Three key takeaways
2022 was a year of recovery post-pandemic, but also one where retailers and shoppers faced new challenges in a cost of living crisis. For Latam consumers there has never been more choice of retail channels, but value for money is critical in the current challenging economic climate. As omnichannel shoppers continue to drive growth in the Latam region, there are three key takeaways.
Omnichannelgrows stronger
Omnichannel retailing continues to grow in the face of greater economic pressures and the cost of living crisis. For retailers, it is not just about more shoppers visiting more channels, but also about tapping into different shopping routines to attract more visits. One way of winning consumers’ hearts and minds as shopping routines change is for retailers to diversify formats, as some of the big chains in Brazil have already done. This also presents a challenge – and an opportunity – to brand manufacturers. First, to understand the role of shopper missions, and second, how they can position and market themselves differently in each format according to how important it is to the consumer.
Shopper missionsare changing
Stock-up missions are now the most fragmented, with down the trade now a strong contributor. Proximity is driving the conversion of more categories and is important in purchasing of bigger sizes with consumers using urgent and daily shopping missions to buy bulk and large items. Private labels have become more important in basic categories where there are bigger price increases.
Ecommerce slowsfor the first time
Ecommerce slowed for the first time since the pandemic. However, it remains an important channel for retailers and brands to attract and retain customers during fill in missions and as they search for better value for money through large sizes, promotions, and alternative payment methods. It has great potential, especially for retailers targeting low-income shoppers. But given that only a quarter of the Latam population currently shops online, the challenge now is to democratise it to reach across all socio-economic groups and markets. The evolution of the phygital shopper continues with many opting to shop in-store to find lower prices, get a better experience, and find value for money.
