Local companies gain ground
Posted On 29 May 2017
Local companies account for 64% of the growth of mass consumption. Multi channels are the strategy. Fairs and door to door promotion boost sales.
Local companies have been the winners in the first quarter of this year for their rapid adaptability to consumer´s needs, generating a growth of 64%. This is indicated by a study of Kantar Worldpanel, a company specialized in developing strategies based on buyers behavior.
According to the analysis, their main advantage versus multinational companies is their distribution power, which helps them to position better in savings and emerging channels.
In addition, local companies manage to break the myth of not being considered good brands or that only multinational companies offer ‘Premium’ products, since the high socioeconomic level contributes to 6% to their growth, whereas for multinational companies, these shoppers do not represent a contribution.
However, by being more traditional, they have a lot of concentration on Baby Boomers (over 50 years old), which is a weakness against multinationals, whose niche is the Millennial generation (under 34 years).