Today, more than 62 million homes throughout Latin America buy through the door-to-door sales system. However, this is the lowest level of sales in the last 3 years. Before that, the channel reached more than 2 million homes with toiletries and beauty products, mainly in Brazil and Argentina, according to a survey by consumer behavior research agency Kantar Worldpanel.
Among the impacts suffered by the channel, the main ones were the convenience and specialization practiced mainly by Pharmacies – purchase channel of 70% of the population of Peru and 55% of Colombia -, which offer the possibility to test the products in the nearest place and the possibility of payment in cash or card, a differential compared to door-to-door, where payments are made in most cases in cash.
This reinvention occurred not only to meet the new need of a more demanding and anxious consumer, but also to gain relevance in a time of economic slowdown and expansion of access to the internet, a channel that can generate credibility through bloggers, social networking And also through tutorials from the manufacturer itself. Like this, more and more pharmacies are updated with more targeted and functional spaces, consultants trained to guide the consumer at the time of purchase and more comprehensive portfolio also perceived by manufacturers.
The ticket average is higher, as beauty products purchased in pharmacies have increased 32%, while basic toiletry products 8% in the region, points to Kantar. The format for beauty retailing actually varies by region: 63% in Latin America, 19.7% in Spain, while in Asia Internet sales are 50% in China and 55.2% in South Korea, while in Latin America only 3.5% of households buy through this channel.
According to the agency, the relevance achieved by other channels also occurred due to the lack of the door-to-door selling system reinventing itself over the years, says the agency.
In addition to this “reinvention” the door-to-door channel should also address three important issues, according to Kantar: Resellers – to date some brands have resellers as the primary means of reaching the end consumer. Entry into other channels can be a critical point as the beauty retailer may feel threatened and unmotivated from the moment the consumer can access the same brand through a ready-delivered channel and with different means of payment.
Consumer Omnichannel – Consumers are looking for more channels to supply themselves up, which can be an opportunity for brands, since 64% of consumers use more than 2 channels and spend 48% more than those who use only one channel. That is, the more channels, the greater the expense.
Different channels for different categories – Once decided to enter different channels the brand should, according to Kantar, also work different strategies. This will prevent the demotivation of the resellers, the cannibalization of categories / channels and will bring better use of the products with difficulty in developing itself in the door to door. For example, perfume that requires knowledge of the fragrance chosen may have as its main focus physical stores, this will facilitate the contact of the consumer with the product and also increase the possibility of gifting someone with that category.