MEXICAN CONSUMER PROFILE 2010

Profile of the StandardMexican

Consumer. 2010.Retail

Presented by: M. A. Ángel Sánchez Mejorada Z.


Consumer. 2010. Retail

Presented by: M. A. Ángel

Sánchez Mejorada Z.

• Family fragmentation

• Migration. Traveling. Fusion

• Internet purchasing power

• Individualist but affiliative

• Uniqueness

• Limited and personalized products (tailor made)

• «styles of life» market segmentation

• Expenses oriented but savings concern

Market structure





• Time as a priority while buying/using: health and food services, body culture, and others to be considered (as he/she deserves)

• Relational marketing. Customer decides the buy, not the company

• On line purchasing «price looking» consumer

• Looking good quality/low prices products, is a «proud» to be told to friends and relatives

• Considers the buying as an esential part of his/her life

Market structure





• PAYMENT

• POINT OF PURCHASE

• SOCIO-ECONOMICAL STATUSMarketingVariables





• The use of the credit card to pay has been increased during the period 2000 to 2008. Specially favorable to increase sales by Internet

• By 2008 a 51% of sales at retail level which means more than 90,000 million pesos (roundly 7,800 million USD at may -to date- average exchange rate) were expended in january by mexican consumers by using credit cards

• Total retail sales in January 2008 amounted 175,000 million pesos (roundly 15,100 million USD)

• By June 2008 more than 12.5 million credit cards were used as a payment way in the market. The average amount by operation was 700 pesos, yearly the amount is more than 14,000 pesos by card holder

MarketingVariables





MarketingVariables. Wholesale

stores





• Mexicans use to be «self-attended», then the companies save money on that

• People thinks that a speed buy is better, by themselves instead ask an employee to assist them. «This is a loosing time task»

• Strictly speaking this means a lack of service by companies because customer does not appreciate that

• So it is an advantage/disadvantage topic.

• Advantage: customer decides the buying by himself, so is directly exposed to the company´s strategy. Impulse buying.

• Disadvantage: the strategy is focused on price and speed at the cashier, not on the service (quality)


stores






stores

Then… the consumer wants that the brand…

«¡stay here when I want !»Or

«¡I want everything immediatly!»





• However, the mexican standard customer is missing the quality of service, so this is a differential benefit to be part of a good marketing strategy, specially to sell products on technological base (e.g.: computers and electronics), but the employees attending these people must be highly trained in product/sales and human relations techniques

• Also those clients are looking for warm and congeniality in the attitude of attendees. These concepts means a personalized relation of «uniqueness». As a sample the TELCEL cellular company slogan «with you everywhere»


stores





• The brand penetration in the mind of consumer is based on the benefits offered by the product or service, no delayings or false promises are tolerated

• The 24/7 store systems was rapidly adopted by consumers, which means the increase of sales at wholestores

• Qualitative attributes are more desireable


stores





World trends also present in Mexico:

• Otherwise the decision to buy by Internet has been more complicated because of the large amount of possibilities, offerings and chanels available

• To counterattack the stores make efforts to increase service levels as: extended business hours, payment options -even a bank office inside-, own bank offices (e.g.: Walmart), more direct contact with consumers -by cell or Internet-. All the mentioned to generate interrupted buying actions


stores





• The pragmatic customer. “Low cost” strategy.

• Zara (clothing industry)

• Walmart (wholesare stores)

• New status symbols, looking for «pleasure» while using/consuming productd or services. Specially at the higher staus customer

• Low effectiveness on creating client fidelity

MarketingVariables. Pragmatic customerHow

to get fidelity?





• Finally the Attitudes of the Standard Mexican Consumer is now:

• Impulsive

• Fanciful

• Moody

• Receptive

• Adopter

• Impatient

• Desire/pleasure oriented

MarketingVariables. Pragmatic customer

How to

satisfy it?





Yesterday: The purchae product was the client´s

reward

Today: The good experience by choosing a

product/service is the client´s reward

MarketingVariables





Nielsen 2009 annual issue: “Cambios en el mercado mexicano” (Changes in the mexican market). Mexican consumer)

• 40% of sales at consumer level area housewives at the range of more than 55 years old

• The purchase power of the medium class and D+ levels has been raised

• The assortment of products (buying options) at the point of purchase is more desirable than price to decide a purchase

• The growing of convenience and minisuper stores grown 85% from 1999 to 2006, higher than wholesale stores (21%)

MarketingVariables.

