In recent weeks, many voices have been added that predict an economic recession for the year 2023. The size and duration of this debacle are yet to be known. The reasons for this fact include the great uncertainty that reigns due to the war between Ukraine and Russia, the increase in tensions in some regions of the world such as the Caucasus, Taiwan and North Korea, China’s zero COVID policy and fears for bank insolvency with global reach.
This situation is accompanied by the enormous strength of the US dollar, the plans of Russia and China to make their currencies accepted in the oil and gas market, and the negative forecasts on the growth of some regions and countries. All these circumstances are not alien to the general knowledge of people around the world. It is for this reason that the rationalization of purchases seems to be the norm in the short and medium terms.
Another alarm signal is that the main retail chains in the United States have begun to speed up the emptying of their inventories and the cancellation of part of their supply volume of other products in the face of warning signs that warn of a drop in sales to weeks of Christmas time. This action has produced a chain of consequences that also affect consumers who are part of the supply chains of these supermarkets.
What can we contribute from Market Research in this scenario? As we have anticipated in other posts on our blog, there is still some time to find out in as much detail as possible the facts that can contribute to the potential crisis that seems to be at hand. If you have already made these provisions, it is time to deepen with people what fears and measures are directing their decisions.
It is true that in times of conjuncture it is that the best results can be achieved. However, to achieve this, it is necessary to have resources to be able to capitalize on the opportunities that will appear in the coming months if the trends observed to date do not change direction. Knowing in detail and in a timely manner the concerns and needs of consumers can be the decisive step between spending or investing.
Latin America is usually a very vulnerable region, exposed to economic and productive fluctuations. Proof of this is the behavior of prices and cautious purchases made to date. Changes in consumption habits are usually temporary, but how long they last will depend on the perception of the magnitude of the recession that is getting closer and inevitable.
If you are looking to deepen your knowledge of LATAM consumers, you can count on Acertiva. We have almost twenty years of experience in the region. Write us today so you can tell us about your Market Research needs and so we can tell you how we can be your regional allies.