International and locally based companies need to understand the changing Latin American middle classes to optimize their product development and marketing strategies. One recommendation is that they should base their approach on market segmentation by age groups. A retail consumer markets survey by Nielsen segments the adult Latin American consumer market into four main groups: the Millennials (aged 21-34 in 2017 and representing 33.8% of the total); Generation X (aged 35-49, representing 31.4% of the total); the baby boomers (aged 50-64 years, 21.8%); and the ‘silent generation’ (aged 65-plus, accounting for 13.0% of the total). Across these age groups, the study say there is a comparatively strong demand for premium products. See http://www.emia.org/news/story/5683
One of the difficulties online retailers like Amazon or Walmart or MercadoLibre, Latin America’s biggest online marketplace, have had is that most consumers prefer to pay cash. Amazon.com Inc. and Wal-Mart de Mexico SAB are pushing a hybrid payment system to encourage more shoppers to go online. Amazon is letting people pay for goods ordered on its website at the corner convenience store, while Wal-Mart’s local unit and retail giant Grupo Elektra SAB have set up kiosks at megastores that work much the same way.
China and India have faced similar challenges, their workaround—allowing delivery people to accept cash payments—isn’t an option in Mexico because of the high rates of assaults and robberies.
Sign upto become a member of the Emerging & Frontier Markets Association and to receive emerging and frontier markets information delivered directly to your in box.