Latin America export markets offer an excellent opportunity to find new, eager consumers for your goods as you prepare to head into 2019. Limiting your business to one country is… well, limiting. Exporting your goods to foreign countries allows you to scale your company, as approximately 80% of the world’s purchasing power exists outside of the United States.
For the first time in history, “the growing middle-class market [...] now makes up the bulk of 565 million Latin Americans,” making Latin America exports a prime emerging market for consumer goods. As most Latin American countries experience economic growth and more middle-class consumers from Chile to Mexico begin spending disposable income, demand for foreign goods is on the rise.
The Untapped Potential of Latin America Export Markets
There are countless reasons to be excited about the Latin America export, especially for producers of consumer goods.
Here’s why you should consider Latin America export markets for your business.
1. The Coming E-Commerce Boom
E-commerce growth driven by consumer spending in Latin America is projected to outpace the U.S. and the E.U. over the next five years.
This is thanks in large part to the increasingly fast-paced adoption of smartphones in the region, providing the majority of residents with reliable broadband connections.
With more disposable income and reliable access to internet connections, Latin Americans are turning to online global marketplaces like Amazon, eBay, and Alibaba to shop for goods that aren’t produced locally.
2. Smarter Logistics, Lower Costs
Smarter, more connected logistics are reducing costs across the board, even in Latin America. With technologies to track shipments from start to finish and intelligent fulfillment methods like “just-in-time,” logistics in Latin America continues to improve.
The resulting lower costs make foreign exports competitive against local products. With the right partner who knows the ins and outs of each country’s customs process, logistics no longer has to be a hurdle to Latin America export markets.
3. Finding Trade Partners Is Easier than Ever
In 2014, the U.S. created the Look South Initiative, designed to help U.S. companies break into eleven of the region’s most exciting markets, including Chile, Colombia, and Mexico.
According to export.gov, the Look South Initiative “will help businesses across the country explore these markets, learn about emerging opportunities, and tap into federal programs, services, and financing that can help companies get deals done.”
With these resources, U.S.-based companies can find the right partner in their target country. Having a local partner is especially important in Latin America, where local connections are highly valued in business.
4. Economic Diversity is a Key to Growth
Even in the age of global giants like Amazon, the U.S. Small Business Association reports that “small businesses that export report higher sales, employ more people, pay higher wages, and are, on average, more productive than firms that do not export.”
Exporting allows you to tap into a wider consumer base, repackage old products for new markets, and insulate against competition and oversaturation of local markets. Ignoring Latin America export markets closes off your business to a world of potential.
Do Your Research First
Careful research into the countries you may export to is essential for Latin America export success. Certain types of products require special clearance and have strict labeling requirements. Others have high tariffs to protect local producers.
Once you find an opening for your product in a country, the next step is to research the logistics of getting your products to your Latin American customers.
Luckily, SkyPostal has decades of experience in the region. Contact us today to see how our knowledge, experience, and competitive rates can help your company unlock the promise of Latin America export markets.