Mexican consumers have been hit harder than their US counterparts by the downturn since 2008, but they are more optimistic about their country’s prospects than their neighbors to the north are. Far fewer Mexican consumers than US ones have traded down to less expensive products: instead, they have remained loyal to their brands but cut back on spending. Those who have traded down are much happier with less expensive brands than their northern neighbors are. These key insights from a new McKinsey survey1 of Mexican consumers have important implications for consumer-packaged-goods (CPG) and retailing companies that compete in Mexico, a market vying with China as the number-two US trade partner. As the country’s economy continues to recover, CPG companies have an opportunity to design strategies that fit well with the Mexican consumer’s brand loyalty preferences, while retailers could tap into the potential for growth in private-label sales.
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