basement.
 Increased performance of private labels
MIDDLE CLASS RETREAT 29
Conversely, other product categories gain

relevance
Consumers are opting to reproduce at home the

dining out experience, driving performance of
premium categories.
Economic shifts driving
hypermarket, In Brazil, “atacarejos”, a hybrid of
cash & carry and hypermarkets,
warehouse club sales have been found particularly
 Prioritization of price in exchange for a attractive.
very limited store experience.
 Warehouse clubs registered a

performance three times better than
hypermarkets
31
What retailers should

have in mind
 Keep middle-class consumers spending
 Create more intimate experiences
 Provide a seamless shopping environment whether online or in-store
 Personalize the offering
MIDDLE CLASS RETREAT 32

Middle Class Retreat
Prioritise
Monitor value
experience
Turn
purchases into
relationships
33
05.
Key takeaways
KEY TAKEAWAYS 34
Economic outlook for the region
35
1. High inflation and 2. In-person

weak exchange purchases are
Key rates eroded
spending power,
influenced by
digital marketing
takeaways leading to shifts in
shopper behaviour.
and online
research.
3. Health-oriented 4. More relaxed 5. Retailers need to

shoppers seek help shopper habits rethink their value
to meet health and propositions.
wellness goals
Thank you
Amanda Bourlier, Consultant Paula Goñi, Analyst
Amanda.bourlier@Euromonitor.com Paula.goni@euromonitor.com
Rocío Guzman, Analyst Marília Borges, Analyst
Rocio.Guzman@euromonitor.com Marilia.borges@euromonitor.com

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Megatrends and Retail in

This PowerPoint presentation includes proprietary information

For usage requests and permission, please contact us

01. 02. 03. 04. 05.

Three megatrends shaping Latin American

 New consumer values impact brand

What is driving Shopping Reinvented?

Brands need to: 50%

 Be everywhere consumers 40%

themselves as the go-to

Alternate models HelloWine has more than 3,000

 Test new products lines

In Mexico, Privalia will nudge

Recommendations for retailers to integrate

Use digital channels to

What is driving Healthy Living?

Three main groups driving changes in

Governments promote healthy lifestyles through a variety of new

Consumers seek detailed nutritional information as well as other

Companies promote healthy living by linking in-store consumer

Labelling regulations in governments

Branching into new

Opportunities in private In Brazil, Pão de Açúcar has

Recommendations for retailers to integrate

Act as a gatekeeper Guide for

Ensure the shopping

What is driving Middle Class Retreat?

Changing shopping preferences

The last few years have been marked by economic

 Changes in consumer spending and

 Focus on experiential purchases.

Source: Euromonitor International’s Lifestyle Survey 2017

Conversely, other product categories gain

Consumers are opting to reproduce at home the

 Warehouse clubs registered a

What retailers should

Recommendations for retailers to integrate

Economic outlook for the region

1. High inflation and 2. In-person

3. Health-oriented 4. More relaxed 5. Retailers need to

Rocío Guzman, Analyst Marília Borges, Analyst

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