If one wants to assess opportunities for innovation or re-launching in the Peruvian market for next year, one way is to understand the different ways that people buy. Here a couple of examples of what happens in the country and, possibly in similar Latin American countries.
GfK has identified three types of buyers: the "Technophisticated" ones who buy motivated by technological developments and are willing to spend a little more for access to what they consider to be novelty. They like to be informed and investigate before buying but at the point of sale demand more information. "Pragmatists" are those who buy for the purpose of restocking and are price-sensitive and also more brand and functionality oriented. They can be bargain hunters and expect that from sales channel. The "Aspirational" know they cannot pay a lot, but they are aware of what is fashionable. Their main motivator is the inclusion or membership in a social group of reference through consumption. The design is an important motivator but should involve a low cost. Designing an optimum experience, from home to the store, can be of help.
GfK identified four segments: "Traditional", "Austere", "Practical" and "Modern". In the first case, they like to buy and do it as a hobby. They check catalogs and newspaper or magazine inserts, review offers but are usually looking to buy well-known brands and hesitate before buying something new. The "Austere" prefer stores with low prices and those that are located near their home / work. They do not pay much attention to advertising and are more resistant to change. The "Practical" purchase in the shortest possible time because they give more weight to their housework. Prioritize pricing and often use shopping lists. The "Modern" value stores that have a quick service and extended schedules. In this segment there are more working women. There are more purchases done on impulse, decisions are often made on the premises, so the packaging, distribution and store design become important.
The next step will be to ask oneself, from the supply side, will I continue doing business as usual or change in order to produce opportunities.
For more information, please contact Hernan Chaparro at email@example.com.
Subscribe to GfK Insights