Affordability tops global consumers’ list of reasons for purchasing a new product, but there are regional differences in the order of importance placed on this attribute. In Asia-Pacific, affordability is the third-most important reason for purchasing a new product, behind value and convenience. North Americans place affordability second on their list, behind novelty and tied with brand recognition. In Latin America, affordability is just slightly behind brand recognition as the reason for making a new product purchase.
How has this dynamic changed in Latin America in times of crisis? Recession, inflation, unemployment, and a more expensive US dollar are just a few factors that are pushing consumers in the region to trade down, and to consider more affordable options, regardless of the brand name. Meanwhile, the modern grocery channel is now the preferred one-stop shop for time-scrapped Latinos, meaning retailers and private labels have a real opportunity to gain market share. Private Labels represent only 3% of the Home Care market in Latin America, a rate well below the 17% in Western Europe, for example.
In this presentation we’ll discuss how important affordability is to Latin America consumers, we’ll talk about other markets and specific brands in times of economic crisis, and we’ll give an overview of the consumers’ profile and opportunities in this market.