Recently, we gave electrical goods shoppers in five Latin American countries a list of 18 different factors and asked them to grade each one for how important in was, in terms of influencing the shopping decision.
Previous experience with a brand or item and previous experience of the retailer came out unanimously as the top two – beating recommendations, price comparison sites, in-store displays and advertising. And this includes at the browsing and information gathering stages.
This is not surprising, given that these countries have, until recently, been faced with high percentages of unscrupulous suppliers, with no national laws to safeguard them against shoddy or non-existent goods. Consumers in these countries have learnt the hard way to stick with what they know to be safe.
Breaking into the LatAm market
This presents a major problem for new brands and retailers who might be trying to expand into the LatAm market. How can you persuade shoppers that you – the new kid on the block – can be trusted to deliver reliability and quality, in preference to their tried and trusted brands and retailers?
The answer is to focus your marketing messages around instilling a rock-solid sense of trust (as well as your ‘usual’ differentiators – and to place these messages in the areas that LatAm shoppers take notice of. If we look again at the most important factors for LatAm consumers when shopping for electrical goods, numbers three, four and five include channels that new entrants to the market can – and should – make maximum use of.
In Argentina, Chile and Columbia, look at partnering with an established retailer that can ‘host’ your offer to its established client base. In Brazil, focus on consumer opinion websites and – for example – giving out trials to influential consumers who regularly leave reviews. In Colombia, Peru and Argentina focus on the information you present at the shelf. And in Brazil, Chile and Peru, make sure you are listed on the most popular price comparison websites.
Contact Viktor Salakta at email@example.com for more on GfK Shopping Monitor 2015 - including reports on Asia Pacific and other world regions.
Also available: Retail Trends Monitor – summary of key findings
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