In 2025, retail finds itself at a pivotal moment of transformation. As consumer spending continues to shift across traditionally mature audiences, emerging markets offer brands a strong leaping point for ambitious retail growth. Among them? Latin America.

Once a niche pursuit, Latin America asserts its place in the cultural cannon commanding influence in the arts, fashion, music, even politics. The region also plays a dominant role in today’s global retail economy thanks to its thriving e-commerce landscape, an increasingly interconnected society, and an eager consumer demand for genuine brand connections.

Tiffany & Co Flagship Store. Mexico City, Mexico. 2025. The location houses the brand’s first Blue Box Café location in Latin America.

What makes Latin America one of the most dynamic retail markets in the world? How can businesses court influence with its widely diverse audience?

I asked industry experts to help me unpack Latin America’s retail boom and understand how both scaling global heavyweights and growing local players can support its rising power, enable development, and shape innovation from within.

Start by defining your Latin American expansion strategy

Integrating into new markets and spaces is much like navigating a gear shift without reverse—it involves carefully planning your route to avoid situations that would require going back. 

It’s true that Latin America (LATAM) offers brands cultural depth, a young consumer base, and a market that’s ripe for disruption. But political tensions, a fragmented economy, and regional financial instability beg the very important question: is Latin American recognition essential for international success?

“Absolutely,” assures Marcos Andrade, renowned international retail veteran and visual merchandising expert. “The region offers a young and digitally savvy population eager to embrace global trends, making it an ideal market for expansion,” he says.

Bottega Veneta's ‘The Square’ cultural series in Casa de Vidro. São Paulo, Brazil. 2023. 

For the Brazilian executive, who also serves as founding board member of ALVM, Asociación Latinoamericana de Visual Merchandising (Association of Latin American Visual Merchandisers) and ABIESV, Associação Brasileira da Indústria de Equipamentos e Serviços para o Varejo (Brazilian Retail Equipment and Service Industry Association), scaling a business in Latin America demands a relentless balancing act between experimentation and immersion.

“Sometimes, brands underestimate the complexity and diversity within LATAM, leading to a one-size-fits-all approach that doesn't resonate locally,” he adds. 

MARCOS ANDRADE, RENOWNED INTERNATIONAL RETAIL VETERAN

AND VISUAL MERCHANDISING EXPERT

The promise of exponential growth, diversification, and competitive advantage makes tapping into new markets very alluring for global businesses. Let’s be real—visibility is currency these days, but the cost of relying solely on brand strength without understanding local challenges in each market has led some brands to fail, says Andrade.

For global companies aiming for a successful market entry and expansion in Latin America, make strategy stick by: 

_ Balancing market potential with market demand.

Understand your business goals and use data-based research on audience preferences, trends, differences and connections between specific customer groups within Latin America. This will help determine how your offer truly meets their individual needs and environment. On that note Andrade adds, “South America's distinctiveness lies in its cultural richness and varied economic landscapes, demanding tailored marketing approaches for each country.” Be selective by intention, not exclusivity.

_ Choosing the right channels.

How brands enter the market defines their operational framework. “Multi-brand stores have traditionally been a launchpad for global brands in LATAM, but the strategy is evolving. Store-in-store models are becoming increasingly popular, allowing brands to enter new markets more flexibly and learn consumer behavior firsthand.” Don’t aim to outperform but to participate.

_ Considering potential risks and challenges. 

Collaborative market-entry models with local knowledge and corporate experience help companies identify how much risk is acceptable for their business, pinpoint infrastructure gaps, ensure regulation compliance, and anticipate obstacles that could impact their expansion efforts. “Those that partnered with local entities often succeeded, even if [they’re] initially less recognizable,” recalls Andrade. Establish key performance indicators to monitor progress and adjust as you go.

_ Adapting to local conditions. 

Not all market segments have the potential to generate sales or leverage a brand’s cultural influence. Market integration requires a certain level of awareness and consumer engagement to be successful. “Misjudging pricing [for example] can lead to consumer disinterest.” Conduct a comprehensive brand audit to identify competitors in your niche, and articulate your offer to meet local tastes, lifestyle needs, and purchasing power. 

