2023 is proving to be a challenging year for the Latam region as the cost-of-living crisis intensifies driven by inflationary pressures and price increases.
While the pandemic forever changed the way people shop in the region, including the rapid growth of ecommerce, consumers are continuing to adapt their behaviour in the face of new economic and social challenges.
Worldpanel's Latam Omnichannel 2023 Report includes key observations on the region’s shopper behaviour including:
Fragmented spending
Omnichannel shoppers are the driving force behind FMCG growth in the region, which saw value sales grow 16% in 2022. In the last two years, the number of channels visited by Latam shoppers has increased 17%. Shoppers now have a choice of 18 different types of retail channel leading to more fragmented spending and the decline in customer loyalty.
Small shopper missions are the new trend
Latam consumers are opting for smaller missions over bigger trips, with basket sizes in the region falling for the first time. Modern trade, discounters and wholesalers saw the biggest growth in the number of smaller shopper missions as more shoppers visit these channels. Size is also important to Latam consumers, with shoppers now using smaller shopping missions to buy bigger sizes, and bigger missions to stock-up on smaller size items.
Value for money is a priority for Latins
Discounters and wholesalers have benefitted more than any other channel in 2022 as shoppers look for lower prices, while modern trade is increasingly attracting low-income shoppers. Discounters continue to invest in the region focusing on product diversification including both private label and brands.
Ecommerce slows
Ecommerce attracted three million new shoppers in 2022, mainly from low-income households, but slowed for the first time since the pandemic. In a cost-of-living crisis shoppers are going back into stores so they can compare prices, sizes, brands and take advantage of promotions and deals.
New challenges for retailers
2022 was a year of recovery post-pandemic, but retailers and shoppers now face new challenges in 2023 and beyond. While there has never been more choice of retail channels or opportunities to buy, shoppers face inflationary pressures and price increases, so value for money is critical in the current climate.
For more information, read our Latam Omnichannel 2023 report here.
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