We want to show you some companies that have been successful expanding to Latin America. First is the case of H&M a company whose careful dedication in understanding the customer paid off.
In the past years, the fashion retail brand H&M entered Mexico, Brazil and Peru, along with India, Australia and South Africa to sum 74 different countries. Just in 2019, H&M opened 59 new stores!
Choosing the Latam Region was not a coincidence. In 2018 Mexico became the top growth market. This clearly shows that Latin America poses an appealing market for companies looking for successful.
H&M Sales Compared to Country GDP in USD
Source: BGH with information of H&M Annual Report 2019
The group’s income is generated mainly by the sale of clothing, accessories, footwear, cosmetics, home textiles and homeware to consumers. Even sales revenues are reported as net sales i.e. sales revenue less value-added tax, returns and discounts. Online sales made up 14.5% of the group’s sales.
H&M new strategy is expanding online, through physical stores and digital marketplaces. The global roll-out of online continues, with the ambition to offer online in all of their 71 markets and others, including Mexico. In their latest annual report, they were operating in 47 online markets including 4 new ones. And online sales increased 21% in local currency in 2019.
Not only has the H&M been successful in Latin America, however according to Forbes, other companies such as Wal-Mart, Grupo Modelo, pharmaceuticals such as Pfizer and Roche, automakers such as General Motors and Fiat, among many others, have found a gold mine by expanding to Mexico and other regions of the Southern Cone.
Latin America and Caribbean Statistics
Do you want to invest or expand into this region? Here’s a snapshot of the region in terms of GDP, GDP per capita, population and land area:
Country Major Indicators
Source: Latin America and Caribbean Statistical Profile 2019 by NationMaster Online.
In addition GDP is important because it represents the value of all goods and services produced over a specific time period within a country’s borders. Also you can use it to understand whether an economy is growing or experiencing a recession (as you can see with some countries such as Bolivia, Honduras, Haiti and Paraguay) and make investments decisions. In the same way, when GDP is strong it can lead to more spending by consumers on goods and services.
Interesting Facts About the Latam Region
Latin America, like any other region, has some interesting facts that all businesses must keep in mind:
We can help you grow your business and expand to Latin America, contact us for more information.