Shifting values and internet access have led to increasing competition with today’s consumers shopping across multiple platforms. Consumers want or need to save as much time as possible. Ordering products online, using the internet to arrange in-person pick-up, or even gathering information through mobile devices has become part of consumers’ shopping experience. These changes are part of the Shopping Reinvented megatrend identified by Euromonitor International.
Alternative channels emerge in Latin America
While 92% of retail sales in Latin America continue to take place in physical stores, alternative shopping models are gaining ground. Latin America’s store-based sales have decreased at a rate of 4 % per year between 2012 and 2017, but internet sales have grown 12 percent yearly in the same period – and this trend is expected to continue in the upcoming years.
Source: Euromonitor International
Alternate selling models such as subscription services are also part of the Shopping Reinvented megatrend. In Euromonitor International’s Lifestyle Survey 2017, 38% of Latin Americans who responded said they currently use or have used subscription services in the past. Subscription services have a value for money and easiness to shop that appeal for consumers. By curating selection, companies can deliver products based on personal preference and seasonality, as well as test new product lines and upcoming launches.
How can retailers leverage the Shopping Reinvented megatrend?
Retailers need to understand that while sales through alternative channels are undeveloped in Latin America, the share of sales that take place in stores but were influenced by the online or mobile channel is, much higher. Even if a consumer continues to buy only in-store, digital initiatives offer opportunities to gain information and loyalty.
For example, Chilean retailer, Paris, has effectively leveraged its social network by creating “Día del Fan” (“Fan Day”), a special discount for their social media followers. While the discount can be used by anyone, the brand releases the promotion on its Facebook page, encouraging growth in new followers.
To find out more about the growth of alternative models in Latin America, register for the upcoming webinar Megatrends and Retail in Latin America.