Nielsen «Cambios en el Mercado mexicano»

http://www.nielsen.com/





• More than 50% of mexican people is expecting a stagnation on their standard ol living

• Only a 37% of them is expecting to have a better employment in the future

• However, instead of the negative panorama, half of the mexicans are expecting to save more money in the future

• The quantity of products bought at wholesale stores has been decreased, but not the amounts spent

• According to the Asociación Nacional de Tiendas de Autoservicio y Departamentales (ANTAD), the sales in real terms have failed a 7% from the previous year


stores





• ANTAD has affiliated more than 17,000 stores (17% wholesale, 8% departamental stores and 75% specialized)

• In Mexico the general consumption level is decreasing, specially in the clothing market (as far as december 2008 -high sales season-, the sales at specialized clothing stores failed by 15% from the last year indicators. By january 2009 followed the decreasing trend plus an additional 5% decrease


stores





• Due to the present crisis (started in 2008), a 60% of mexican people is now «intelligent consumer», which means they are:

• Well informed

• Critical to make buying decisions

• Health and sustainability conscious (consider nutritional benefits and environmental care in the products/services acquired)

• They are price and seasonal bargains «hunters» but looking for good price/quality in terms of products and sevice level

• So, the time to make a buying decision is longer and need more and better information, related to not only buy but obtain more benefits


stores





(good, nice and cheap… and in a good mood)

which is a traditional saying in Mexico


stores

«Bueno, bonito y

barato»… y de

buen modo





USA. Budget adjustment.

• Last quarter 2008 most of the consumers cut expenses at a 50% or more (Shopper Advocacy: Building Consumer Trust in the New Economic Environment and Institute for Business Value

de IBM)

• 66% of consumers pointed out that are delaying or reducing their buyings

• 60% recognize to look for rebates and use of coupons more frequently

• They look for: price and promotions followed by adequacy, assortment, quantity and quality during the buying decision process (Institute for Business Value de IBM.)

Consumer have

changed in the world…

Comparative figures

http://www.ibm.com/common/ssi/fcgi-bin/ssialias?infotype=PM&subtype=XB&appname=GBSE_GB_TI_USEN&htmlfid=GBE03143USEN&attachment=GBE03143USEN.PDF













http://www-935.ibm.com/services/us/index.wss/ibvstudy/gbs/a1030790?cntxt=a1000404

















Spain. They stay at home

• More tha 33% of people has changed their consumption habits (¿Quién puede sacarle partido a la crisis?’, issued by Asociación Española de Codificación Comercial (Aecoc). Europa Press april 29, 2009.)

• Most of spaniards go to buy based on a list of products really needed but a 50% of them finally decide at the cashier, attending to the total amount of tickect

• Also they cut some extra school activities of children, and non needed items as clothing and gifts

• So, iddle activities out of home cancelled (e.g.: dinner, drinking, movies, etc.)

Consumer have


Comparative figures

http://www.euribor.com.es/2009/04/29/el-35-de-los-espanoles-cambia-sus-habitos-de-consumo-por-la-crisis/

http://www.euribor.com.es/2009/04/29/el-35-de-los-espanoles-cambia-sus-habitos-de-consumo-por-la-crisis/

http://www.aecoc.es/




http://www.euribor.com.es/2009/04/29/









Latin América is more positive. Nielsen study October 2008 (Confianza, preocupaciones, gastos y actitudes del consumidor ante la recesión. 26 mil 202 usuarios de Internet localizados en 52 mercados de Asia, Pacífico, Europa, Latinoamérica, Norteamérica y Medio Oriente)

• Venezolans are the people that must pay with credit cards (55% of them), Chileans and Mexicans with a 49%. Latin America is the main region showing that pattern

And… Mexico?. Study impacto que la crisis económica tiene entre los mexicanos, by realizado por la agencia de investigación de mercad De la Riva Investigación Estratégica. October 2008.

• Adults consider cut expenses, while teenagers are immersed in technology gadgets spending (e.g.: ipod and ipad.

• Young adults (20 to 35 years old), with children are preocupated and are willing to save their income, but if they are singles (don´t have children), act as teenagers

Consumer have


and in Mexico.

May 2009

http://mx.nielsen.com/news/documents/Boletindemedios-Confianzadelconsumidor-dic2008.pdf



http://www.delariva.com.mx/dlr/documentos/data/lacrisis2008.pdf

http://www.delariva.com.mx/dlr/documentos/data/lacrisis2008.pdf

http://www.delariva.com.mx/

http://www.delariva.com.mx/





CONSUMPTION TRENDS

• More than 50% of mexican consumers buy less amount of food, but keep loyalty to their preferred brand (Study: Inflación de alimentos, tendencias y su impacto en el consumo. Nielsen, September 2008)

• Most of them buy lower price brands in the cathegories: beverages, hygiene and beauty, and looking for «generic» brands (supermarkets)

• As a conclusion, this study remarks that the mexican consumer are looking for manage more efficiently their income taking actions as:

• Decrease the spending on non prioritary products

• Switch to cheaper brands

• Prefer more convenient size (presentations) of the products bought

Consumption trends

http://www.alasnet.org/portal/images/stories/conf_pan/Inflacion.pdf



http://mx.nielsen.com/site/index.shtml





FACING THE CRISIS. CONSUMER PROFILE

• More concious while buying, avoiding impulse buyings

• Prefer a quality/low price product or service even of a non prestigious brand

• Hunter of promotions and bargains to save money

• Reduce quantity of buyings to avoid storage

• Substitute a brand even preferred to reduce spending

• Optimice and recycle resources (i.e.: food from one day to be part of the tomorrow´s menu at home). Rapid and practical preparing food and optimizing time

Final consumer

profile





NSE AMAI 2009

A/B

C+

CD+

D

E

C

54%