As a marketing agency specializing in LATAM, we’re increasingly approached by clients seeking proposals to launch their products in the vast and dormant LATAM market.
Sadly, most of these conversations kick off like this:
– “Hey, Braistorming, we’ve got a unique product that’s going to be a hit in LATAM. Can you help us position it?”
– “Sure, mate, which specific markets are we talking about?”
– “I don’t know, all the interesting ones. Our product is ready for all of them…”
– … (awkward silence)
Our team’s conclusion usually remains the same: you’re not prepared for these markets. Don’t throw your investment down the drain.
It may seem logical, but let’s mention some basic geography facts. LATAM (Latin America) consists of more than 20 registered countries where Spanish and Portuguese are primarily spoken. However, over 10 native and indigenous languages are still in use by their respective populations.
Additionally, each country has its unique social, political, and cultural specificities, making them distinct from one another. You need to grasp these contexts before even considering any business execution because a Chilean and an Argentine might have as many differences as a Portuguese and a German, even if they share a common language.
That said, it seems utterly absurd to try to establish a brand in LATAM while communicating in English and offering prices in U.S. dollars. Yet, you’d be surprised by the number of business owners or “business managers in emerging countries” who still believe this approach works.
Therefore, we’d like to assess a list of five essential factors that every brand must address before formulating any commercial strategy in LATAM.
1. Country-Adapted Language:
It’s easy to fall into the cliché of thinking that by using Spanish, you can cover all Spanish-speaking countries in Latin America. But that’s merely an illusion. With the exception of Brazil (Portuguese) and some countries like Haiti or French Guiana, the rest maintain the Spanish language as the common official language. However, Spanish speakers will tell you that it’s like considering each country speaks a different dialect derived from Spanish.
This is why language must be tailored to each local dialect, with its nuances and tone, so that users truly feel the message was created specifically for them. Latin Americans are tired of reading communications in a robotic, poorly translated version of Spanish generated by AI. Remember, “you can fake the flow” , and Latin Americans are well aware of that.
2. Brand Ambassadors:
It doesn’t matter if we call them influencers, brand ambassadors, or representatives. What’s crucial is finding someone who can adapt your brand’s message to the specific country in LATAM and who carries credibility within the community.
It would be fantastic to have Leo Messi or Bad Bunny as brand ambassadors, utilizing their influence across Latin America. However, the reality for 99% of brands is quite different. Therefore, it’s more important to collaborate with someone who has influence in a specific LATAM country, even if they belong to a different sector, as long as their values align with your brand’s values.
3. Local Currencies:
Just like languages, it’s essential to mention that Latin America has over 20 local currencies. Although many of them have suffered severe depreciation in recent years, they are still widely used in most countries.
While it’s true that some countries like Ecuador or Venezuela (for different reasons) have adopted the U.S. dollar as their official currency, recent surveys have shown that 95% of the Latin American population is unaware of the equivalent value of 1 USD converted into their local currency.
Moreover, for many countries, physical deposits at points like gas stations or supermarkets are still a widely popular payment option. Approximately 30% of the total population doesn’t even have a bank account or credit card. So, you need to research each country to understand how to facilitate purchases for potential customers.
In conclusion, attempting to enter Latin America with U.S. dollars or euros is synonymous with failure.
4. PR & Partnerships:
Latin Americans still attach a great deal of credibility to local newspapers and regional media. In many cases, this is the only way for people to connect with current events.
Hence, when planning to launch or position a brand in a specific LATAM country, having partners who can generate PR and support the message you want to convey in each country is vital.
While these actions could be part of the SEO or link-building strategy, it’s also crucial to secure partnerships with influential figures in the sector who can help boost your brand.
5. Customer Support:
Although it’s evident, many companies still make the same mistake: not offering customer support during LATAM working hours.
In most cases, these companies have their headquarters in Europe or Asia and offer customer support during their working hours. However, this is insufficient to meet the demands of customers and answer the queries of potential clients.
Therefore, adjust your customer service hours to the peak hours in each LATAM country, considering that there can be a time difference of up to 5 hours between different countries in LATAM. Taking this into account won’t necessarily gain you many more customers, but it will prevent your acquired clients from leaving and persuade potential clients to choose your brand.
In conclusion, be water.
Adapt your brand to every market. Each LATAM country has something special that makes it unique. Find a way to connect your brand with the specific characteristics of its people, and you’ll have a ship guaranteed to sail smoothly in LATAM.