Mass Consumption, Expenditure and Private Brands

At the end of 2019, Central American consumers reduced their spending on mass consumption products, and at the same time they started to opt for low-price brands, which are generally typical of the retail sector chains.

Friday, February 21, 2020

It is estimated that during the fourth quarter of last year consumers in the region spent 3% less on mass consumer products. Despite this decline, the frequency of purchases remained largely unchanged.

You may be interested in "What are the characteristics of the consumer in Central America?"

Laprensagrafica.com reviews that a report by Kantar highlights that the uncertainty of Central American consumers increased in 2019 partly because of the presidential elections in Guatemala, El Salvador and Panama. In addition, the economic crisis spread to Nicaragua, fiscal reforms were implemented in Costa Rica and strikes were recorded in Honduras.

"... The report considers that the Central American buyer today is faced with a wide range of brands and has been influenced to acquire those that meet their needs and mainly that take care of your pocket, so they have developed the low cost. Among these are considered the private brands (those brands also called "white" that are typical of a retailer or distributor chain) and those defined in Kantar as economic (these are the ones that have a price 20% below the average)."

See "Where are the consumers who spend the most?"

The article details that "... The development of the latter has caused a change in the market value, especially in the Home Care sector, where private brands present their main growth. On the other hand, economy brands are growing more in the Food sector'."

Increasingly, the citizen makes the decision to buy at the point of sale, but the challenge is for brands to build consumer empathy so that they prefer them on the shelf, the report concludes.

CentralAmericaData has the most complete georeferenced information system, which allows the identification of behavior patterns and consumer preferences in any Central American market.
Learn more about Geomarketing solutions for companies in the region.

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In the retail business, large distributors boost the sales of their own brand products through strategies aimed at consumers who prioritize the price factor over other elements when buying.

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