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5 LATIN CONSUMER TRENDS FOR 2016

Tough times mean big opportunities.

And these five trends will help you seize them!

In Central & South America, the last 12 months haven’t been easy. Political, economic, social and environmental challenges abound – and the trust deficit continues.

But yes, we meant what we said: tough times mean big opportunities.

That is, opportunities to overturn incumbents and build new brands and businesses, to serve new needs, to make life easier, faster and better, and to offer customers the delight they’re still seeking, despite the challenges. Times may be tough, but consumer expectations have never been higher.

As trend watchers, we look for clusters of innovations. Specifically, the innovations that are are defining (and redefining) customer expectations across South & Central America.

These innovations – and the trends they represent – point towards what Latin consumers will want next, and present you with actionable innovation opportunities in 2016. That means each trend is a killer opportunity to take to your team right now!

What’s more, these trends don’t sit in splendid isolation. They are a handful of near-future fragments of the Bigger Picture of Latin consumerism in 2016: more on how to handle that below.

Read, think, argue. Then get going, and make a start on new products, services and campaigns that Latin consumers will love in 2016!

 

 

In this briefing

  • part I

    5 Consumer Trends for 2016

    Beat accelerating customer expectations with these 5 delight-inducing trends.

  • part II

    The Bigger Picture

    Adding context: understand where these trends come from and assess the relevance for your industry.

  • part III

    Next

    Putting it all into action.

part I
5 Consumer Trends for 2016

  • IMMIGREAT

  • URBAN ADVENTURERS

  • END OF
    WAITING

  • VALUABLE
    EXCHANGES

  • ORGANIZED MASS

IMMIGREAT

As more newcomers arrive, integration becomes a standout issue in 2016

Parent mega-trend: local love —  Why 'local' will be forever loved.

This year, the complex refugee crisis playing out in Europe also impacted Latin America. New arrivals to the region and stories of those forced to flee their countries under terrible circumstances drew the hospitality of many in the region to the surface, and citizens came together to create projects to welcome refugees.

That’s all part of a broader picture that has seen the region receive more immigrants in recent years. According to the UN, the total number of people who applied for asylum in Brazil has increased by over 930% between 2010 and 2013 (from 566 to 5,882 requests).

As a result, the region has become even more diverse. And tolerance for diversity is increasing. In August 2015, for example, Mexican citizens started a petition at Change.org to pressure the Mexican government to give asylum to refugees from Syria.

The opportunity for brands? In 2016, integration is the key word for the region. Businesses that promote new encounters, and serve the needs of newcomers as well as those who seek to welcome them, will win the love of many in Central & South America.

Real world examples of
IMMIGREAT

  • Helping Hand: Brazilian app provides information for new arrivals

    In May 2015, a group of students created Helping Hand, an app that tracks institutions around Brazil that offer support to refugees and immigrants. The app provides information on how to find and engage with key institutions such as schools, NGOs, charities and government agencies.

  • Abraço Cultural: Refugees find employment teaching their own language and culture

    Abraço Cultural (meaning ‘Cultural Hug’) is a school in São Paulo where lessons are taught by refugees from around the world. The first classes began in July 2015, and students can study a refugee teacher’s native language or learn about their national culture (with subjects from cooking to dancing) and heritage. The school was created by Atados, a platform for discovering volunteering opportunities, and the nonprofits Adus and BibliASPA.

     

  • Fatiado Discos: 'Refugees' Dinner' promotes integration with Brazilians

    Two other actions in Brazil aimed to integrate refugees and provide spaces to debate issues such as prejudice, access to the labor market, equal gender and violence:

    In August 2015, Caritas Rio and NGO streetfootballworld took the Futebol das Nações (‘Football of Nations’) project to Brazilian stadium Maracanã. The project encouraged refugees to attend talks, weekly workshops and football matches.

    In October, Brazilian record store Fatiado Discos ran Jantar dos Refugiados, a special dinner for refugees and locals. mMost of the dishes sold at the party were made by refugees.