_ Aligning with creatives to earn cultural capital. 

Just as in any other market, first impressions set the tone for a brand’s future in LATAM. Make those count by building innovative partnerships and collaborating with local brands or influencers, recommends Andrade. “Brands that found reliable local partners often navigated market challenges more effectively.” Brand positioning is strategy in action, and in today's marketing, cultural relevance is its engine.

Meet the Latin American consumer, don’t just conduct market research

Not so long ago, the idea of expanding a business in untapped markets was built around brand strategy over substance—more about imposition, less about proximity. Nowadays, that distinction feels increasingly outdated in Latin America where evolving consumer expectations demand more than a compelling product or a clever idea.

“Latin American consumers want to see themselves in the brands they engage with. If the people crafting the strategy aren't close to the culture, the execution will feel off. Relevance isn't something you fix later, it has to be built in from the beginning.”

SONIA ACOSTA, FOUNDER AND STRATEGIC LEAD

OF RETAIL CONSULTING FIRM KLERA STUDIO

Lionel Messi and wife Antonela Roccuzzo front the adidas Essentials range. 2024.

In Latin America, shopping has always been one of the most powerful cultural signifiers. More than taste, it signals identity, aesthetics, alignment. These familiar subtleties play a big part in identifying the brands, services, and products garnering the most attention among locals. However, predicting which of those will Latin Americans actually choose to engage with, is far more layered than that. 

adidas x FARM Rio 10-Year Anniversary capsule campaign. 2024.

Today, the difference between being seen and being wanted challenges global brands to connect with consumers on an emotional level. In successful retail business, those meaningful relationships involve having curiosity about context. 

Raul Tovar recalls a time dominated by predictable language barriers and inevitable cultural gaps.

“Even the biggest brands could benefit in connecting more with their markets if they were able to adapt and localize their ideas, and the way that they communicate with consumers in each market,” he says. “Those key aspects [help retailers] deliver a clear message, create brand awareness, and engage with consumers.”

RAUL TOVAR, CO-FOUNDER AND CREATIVE DIRECTOR

OF THE RETAIL AND E-COMMERCE VISUAL DATABASE, WINDOWS WEAR.

Latin America is made up of 33 countries—with a diaspora accounting for more than 32 million people living abroad—and while they all share cultural and linguistic heritage, their different environments, stories, and realities define how people respond to tone, narrative, visuals, even in-store experiences, says Acosta.

“LATAM is not one market, and it should never be treated as such,” she clarifies.

“A message that resonates in Colombia may not land the same way in Chile. A merchandising concept that feels premium in Mexico could feel out of touch in Argentina.” 

adidas Originals x Willy Chavarria PFW Pop-Up activation campaign. 2025.

Culture may not spark the initial desire to purchase, but it does influence how that desire is expressed. Because the region is nowhere near fitting a one-size-fits-all formula, one way retailers can approach their communication style is by contextualizing their localization efforts. 

Let’s look at Adidas, for example. The sneaker giant saw a 28% YoY growth in Latin America in 2024 fueled by a strategic mix of wholesale and direct-to-consumer (DTC) gains across multiple countries. Successful campaigns and partnerships with top local talent have also helped boost the brand’s cultural credibility, from a decade-long collaboration with Brazilian fashion brand, FARM Rio, the LATAM-edition of its SS23 “Home of Classics” campaign, to creative partnerships with regional tastemakers such as Duki (Argentina), Kenia OS (Mexico), and most recently, Chicano designer Willy Chavarria for its Originals line.

adidas Originals x Willy Chavarria SVD Pop-Up. Madrid, Spain. 2025.

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• “These were not generic placements,” says Acosta, adding to the importance of building sustained brand relevance through meaning over cultural extraction. “[Adidas’ efforts] were anchored in music, youth culture, and local pride [signalling] an understanding that representation isn’t just a box to check [but] a strategy to grow market share.”

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To make your brand’s cultural credibility your business superpower:

_ Aim for cultural clarity with emotional impact. 

Culture is central to Latin American identity. Understanding what builds emotional impact in each country can help avoid financial setbacks and public distrust. “One of the most expensive mistakes I see is when brands build a single Latin America campaign and push it across 10 countries. You lose credibility fast, and ultimately, you leave space and revenue on the table for brands that did the work,” says Acosta. Make every customer feel seen.

