Latin American retailers ramp up investments in omnichannel tech

Investment in digital transformation is paying off for Latin American retailers, according to a report by WPP and Kantar.

This flags up how they are driving customer engagement and business value with innovative business models, including omnichannel solutions, online and mobile platforms and digital payment systems.

Mexico's Walmart-owned discount store, Bodega Aurrera, is leading the way, with aggressive expansion plans that have seen new store openings, strengthening its distribution capabilities and physical presence in the region.

Chile's Falabella is also a star performer, thanks to the development of an integrated digital retail platform to maximise its diverse portfolio and to leverage its omnichannel strategy.

The highest ranked newcomer this year was e-commerce company MercadoLibre, with a presence in around 20 LatAm countries. It recently introduced new digital payment methods including QR codes, virtual wallets and discounts with the Mercado Pago app.

"Digital disruption coupled with a 70% smartphone adoption rate across the region is driving change across all categories and our latest ranking shows that those brands that empower consumers to greater convenience and choice are winning,” says Oliver Pacht, Managing Director, Mexico and CAM, Consulting Division, Kantar.

“But with the constant shift in consumer demand, brands will need to be agile in spotting the next wave of emerging consumer expectation, whilst adopting a "humanised" approach to growth that emphasises experience rather than products. Top performing brands focus on the people they serve."

Further details here.