Brands offering a deeper and more emotional added value, delivering to their customers with immediacy and executing business strategies from a more local perspective are the most likely to succeed in this new commercial reality.
The outbreak of covid-19 and the mobility restrictions imposed by this pandemic significantly changed consumer behavior and perceptions of brands.
Assessing the company's value proposition and conveying it properly, as well as adapting quickly to the current business environment to create bonds of trust with customers, are part of the challenges that brands must face to survive.
According to experts on issues related to marketing and branding, the severe home quarantines decreed by the Central American governments due to the outbreak of covid-19, has imposed new habits to consumers.
With regard to the discussion of an initiative which aims to modify the Trademark Law in Nicaragua, the business sector believes that relevant changes are being considered in the area of legal security, as far as the protection of trade names is concerned.
Regarding the subject, the National Assembly reported that on February 27, "... the consultation process for the initiatives to reform the Trademark Law and the Patent Law was successfully concluded, with the participation of economic and academic agents directly linked to the subject, who provided important contributions."
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.
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.
During 2018, sales of packaged foods in the United Kingdom exceeded $84 billion, and 36% corresponded to private label products, which have quickly entered this market.
The study "Trends and requirements of private label buyers in the food sector in the United Kingdom", prepared by Procomer Costa Rica, indicates that the United Kingdom stands out as the second country in Europe with greater penetration of private label.
Walmart will market high quality coffee in Costa Rica under the brand Great Value, owned by the supermarket chain, a product that will be manufactured with beans from Tres Rios, Naranjo and Tarrazú.
Representatives of the company informed that Great Value is offered in supermarkets of the formats Walmart and Masxmenos, in presentations of light and dark roast of 340 grams ground and in grain.
If brands want to take advantage of the 6 hours a day that Central American consumers connect to their cell phones through the creation of apps, it is recommended that they have clear objectives that are agile and quickly updated.
The study "Engagement República 2020", carried out by the social networking company Ilifebelt, reveals interesting data on consumer behavior when they connect to the Internet.
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.
Globally, the tendency to buy private label products is becoming more and more evident in markets, as companies engaged in the retail trade of other products, such as supermarket chains, are capitalizing on their experience by placing their own products and competing with their suppliers.
When brands don't know how to approach women, this segment of the population removes products from their value equation because they can't establish a rational, less emotional relationship.
4AM Saatchi & Saatchi White Rabbit together with Prensalibre.com carried out the study "A Guide to Understanding the Consumer", and one of its objectives was to understand how women behave with respect to brands in the Guatemalan market, in a context of economic slowdown.
The cheapest, most adaptable and irreplaceable brands are those preferred by consumers in Guatemala's current economic context.
4AM Saatchi & Saatchi White Rabbit together with Prensalibre.com carried out a study in the Guatemalan market, with the intention of understanding the reasons for the change in consumer behavior in the last two years, in a context of economic slowdown.
It has been reported that in the last four years on average between 23 and 25 brands per day have been registered, a figure which includes both domestic and foreign brands.
According to figures from the Directorate General of Intellectual Property (DGPI), between 2014 and 2017, a total of 23,466 brands were registered, and it is estimated that the number of registrations varies between 5,800 and 6,000 a year.
Eight out of ten consumers in Europe believe that store brands (MDD in Spanish) or private brands offer quality at a better price.
From a report by PROCOMER:
77% of consumers believe that store brands (MDD in Spanish) or private brands offer quality at a better price, according to a survey by Trace One with 2,000 consumers in eight countries (Germany, the UK, France, Denmark, Italy, the United States, Canada and Spain).
A study by PROCOMER identifies potential markets for own brand labels which are part of the exportable supply of Costa Rica, as being in pet accessories and products for home care.
From a statement issued by PROCOMER:
San José, November 15, 2016.In order to highlight the opportunities for exportable supply of Costa Rica in pet accessories, personal care products and home care products with private or independent brand strategies; the Foreign Trade Promotion Office (PROCOMER) has analyzed this issue in a recently released piece of market research.
Eight in ten Peruvians buy own brand label products, with bread, rice and oil having the most presence in supermarkets
From a statement issued by the Costa Rican Foreign Trade Promotion Office:
Peruvians prefer to shop in supermarkets, because of the variety of products on offer , as well as for reasons of safety and comfort. In 2014, supermarket sales showed a growth of 9.5% compared with the previous year, which represents 44% of total retail sales.
Supermarkets are one of the outlets where the most own brand labels can be found, and these products are gaining ground as consumers perception over their quality improve.
Currently in Panama 2% of supermarket sales correspond to own or private brand labels and 64% to cheaper brands, according to studies cited by Martesfinanciero.com.
The low penetration of these kinds of brands in the Panamanian market represents a growth opportunity, mainly because the perception that consumers have of such brands is changing, both regionally and globally.
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