The vast majority of consumers in Latin America (75%), identify themselves as savers, rather than spenders, according to GlobalData’s recent primary research from 2018 Q4.
A slowdown of economic growth on the continent may be a key factor behind decisions to save. Furthermore, recent socio-political upheaval in the traditional powerhouses of Argentina, Venezuela and Brazil will influence decisions to ‘’save for a rainy day”.
Data from GlobalData’s 2018 Q4 global consumer survey shows all regions are conservative in their spending, with the exception of Middle East and Africa. This may be due to high youth populations that may be still be financially dependent on parents as a source of income. This is also true to an extent for Asia Pacific, a region that also features numerous countries like Vietnam and the Philippines with large populations under the age of 35.
The impact of reduced consumer spending will force industries to seek new methods to attract customer attention. This may force brands to approach discounted sales for instance, or for new products, innovation that resonates with consumers seeking value for money.