Those who work in retail know the importance of seasonal dates for the health (and profit) of the business. Cross-border businesses must be aware, though. Seasonal dates change from country to country, and some are more important in a region than they are in others. Children’s Day is probably one of them.
Children’s day is a very lucrative retail holiday in Brazil and other Latin American countries — this year it yielded something around half a billion dollars* in Brazil alone — becoming one of the most important seasonal dates in the region.
So, if you want to sell to the region, you must plan it properly. Here is everything you need to know to be successful when selling to Latin American customers during the date.
Different calendar dates in each country
Despite UNICEF establishing Universal Children’s Day on November 20th, this event is celebrated on various dates throughout the world, and even in Latin America, each country celebrates it in a different day of the year.
- In Brazil, children expect to gain gifts on the 12th October. The date was established a long time ago, in 1924, by the federal deputy Galdino do Valle Filho, but it was only in 1955 that the date was officially adopted. This year, Brazilian retailers extended the date and transformed it into a real “Children’s week”, which was a success in sales.
- Mexico celebrates their Children’s Day on April 30th, because of a declaration signed by President Álvaro Obregón, in 1924.
- In Argentina, the date is celebrated on the third Sunday of August, because of commercial and economic factors.
- Chile has changed the date a couple of times. It was only in 1990, after the United Nations Convention on the Rights of the Child was signed, that the second Sunday of August was established as the official Children’s Day.
Sales performance per country
According to data from Boa Vista SCPC, the total amount spent in ecommerce on Children’s Day increased 2,2% in comparison to 2017, reaching USD 490 million*.
This marks the second year in a row that sales grow during the date, after a slight fall in 2016 and 2015. The same study points out that this growth is connected to the fact that both labor and consumer markets are beginning to boom again in the country.
Research conducted by Vindi, Neoassist, and Mindminers identified the consumer profile of those who shop on Children’s Day. The study revealed the 5 most bought gifts for the date are: toys (72,6%), clothes (39,3%), shoes (26,5%), games (22,1%) and books (19,3%).
Here are some other interesting findings:
- 72,9% of buyers spent up to USD 54,26*
- 75,7% googled product prices before buying them
- 53,3% prefer going to a brick-and-mortar store
- 33% said the platform makes no difference when shopping
Concerning payments, credit cards were the most popular method, being used 95,15% of times. From all buyers, only 18,86% preferred buying all at once, while 81,14% opted for paying in installments.
Just like many other places in the worlds, the date is a considerable factor for the sales increase of some segments of the Mexican market. According to research by Nielsen, the confectionery category registered an average increase of 66% in sales, while toys grew 52% in comparison to 2017.
In a country where 32,8% of the population is less than 17 years old, Children’s Day is an excellent business opportunity. More than giving gifts, a study by Kantal Worldpanel revealed that Mexican families also use the date as a pretext to doing outdoor activities, going to the movies or even traveling.
Because of the recent economic crisis, 2018 Children’s Day in Argentina had a 3.3% drop in comparison to the previous year, with an average spending of USD 18**.
Despite this small fall, the toys category grew 1% during this seasonal date. According to the Argentinian Confederation of Medium-Sized Enterprises (CAME), one thing is clear: the sales were made, but the ticket was lower.
Furthermore, many families opted for enjoying the date with some family time, going to the movies, theaters, having a special meal or doing a short trip.
CAME consulted many retailers to have a deeper understanding of the Children’s Day performance in Argentina, and 22,6% said that there was an improvement in sales, 61% that there was a decrease, and 16,4% that it remained the same compared to last year.
Still talking about the number of sales, 75% of the gifts were bought in 3 interest-free installments.
In Chile, the situation isn’t much different. According to a study from CCS/Snuuper, toys are still the favorite gift option (27%), followed by apparel (15%), technology (8%), board games (7%) and confectioneries (7%).
It is worth to note that 90% of respondents stated that special offers were fundamental when purchasing the product.
According to the CCS research, Chileans spent something around USD 14 and 29*** with gifts on Children’s Day. Despite the shy growth (0,7%), the Chilean apparel market found in the date a way of improving its indicators. According to the National Chamber of Commerce, Services and Travel of Chile), the sector experienced a 2,5% growth in sales.
How to make Children’s Day in Latin America a good sales strategy
As we’ve mentioned before, seasonal dates are of extreme importance when guaranteeing the profit of businesses. Who wishes to increase sales in different periods of the year have in Children’s Day a golden opportunity. Since this date is celebrated on various dates and in different Latin American countries, this is a golden opportunity for global entrepreneurs to take advantage of other countries’ seasonal dates and increase profit throughout the year.
Some Latin American countries, such as Argentina, have passed through economic turmoils. Even though it didn’t affect the number of sales directly, the situation had a direct impact on how the population buys. In Argentina, for instance, payments in installments gained even more relevance.
This new landscape demands some adaptation, particularly for international ecommerce stores. For instance, a Brazilian consumer will prefer to pay a little more but be able to pay in installments than having to pay all at once for a high-ticket product on an international website.
The good news is that you can solve this sort of problem by offering local payment methods that consumers are familiar with. Allowing payments with credit cards with installments enabled is an advantageous process for both the consumer, who doesn’t need to worry about additional taxes either with exchange fees, and the retailer, who receives the money all at once when partnering with a local payment company.
If you are looking for new ways to make more money with your ecommerce store, consider cross-selling to Latin America and taking advantage of all its Seasonal Dates.
The exchange rates used for this text were:
* 1 USD = 3,69 Brazilian reais
** 1 USD = 36,44 Argentinian pesos
*** 1 USD = 682,41 Chilean pesos