Latin America: The China of 2020 and the Next Destination for International Retailers

Jul 29, 14 Latin America: The China of 2020 and the Next Destination for International Retailers

Posted by in Latin America

By George L. San Jose, President and Chief Creative Officer of The San Jose Group What is it about China that grabs the attention of international retailers? Is it the rapid economic growth? Or the incomprehensible size of the population? Maybe it’s because 20 years ago you could roll a basketball through Shanghai and not touch a thing; now skyscrapers are sprouting out of ground like it’s going through puberty. No matter how you look at it, China is on the economic pedestal of the planet…for now. In a constantly changing world, there’s another international market for retailers that’s on the rise, and it’s about to get the attention it fully deserves. Direct your attention to Latin America–the market that’s about to give China a run for its money. Literally. The success of international retailers in Latin America shouldn’t come as a surprise. The Global Retail Development Index ranked Brazil, Chile and Uruguay with the top three scores worldwide in 2013. Latin American counties happen to hold seven of the top 22 positions as well. Plain and simple, Latin America is proving an area that couldn’t be a more lucrative for marketers to invest in. It may have been flying under the radar, but with fast expansion and surprisingly low risk, Latin America should already be drawing your attention. So how did Latin America become such an attractive market? You can attribute much of the success to the rising middle class, which has grown to over 51% in 2011 from 41% in 2001 with no signs of stopping. The majority middle class has fueled a rise in per capita income and strength in the working force. As of 2010, the Latin American working class expanded to 280 million. Even better, the improved work force also includes a rise in female participation from 32% in 1990 to 53% in 2008. With Latin American women having increased financial independence and decision-making ability, consumer buying is growing. Retailers know a strong middle class means strong buying power,...

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Millennial Homeownership and Renter’s Insurance

Jul 14, 14 Millennial Homeownership and Renter’s Insurance

Posted by in Insurance

By Killian Knowles, Junior Executive at The San Jose Group Are insurers wasting their efforts on Millennials? Homeownership in the U.S. has officially dropped down to the lowest point since 1995, according to the U.S. Census Bureau, causing new generations to tap into alternative methods of housing, mainly renting. With home prices expected to jump 6% in the coming year, the rental trend is expected to skyrocket as well. Millennials (those born from the early 1980s to early 2000s) have increased the demand for rental properties, ultimately, refusing homeownership due to money factors including the ever climbing unemployment rate, student loan debts, and harsh job market. Each year, the number of Millennials who decide to have a home mortgage declines. A survey conducted by Nationwide states only 11% of consumers ages 20-29 actually have a mortgage versus the other 30% nationwide that includes Generation Xers and Baby Boomers. The homeownership market is becoming even more difficult for the Millennial generation to enter, resulting in the generational choice to enjoy renter’s privileges such as avoiding home repair bills, mortgages or simply not being responsible for mowing the lawn. “We need to look at this consumer group as ‘skeptical, wise shoppers,’ with different value sets and motivating factors” said George L. San Jose, president and chief creative officer at The San Jose Group. Since Millennials are already boarding the rental bandwagon, insurance agencies aim to pivot their marketing strategy by offering and stressing their renter’s insurance. However, as San Jose points out, these agencies are struggling to pitch renter’s insurance policies due to a generation wide misconception that renter’s insurance is unnecessary and unaffordable. To target this consumer group, The San Jose Group deploys their proprietary tool, the 4th Dimension, to gain true insights into how this group perceives insurance and how to align their wants and needs with the insurer’s offerings. A survey done by Apartments.com found 58% of Millennial renters do not have renter’s insurance and don’t intend to invest in it anytime soon,...

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