Top Retailing Trends in the Americas in 2015

250_topRetailingTrends-v1.1Download this e-book for a regional overview of the retailing market in Argentina, Bolivia, Brazil, Canada, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, Guatemala, Mexico, Peru, United States, Uruguay and Venezuela.

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Internet retailing is one of the most valuable and fastest growing channels globally with a 12% forecast compound annual growth rate (CAGR) from 2014-2019.  During the same period, Latin American internet retailing is expected to see a 10.8% CAGR and the US 9.6% growth, respectively. To keep up with their fast-growing competition, in-store retailers have added mobile apps for use in store to enhance consumers shopping experiences and supported higher taxes on internet purchases.

Convenience stores are also growing in popularity despite experiencing different levels of growth in North and South America markets.  For example, Super 24, the only convenience store chain in Guatemala, has tripled its stores since 2010 as many consumers are shopping at convenience stores in place of small independent grocers. Argentine cities are also turning to easier options to shop on the go and Colombians prefer the appealing prices and proximity of convenience stores.

“2014 saw a lot of opportunities for growth and change within the retail category,” said Latin America Research Manager, Sean Kreidler.  “In the coming years, both North and South American regions will remain a lucrative but challenging retail environment.  Sales will continue to grow due to innovation and the opportunity to utilize both online and in-store shopping experiences. However, companies need to be flexible to the needs of consumers, while differentiating themselves from their competitors to be successful in the industry.” 

March 6, 2015

Presbyopia: An Emerging Market Driver in Eyewear

Chloe WuAnalyst Insight by Chloe Wu - Personal Accessories and Eyewear Analyst

Presbyopia refers to the progressive inability to focus on near objects as a person ages. It is a condition that is becoming more prevalent as the proportion of global population aged 40 and above increases. In 2014, the senior population of over 40s stood at 2.6 billion, making up 36% of the total global population. By 2030, this demographic will account for 42% of the total population, with the total number reaching 3.5 billion due to longer life expectancies, thus generating huge potential demand for convenient presbyopia solutions.

White space in contact lenses

For presbyopia sufferers who choose to wear contact lenses, “wearing experience” is the main gripe. They face the challenge of deteriorating tear film and consequently much less comfort in contact lens wear. Thus, to cater to this particular group of consumers, it is imperative for contact lens manufacturers to provide technology upgrades which increase oxygen permeability and comfort. 

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Rising Disposable Incomes in Emerging Markets Linked to Increasing Possession of Passenger Cars

Carrie_LennardAnalyst Insight by Carrie Lennard -  Business Environment Manager

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Although ownership of passenger cars varies greatly across emerging markets, nearly every emerging and developing country saw their proportion of passenger cars per household rise from 2009-2014. This was strongly linked to a rise in annual disposable incomes per household in US$ terms in emerging markets from 2009-2014, triggering a rise in automotive sales in key countries such as China and Brazil.

Possession of Passenger Car and Annual Disposable Income per Household in Selected Emerging Markets: 2009/2014

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Source: Euromonitor International from national statistics

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Mobile Internet Subscriptions to Overtake Total Internet Users by 2017

Pavel_MarceuxAnalyst Insight by Pavel Marceux - Technology, Communications and Media Specialist

The influence of mobile connections as a means of accessing the web will be further underlined in 2017, as more mobile subscriptions will be used to come online than the total number of Internet users worldwide. This will be made possible largely due to homes having multiple web-enabled SIM cards to use for various devices (smartphones, tablets and others). Emerging countries are set to experience an especially rapid growth in mobile Internet uptake, as more local consumers leapfrog their developed-country counterparts by moving directly to wireless digital devices rather than purchasing PCs. This trend will have a reverberating effect on segments such as mobile advertising, e-commerce and the app market.

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Does Modern Grocery Expansion Lead to Industry Consolidation?

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Modern grocery retailers, such as supermarkets and hypermarkets, typically account for 70-90% of all grocery retail sales in developed countries. In this article, we have attempted to test whether there is a relationship between expansion of modern grocery chains and consolidation of industry sales among top companies in the industry, or if the opposite is true, and large FMCG companies in fact perform better in an environment where the retail channel is more fragmented.

Figure 1: Modern Grocery Retail and Country’s Development Level

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Source: Euromonitor International (Retailing)

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March 5, 2015

Functionality is Key in Ready Meal Packaging

Consumers look for functional features like resealing and the ability to put the package directly in the microwave when selecting ready meals. Microwave pouches offering a steam effect positioned as a healthier choice are on the rise. Increasing urbanisation and the rise of single households are driving the trend toward smaller pack sizes.  Watch the video for complete insights.

