Nearly half of importers in the region are looking for new international suppliers in various industries,
including growing automotive sector
MISSISSAUGA, ON, July 13, 2017 /CNW/ - UPS (NYSE:UPS) announced the results of its 2017 UPS Business Monitor™ Export
Index Latin America (BMEI) report. The study focuses on the purchasing behaviors of small and medium enterprises (SMEs), a
segment representing more than 90 per cent of companies in Latin America 1. It
reveals insights about importers that will help exporters sell and supply products to this growing sector.
The insights include importer's preferred methods to evaluate and contact new suppliers, the criteria they use to purchase
products, and factors in the supply chain that influence their purchasing decisions.
The nine countries included in the survey include: Brazil, Chile, Colombia, Costa Rica, Dominican Republic,
Mexico, Panama, Peru and
the United States.
"The BMEI study provides importers and exporters with a deeper understanding of the purchasing dynamics of SMEs in
Latin America," said Jose Acosta, president of Public Affairs,
UPS Americas Region. "The SME sector in the Americas is playing a significant role in the region's economic growth and global
trade."
The 2017 BMEI, a UPS study conducted in conjunction with the RGX Global Export Network, surveyed 2,170 importers from the industrial manufacturing, automotive, apparel and
high-tech industries regarding the factors that influence their purchasing behavior about the products they buy.
By taking an in-depth look at SME importers' buying trends, exporters are provided with insights to help them tailor their
outreach strategies to tap into current and new markets.
The study highlights the importance that importers place on the quality of the products they buy, which is as critical as
price, but the automotive industry in particular places great value on other key considerations.
"The importance of logistics and shipping solutions provided by the vendor, as well as flexible payment terms, are two
elements that must be considered by exporters to address these markets," said Craig Rayner, vice
president of automotive, UPS Canada. "Canadian exporters in this sector would be well served to initiate trade activities in
markets with existing trade agreements in place and, where possible, a local industry that is open to international
competition."
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1 https://www.caf.com/en/currently/news/2016/06/latin-america-in-search-of-more-competitive-sme/?parent=30234
Main Study Insights
According to this year's study, 47 per cent of Latin American importers are looking for new international suppliers, which
suggests an opportunity for Canadian exporters to find new buyers. Industry fairs and trade shows were cited as the most
frequently used channel for finding new suppliers at 28 per cent, followed by trade missions at 21 per cent.
In the region, 21 per cent of respondents indicated they expect potential suppliers to contact them, which reflects an
opportunity for proactive Canadian exporters to present focused and well-researched business proposals via email or
telephone.
Brazilian importers are the most proactive in seeking new suppliers, with only five per cent indicating they do not contact
new suppliers but rather wait to be contacted. Importers in the U.S. were the least proactive, with one out of three (31
per cent) indicating they do not contact suppliers.
Importers indicated the top two product attributes influencing their purchasing decision were quality (97 per cent) and price
(87 per cent) followed by seller services, such as, flexibility in payment terms and after-sales services.
In the industrial manufacturing sector, almost half (45 per cent) of companies surveyed indicated that they import raw
materials and basic inputs for production. This result is fully aligned with the nature of industrial manufacturing in the
Americas, where domestic factories import their production inputs.
In addition, over half (56 per cent) of industrial manufacturing importers looking for new suppliers use internet search
engines to contact them, and 34 per cent said potential suppliers contact them directly via email, from which it can be inferred
that online communications are a viable channel for exporters to reach out to new potential customers.
For the automotive sector, Colombia, Costa Rica and
Peru have the highest percentage of importers looking for new suppliers and the most marked
tendency toward digital behaviour.
The high-tech sector has the highest level of online purchasing activity in the buying process. This is explained by
importers' preference for online searches when looking for new suppliers, the high number of respondents completing purchases
completely online (50 per cent), as well as the more frequent and varied use of online promotional tools.
In the apparel segment, exporters looking for new markets to develop should consider the U.S., Costa
Rica and Chile. These countries had the highest percentage of respondents looking for new
suppliers.
Warranty policies and product certifications were named as the most valued content on a potential supplier's
website.
For more information and press materials on the BMEI study, please visit www.pressroom.ups.com
About 2017 UPS Business Monitor™ Export Index Latin America
The BMEI Study included interviews from 2,170 individuals responsible for international purchases from the following
industries: Industrial Manufacturing (36 per cent), Automotive (22 per cent), Apparel (21 per cent) and High-Tech (21 per cent).
The study was conducted in nine countries including: Brazil, Chile, Colombia, Costa Rica, Dominican Republic, Mexico, Panama,
Peru and the United States. A sample per country was defined
based on the size ratio between each market with a margin of error between +/- 4.7% and +/- 9.1%. The respondents were asked a
series of questions using a CATI (computer-assisted telephone interviewing) system. The selected importers completed at least
five transactions in the 12 months prior to the interview. The BMEI was commissioned by UPS (NYSE:UPS) and conducted by the RGX
Global Export Network.
About UPS
UPS (NYSE: UPS) is a global leader in logistics, offering a broad range of solutions including transporting packages and freight;
facilitating international trade, and deploying advanced technology to more efficiently manage the world of business.
Headquartered in Atlanta, UPS serves more than 220 countries and territories worldwide. The
company can be found on the web at ups.com ®
or pressroom.ups.com and
its corporate blog can be found at longitudes.ups.com . To get UPS news direct, follow @UPS_Canada on Twitter.
SOURCE UPS Canada Ltd.
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