CHICAGO – Thinking about opening a new convenience store? Perhaps you should consider something south—say South America.

We’re not being serious, of course. But there’s certainly something to be learned from customers in these countries, led by Brazil and Peru, who are inclined to try new products with more gusto than consumers in developed nations such as the United States, according to Nielsen Global New Product Innovation Survey.  

This new product zeal is driven by three factors: a younger demographic composition, rising middle class population and a strong appetite for affordable luxuries, Nielsen found.

More than half of respondents in Asia-Pacific (69%), Africa/Middle East (57%) and Latin America (56%) said they purchased a new product during their last grocery shopping trip, compared with 44% of European and 31% of North American respondents.

Globally, more than six in 10 respondents (63%) said they are inspired when manufacturers roll out new products, while more than half (57%) purchased a new product during their last grocery shopping trip.

Nielsen classified early new-product adopters into three groups: early adopters (the first to purchase new products); mainstream consumers (adopt new products at the same time as the majority of their peers); and late-breakers (among the last to purchase).

Of 11 markets with the highest percentage of early adopters, nine are developing, with the top five being Brazil (39%), Peru (30%), Israel (30%), Colombia and India (28% each).

Early adopters can serve as product testers, providing feedback and suggestions for improvement, according to Nielsen. “Developing countries can be attractive markets for new product expansion efforts,” said Rob Wengel, senior vice president and managing director for Nielsen Innovation in the United States.

“Developing-market consumers’ needs, standards and expectations can vary dramatically from those in more mature markets,” said Wengel, “and finding the right mix takes a market-by-market approach. To win, you need a keen understanding of both consumer behavior and the retail landscape and be willing to creatively innovate to deliver products that reflect unique consumer dynamics.”

Youth—And More—Will Be Served

While the youngest respondents are more likely to purchase a new product during their last grocery shopping trip than their older counterparts, those categorized as “early adopters” only show a slight age bias, stated Nielsen.

“Early adopters aren’t just younger consumers,” said Taddy Hall, senior vice president, Nielsen Innovation in the United States. “Consumers of all ages are looking for products that make their lives better, and all can be passionate advocates if they find a product that fills a need. While millennials are garnering a fair amount of recent time and attention, consider casting the net wider, and do not lose sight of the needs across all age segments.”

The key is determining which needs are not being met for each age group. The types of new products consumers wish were available and their reasons for purchasing are largely consistent across generations, but there are some notable differences.

Consumers of all ages wish more affordable products were available, but it is particularly appealing to the oldest respondents, who are nearing or have reached retirement age. Roughly half of baby boomers (ages 50 to 64) and silent generation (ages 65+) respondents say they wish more products were available at affordable prices, compared with 43% of Generation Z (ages 15 to 20), 40% of millennials (ages 21 to 34) and 42% of Generation X (ages 35 to 49) respondents.

Meanwhile, brand-name recognition holds more sway in purchase decisions for older respondents than younger ones. Twenty-seven percent of silent generation and 24% of boomer respondents said they purchased a product because it’s from a trusted brand, while only 17% of Generation Z, 21% of millennials and 20% of Generation X respondents cite this as a reason for purchasing.

While younger consumers are also concerned about affordability, they still want the latest and greatest, and they’re willing to pay a premium if they think the benefits outweigh the cost.

Twenty-three percent of Generation Z and 21% of millennial respondents wish more premium items were available on the market, exceeding the global average of 18%. In addition, 26% of Generation Z and 21% of millennial respondents say they have purchased a new product because they thought it was worth it, compared with 16% of Generation X, 12% of baby boomers and 9% of silent generation respondents.

“To balance their aspirations with the size of their wallets, millennials are shopping smarter,” said Hall. “In response to financial hardship, they’ve adopted a trade up/trade down approach, spending more on the things they value most and seeking low-cost options when the purchase is less important.”