LatAm demographics and its economic impact

• Just as the American baby boomers did when they took control of the job market in the USA, the last high-fertility generation in Latin America will transform social norms and increase household wealth as they enter the most productive stages of their lives.

• While China continues to be draw investment for export manufacturing, Latin America’s competitive advantage lies in its attractive internal market.

• The challenge lies in identifying pockets of wealth and successfully targeting products and services at them, keeping in mind that in an economy where 20% of the population controls 60% of the wealth, price and payment policies are key success factors in reaching consumers.
   

Declining remittances, slowing growth no cause for long-term concern

Remittances should continue to dip gradually through to the 4Q07, before they normalize in line with baseline expectations for US GDP overall.

We are confident that there is more resilience and flexibility in Mexican consumer spending markets, particularly in the core food, beverage, and retail sectors, than formal metrics can capture.

Latin consumers find their niche
why the region’s affluent want something new

• The $90 billion net gain by the lowest 90% of the population since 2002 represents the first economic victory for the middle class in Latin America since the 1970s.

• There are twice as many households today in both Brazil and Mexico earning above $15,000 per year than in China.

• The democratization of credit in Latin America opens up a mass market for many consumer goods that previously could only be marketed to the affluent.

• The combination of an expanding viable middle class and a more segmented affluent class has opened the door for more product differentiation, a trend that is likely to deepen in coming years.
   

Market Intelligence in Large Companies - Global Study 2007

On May 22nd, InfoAmericas and the Global Intelligence Alliance released the results of: “Market Intelligence in Large Companies – Global Study 2007”. This study, involving the participation of almost 300 executives worldwide in charge of business intelligence or strategic planning in large corporations, identifies the practices, habits, benefits and outlook of market intelligence in the next five years.

The study was conducted across 9 countries by their respective GIA companies. InfoAmericas conducted the study in Brazil and Tendencias brings to you the highlights of the results conducted in Brazil.