Next

In 2016 (and beyond!) smart brands will see a host of opportunities around this trend. How can you help local communities welcome newcomers? How can you help new arrivals navigate the new cities and countries they choose to make their home?

Think about the long-term shifts that are making the region more diverse; but also about the short-term triggers that provide opportunities to innovate around newcomers, diversity and the mixing of cultures. A case in point: in 2016, Rio de Janeiro will host the Olympics, and Brazil's president has signed a bill that eliminates the need for foreigners to obtain visas during the games. How will your brand join the party?

Parent mega-trend: local love —  Why 'local' will be forever loved.

The ​full 2016 Trend Report​ is here!

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URBAN ADVENTURERS

In 2016, Latins embrace new forms of urban transport

Parent mega-trend: infolust —  Why consumers' voracious appetite for (even more) information will only grow.

Urbanization is accelerating in Latin America faster than anywhere else in the world. According to the UN, 90% of Brazil and the rest of the Southern Cone’s (Argentina, Chile and Uruguay) population will live in cities by 2020. By 2050, 89% of all Latin Americans will be urban-dwellers.

More inhabitants means Latin America’s cities are becoming hotbeds of increasing opportunity, choice and experimentation. It also means more stress on infrastructure, including roads and other forms of transport. Little wonder then, that many are moving away from the car. The percentage of drivers who have cars and use their vehicles every day or almost every day in São Paulo has fallen from 56% in 2014 to 45% in 2015 (Ibope, November 2015).

In 2016, then, brands that help consumers find new, faster, safer, more affordable and more pleasant ways to traverse their cities will be loved.

Why? Because today’s affluent Latins are not content to hide away in shopping malls; instead they want to avail themselves of all the diverse opportunities their cities are creating. Helping them to get around their cities will enable them to do just that.

Real world examples of
URBAN ADVENTURERS

  • SP Sem Carro: App helps users navigate São Paulo without a car

    October 2015 saw the launch of the transport guide app SP Sem Carro (‘São Paulo Without a Car’). The app calculates the travel time for various modes of transport (including bus, subway and taxi), and estimates of the cost of the journey.

  • Dafiti and Biko: App rewards cyclists with virtual currency

    In November 2015, the ecommerce platform Dafiti partnered with Colombian application Biko, a platform that aims to improve mobility problems and pollution by encouraging the use of bicycles. The tool provides a map showing bike paths, parking lots, and obstacles on the roads, among other information that may be of interest to bikers. When users of the app ride one kilometer they earn a ‘Biko’ (the app’s virtual currency), which they can spend with partner retailers, including Dafiti.

  • Sai Pra La: App lets citizens of São Paulo map instances of sexual harassment

    Launched in November 2015, Sai Pra La is a free mobile app that allows inhabitants of of São Paulo to share instances of street sexual harrassment. Sai Pra La uses GPS to register where the harassment has taken place, and allows users to report incidents anonymously. As well as supporting the victims of sexual harassment, the app maps each incident, revealing areas with particular problems, which can then be targeted for improvement.

Next

As urban transport infrastructure becomes ever more stretched, the opportunity to offer and incentivize new solutions only grows. How can your brand serve this need, or partner with others to do so? Remember, in the end this is about empowering consumers to experience their city to its fullest. Where are your customers trying to go? How can you help them?

And think beyond transport, to the broader implications of the shift away from the car. As rising numbers of newly affluent VIRGIN CONSUMERS realize the car dream has turned into a nightmare, what other traditional status signifiers will they now give themselves permission to ignore?

Parent mega-trend: infolust —  Why consumers' voracious appetite for (even more) information will only grow.

END OF
WAITING

There's no time to wait!

Parent mega-trend: helpfull —  Be part of the solution, not the problem.

Latin America’s professional, urban middle classes are experiencing higher incomes, longer working hours, and an explosion in the consumer choices available to them. One result of the convergence of these three powerful forces? Consumers across the region have never felt more time-pressed.

In 2016, these smartphone-toting consumers will seek new ways to power through their lives and make the most of the enticing choices available to them.

