gfkconsult regional outlook 2023: Latin America

It’s the start of a renewals cycle for Tech and Durables products bought between 2020–2022, with 50% of sales expected to be renewals (of which 30% are upgrades or a second product). Felipe Mendes, General Manager Latin America at GfK explains that brands investing in promotions will influence consumers to switch to their brand, and can look forward to a positive year.

Latin American consumers are insecure about their financial future - still T&D producers and retailers have plenty of opportunities to achieve sustainable growth. According to Andres Contreras, Director of Sales for Latin America at GfK, the key ingredient is market and consumer knowledge, as adapting messaging for different segments of your target group will allow consumers to identify with your brands and its value for them. 

To gain growth with traditional consumers a precise pricing strategy is key - as they are ready to wait for promotional seasons when purchasing T&D products - Eunha Choi, Strategic Account Manager, Latin America at GfK explains. On the other hand, Latin American consumers are young, practical, and open to adopting new brands, so the time to invest in brands is now, in order to be able to grow by the time they are ready to purchase.