Post-pandemic: The bold new world of digital in LatAm

Executive summary

• According to Internet World Stats, internet penetration grew by an incredible 2,658% in 2021. AMI predicts that e-commerce will continue to grow by 34% annually through 2024. • Even though countries are returning to normal, online/digital purchases are still going strong - with 50% of online adults saying that they will be shopping more online over the next three months. • COVID also boosted financial inclusion, and the newly banked population is changing the way they make payments through apps like RappiPay and Nequi. • With more Covid-related restrictions getting lifted every day, onsumers are eager to get back out and enjoy entertainment activities and they are traveling and taking Uber again.

Methodology

A total of 1,432 surveys were completed in Brazil, Colombia and Mexico in 2021, and 342 in 2022. Data has been balanced to reflect population, age and gender distribution of internet users. Data was collected in March/April 2021, September/October 2021, and April/May 2022. Reports in this series include: • The New COVID Consumer in LatAm (June 2020) • The LatAm COVID Consumer: 1 Year Later (May 2021) • Coming of age in a Pandemic: Generations in Latin America (September 2021) including online shopper personas • Road to Recovery: The LatAm COVID Consumer Q4 2021 • Post-pandemic: The bold new world of digital in LatAm

Detailed Survey Findings

The LatAm COVID Consumer: Fall 2021 Update

Our survey revealed 5 e-commerce consumer segments

Online purchase behaviors appear permanent
Even though almost all countries are returning to pre-pandemic normality, online purchases are stillgoing strong in Latin America as a result of new behaviors and attitudes created during the lockdowns. The number of people visiting physical stores has increased, but this has not had an impact on onlineshopping.

Bio #1

The biggest change was having my children home in the apartment for school we had to rethink a lot of things; the whole virtual issue, huh? Working on the computer, watching the baby, proctoring my son, getting lunch because my husband had a half hour off, inventing activities to entertain ourselves. A lot of screen time. But my husband graduated from an online university in the US, and my son also goes to an online school in the US, so that’s a big positive.

“I love being able to search for a product and see different places, different prices and have the best from the comfort of my home.”

Bio #2

The pandemic brought my family closer together. Dad started asking me for help online buying fishing tackle, a chainsaw, and flashlights and Mom needed sewing supplies. Living in a small town we can’t buy groceries online, but we order take out from restaurants and watch Netflix to stay entertained. I’d like to get back to playing soccer with my friends and going to church.

“It’s secure and the best part of all is being able to shop from anywhere with just my notebook and internet access!”

Bio #3

My life took a complete U-turn. The biggest change was having my husband home all the time, he was a bartender and due to the pandemic, he lost his job, and my son couldn’t have his graduation. Little by little, I increased the usage of websites and apps to make purchases and avoid going out. During the pandemic, it was more convenient to buy online than before, and I discovered that I could save time and money. I even started using different apps to pay my online purchases.

“I enjoy comparing prices among different places and Apps. I’ll continue purchasing online whenever the pandemic ends.”

Share of regular purchases made online:

Almost two of three online adults say they will continue making 51% or more of their regular purchases online since last year.

Overall shopping behavior:

Online purchases will continue to grow, while shoppers also plan to visit stores and pay with credit cards.

Entertainment behavior:

With more Covid-related restrictions getting lifted every day, consumers are eager to get back out and enjoy entertainment activities that have been limited or banned altogether since the pandemic started, like going to the movies, or attending indoor concerts and events.

Travel & Transportation behavior:

The amount of people taking public transportation has had a significant increase now that more individuals are getting back to their regular office work or normal activities. People are reporting more of “the same” for Uber riding, traveling for pleasure and hotel/resort stays, indicating more normalization in the marketplace.

Questions for tomorrow

- Latin Americans reduced the number of channels they shopped in during COVID by as much as 30% - ecommerce, convenience stores, and wholesalers benefited the most. - SMBEs and retailers expanded online for the first time during the pandemic. Yet even as shoppers return to stores, they are likely to engage in hybrid activities during the purchase process compared to taking a fully in-store or fully digital approach. Where will this trend go in the region? - Will the growing love of all things digital eventually eclipse the need for human interaction?