Brands that make it a priority to be there as and when consumers need, offer services at the touch of a button, and reduce waiting times to zero (or as close as humanly possible!) will be rewarded with love and attention. And if you can’t kill waiting times all together, then how about filling them with something useful, surprising or fun?

Real world examples of
END OF
WAITING

  • FindUp: App is the Uber for computer technicians

    Available to download across Brazil from June 2015, FindUp connects users to computer technicians in just a few taps. The app uses geolocation to facilitate a connection between computer technicians and potential customers.

     

     

  • Musiglota: App teaches English through song

    April 2015 saw the launch of Musiglota, a Chilean app that teaches English through song. Available for smartphones and tablets, Musiglota includes an interactive music player that shows song lyrics and translations in real time. To train ‘listening’ and ‘speaking’, the app also has the option to ‘read’ each sentence of the music. The software also generates a ‘micro class’ for each played song, with exercises and interactive activities, which can be played individually or taught by a teacher in a classroom.

  • ADN: Communters study while going to work

    In February 2015, Colombia’s ADN newspaper ran a distance learning initiative in Bogota that took advantage of the long bus commutes that many commuters undergo each day. The newspaper used radio to broadcast classes on buses; topics included personal finance, English and sex education. Bogota has around 8 million inhabitants; only 1 in ten make it to higher education.

     

     

     

Next

There are endless ways to innovate around this trend in 2016. Just remember, this is about empowering consumers to get more out of every moment, whether thats helping them power through a necessary task or filling spare moments with something valuable.

And remember: it doesn’t have to be wait time associated with your brand that you address. You can also be HELPFULL during other common waiting times, just like ADN newspaper were when they addressed the long commuting hours in Bogota.

Parent mega-trend: helpfull —  Be part of the solution, not the problem.

VALUABLE
EXCHANGES

In 2016, smart brands climb down from their pedestal and let consumers participate

Parent mega-trend: playsumers —  Who said business had to be boring?

Latins are big users of social media – a full 89% of internet users in Latin America use Facebook (Datanalisis, October 2015). Through social media, Latin consumers learnt that interaction is possible at any time, with any person or brand. Now, they want more than talk.

In 2016, consumers in South & Central America will seek to take their interactions with brands to the next level.

That means actively participating in VALUABLE EXCHANGES that are useful, fun, or help make the world a better place.

Rising awareness of environmental and social issues means many are willing to co-operate with brands – or even respond to brand demands – in order to serve a higher purpose. Meanwhile, the internet has also opened consumer’s eyes to the power of connecting with peers. Now, many are looking to brands to leverage these peer networks and improve their offering.

Real world examples of
VALUABLE
EXCHANGES

  • Scotch Super Glue 3M: Glue brand asks consumers to break products before purchase

    In May 2015, Scotch Super Glue 3M launched a campaign in Guatemala to increase sales, demonstrate the quality of the glue and justify its expense. The brand opened ReStore, a ‘discount store’ selling broken vases, plates and other ornaments. Each item was sold at the cost of one superglue pack, which was included free with purchase. 3M also partnered with other interior stores and stocked their products; customers were invited to break an item before buying it.

  • São Paulo's supermarkets: Discounts offered to customers who bring their own shopping bags

    June 2015 saw supermarkets across São Paulo offer customers the option of receiving discounted groceries in exchange for using their own shopping bags. Customers who chose to receive discounted goods had the option of receiving BRL 0.03 (USD 0.01) for every five products purchased, or a discount for every BRL 30 (USD 9.50) spent.

  • Dressable: App offers discounts to users who answer fashion questions

    Available in Mexico, Dressable is an app that lets users earn rewards for answering questions about fashion. They have to guess the answer to questions made by the app about brands, prices of clothing and to which collection an item belongs. Users who answer questions earn points and discounts at partnering fashion stores. 

     

Next

One thought: how can you combine VALUABLE EXCHANGES with other trends currently changing the consumer landscape in South & Central America?

