CATALINA BONNET MONTOYA
Millward Brown, Peru
Faced with a fluctuating domestic economy, several Peruvian companies are looking to increase their international footprint, presenting their business models and brands on a broader stage. These brands seek to become emblematic to the wider LatAm region and even worldwide.
Examples like Belcorp and Yanbal International (Unique) have shown Latin America a strong business model in the Beauty and Personal Care category, posing a threat to big global companies. Their secret has been a local understanding of middle class consumers. The key to confronting global brands with strong presence has been to build meaningful differentiation, especially aimed at the Latin American emerging classes. What are these population segments looking for? A friend who provides honest beauty advice, one that a consumer trusts enough to try new things in front of without feeling judged. This is what the business model of these two companies is based upon.
Brand Equity - Beauty Brands, Peru
There is also the example of Aje Group, which has achieved presence in 23 countries by promoting the right product at an affordable price for a very specific segment. This group has strengthened in the past few years, but it is interesting to see that the company is daring to try something new in order to build its brands beyond the price element. It is seeking a new understanding of its consumers, who are also in need of a bond with the brand beyond the product. Clearly, these kinds of companies are prepared to reinvent themselves whenever necessary so as to go on competing in international markets.
Brand Equity - Banks, Peru
In the sphere of finance, a perfect example of internationalization is Interbank, a bank with a differentiated and aspirational proposal that has become stronger in some countries of this region. There is also the example of Mibanco, a microfinance offer addressing the niche of small and medium-sized companies, which find this brand relevant because it understands what they need in order to grow – whereas traditional banks do not. This bank’s challenge is to consolidate its emotional bonding and its market differentiator.
Global ambition can also be seen in other large companies such as Alicorp, Química Suiza, and Gloria. These companies are now interested in understanding Latin American consumers, and are preparing to build strong brands in the region.
So, we clearly see in Peru strong economic groups that are ready to compete in the whole region and hopefully globally. Their biggest challenge is to make sure they understand international consumers. Peruvian brands have achieved success by building propositions that are relevant for the needs of audiences that traditional global brands have not met. Their next step must be to build brands that connect at a more emotional level with consumers and, above all, that address them with honesty.