Latest UN population forecasts show Latin America urbanising at a faster rate than anywhere else on earth, with 89% of the population set to live in urban areas by 2050.
This is accelerating the focus on its cities, posing infrastructural challenges alongside expanded opportunities.
What's a megacity and why is it important?
Megacities, and others that are just below the megacity threshold, are great trend-setters. In Latin America, it's useful to stretch the formal definition of megacities (population 10+m) to include cities such as Bogota, Santiago and Lima, to understand the shape of future development across the megacities of today and tomorrow.
Our top trends from the largest cities in Latin America
Source: IGD Research
A hotbed for innovative concepts
Large urban centres provide a hotbed for innovation and concept cross-fertilisation both online and in physical stores. We see several concepts across key Latin American megacities that stretch boundaries and create new types of destination.
A shoe shop but like no other. Galeria Melissa's stores come across as a tech-enabled gallery that just happens to showcase a range of shoes. This is a great example of how fantastic concept stores can truly wow customers about the product. A 'paulista' business that has expanded internationally, it's recently reopened its São Paulo flagship.
Barbearia Corleone is representative of a strengthening trend in São Paulo, the barber & bar combination. As a genuine man-zone, the combination of gentlemen's grooming with a wide array of craft beers is one with scope to grow much further. Picking up on the barber trend, L'Occitane en Provence chose São Paulo to open its first barbers.
Deli Market is a differentiated concept in Buenos Aires combining food-to-go and an array of healthy-oriented dried products such as pulses, dried fruits and spices. It's great at identifying its core shopper and meeting a wider variety of their needs.
To discover the other growth opportunities...
Subscribers to Retail Analysis can download the full presentation here to discover the key retail trends shaping the development of Latin American megacities.