In 2020, the world was affected by the COVID-19 pandemic, which changed consumer behavior, strengthening digital sales channels. Some companies even had to advance their development projects for those channels that they had planned for later years.

However, 2023 begins with the recovery of the physical channel. The new flexibility has made consumers prefer this type of store where they can buy everything in one store.

In 2021, 285 million electronic transactions were made in Ecuador; the rebound goes hand in hand with millennials and centenarians

This is according to a report by McKinsey & Company, a global consulting company focused on strategic management, the so-called State of commerce (State of the Groceries Trade), which reveals that in Ecuador the physical channel is recovering from a -32% decline between 2020-2022, and expects usage intent to grow by 3% by 2023.

He adds that the trend in this area is that transit between channels will be more fluid due to the lifting of pandemic restrictions that have caused consumers in Ecuador to change their channel preferences. Channel usage intent on the line it is expected to be -26% by 2023, a drastic drop from the 34% increase between 2020-2022.

This global report has historically been published for three regions: North America, Europe and Asia; and for the first time it is also available for the Latin American region (Chile, Colombia, Peru, Argentina, Ecuador, Panama, Uruguay, Costa Rica, Dominican Republic and Guatemala). For this report, a sample of 8,000 consumers, men and women aged 18 to 75, was taken in ten Latin American countries, including Ecuador; and interviews with the chief executive officers retailers.

The first CyberDay 2023 will be from April 24 to 26

EL UNIVERSO newspaper consulted Leonardo Ottati, president of the Ecuadorian Chamber of Electronic Commerce (CECE), about the digital channel trend in Ecuador. The expert assures that this alternative is growing among Ecuadorian consumers, although he admits that it does not maintain the same rhythm as in previous years.

“Consumers are interacting more and more with digital channels, obviously the acceleration of the digital option will not be the same… to continue the growth and the digital option that we had during the pandemic and shortly after the pandemic is not a reality, but if we consider that it continues to grow and that we clearly see in the numbers, that there is definitely a part of the population that is completely focused or used to digital interaction,” says Ottati, who highlights some of the verticals of this digital interaction are banking, airlines and tourism services.

As for the growth of the physical channel, Ottati believes that this does not necessarily mean growth at the level of preferences.

“But the mass as such, customers on the line and people meeting their needs digitally is evident every day more and every day companies are also strengthening their digital channels to meet the needs of their customers”, analyzes the president of CECE.

Trade will grow 5% in the region and Ecuador

Meanwhile, the paper examines the region’s projections and suggests that the trade industry will grow by 5% in 2023, placing the region among the best performing in the world. 74% of consumers indicated that they are looking for ways to save money, and 61% are actively looking for the best deals. After easing restrictions due to the pandemic.

Returning to Ecuador, a McKinsey & Company report shows that the revenue of retailers in the country will grow at a rate of 5% in 2023. “Executives have learned to be cautious, and expected inflation offers good reason to stay that way. A significant increase in the cost of goods and business creates pressure retailers to maintain their margins as they seek to take advantage of this increase,” the report analysed.

According to the study, 4% of the Ecuadorian family basket is purchased through digital channels

Another challenge for retailers, According to the consultant, this is a significant change in consumer preferences and behavior. A recent McKinsey survey of Hispanic consumers points to some trends that will shape the industry Store (grocery stores) in Latin America, including Ecuador, in the coming years.

The first is the search for savings that will dominate consumer decisions. In Ecuador, there is a 74% net intention to look for different ways to save when shopping. When analyzing the net intention that exists for each form of savings, the following data stand out:

▪ 63% will actively seek promotions to save money.

▪ 31% will switch to cheaper products to save money.

▪ 13% will buy private label products.

In addition, new healthy lifestyles will also change demand. Ecuadorians have a 67% net intention to focus on healthy eating and nutrition. Although this intention is positive, the net intention varies according to the attributes associated with conscious and healthy living:

▪ 9% paying a higher price to get a healthier product.

▪ 17% buy high-quality/superior food products.

▪ 5% of paying a higher price to get a more environmentally friendly product.

The post-pandemic Ecuadorian consumer will bet on sustainability; companies in Ecuador must adapt

Finally, personalization is expected to become an important factor in the new loyalty process. Hispanic consumer preferences are framed by country diversity, and Ecuador is no exception. Five attributes retailers which most correlate with the loyalty of the Ecuadorian population are:

▪ It has the best discounts/promotions.

▪ Offers lower prices.

▪ It is a leader in sustainability.

▪ Offers a wide selection of premium products.

▪ The quality of the fresh product is good.

“Executives will need to act quickly to respond to these consumer needs. Investments in new skills – especially advanced analytics – could provide retailers food Hispanics the tools and perspectives they need to stay one step ahead of the competition.