Evolution in the Mexican Market, 2007 update

A consumer in transformation

Study made by Nielsen for Public AccessPosted in the Internet.

March, 2007

Index

Changeable forces Mexicans, consumers in maturation

process. The potencial of low resources

consumer. The sales point in face of consumers

evolution.

Changeable Forces

Ratings of the economic growth, show stability

Laboral field and inmigrant revenues show deceleration.

Inflationary pressure slows down the credits designated to consumption

In demographic terms, Mexican population will age because of the low birth rate

The medium class gains terrein over the lower class.

Masive product markets demonstrate a growth in line with GDP

The pressure on price is mainly maintained by Beauty, Hygiene and Food products.

Growing, our first challenge

Mexico shows an economic stability with difficulties to grow.

Growing forces that maintain a stability are descending.

It is important to identify the path we have to take to make the markets grow.

Two big changes will be observed:- The low birth rates - Medium level development of

population of low level.

It is fundamental to maintain new growing strategies.

Mexicans, consumers in maturation process

Piramid transformation of a mature population.

The 40%of consumption will be concentrated in housewives older than 55 years.

The change will have diferent impacts in Country

The categories for older housewives have an advantage position

Consumption rates of housewives older than 55 years

Lower development categories should evaluate their future position

Fabricants will face different challenges according to the first consumer and the categories.

Some actual shopping habits are consecuence of aging

Different factors that can influence

Different lifestyles can be appreciated in older than 55 years housewives

Be prepared to observe a more mature consumer

The group of housewives older than 55 years will grow 100% in 2025.

This group will represent 38% of consumption

It is very important to understand that:-The loyalty level is different to the one

nowadays.-The attitude towards publicity will be

different to what we know actually -The strategies segmanetation is vital to

maintain consumption.

The potential of the low resources consumer

The medium class gains terrein over the lower class.

If we divide the lower class in two parts we can observe important characteristics

Long Lasting Products demonstrate a big evolution in market penetration.

Households are concentrated in Mexican Valley and South zone of the Country

Categories that have not found place yet in this profile

The penetration over these categories is covered compared to medium level

Categories with 50% lower price paid by the medium level

According to the shopping place LIC homes are similar to medium homes

There is a different shopping value

Shopping places foment frequent buys with low amounts

LIC a consumer with high potential

Increasing life level of low and margin population.

The consumption is the same as the medium level population only 4% lower

There is two basic choices to embrace this oportunity:

- Products that have important sells in this level.

- Launch of new products and brands.

Sales point in front of consumers evolution

The modern channel shows an evolution over the traditionals

The development of self services stores is given in small comunities

Nowadays Store Chains demonstrate some differences by format

Lower prices are an alternative but difference can lose relevancy

Regular products are common in all chains and formats

We must identify the value generators during the buying act.

Specialized categories with high fidelity but low penetration in market

Categories of high penetration

Some categories are not usually accompained in supermarket cars as others

Challenge to fabricant

High penetration categories ¿How to use them in order tp atract

consumers? ¿How to use them in order to make

the average ticket grow? ¿How to use them to attend the

requirements of specific profiles?

The average of shopping of the housewives of 35 years is similar.

There are potential categories in each age group

Nowadays not all profiles buy the same categories in supermarkets

The ticket amount is correlated to the number of categories in the car

The profile knowledge is important to identify the categories that have low sales

The traditional channel plays an important part of some categories

Future of Trade

The most important fact is to identify the requirements of consumers and the store that can satisfy this requirements.

To specialize one brand by opening new product lines.

Recomendations

The attention should be in older than 55 years consumers

Keep fidelity with nowadays consumers to keep them as future consumers

Stablish strategies by categories Creation of products according to new

requirements of consumers Diferent types of products to avoid the

price factor.

Thanks!!