RETAIL RETOLD

Why consumers are embracing these five ways to retell the retail story in Latin America.

 

One consequence of a world in which (almost) every place and every moment is shoppable?

Physical retail spaces increasingly seem a less exciting, less transparent, less choice-rich option.

That’s why South and Central American consumers are embracing physical retail spaces that deliver more: more than just a seamless transaction, more than good value, more than ‘great customer service’ even.

From retail on the move, to self-improvement, to social value and more, RETAIL RETOLD is about five retail concepts that take aim at some of consumers’ deepest wants and needs. In the process, they reimagine the retail story for 2014.

Five new RETAIL RETOLD stories for 2014
and beyond:

1. MOVING MERCHANTS

The go-to option.

2. OK COMMUTER  

Part of the (retail) journey.

3. OFF=ON=OFF

The boundaries between offline and online disappear.

4. SOCIAL STORES

Selling a message.

5. EDU-COMMERCE

Don’t preach, teach.

RETAIL RETOLD

1. MOVING MERCHANTS

The go-to option.

Now that ultra-busy urbanites can order online and accept delivery in a day or two, their motivation to travel to a specific store has fallen to near zero.

One consequence? Smart brands are finding new ways to unchain themselves from fixed locations and hunt out consumers where they are.

In 2013, 19% of Mexicans ate at a food truck at least once.

Agency De La Riva Group, November 2013

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1. FEATURED INNOVATIONS: MOVING MERCHANTS

Botánicus

Refurbished truck sells flowers around Bogotá

Launched in Colombia in December 2013, Botánicus is a mobile greenhouse that sells flowers and plants for homes and offices. From Wednesday to Sunday, a restored bus drives around Bogotá's popular business areas and tourist spots offering a selection of cacti, succulents, roses and vintage planters. Using the Botánicus site shoppers can place advance orders, and track both the route and business hours of the bus.

 
1. FEATURED INNOVATIONS: MOVING MERCHANTS

Nail Delivery

Manicure service comes to homes & offices in Brazil

In October 2013, Nail Delivery launched a manicure service in Brazil that goes directly to customers’ offices and homes. Clients book appointments by phone; a basic manicure costs BRL 30 (USD 13). Nail Delivery also offer services for special events such as a ‘girls’ night in’, weddings or corporate parties.

1. MOVING MERCHANTS

NEXT

Listen up (think social media) and consumers will tell you where they are – and where they want you to be.
Go there!

 

2. OK COMMUTER

Part of the (retail) journey.

In the bustling cities of South & Central America, residents are constantly on the go (check out our previous Trend Bulletin METRO MOBILITY, for more on this!). What’s more, these time-pressed consumers are determined to extract maximum value from the minutes they spend traveling.

Consumers are already shopping on their smartphones and browsing e-tail displays on train platforms. Now, they’ll embrace forward-looking brands that create unexpected combinations of transport and retail, and help them eradicate any remaining ‘dead time’ from their day.

Inhabitants of São Paulo, Mexico City, Buenos Aires, Bogotá and Lima face a typical commute time of 1 hour and 28 minutes.

Megacities & Infrastructure in Latin America - Inter-American Development Bank, March 2014
 
2. FEATURED INNOVATIONS: OK COMMUTER

Los Paleteros

Mexican paletas via drive-thru

In January 2014, a branch of the Mexican paleta (“ice pop”) franchise, Los Paleteros launched a store that features a drive-thru service in the state of São Paulo.

 
2. FEATURED INNOVATIONS: OK COMMUTER

Beauty Bazar

Beauty in Brazilian subways

In February 2014, Beauty Bazar launched beauty product vending machines at two subway stations in São Paulo, Luz and Paraíso in Brazil. Subway passengers can pick up nail polish, false nails, stickers and other items from the cash-only machines.

2. OK COMMUTER

NEXT

Urban mobility is changing across the continent.
How can you devise new points-of-sale that capture the attention of consumers in cars, on trains, riding trams, and more?

 

3. OFF=ON=OFF

Smartphone-toting consumers have rendered the boundaries between offline and online near invisible.

Consumers conditioned by the smartphone age now expect retail platforms to deliver the best of both worlds: the sociability and hands-on customer service of physical, and the convenience and cost benefits of e-tail.

This expectation will only intensify as the reach of broadband and 3G improves: allowing both for faster online experiences, and better integration of digital into physical spaces.

Online retail revenues in Brazil, Argentina and Mexico will more than double from USD 20 billion in 2013 to USD 47 billion in 2018.

Forrester, December 2013
 
3. FEATURED INNOVATIONS: OFF=ON=OFF

iLoveMall

E-commerce ‘mall’ mimics physical shopping experience in Brazil

iLoveMall is a virtual shopping platform that mimics the traditional experience of visiting a mall with 3D visualizations of featured e-commerce stores. Participating retailers have virtual storefronts and aisles of products. Set to launch in Brazil later in 2014, the platform can host up to 720 stores.

 
3. FEATURED INNOVATIONS: OFF=ON=OFF

Sodimac: Lector de Catálogos

App provides augmented reality renderings of Chilean catalog’s products

In March 2014, Chilean home improvement retailer Sodimac launched the Lector de Catálogos app. When used to scan a Sodimac catalog, the app displays 3D renderings of products via augmented reality.