_ Master the power of Latin American authenticity. 

The long-held notion that grounds Latin America as a single collective entity highlights not only the power of cultural clarity, but a heightened level of authenticity. “Many global retailers still approach Latin America with a translation-first mindset, assuming that linguistic accuracy equals cultural connection. It doesn’t,” she adds. “If a campaign reads correctly but feels emotionally off, it won’t land no matter how beautiful the visuals or how globally successful it was elsewhere. Consumers don’t buy translation. They buy meaning.” 

_ Understand that community is formed from within.

To build relevance, brands should align closely with Latin American taste, values, needs, and interests. “Give regional teams authority to lead, not just localize. Don’t ask them to “make it fit.” Ask them to shape it from the start,” recommends Acosta. "You need people who can influence messaging, visuals, even how stores look and feel." Less endorsement, more involvement

_ Embrace the environment while appreciating the contrast.

For brands seeking expansion into Latin America, Tovar applauds those who understand the value in decoding deep local insights highlighting that “staying curious about the region and their traditions, experiencing as much as possible of the local culture, and the way the system works” can bridge the gap between retail, business, and consumer experience.

Optimize the shopping experience with technology and soul

On the surface, the digitization of Latin American shopping habits sets up both regional and global brands inside a very attractive hub for business growth and expansion. But if retail's favorite buzzword is any indication, then there’s still room for growth in optimizing the Latin American shopping experience.

Like in any other emerging markets, time pressures retailers to not only meet customers where they are, but also lead the way into where they’re headed. 

• Mexican singer Sofía Reyes fronts the Argentina-founded Mercado Libre’s campaign as the country’s fashion creative director. Operating across 18 countries, Mercado Libre is the largest e-commerce and fintech platform in Latin America.

Latin America’s onlinesphere is vast. Lockdown-learnt shopping behaviors catapulted the region into one of the fastest-growing e-commerce markets in the world. The rise of online marketplaces and social commerce’s popularity has contributed to a distinct mobile-first approach for brand and product discovery. The surge of inclusive payment solutions and smart distribution centers have eased both local and cross-border purchases. Plus, continuous efforts for implementing a wider internet coverage throughout the region promises to bridge the digital divide and help meet consumers’ evolving demands in the future.

With an 80% internet penetration and a market size projected to reach 419 million digital shoppers by 2029, using technology that notices consumers’ real-life environment will be key in shaping how they interact with brands and products in the long run.

In fact, regional retailers are already deploying advanced technology that’s helping expand the region’s digital infrastructure. According to research by insights firm Nielsen IQ, 6 out of 10 retailers in Latin America are actively investing in artificial intelligence (AI) and machine learning (MI) technology to streamline their operations and provide a better consumer experience. 

• Colombian fashion retailer, Studio F, uses hyper-personalization technology in this digital ecosystem.

In Brazil, retail giant Magazine Luiza (also known as Magalu) uses AI to serve personalized product recommendations and targeted promotions through its virtual influencer, Lu. In Colombia, Grupo Éxito uses AI-driven predictive analytics to optimize inventory management, while Mexico’s FieldPro and Yucca Retail’s partnership seeks implementing AI in stores across Latin America with image recognition technology.

Today, technology’s ability to personalize and enhance these interactions makes it easier for global brands to build, execute, and grow, as well as for smaller domestic players to muscle in. 

“AI can decode regional nuances, personalizing at scale by learning local preferences, from color palettes to brand preferences, and more nuanced aesthetics” 

ANABEL MALDONADO,

FOUNDER AND CHIEF EXECUTIVE OF PSYKHE AI

Recognizing the challenge of processing large amounts of consumer data more effectively, Maldonado counts on psychology-powered Gen-AI to do personalization’s heavy lifting and match the right user with the right products, at the right place, and at the right time.

Unpacked for the modern Latin American e-commerce market, this opportunity facilitates a more human online experience for consumers whose shopping decisions are notoriously anchored by individual aesthetic biases and distinct cultural tastes. What’s more, according to Credence Research, the AI market is projected to grow from USD 497.74 million in 2024 to USD 4,023.77 million by 2032.