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McDonald’s Experiments With McCafé Strategy in Developed Markets

ElizabethFriendAnalyst Insight by Elizabeth Friend - Senior Consumer Foodservice Analyst

McDonald’s efforts at a strategic turnaround have so far focused on its core burger and fries concept, but the company is now placing some energy behind improving McCafé. Specifically, McDonald’s is looking for ways to compete more directly with premium coffee shops in major coffee shop markets like the UK and Australia. The company has been experimenting with ways to position itself as not just a price and convenience player, but as a true coffee-drinking destination—a difficult feat that, if successful, could help them tap into a lucrative and growing demand pool.

More dine-in traffic in the UK

The UK is one of the largest specialist coffee shop markets in value terms, at US$2.4 billion in sales in 2013; however just like in the US, McDonald’s sells McCafé products in the UK as a branded menu range, rather than through separate ordering counters or standalone outlets.  As a result, English McCafés have never competed fully as third-place destinations in the vein of Costa or Starbucks.

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Ethiopia’s Economic Boom Creates an On-Trade Coffee Opportunity

Howard TelfordAnalyst Insight by Howard Telford - Senior Beverages Analyst

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Ethiopia is renowned as the producer of some of the world’s highest quality coffee beans. According to the International Coffee Organization, Ethiopia was the world’s fifth largest producer in terms of crop output in 2014. The country has 1.2 million coffee farmers and the government estimates that about 15 million households are either directly or indirectly dependent on coffee for their livelihoods. The reputation of Ethiopia’s large Arabica yield is prominent in the branding of specialty coffee products in North America and Western Europe, in retail and on-trade cafés.

Despite the international reputation of Ethiopian coffee abroad, less attention has been paid to the robust local coffee culture that exists in Ethiopia, where traditional unpackaged domestic consumption and preparation is supplemented (although not supplanted) by a growing subset of premium coffee specialists in Addis Ababa. A thriving retail and on-trade market for local coffee is growing in tandem with the surging Ethiopian economy, with more pressure to retain locally produced coffee to satisfy emerging demand.

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March 4, 2015

The Rising Power of Female Consumers

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Webinar | Thursday, March 19 | 9 a.m. CST / 2 p.m. GMT

The global female population totalled an estimated 3.6 billion in 2014 and is expected to reach 4.2 billion by 2030. Average disposable income amongst women is the highest it's ever been, and women are living longer than men.

What are you doing to reach this growing market?

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Register now to learn:

  • The size and distribution of the female consumer market
  • Literacy and education rates
  • Labour participation
  • Purchasing power

 

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Three Things Missing From Your Business Strategy

Scott-RencherInsight by Scott Rencher - North American Director of Sales

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What most people are familiar with in the Market Research and Marketing world are the classic four P's: Product, Place, Price and Promotion. There's also a lot of buzz in the industry about mobile research, localization and big data. Much of it is pretty sexy in a geeky, infoverse kind of way. All of those sources, though, are as useful as a mobile map without a data plan if you are responsible for the long term direction of an organization.

There is an area of market research that hangs out around 10,000 feet in the planning stratosphere. If you wear an oxygen tank and don't pass out from the altitude, you will find there the four C's: Category, Customer, Channel and Competition, wrapped in Porter's Five Forces. Historically, good strategy often came from people with loads of experience, well-connected relationships, good intuition and a tolerance for calculated risk. When Google came along in 1998, it changed the game. It helped surface useful information from millions of 'experts' to anyone with a good internet connection. It also spawned a heavy DIY research culture. While it has helped fuel our curiosity and we can conveniently validated our instincts, confirmation bias is a significant hazard when Googling stuff, particularly if we don't fully understand the intentions behind a source. Yes, anytime someone publishes a report, an article, a blog post with data, that number serves a master: the person telling the story. When we can get hold of unbiased data, however, to challenge our conventional wisdom, justify our intuitions and compare all available options, then we can get to a better strategy. Anecdotes from a webpage or a snapshot in time isn't sufficient enough to win over and keep your stakeholders engaged. What they want to know is: How big is the prize? From where has it come and where is it going? Can we win it? Is it worth winning? Those are all smart questions to ask but getting to the answers is more difficult than some executives might think.

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The Growing Impact of Emerging Economies on the Internet

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The arrival of devices like budget smartphones has allowed low-income households in developing economies has led to increasing internet penetration in those markets. In 2013, 70% of internet users were located in developing countries. Mobile internet is the driving force behind this rapid growth.  Listen to the podcast for complete insight.

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Recent Posts

Presbyopia: An Emerging Market Driver in Eyewear

Rising Disposable Incomes in Emerging Markets Linked to Increasing Possession of Passenger Cars

Mobile Internet Subscriptions to Overtake Total Internet Users by 2017

Does Modern Grocery Expansion Lead to Industry Consolidation?

Functionality is Key in Ready Meal Packaging

McDonald’s Experiments With McCafé Strategy in Developed Markets

Ethiopia’s Economic Boom Creates an On-Trade Coffee Opportunity

The Rising Power of Female Consumers

Three Things Missing From Your Business Strategy

The Growing Impact of Emerging Economies on the Internet