 
3. FEATURED INNOVATIONS: OFF=ON=OFF

Leica & Arco

Camera purchasable for Brazilians via Instagram

December 2013 saw camera brand Leica offer free prints to Brazilian customers purchasing the wifi-enabled Leica C model via Instagram. Buyers had to register with Brazilian e-commerce platform Arco, which connects PayPal and Instagram accounts, and could then buy the camera by typing ‘purchase’ under any of @LeicaBrasil's Instagram photos. As well as the camera, customers also received a print of the photo they had commented on.

 
3. FEATURED INNOVATIONS: OFF=ON=OFF

Sonae Sierra

Shopping malls use WhatsApp as customer service channel

In December 2013, Sonae Sierra Brazil, a shopping and leisure center developer, was the first in the industry to deploy WhatsApp as a communication platform and customer service tool. Since its debut at Shopping Metrópole in São Paulo, the service has spread to other locations. Shoppers can ask questions about facilities and receive retail recommendations from operators via the messaging app.

3. OFF=ON=OFF

NEXT

The blurring of online and offline is ongoing.
Can you utilize wearable technology to make any remaining boundaries invisible and harness the best of both worlds?

 

4. SOCIAL STORES

Selling a message.

Consumers are busy taking full advantage of the borderless online space, but this doesn’t mean that place – local concerns, traditions, communities and cultures – is forgotten.

Indeed, for many consumers, LOCAL LOVE is even more important than ever as a means to assert their own identities and mindsets amid the global village. That means consumers will direct love, attention and respect to retailers who engage in local social and environmental issues, and drive positive change.

95% of Mexican prosumers (highly knowledgeable, demanding, influential consumers) believe that companies have the same responsibility as governments to generate positive social impact.

Prosumer Report - Havas Worldwide, November 2013
 
4. FEATURED INNOVATIONS: SOCIAL STORES

Paris

Retailer rewards clothing donations at Santiago music festival

In March 2014, at Lollapalooza music festival in Santiago, the Chilean retailer Paris hosted a store where attendees could trade in old clothes for rewards. Donors received haircuts, customized t-shirts and portraits, in return for garments which were given to Debuenafe - a nonprofit that supports female entrepreneurs

 
4. FEATURED INNOVATIONS: SOCIAL STORES

Fenalco & Colombian Agency for Reintegration

Government re-integrates ex-FARC soldiers via store management program

The Colombian Agency for Reintegration helps ex-militants from FARC become self-employed, by opening convenience stores for commercial federation Fenalco’s brand 2×3. The project won the 'Empreender Paz 2013' award – given to businesses that contribute to the culture of peace. As of April 2014, it had opened 15 mini market stores around Colombia.

 
4. FEATURED INNOVATIONS: SOCIAL STORES

BRMalls & Social Solidarity Fund

Empty pop-up store designed to receive donations in São Paulo

In April 2013, BRMalls, in partnership with the Social Solidarity Fund of the State of São Paulo, opened The Empty Shop in São Paulo. The pop-up store was laid out like a normal store – with mannequins, cabinets and shelves – yet it was empty. It filled up as visitors’ donations of clothing were received throughout the day. At the end of each day, donations were removed and given away.

4. SOCIAL STORES

NEXT

How can you add social value in your community?
Work with nonprofits and CIVICSUMERS to provide public services that are underprovided by the public sector.

 

5. EDU-COMMERCE

Don't preach, teach.

Even in regions where there is an established middle class, there are always VIRGIN CONSUMERS who are moving into new income bands (from low to medium or even medium to high income) and trying out new products or services.

That means a multitude of consumers who yearn for guidance and advice when it comes to products and services. One future for customer service in the region, then? Retailers who don’t just preach about the benefits of their wares, but instead teach how to maximize value from them. In the process, they offer education on associated areas: from culinary skills to financial management and more.

South & Central America includes six out of the top 10 countries where consumers say they are more willing to buy products and services from companies that support education:
Colombia 90%, Brazil & Venezuela 88%, Peru 87%, Chile 83%.

Nielsen, September 2013
 
5. FEATURED INNOVATIONS: EDU-COMMERCE

Interbank

Lima bank includes social learning areas

In May 2013, design company IDEO finished a new retail concept for Peruvian bank Interbank, in Lima. Along with an SMS-based alert system that negates the need to wait in line for a teller, the facility has social areas where visitors can learn how to optimize their finances.

 
5. FEATURED INNOVATIONS: EDU-COMMERCE

Magazine Luiza

Retailer provides classes and hosts events in São Paulo

In August 2013, home-furnishing and electric appliances retailer Magazine Luiza opened a shop in the low to middle-class area of Heliopolis, São Paulo – the first 'virtual shop' in that neighborhood. Consumers can buy products in a virtual catalog online, and be helped by shop assistants to decide and order online. Besides buying products, consumers can attend the shop to have culinary and computer classes, and attend tasting events organized by Magazine Luiza.

NEXT

EDU-COMMERCE

How can you enhance consumers' knowledge and skills AND introduce them to your product or service at the same time?
Get the balance right and you'll create an unmissable experience.

 

Ready to start RETELLING your RETAIL story?

Just a quick recap ;)

MOVING MERCHANTS: Listen to where consumers are – and go there!

OK COMMUTER: Offer new points of sale that capture the attention of consumers on-the-go.

OFF=ON=OFF: Weave the digital and physical together to create new kinds of retail experiences.

SOCIAL STORES: Drive positive change in local communities – think partnerships with consumers and nonprofits.

EDU-COMMERCE: Teach consumers about your offering and enhance desired skills and knowledge, too.

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