This document discusses the shift from lower-income consumers to an emerging middle class in Latin America. It begins with an introduction about Latin America's growing consumer market worth $3.6 trillion due to economic stability, proximity to the US, natural resources, and a young population. The document then covers targeting the bottom of the pyramid with affordable products in countries like Nigeria. It moves on to discuss catering to the emerging middle class in Latin America with tailored offerings from companies like Ikea in China. In conclusion, it projects that by 2020 there will be 15.8 million more households earning $10,000-$45,000 and 2.8 million fewer households with less than $10,000 in Latin America.

1. 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

2. INTRODUCTION
FROM THE BOTTOM OF THE PYRAMID…
TO THE EMERGING MIDDLE CLASSES
CONCLUSION

3. 3
Latin America: A Consumer Market Worth US$3.6 trillion
INTRODUCTION
Economic stability
Proximity to USA
Resource rich
Young population

4. 4INTRODUCTION

5. INTRODUCTION
FROM THE BOTTOM OF THE PYRAMID…
TO THE EMERGING MIDDLE CLASSES
CONCLUSION

6. 6FROM THE BOTTOM OF THE PYRAMID…

7. 7FROM THE BOTTOM OF THE PYRAMID…

8. 8FROM THE BOTTOM OF THE PYRAMID…

9. Promasidor
NIGERIA
Cowbell
POWDERED MILK
29.3%
MARKET SHARE

10. INTRODUCTION
FROM THE BOTTOM OF THE PYRAMID…
TO THE EMERGING MIDDLE CLASSES
CONCLUSION

11. 11TO THE EMERGING MIDDLE CLASSES

12. 12TO THE EMERGING MIDDLE CLASSES

13. 13TO THE EMERGING MIDDLE CLASSES

14. 14TO THE EMERGING MIDDLE CLASSES

15. 15TO THE EMERGING MIDDLE CLASSES

16. 16TO THE EMERGING MIDDLE CLASSES

17. 17TO THE EMERGING MIDDLE CLASSES

18. 18TO THE EMERGING MIDDLE CLASSES

19. IKEA
CHINA
Local
FLAVOUR
Granular
STRATEGY

20. INTRODUCTION
FROM THE BOTTOM OF THE PYRAMID…
TO THE EMERGING MIDDLE CLASSES
CONCLUSION

21. 21
Latin American household income distribution in 2020
CONCLUSION
26%
US$45,000+
59%
US$10,000-US$45,000
16%
< US$10,000
15.8 million
more households earning
US$10,000-45,000
2.8 million
fewer households earning less
than US$10,000

22. 22
Appropriate products at the right price