For example, how about empowering consumers to come together with your brand and participate in a programme to serve newcomers – see the IMMIGREAT trend above.

But trend possibilities abound. What does your sustainability VALUABLE EXCHANGE look like? Or think ethics, locality, customer service, creativity – the list is endless!

Parent mega-trend: playsumers —  Who said business had to be boring?

ORGANIZED MASS

Small structures. Big opportunities.

Parent mega-trend: remapped —  The epic power shifts in the global economy.

According to the International Labour Organization (ILO), micro and small businesses are the engine of job creation in Latin America and the Caribbean. The ILO suggests that the 10 million micro and small enterprises that exist in Latin America and the Caribbean are critical to the region’s future because they generate most of the employment.

Over the few last years, Latin America saw a huge growth of micro and small businesses. Workers who were once employees of big companies started their own businesses, and many of them entered the informal economy. This created a large network of services that are often barely visible to most consumers.

The opportunity? Help consumers find the small and micro businesses that can serve their needs. And provide the platforms that will allow those customers to review, rate and increase trust in those businesses. Turn South & Central America’s informal economy into an ORGANIZED MASS!

For more on how ORGANIZED MASS is playing out in other regions, take a look at our other bulletins: 5 Asian consumer trends for 2016 and 5 African consumer trends for 2016.

Real world examples of
ORGANIZED MASS

  • Lupe: Argentinian app connects beauty consultants to customers

    Launched in Argentina in October 2015, Lupe is a free app that lets consumers find and engage with local hairdressers and beauticians. Via the app, users can select services, book appointments to have at home or in salons and pay for services. 

  • Natura: Brand partnership helps consultants get in touch with customers

    In June 2015, Brazil-based cosmetics company Natura equipped its 1.3 million direct sales consultants with a chip from Claro Telecom and mobile payment machines from e-payment service Pag Seguro. The partnership gave Natura consultants free data to interact with potential customers via the Natura app, and allowed consultants to accept payments with debit and credit cards.

  • Kemik: Ecommerce platform sells products from Guatemala

    June 2015 saw the launch of ecommerce platform Kemik. The platform sells products from companies based in Guatemala; most items come from small and medium-sized companies that struggle to sell their products in the country. 60% of Kemik’s sales are made to customers from cities outside of Guatemala City.

Next

In the rush of big cities, much is easily missed. Brands and businesses that bring order and searchability to the informal economy will win love from both customers and service providers. Go in search of services for which there aren't proper information channels available – and fill that gap!

It’s also about DIGITAL TRUST: which service providers are great and which are terrible? Empower consumers to give each other the answers!

Parent mega-trend: remapped —  The epic power shifts in the global economy.

Part 2
The Bigger Picture

i. The Trend Framework

16 mega-trends which provide structure and context when tracking innovation.

Too often, professional trend watchers imply they have an inherent gift that enables them to divine the future. Now, we don’t want to be the ones to spoil the party, but the five trends you’ve just read didn’t just emerge from a top-secret, caffeine-fueled brainstorming session.

Instead, they simply capture new and emerging directions of travel of certain, ‘bigger’ mega-trends that are shaping the consumer arena. We track these big, slow-moving currents in our Trend Framework, which you can glimpse below (and which clients of our Premium Service have full access to).

Having a robust and comprehensive Trend Framework allows us to assess the implications of the hundreds, if not thousands, of innovations we see on a daily basis and that we receive from our spotter network.

Indeed you’ll now understand how, while tracking innovation initiatives in frontier markets as part of our REMAPPED mega-trend*, identifying a cluster of innovations which disrupt customer expectations around the informal economy led us to the ORGANIZED MASS trend.

*Macro trends, mega-trends, micro trends, mini trends. We admit the world of trend classification is somewhat confused (and confusing!). The truth is, there is no definitive answer, and we’re not going to even try and claim one here. In the end it doesn’t matter, just as long as you’re all speaking the same language.

Unlock all 16 mega-trends, a further 100+ trends which sit ‘underneath’ these, 13,000+ real-world innovation examples and much, much more.

