Innovation and Opportunity: The Case for Customer-Centric Retail in Latin America
The fast-changing retail landscapes of Latin America present both opportunities and challenges, and the need for retailers to act decisively has never been clearer. The ecommerce wave is gaining powerful momentum – ecommerce is expected to grow by 189% over the next five years in Mexico alone – and consumers expect and demand value, brand interaction across all channels and stimulating in-store experiences from the moment they cross the threshold.
As Latin American director for a company that is 100% focused on the retail sector, I’ve had the privilege of working closely with innovators who view the turbulent landscape in terms of opportunity – and who have delivered undeniable business impact as a result. To avoid costly profit-eroding decisions, the new imperative for retailers is to invest in competitive and shopper insights that drive profitable customer-centric pricing and promotions. That’s why we crafted the June 15 workshop in Monterrey, Mexico – “Advanced Strategies for Profit Optimization.”
In addition to hearing from executives and technical experts from Revionics’ Science Services and Price Strategist teams, our attendees gain first-hand insights from Farmacorp CIO Andres Valdivieso. Andres has demonstrated how price optimization can help retailers improve gross margins and the bottom line while becoming more customer-centric.
Andres and the rest of Farmacorp’s executive team are leading the company from its current 70+ store locations to a targeted 100+ stores within two years. They’ve embarked on a journey to innovate and connect with customers at every step, from the initial online experience through loyalty programs to merchandising, point-of-sale and, yes, price optimization. They generate data from millions of transactions monthly, and under Andres’ leadership Farmacorp applies sophisticated analytics to that data to understand what truly matters to customers in terms of assortment, value, competitive pricing and cross-channel experiences. The result: a fiercely customer-centric culture that also delivers consistently predictable margins and profits, quarter after quarter. In fact, Farmacorp exceeded its target profits in the most recent fiscal year.
Take a look at the case study that describes Farmacorp’s responsive merchandising journey so far – and how they foresee the future (also recently featured in América-Retail). It’s also worth taking a short 7 minutes from your schedule to view my video interview with Andres following his plenary session keynote at the Revionics Insight conference last October.
Having a market-leading price strategy has remarkable and measurable impact on attracting and retaining customers, driving stales and protecting margins. At the heart it comes back to strategic change management. With ecommerce growth accelerating rapidly in Latin America – outpacing North America and all other geographic regions except APAC – the opportunity for strategic innovation is urgent.