Month: February 2019

Chilean_Profile_InfinitusBlogPic

Today, consumers around the world have access to many products manufactured in other countries.

Among other things, this has motivated individuals to be more demanding and selective consumers.

 

Global preference

Chile's economy has remained stable and growing in recent years, which has encouraged consumers to have greater purchasing power.

What does this mean? That in addition to being willing to spend more, consumers want better quality products.

In 2018 Nielsen published a study that reveals that the Chilean consumer prefers to buy local brands when it comes to food (especially dairy products and beer), but prefers international brands in the following sectors:

  • Baby products (such as diapers and formula foods),
  • Carbonated drinks,
  • Vitamins and supplements
  • Beauty products
  • Personal hygiene products for women.

In fact, only between 7 and 10% of the people surveyed said they preferred local products over international brands in these sectors.

 

E-commerce tendencies

According to Americas Market Intelligence, a survey of Chilean online shoppers done by Chile3D and GfK, indicates that the top-selling e-commerce products in Chile are:

  • Clothing (38%)
  • Technology products (32%)
  • Plane tickets (19%)
  • Tickets to events (15%)
  • Discount coupons (11%)

In terms of online purchase decision, Chileans seek:

  • Good prices (79%),
  • Fast delivery (58%),
  • Return conditions (48%) and
  • Tracking of shipments (48%).

The e-commerce platforms are complementary to the stores, because Chileans tend to review the products online before making a purchase in a retail establishment.

 

Opportunities

A study by Gfk Adimark recognizes new segments with great commercial potential:

  • The new middle class: focused on better consumption standards, increasing their experiences (consumption and travel) and financial stability.
  • Adults: 78% of adults have social applications on their phones and 49% of them own a vehicle. They look for social activity.
  • Women between 30 and 50 years old: 51% of them declare themselves satisfied with their physical appearance and are not tied to social stereotypes. They look for authenticity.
  • Millennials: 80% of them are optimistic about the future; 23% are stressed, 67% are interested in beauty, fashion and personal care; and 45% buy clothes regularly. 

SOURCES

https://www.nielsen.com/cl/es/insights/news/2017/8-de-cada-10-chilenos-estan-total-o-parcialmente-dispuestos-a-pagar-mas-por-productos-premium-con-altos-estandares-de-calidad.html

https://www.america-retail.com/estudios-consumidores/estudios-el-nuevo-perfil-del-consumidor-y-el-e-commerce-chileno/

https://www.nielsen.com/cl/es/insights/news/2017/conoce-como-las-marcas-globales-ganan-terreno-en-chile-y-otros-paises-latinoamericanos.html

https://americasmi.com/insights/the-best-selling-e-commerce-products-in-latin-america/

https://es.portal.santandertrade.com/analizar-mercados/chile/llegar-al-consumidor

 

 

Valentine_QuoteBlog

 

Valentine’s day is one of the most important days of the year for many couples that see this date as an opportunity to do things outside of their routine.

 

From Australia to US, passing through Japan, France or China, most countries in the world celebrate this special day (granted, not all of them do it on the same day and not all of them have the same traditions of course). And although it is mainly a romantic celebration, there are people who like to celebrate friendship as well.

 

Spending with love

According to Statista, these were the categories where consumers spent most money last year on Valentine’s day:

·       Jewelry

·       An evening out

·       Flowers

·       Clothing

·       Candy

 

This tendency however is expected to change a little in 2019, since many young couples are looking for “experiences” (like short trips, spa treatments, etc.) rather than material things. Couples more mature are also looking for experiences, but more intimate ones (staying home, having a romantic dinner and order special take out meals).

 

Technology to the rescue

Statistics also revealed that 36.9% will use their smartphones to look for different gifts options and compare prices, while 44.7% plan to use their tablets to help them in their purchase decisions.

 

What people want

On their survey for Valentine’s day, Offers.com asked people:

What would be your favorite Valentine’s Day gift?

·       Chocolate, candy or other food treat: 35%

·       Flowers: 21%

·       Jewelry: 16%

·       Electronics including wearables: 10%

·       Lingerie: 10%

·        Skincare, makeup, perfume/cologne: 9%

 

Wishing you had a very happy Valentine’s Day!

 

SOURCES:

https://www.forbes.com/sites/niallmccarthy/2018/02/09/the-key-consumer-spending-trends-on-valentines-day-infographic/#238ec4a57aa5

https://www.revistaneo.com/index.php/articles/2018/02/13/habitos-de-consumo-durante-san-valentin

https://www.offers.com/blog/post/valentines-day-shopping-spending-survey/

https://www.competitormonitor.com/blog/these-3-consumer-trends-are-changing-valentine-s-day-retailing/

https://www.eleconomista.com.mx/finanzaspersonales/En-el-14-de-febrero-se-gasta-mas-en-experiencias-revela-estudio-20180212-0096.html

GreenProducts_InfinitusBlogPic

Environmental concerns are growing stronger as time passes by. The need of ecofriendly processes and products is a reality that people has become aware of.

 

According to findings of SurveyMonkey, 1 in 3 consumers preferred ecofriendly options in 2018 and 5% of the people they surveyed said their next vehicle will be a hybrid or electric one. And when they asked:

“How likely are you to buy a product that is better for the environment than another product that is slightly cheaper?”

35% of survey respondents said they would be entirely willing to spend more money on ecofriendly products (and 56% answered that they would be at least moderately willing).

This was in 2015. 4 years have passed, and this awareness has grown.

In China, the E-Commerce retailer JD, reported that the volume of ecofriendly goods sold grew in 71%.

