Latin America, fourth biggest market in terms of digital commerce, showed timid growth during the 2013-2018 forecast period. With weakened currency compared to the US dollar and going through one of the toughest economic crisis in the last decades, the region posted below global average results. With a diverse landscape in terms of connectivity and still mid-tier globally, the region is expected to accelerate results with higher investments in connectivity and overall economic rebound.
This report comes in PPT.
Latin America has enjoyed considerable improvement in connectivity levels but, lack of investment in infrastructure within poorer and rural areas hinders the region’s growth potential. Coupled with economic crisis, Latin America saw timid results in terms of digital commerce and although maintaining its global position, shows no projections within the short term to surpass more developed counterparts.
Retailers are heavily investing in omnicanality as digitalisation and connectivity increases in the region. Consumers now interact with brands within different channels and expect further consistency between the different outlets. Brick-and-mortar locales are investing in offline experience improvement, where agile digital shopping and payment are key drivers.
Latin American consumers, enjoying higher tech smartphone penetration coupled with increasing mobile internet speeds, are increasingly shopping for products and services through their devices. Higher expectation for seamless checkout and retailer investment in digital wallets that integrate both sellers and shopper ecosystem will push for higher rates of remote and proximity payments. The high appeal of smartphones within the region allied to the growth of e-commerce, social network use and streaming service results in consumers expecting to have a digital experience regardless of their location.
Forecasts show that Latin American digital commerce will post a CAGR of more than 15% over 2018-2023, behind only the MENA region. Although Latin America will maintain its position in terms of Digital Commerce Index ranking, the next five years will be paramount for the region to reach closer to third-place holder, Western Europe, and gain larger global recognition.
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