FROM THE BOTTOM OF THE PYRAMID TO THE EMERGING MIDDLE CLASSES

WRITTEN BY SARAH BOUMPHREY – HEAD OF COUNTRIES & CONSUMERS

PRESENTED BY SCOTT RENCHER – DIRECTOR – LATIN AMERICA

APRIL 2014

INTRODUCTION

FROM THE BOTTOM OF THE PYRAMID…

TO THE EMERGING MIDDLE CLASSES

CONCLUSION

3

Latin America: A Consumer Market Worth US$3.6 trillionINTRODUCTION

Economic stability

Proximity to USA

Resource rich

Young population

4INTRODUCTION

INTRODUCTION

FROM THE BOTTOM OF THE PYRAMID…

TO THE EMERGING MIDDLE CLASSES

CONCLUSION

6FROM THE BOTTOM OF THE PYRAMID…

7FROM THE BOTTOM OF THE PYRAMID…

8FROM THE BOTTOM OF THE PYRAMID…

PromasidorNIGERIA

CowbellPOWDERED MILK

29.3%MARKET SHARE

INTRODUCTION

FROM THE BOTTOM OF THE PYRAMID…

TO THE EMERGING MIDDLE CLASSES

CONCLUSION

11TO THE EMERGING MIDDLE CLASSES

12TO THE EMERGING MIDDLE CLASSES

13TO THE EMERGING MIDDLE CLASSES

14TO THE EMERGING MIDDLE CLASSES

15TO THE EMERGING MIDDLE CLASSES

16TO THE EMERGING MIDDLE CLASSES

17TO THE EMERGING MIDDLE CLASSES

18TO THE EMERGING MIDDLE CLASSES

IKEACHINA

LocalFLAVOUR

GranularSTRATEGY

INTRODUCTION

FROM THE BOTTOM OF THE PYRAMID…

TO THE EMERGING MIDDLE CLASSES

CONCLUSION

21

Latin American household income distribution in 2020CONCLUSION

26%US$45,000+

59%US$10,000-US$45,000

16%< US$10,000

15.8 millionmore households earning US$10,000-45,000

2.8 millionfewer households earning less than US$10,000

22

Appropriate products at the right price