Latin America – The Pacific Alliance
UK businesses are encouraged to find opportunities in Latin American (LatAm) markets while this blog should help you prepare for the City Business Library event on LatAm which will focus on the Pacific Alliance.
Find booking details to attend 21 June CBL Event on Latin America here.
Latin American trade bloc
The Pacific Alliance is your door in! The Pacific Alliance is the strongest Latin American trade bloc – which means that access to one country equals access to all countries. The trade bloc is the 8th economic power and 8th export force in the world.
Trade Bloc: Chile, Mexico, Peru and Colombia
Consumers: 214 Million
GDP: US$ 2.22 trillion
Language: Spanish
Issues:
Needs export plan approach with 3 -5 years goals.
Take strategic overview and consider specific market separately.
Resource intensive: Needs have export department and extensive experience.
Translation costs needs to be embedded in the process & budget
Growth sectors:
Medium Sized Business (MSB): Mining, Renewable Energy, Oil & Gas (needs strong relationship)
Small Business (SME): Retail, Luxury, Services (using eCommerce channels)
Trade Factors:
LatAm – Spanish speaking (language based definitions)
Market entry: Use piggy bank approach with Large Corporates.
Ease of Trade: Chile has a preferential trade agreement with the EU and reputation as an open market.
Ease of Access: Travel costs are high and long travel hours make logistic & visits difficult.
Our Export Club Recommended SME Approach:
Conduct consumer market research on this market using FREE facilities at City Business Library and do field research with Latin American consumers in the UK.
Use eCommerce store with LatAm translation and branding that reflects sultural sensitivity.
Factors: SEO, Currency, postage, location, customs, Returns, Money transfer.
Use alliance with Tourist and Retail sector to establish branding and customer segmentation (Look at mega cities). Target affluent middle class sector on UK country visit – use your UK Brand so they can LatAm customers can purchase UK in-store. Have language signage and use (agency) interpreters. Similar aproach is used by Marks & Spencer to target Saudi Arabia luxury shoppers!
Use Social Media Channels:
Twitter and Facebook are very popular in LatAm and easier to maintain than website
Use Instagram, Orkut, Snapchat. YouTube highly recommended with demonstration videos which can be highly viral.