2023-11-14 12:04:36
In a recent report presented by NielsenIQ (NIQ), it is highlighted that Ecuadorians continue to prefer neighborhood stores (35.5%) as their main purchasing channel, followed by local consumer stores (19.9%).
● MSMEs in Ecuador represent 99.55% of the business fabric, but microenterprises represent the highest percentage with 90.78%, followed by small companies with 7.22% and finally medium-sized companies with 1.55%. ; operating mostly within the commerce and services sectors.
Ecuador, November 2023. According to figures from the Association of Shopkeepers of Ecuador (ASOTENDERO), in the country there are more than 110,000 neighborhood stores that generate up to 60% of sales in the mass consumption sector. The average investment range per purchase in neighborhood stores, according to the study, remains in the Sierra at USD 1.09, while for the Coast the value was a little lower, at USD 1.04.
According to statistics, among the five most purchased categories in stores in Ecuador are soft drinks, snacks, bottled water, cigarettes and beer.
In the great world of the retail sector, there are CPGs (Consumer Packaged Goods) are companies that manufacture and sell mass consumption products, such as food, beverages, personal care products, cleaning products, etc. and they are main distributors of a very important sector, the shopkeepers; who represent a fundamental engine for the economy.
Broadening the panorama of neighborhood stores a little, these have existed for decades and are essential so that 65% of Ecuadorians can purchase basic products from the family basket. Neighborhood stores and businesses not only offer convenience and proximity to customers, but also connection and loyalty, since most are retailers who have lived in the neighborhoods for many years, earning the love of their neighbors.
However, for this sector, it has not been easy. The pandemic highlighted a crucial problem: the lack of digitalization in retail, which led to decreased sales and, in many cases, the disappearance of stores due to the global restrictions imposed.
«We have clients who have seen that more than 30% of their sales come from messaging. “Some have increased their conversion rate by up to four times by incorporating messaging into their omnichannel strategy.” Assures Santiago Coppiano, VP of Sales for LATAM at Yalo, and adds “The company currently has a personalized conversational commerce platform, where instant messaging and artificial intelligence are mixed, so that companies or businesses can interact directly with their customers through a combination of automation and human interaction, which generates more agile, reliable and profitable processes.
How to provide differentiating value to the Mass Consumer Goods (CPG) sector?
By offering shopkeepers the possibility of having platforms that allow them to develop the skills to integrate into omnichannel, it will bring great benefits to both businesses and end customers, in addition to ensuring their comprehensiveness through WhatsApp, the third most used social network in Latin America according to the Digital 2022 study by Hootsuite and WeAreSocial, makes it easier for users to start adopting these new technologies.
A recent study by the Ecuadorian Chamber of Electronic Commerce (CECE) showed important figures on the channels most frequently used to make purchases on the Internet. The report highlights instant messaging channels such as
WhatsApp with 49%, followed by mobile applications with 44%, web pages with 35%, without leaving out social networks such as Facebook and Instagram, which also reported 28%.
Coppiano adds that “Conversational commerce combines the best of in-person service with the best of digital commerce, thus satisfying consumers. Companies can build personalized relationships with customers, spanning all touchpoints, from marketing to customer service and sales,” and adds, “Both businesses needed a channel that respected and enhanced their relationship, but also opened a direct communication channel for the brand with shopkeepers.
With this conversational future, the barriers of shopkeepers who do not want to enter this digital landscape would be reduced, since a humane and easy-to-use technology is being developed, this being a primary point for shopkeepers since resistance to change is due not wanting to have multiple accesses on your cell phone, or download heavy applications to place orders.
Digitalization and automation is a fact in the retail sector, everything indicates that new technological bets will come, and shopkeepers will begin to appear in the innovation landscape to improve their processes, without leaving aside the proximity that is fundamental for their businesses.
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