Latin America is becoming an increasingly important market for American and European goods. The economy is booming in many Latin American countries and people there are getting richer.
For many of these recently wealthy Latin Americans, it’s all about the “little victories,” said Ricardo de la Blanca, CEO of DLB Group, a marketing services firm focused on selling to Latin America.
“Maybe they don’t have enough money to buy a house or even a car. But they for sure can afford a really nice cell phone,” explained de la Blanca.
In fact, cell phone makers like Research In Motion (NASDAQ:RIMM) and HTC Corporation (a client of DLB) are doing quite well in Latin America.
Products like fancy cell phones provide more than practical utility for Latin American consumers. Perhaps more importantly, they convey status and success, said de la Blanca.
The concept of “little victories” and status symbols, of course, extends beyond fancy cell phones. As a rule of thumb, expensive tangible goods that one can carry around – for example brand name watches or handbags – are potential “little victories” that can sell well in Latin America, said de la Blanca.
Although there are similarities in Latin American markets, there are also crucial differences; various regional markets have different preferences of “little victories,” be they smartphones or other products.
Therefore, it’s wise for American and European businesses wishing to sell “little victories” to Latin America to conduct market research and set up a solid marketing plan, said de la Blanca.
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