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shopper:
The changing
channel
landscape
Shoppers in Latin America are more
willing than ever to try new retail formats
in their quest to get the most from their
grocery budgets. As a result, the channel
structure in the region is changing
rapidly. Understanding the emerging
channels, and having a clear strategy for
being where shoppers are, is a critical
part of brand building.
Sonia Bueno
Kantar President – Brazil
Kantar Worldpanel Latam CEO
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This is a brand’s world
In contrast to many markets in Europe, The modern channels that are growing
where private labels can account for most strongly are the ‘limited range’
30% of FMCG sales, only 1% of FMCG retailers – including discounters and cash
goods sold in Latin America are retailers’ and carries – which offer low prices and
own brands. Shoppers regard “A brands” convenience.
as aspirational, and improving their
premium brands portfolio will be the key Discounters reach over 60 million
to long-term success for many retailers. families across Latin America, and this
will increase: in the last year alone
This means there are huge opportunities discounters grew their footprint by 20%,
for brands owned by manufacturers – and Kantar Worldpanel data indicates
but the channel structure in the region that the growth opportunity is worth
also creates a challenging environment. $700m. The presence of wholesalers,
meanwhile, is on the rise in half of the
Modern trade accounts for 46% of FMCG region’s countries, and these account for
sales, which means that most shopping almost 10% of FMCG sales in Brazil,
is still done in traditional formats such as Argentina and Ecuador. Drugstores,
minimarkets, kiosks and street fairs. e-commerce and convenience stores are
Almost three quarters (70%) of the also increasing in importance.
modern trade channels are owned by
local Latin American retailers, rather
than global names.
Expenditure is still divided into two main channels: Modern and Traditional,
however, Cash & Carries are gaining space in almost all countries.
Kantar Worldpanel Latam | Value Share% | FMCG | 2017
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Be present, Brands must have a clear strategy for ensuring they
are selected by retailers and by shoppers.
be available
Find ways to get More than half (58%) of households want to spend less
money, so they buy cheaper or own-brand products.
into shoppers’ Brands can help them continue to buy the items they
most desire, for example by offering alternative pack
baskets sizes.
Above all, it is vital that brands do not This is a market that has become more
make assumptions about the channel fragmented, in order to become more
landscape in Latin America – expecting convenient and practical for consumers.
that trends will reflect those in other
regions, or even be the same from one Ultimately, it is the shoppers who are the
country to another. winners – but the brands that know how
to build on the trends will also succeed.
| 3
Food for thought
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