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Supermarket penetration in latinamerica

However, whilst the markets of Western Europe are generally at the same stage of development and broadly follow the same trends, in Asia-Pacific things are not as simple. In Japan, consumers have access to high levels of disposable income, have highly sophisticated purchasing patterns and demand products that offer more than basic functional features. Nevertheless, the disadvantage of such markets is that it suffers from extremely high levels of product penetration, making market growth through volume expansion extremely difficult. In comparison, the Chinese market offers manufacturers huge potential for expanding volume sales in second- and third-tier cities and rural areas, whilst at the same time also offering a highly developed consumer base in first-tier cities such as Beijing and Shanghai. At the other end of the development scale is India, where tissue product penetration is minimal, meaning consumers will need to be educated as to their benefits before markets can be significantly developed. Therefore, in order to fully exploit the rising purchasing power available to consumers in the region, manufacturers need to take a much more localised approach, both in terms of product development and innovation, utilisation of distribution channels and marketing activity.
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Market Structure, Growth and Competition in the Supermarket sector in Latin America

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The global rise and impact of supermarkets: an international perspective

Wilkinson, John, Vernon Henderson, Hamish R. Swinnen,
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The global rise and impact of supermarkets: an international perspective

Competition Policy International. Latin America Column. Supermarkets play a limited but increasingly important role in Latin-America groceries retail markets. This entry was posted on September 3, , and is filed under Blogs , Books, chapters and reports , Competition and Regulation , Food policy , Language: English , World economy. You can follow any responses to this entry through RSS 2.
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Over the past decade, large retailers have made only modest progress in penetrating low-income segments in Latin America. Part of the reason is that multinational corporations, especially from developed countries, have earned enough delivering products to, and developing retailing formats targeted at, higher-income customers to be able to take their eyes off the potential of consumers with limited incomes. Moreover, retailers have underestimated the collective economic clout of people of modest, or even subsistence, means.
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