Meet Lu, the biggest virtual influencer in the world created by Brazilian retailer Magazine Luiza. 

While the demand for personalization keeps pushing retailers towards tech innovation, we cannot ignore the undercurrents of the region’s shopping preferences.

“E-commerce has grown significantly [but] in-store experiences still play an important role making store design and visual merchandising powerful tools”

NATÁLIA LIMA, SDVM DESIGN MANAGER

AT ESTÉE LAUDER COMPANIES, LATAM

Precisely, omnichannel operations thrive in the region, especially in sectors like fintech, consumer packaged goods (CPG), health, fashion and beauty. As consumer expectations continue to evolve, there’s pressure to create strategic interactions that feel personally tailored and relevant to consumers’ physical world, not just their digital footprint.

IWD is designed to manage your merchandising cycle and strengthen your retail operations.

Tools like IWD provide physical retailers with digital solutions to plan, execute, and analyze performance. From 2D and 3D planograms to in-store directives and KPI tracking, these features let local and global retailers efficiently and effectively develop product placement and merchandise strategies inside different points-of-sale across different markets. 

“IWD allows us to build detailed planograms that are visually clear, and brand aligned,” says Lima. “This ensures that everyone sees exactly what the VM intent is, minimizing room for interpretation. From campaign updates to store openings, we can replicate and adapt VM directives efficiently across different markets,”

To future-proof technology use in Latin America, regional and global retailers should:

_ Enable local access to enhance digital infrastructures.

For global brands looking to enter the region with the help of AI, Maldonado recommends building regional pipelines to maximize efforts. “Hire domain experts with solid local insight to fine-tune models appropriately, ensuring the AI reflects the region's unique cultural rhythms and emotional triggers,” she says. Inputs matter as much as the outputs.

_ Streamline digital operations to boost your brand’s performance.

Take advantage of collaborative digital tools, comprehensive visual databases, and as-a-service models to leverage scalability, enable on-demand access, and make it easier for each market to interact and connect with your brand. The right tools allow teams to build intentional narratives around relevant channels, each with a strong point of view and a considered world for their audiences. 

_ Experiment with innovation, engage with personality.

Future-proofing business with the latest technology opens a new strategic language for retail longevity. The problem comes when strategy overpowers substance. “I think Latin Americans are underestimated in terms of buying power and how bullish we are, as a culture, on shopping as part of the way of life, as opposed to just a functional means,” says Maldonado. LATAM offers a dynamic environment where each market challenges brands to push past creative boundaries and fixed retail formulas. In describing Latin Americans’ personality, the tech and fashion psychology pioneer lists “exuberant, emotive, flamboyant, and let's just own it… dramatic.” When in doubt, choose digital tools that leverage emotional access points and acknowledge consumers with their own complexities, both on and offline.

Design shopping experiences with Latin Americans for Latin Americans

In physical retail, international expansion can take many forms, including shop-in-shops, pop-up activations, and stand-alone brick-and-mortars. Done right, a Latin American expansion offers brands a unique opportunity to connect with audiences in their favorite environment. According to a 2024 report by Bloomberg Línea, 83% of Latin American consumers favor brick-and-mortar shopping experiences, with Brazil leading this trend. 

In recent years, global brands have responded in different ways to embrace the region’s traditional mindset with key joint ventures, stand-alone boutiques, shop-in-shops and flagship store openings. 

LOEWE Perfume Pop-up at El Palacio de Hierro Polanco. Mexico City, México. 2025.

European giants like LVMH, Kering, Puig, OTB, and Chanel keep leveraging their presence catering to those with increasing spending power in major cities like São Paulo and Mexico City. Meanwhile, fast fashion and high street brands, like SMCP, Inditex, H&M, Alo Yoga, and AllSaints, as well as ready-to-assemble (RTA) companies like IKEA, continue to attract value-conscious consumers all across Central and South America.

LOEWE Perfume Pop-up at El Palacio de Hierro Polanco. Mexico City, México. 2025.

