As we look ahead to the second half of 2022 and beyond with more hope and optimism, we prepare to meet the challenges ahead, embracing new technologies and adapting to the needs of the omnichannel shopper. Today, retailers and manufacturers have the challenge of adapting their omnichannel strategies, and being present in more channels that shoppers are interacting with today and where they previously didn’t compete.
Over the last 12 months, three important developments have led to the remodelling of retail in Latin America:
1. Channel transformation and digitalization
By the end of 2021, more formats were forced to adapt to the changing habits and routines of the omnichannel shopper, which in turn led to a rapid change in the pace of channel developments in the Latam region. As we move forwards, several improvements will continue to set the tone for channel transformation. These include larger assortment, improved accessibility, wider access and more choices of new shopping missions, along with improved payment options.
2. Value for money, proximity and specialization boosted by online
In 2021, the wholesaler channel reached peak penetration, surpassing half of the Latin American population, while Supermarkets, Hypermarkets and Traditional Trade continued to lose ground. This loss was absorbed by the accelerated development of unconventional channels, which experienced strong growth in this new environment.
3. ‘Phygital’ and Omnichannel
Increasing numbers of different digital channels have led to shoppers being given wider exposure to FMCG brands, bringing them closer to them. This has helped accelerate brand growth and strengthened the offline to online (O2O) trend – online category growth was 10 times higher than offline, so understanding the phygital shopper journey has became more relevant than ever.
The new shopper demands more, and as digitalization continues, omnichannel strategies can improve their experience and be the key factor that facilitates and accelerates growth.
