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After a few unsuccessful attempts to break into the US market, we had reached the conclusion that it was impossible to fight against the perception the US has of products from Latin America in general as being poor in quality. Has that perception changed today?

 

That is very interesting question, and has more layers than one would think.

First we need to determine if the failure to enter the US market was due to this perceived lack of quality of Latin American products, or a number of other issues.

For years there was indeed a generalized idea that products from Latin America had poor quality.

Those ideas were the result of a number of factors:

-          In many cases products coming from Latin America were actually of poor quality, and by that we mean both the product itself and the difficulty for North American firms to deal with Latin American companies. In terms of not delivering on time, or being unable to deliver consistent quality, etc

-          A very poor job at marketing of Latin American products abroad.

-          The general perception of Latin America as poor countries, with unskilled workforces, and undated technology has not helped.

But those are certainly not factors for a company to fail repeatedly in it’s efforts. As examples we have companies in Japan, Korea and China:

In the 60’s and 70’s Japanese cars and products were considered of very poor quality, they were thought of as simple imitations of American products, with lower quality.

Companies back then, fought that perception with innovation, lower prices and quality.

For much of the 80’s and 90’s Korean cars and products took the place of the imitations, and they used the same approach. Korean cars have the best guaranties in the market, and are much cheaper than their American or Japanese counterparts, companies like Samsung became real engines of innovation, while keeping competitive prices.

 

Then it became time for China to be the producer of low quality imitation products, entering the market with really low prices, and slowly making it’s way into quality and innovation. For example the acquisition of the IBM PC business by Lenovo, where a Chinese company became the producer of the most reliable PCs.

Some countries, industries and companies are doing a good job at creating a positive image. Such is the case of Chilean wine, which is perceived in a very positive light nowadays.

Most Latin American companies, when trying to enter the US market fail in areas that have little to do with generalized pre conceptions.

They fail at researching the market, to see if they need to adapt their product to the American consumer, they enter the US market without learning the details of how the industry works in the US, thinking that because they have a position in their country of origin they will be regarded in the same position in the US.

They fail at thinking where to start geographically, and in many cases because they know Miami they start opening an office there, even if it’s not a mayor center for their industry.

In short they fail at STRATEGY, and long term commitment. To enter a market like the North American one requires investment, and long term commitment.

Such a strategy could involve, good pricing even if it means selling at cost for a period of time as to position the brand, and an integrated approach. A real desire to capture the hearts, and pockets, of the consumers in the US, and not just an after thought due to special circumstances in the country of origin.