Among consumers, the most attractive spaces reflect elements of co-creation, playfulness, creativity, and a distinct reflection of their environments. Lima highlights the importance of “connection, immersion, and service” in designing memorable in-store experiences and points out that personalization continues to draw the highest loyalty conversions, particularly in the beauty sector. “LATAM consumers have a cultural affinity for self-care and fragrance,” she adds. “Consumers want to feel the product.”

Estée Lauder debuts its first Skin Longevity Institute in the Americas within Casa de Agua Spa in Costa Rica offering experience-led programming and immersive treatments. Hacienda AltaGracia, Auberge Resorts Collection, 2025. 

In a world where speed and trends dominate, what does global retail expansion mean for the future of visual merchandising and store design in Latin America?

“At WindowsWear, we have seen the industry grow so much in the last 5 years,” says Tovar. “Global brands are manufacturing their creative ideas and VM designs in factories in Mexico, Colombia, and many other places in Latin America [where] businesses provide competitive value and a quality of work that is unmatched. I am very excited to see more big ideas being created and fabricated in LATAM, I truly believe this is the beginning of an exciting chapter for the region.”

Tory Burch Centro Comercial Andino store. Bogotá, Colombia. 

Immersive, experience-driven store layouts, technology and sustainability are driving transformation in visual merchandising, says Andrade. “Expect to see more interactive digital displays and eco-friendly designs that resonate with socially conscious consumers.” 

But to sustain positive change, both regional and global brands must rethink operational practices, encourage collaborative exchange, and nurture leadership roles to embed inclusion at every level of decision-making. 

“In many parts of Latin America, deeply rooted workplace hierarchies shape how feedback is shared or isn’t,” says Acosta. “Local teams often hesitate to give global leadership critical input, not because they lack perspective, but because culturally, questioning a directive from above can feel inappropriate or even risky. This creates a dangerous gap. Global teams think they’re being “collaborative” while local teams are quietly adapting or disengaging behind the scenes.”

Tovar encourages companies to build spaces that let talent take center stage, challenge stereotypes, and reshape narratives to reflect the full spectrum of their newfound home. “It’s not a secret that Latinos are among the most hard working people in the world,” he says.

“Benefit by nurturing the talent with education, knowledge about the brand and product craftsmanship. We all win when we share with others what we know, and stay curious and humble about what we don’t.”

Now that your LATAM entry strategy is set—you’ve met your consumers, identified optimization tools, and built the infrastructure your brand needs to stand out—it’s time to implement and execute your visual merchandising plan for real-life interaction:

_ Create something that’s worth leaving the house for.

Consumers are constantly evolving, questioning, and reinventing. Audiences with shifting expectations are drawn to spaces that look familiar yet still feel modern. “LATAM shoppers respond to emotionally expressive, colorful, and rich displays, so vibrant backdrops, playful trials, and social-worthy visuals are often common in [our design process],” says Lima.

_ Create something that’s worth staying local for.

Despite the region's booming luxury market, many consumers still turn to shopping tourism for their high-end wants. For brands, this poses the opportunity to develop new forms of transactional interactions.“Bring the allure of international luxury closer to home with personalized experiences, exclusive drops, collaborations with LATAM personalities, and curated local collections,” suggests Maldonado.

_ Build trust through shared authorship.

In store, personalization meets consumers at the intersection of consumption and experience. Think beyond performance marketing—make your aesthetic recognizable and desirable, but use modular storytelling to activate co-creation and encourage shoppers to join in. Don’t forget to tailor your concept for each market. “Keep the brand voice steady, but adjust how it shows up,” says Acosta. “Keep the concept, but change the layout by store.”

_ Find collective solutions to complex challenges.

Brands can play a significant role in developing local talent, says Andrade. “Partner with local institutions for workshops and courses in design and merchandising. Provide mentorship programs with experienced professionals to guide budding talent.” Connect with regional organizations with affiliate networks of specialized professionals dedicated to design, art, architecture, and marketing. 

_ Invest in a more diverse and dynamic leadership.

Representation isn’t just about showing diversity. Instead of serving a narrow idea of influence, Acosta recommends retailers create new patterns of meaning, work, and connection involving local talent early in the process, from merchandising and storytelling to retail concept development. “Build systems where local teams are empowered and expected to lead, not just execute.”