 

By 2016, Nielsen found out that  66% of consumers are willing to pay more for sustainable goods.

 

What do consumers look in a Green product?

·       They want to be assured that they are buying a product with ZERO toxic substances. They look for more natural options.

·       They want packaging to be green as well (biodegradable or not plastic). They are after less waste.

·       They like the idea of the manufacturer being involved in fair trade practices (social responsability).

 

Who wants these products?

 

According to The Environmental Performance Index (EPI) an organism that ranks countries based on their “Going green” efforts, these were the countries that were ranked with the highest scores:

·       Switzerland

·       France

·       Denmark

·       Malta

·       Sweden

 

However, we found that the concern for a more environmentally friendly consumer behavior is actually global and what is more interesting, consumers  in  Mexico, Argentina, Brazil, India and China showed the highest levels of concern for the environment.

 

Infinitus can help you develop a strategy to take your Green Products to other parts of the world!

Contact us to know more about the services we can offer you.

 

SOURCES:

http://globalsherpa.org/green-consumer-research-sustainable-consumption/

https://www.nielsen.com/eg/en/insights/news/2015/green-generation-millennials-say-sustainability-is-a-shopping-priority.html

https://www.surveymonkey.com/curiosity/more-consumers-are-opening-their-wallets-for-eco-friendly-products/

https://daxueconsulting.com/green-china-consumer-demand/

BeautyIndustry_InfinitusBlogPic

According to Mordor Intelligence, “the Latin America Cosmetic Products Market was valued at USD 48.05 billion in 2015 and is projected to reach USD 68.92 billion by 2020”.

In addition, Americas Market Intelligence placed the Beauty Industry as the fastest growing and strongest market in Latin America (followed by Energy Drinks, Pharmaceuticals, Malls, Personal Computers and Smartphones).

 

Who are the consumers?

The markets with a higher demand for beauty and personal care products  in Latin America are:

  • Brazil – As an interesting note, in 2018 Brazil was the fourth largest beauty market in the world.
  • Argentina
  • Chile
  • Colombia
  • Mexico

Middle class with slightly aspirational values form the largest portion of these consumers. They are very engaged with beauty and personal care. They are worried about what people think about them and are open to innovations.

 

Nielsen categorizes the Latin American consumer by age:

1.    Millenials (who are willing to pay for premium products mostly in the Hair Care sector).

2.    Generation X (who are willing to pay for premium products mostly in the Oral Care sector).

3.    Baby Boomers (who are also willing to pay for premium products mostly in the Hair Care sector).

4.    Silent Generation (who are also willing to pay for premium products mostly in the Body Care sector).

 

What do they want?

These are the products with the highest levels of demand in these regions:

  • Skin care
  • Hair care
  • Fragrances
  • Deodorants and bath products
  • Color cosmetics
  • Male grooming
  • Oral care
  • Sun care

A very interesting fact that Mordor Intelligence found that there's  an increased preference for vegan, organic, and natural beauty products to mitigate the harmful effects of pollution, sun, dust, and harmful ingredients that are typically a part of cosmetic products.

 

SOURCES

http://www.cosmeticosbr.com.br/conteudo/en/article/overview-of-personal-care-and-cosmetics-in-latin-america/

https://www.mordorintelligence.com/industry-reports/Latin-america-cosmetics-products-market-industry

https://www.nielsen.com/us/en/insights/news/2017/getting-to-know-latin-americas-premium-product-consumers.html

https://americasmi.com/insights/the-best-selling-e-commerce-products-in-latin-america/

Infinitus_QuoteBlog

Although there’s discussion about the time frame that dertermines wheather a person is a Millenial or not, Nielsen includes in this category people that currently are 21-37 years old.

 

There’s a reason why this word has been heard so much during the past years (and yes, it has to do with Millenials being an incredible force of consumption nowadays). According to Deloitte, by 2025, Millienials will represent 75% of people working around the world. They are literally the future of consumption.

 

They became digital

Millenails grew up watching and living the transition of a more analogue world into a digital one. But at the moment, their habits are more leaned to the digital world. Millenials prefer the Internet to other conventional media (such as TV or radio), for example, 59% of them watch movies online and 46% watch TV shows also online (instead of watching them on TV). That’s why a lot of companies have chosen not to continue advertising their products on traditional media (specially if Millenials are their main target).

 

They love apps

In Latinamerica, a 78% of Millenials own a smarthphone, 37% own a tablet and 70% own a laptop*, They are the reason why apps are so popular right now. This reality has forced companies to channel their resoruces into developing apps that can meet the demands of this (highly selective) public.

 

And Social Media

They spend an average of 6 hours per week on Social Media. Their favorite Social Networks being Facebook, Youtube, Instagram and Twitter. Companies have realized that investing in Social Media campaigns is crucial to get to those who belong to this population group.

 

They also like the concept of “Natural”

They are willing to pay more for a product if it is “Organic, Sustainable and Natural”. They research more about the products they want to purchase and they care if companies has ecofriendly processes to develop heir products.

 

Millenials are a group that practically no enterprise should discard.

Infinitus can help you take your products to Milenials around the world!

 

*According to Telefónica Global Millennial Survey 2014.

 

Sources:

https://www.nielsen.com/us/en/insights/news/2019/how-us-millennials-are-shaping-online-fmcg-shopping-trends.html

https://es.slideshare.net/TelefonicaEurope/telefonica-2014-gms-global-master-deck-final-100614?related=1

https://www.nielsen.com/us/en/insights/reports/2018/millennials-on-millennials-us-shopping-insights-in-a-new-era.html