Sophos, a bookstore located in Zona 10 of Guatemala City, is a point that 15 minutes by car monopolizes a potential market of 239 thousand consumers, of which 40% are interested in books.
Using the Geomarketing solutions we have developed for our clients, CentralAmericaData's Trade Intelligence team analyzed the environment of some of the main bookstore locations operating in Central American countries. Below is an extract of the findings of the study.
Merging E-commerce models and face-to-face sales, through the implementation of apps that allow shopping in a physical store without going through the checkout line or selecting a fitting room from a cell phone, are the challenges for companies in the new reality.
In order to adjust to the new demands and challenges that arose from the covid-19 outbreak, at a global level companies are focused on understanding the trends that will predominate among consumers in the short and medium term.
Evaluating the commercial environment of each sales point of, for example, a bakery chain, is key to sizing the turnover potential of each location, a fundamental input for efficiently designing the expansion plan to compete in other micromarkets.
Using the Geomarketing solutions we have developed for our clients, CentralAmericaData's Trade Intelligence team analyzed the environment of some of the main locations of the bakery and pastry chains operating in Central America. Below is an extract of the study's findings.
Although in Central America the period of mandatory confinement has been exceeded, it is still a priority for consumers in the region to spend their free time in their homes and to devote themselves to household cleaning and home cooking.
It has been six months since the first cases of covid-19 were detected in the region. When the outbreaks began, governments chose to subject consumers to strict household quarantines, a measure that affected not only the economy but also people's behavior in the medium term.
Interest in household appliances fell considerably in Central America in March and April, but in recent months the situation has been reversed and the volume of interactions related to the issue has grown among consumers in the countries of the region.
Through a system that monitors in real time changes in consumer interests and preferences in Central American countries, developed by CentralAmericaData, it is possible to project short and long term demand trends for the different products, sectors and markets operating in the region.
With the change in the configuration of the markets and businesses, companies must think clearly, adapt to the new rules of the game and avoid, as far as possible, immediately implementing the policy of low prices.
The economic crisis resulting from the outbreak of covid-19 has changed the rules of the game in the markets at a global level. Some companies, in their attempt to stay in business, have opted to lower their prices, even to levels where they could incur losses.
Given the need to understand customer behavior in the digital environment, together with the urgency for companies to promote remote work, an ideal scenario has been created for the demand for cloud services to increase exponentially.
The spread of covid-19 caused a considerable change in people's habits. Remote work has become a daily routine among companies in the region, which have had to adapt to the restrictions imposed since March, when the first infections were reported.
In recent months, interest in fast food in the region's markets has continued to show a clear upturn, with El Salvador, Panama and Honduras recording the largest increases in interactions on the subject.
Through a system that monitors in real time changes in consumer interests and preferences in Central American countries, developed by CentralAmericaData, it is possible to project short and long term demand trends for the different products, sectors and markets operating in the region.
As part of the gradual reopening of commercial activities, an increase in the number of people who have moved to locations identified as supermarkets or pharmacies was reported in Central American countries during August.
Due to the quarantines decreed by the covid-19 outbreak, in mid-April the concentration of people in residential areas of cities reached its highest level, but in recent months this trend has been reversed and consumers have visited more stores. During August, the process of returning to supermarkets accelerated in most markets.
In the new business scenario consumers have increased the demand for household disinfection products, fruits, vegetables, vitamins and medicines, consumption patterns that could be maintained in the medium and long term.
When the first cases of covid-19 were reported in Central America in March, the first reaction of people was to make compulsive purchases.
"If we overcome the mental barrier of commoditization, identifying and communicating those added values going beyond our basic proposal, we will have the opportunity to take our profitability to another level."
Ariel Banos, founder of Fijaciondeprecios.com explains that when a proposal is a commodity, in other words, it lacks differentiation with respect to others offered in the market, the only alternative is to align itself with the prices charged by competitors. There are no magic solutions.
Starting in September, Hugo App will offer companies in the region an online store service, which will include a website, logistics, electronic invoicing and inventory management.
The new tool of the application of Salvadoran origin will be called Hugo Business, platform that will begin to operate from September 1st in Guatemala, and in the case of El Salvador, Honduras, Nicaragua and Dominican Republic, will begin in October.
Understanding the socio-demographic characteristics of the ideal client, as well as knowing their interests, desires, motivations and challenges, is fundamental for reaching the consumers of this new commercial normality in the digital environment.
The health crisis, quarantines and social distancing measures in the countries of the region, forced individuals and companies to accelerate the adoption of new technologies, which caused the digital to become the center of all interactions.
Manufacturers and farmers who deliver directly to their homes, Facebook profiles, Instragram, WhatsApp, neighbors or acquaintances who distribute food or household products, are some of the new sales channels that have emerged in this new business context.
The new business normality that emerged in an accelerated manner in Central America, due to the outbreak of covid-19 and the imposition of social distancing measures, favored the conditions for new marketing channels to be born in the different markets.
The abrupt change in consumer habits forced companies to digitalize their operations and sales, but the challenges do not stop there, as companies will have to implement effective logistics systems to reach their customers.
Beverage Industry Digital Magazine established in 1942, the oldest Spanish trade journal and the only beverage trade magazine serving the Latin American beverage market. It serves soft drink bottlers, brewers, bottled water...