Expanding borders: Internationalization of Latin American companies

In the dynamic and competitive landscape of global trade, Latin American companies are gaining ground as relevant players. Driven by emerging economies, an entrepreneurial mindset, and the pursuit of new horizons, many organizations in the region have embarked on an internationalization journey that goes beyond simple commercial expansion: it's about strategic global positioning, building global brands, and diversifying risks.

According to ECLAC, more than 30% of the growth of large Latin American companies over the past decade has come from operations outside their local markets—underscoring how critical this path is for achieving sustainability and international competitiveness.

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The rise of Latin American companies in the global market

Traditionally focused on their domestic economies, many companies in the region have begun crossing borders thanks to a combination of innovation, resilience, and well-crafted strategies. This transformation has been supported by trade agreements such as USMCA, Mercosur, and the Pacific Alliance, which have facilitated access to new markets and fostered an export-oriented culture.

A prominent case is Natura &Co, the Brazilian cosmetics group that acquired Avon and The Body Shop as part of a global vision grounded in sustainability and inclusion. This expansion was not merely driven by growth ambitions, but by a strategy that blends local values with global standards.

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Key strategies for successful internationalization

Below are some of the most effective strategies adopted by successful Latin American companies in their internationalization process:

1. Market research and local understanding

The first step in any international expansion is gaining a deep understanding of the target market. This includes not only economic and legal studies but also cultural insights into consumer behavior. Falabella, for example, has successfully adapted its portfolio and advertising campaigns in each country where it operates, respecting cultural particularities and local consumption styles.

• Key fact: 72% of companies that adapt their market entry strategy to the destination country show better chances of sustained long-term success.

2. Strategic alliances and partnerships

Partnering with local players can accelerate market entry, reduce cultural and administrative barriers, and facilitate access to distribution networks. FEMSA, a Mexican conglomerate with a presence in several countries, has leveraged strategic alliances—such as its stake in Coca-Cola FEMSA—to expand throughout Latin America and Asia.

3. Product adaptation and diversification

Products must be adapted to local tastes, customs, and preferences. Grupo Bimbo, one of the world’s largest baking companies, has reformulated products, modified packaging, and developed local brands to better connect with markets such as China, India, and Spain.

4. Innovation and technology as accelerators

Technology not only reduces costs and improves processes but also enables personalization and enhances the customer experience. Mercado Libre, the Argentine e-commerce giant, has scaled rapidly across Latin America by leveraging its tech platform, improving logistics and digital security to comply with local regulations.

• Relevant insight: Digitization can reduce operational costs in internationalization processes by up to 40%.

5. Sustainability and social responsibility

Consumers increasingly value companies with strong environmental and social commitments. This is a strategic opportunity for Latin American companies that have successfully integrated these values into their expansion models. Natura &Co again stands out for its leadership in this area, embedding sustainable practices that strengthen its global brand.

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Common challenges in the internationalization process

While the opportunities are substantial, the road to internationalization comes with challenges.

Among the most common are:

• Political and economic instability in target markets
• Cultural and regulatory differences affecting operations and branding
• Management of international talent and cross-cultural leadership
• Complex logistics and supply chains, especially in regions with limited infrastructure

Successful companies mitigate these risks through in-depth analysis, scenario planning, and flexible strategy design. Resilience and adaptability are key assets in this context.

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Flexibility as a competitive advantage

In a constantly changing world, organizational agility becomes a defining advantage. Latin American companies that can adjust their business models, processes, and strategies to new realities—such as regulatory shifts or consumer trends—are better equipped to sustain global growth.

Conclusion

Internationalization is not just an ambitious goal for Latin American companies—it’s a strategic necessity in a globalized environment. Organizations that implement strategies centered on research, innovation, partnerships, and sustainability are not only expanding their reach but also building a strong global reputation.

For business leaders in the region, understanding and applying these strategies with focus, commitment, and long-term vision is essential. Only then can the challenges of the international arena be transformed into real and lasting growth opportunities.