Upgrade now

  • The 5 Trends for 2016

  • The full Trend Framework

  • 10 trends,
    1296 innovations

    status seekers
    The relentless, often subconscious, yet ever-present force that underpins almost all consumer behaviour.

  • 7 trends,
    755 innovations

    betterment
    The universal quest for self-improvement.

  • 9 trends,
    1210 innovations

    youniverse
    Make your consumers the center of their YOUNIVERSE.

  • IMMIGREAT

    Parent megatrend:

    local love
    Why 'local' will be forever loved.

  • VALUABLE
    EXCHANGES

    Parent megatrend:

    playsumers
    Who said business had to be boring?

  • 14 trends,
    2108 innovations

    ephemeral
    Why consumers will embrace the here, the now, and the soon-to-be-gone.

  • END OF
    WAITING

    Parent megatrend:

    helpfull
    Be part of the solution, not the problem.

  • 10 trends,
    1303 innovations

    joyning
    The eternal desire for connection, and the many (new) ways it can be satisfied.

  • 10 trends,
    2107 innovations

    human brands
    Why personality and purpose will mean profit.

  • 11 trends,
    1951 innovations

    better business
    Why 'good' business will be good for business.

  • 10 trends,
    1358 innovations

    ubitech
    The ever-greater pervasiveness of technology.

  • URBAN ADVENTURERS

    Parent megatrend:

    infolust
    Why consumers' voracious appetite for (even more) information will only grow.

  • 12 trends,
    2075 innovations

    fuzzynomics
    The divisions between producers and consumers, brands and customers will continue to blur.

  • 9 trends,
    972 innovations

    pricing pandemonium
    Pricing: more fluid and flexible than ever.

  • 9 trends,
    1748 innovations

    post-demographic
    Time to throw out the old demographic models of consumer behavior.

  • ORGANIZED MASS

    Parent megatrend:

    remapped
    The epic power shifts in the global economy.

ii. Industry HeatMaps

Data-driven collective intelligence gives insights into what industries are focused on.

Okay, so now you buy into the concept of a Trend Framework as a tool to help navigate the changes in the consumer arena. But that just leaves you with another question: ‘which trends should I be focused on?’

The nature of our Premium Service offers us an unrivaled view into the collective intelligence of the 4,500+ professionals using our online trend platform. Our Industry HeatMaps aggregate data to show which mega-trends our users are focusing on, by industry. Which are the most important mega-trends to users in the Automotive industry? In the Fashion industry? Retail?

The Industry HeatMaps answer these questions and, as a result, give unique and powerful insights into the direction of an industry while enabling you to see at-a-glance how your strategy and areas of focus compare to your peers.

Use the demo of the tool below to check out how the ‘parent’ mega-trends of the five trends featured in this Trend Briefing rank across a variety of sectors.

However, true trend experts know that you can run with almost any trend, if you adapt it to cater to your customers’ future expectations. Indeed, disruptive innovations always appear unconventional at first. In other words, fearless innovators will find rich opportunities in even the ‘smallest’ mega-trends in these heatmaps.

Part 3
Next

Now:
Get going!

As always, we wrap up these annual Trend Briefings with a call to action...

While it’s our job just to watch trends, ambitious business professionals should read these trends with only one thing in mind: how to apply these trends and create compelling new innovations that will delight your customers (and win new ones!).

We can help with that too!

Yes, customers have never been more demanding. Yes, there’s never been more competition. Blah blah blah. None of this is going away in 2016 (or 2017, or 2018…). However, trends are the secret weapon that help you turn this overwhelm to your advantage. But you already knew that ;)

So, take our CONSUMER TREND CANVAS, a free one-page guide to analyzing and applying trends. Dive into its simple, practical, step-by-step process to creating innovations that are deeply grounded in what customers want, desire and expect. Then win.

And finally...
HERE'S TO A SUCCESSFUL 2016!

Cheers! Proost! 干杯! Salud! Skål! 건배! Santé! Prost! Şerefe! Mabuhay! Saúde! Chok dee!