This week, the National Institute of Statistics and Geography (INEGI) in Mexico published the inflation indicators for June 2022.
It turned out to be the highest in the Mexican country since 2001, scoring 8 points: 7.9%. They are, without a doubt, alarming data for the Aztec country, Latin America and the region.
In twenty years there has never been such high inflation, even though the Mexican government is subsidizing gasoline, which is very expensive for the Mexican government. The subsidy is around 7 pesos per liter, experts estimate. Without government support, each liter would cost approximately 28 pesos. From January to May 2022, the gasoline tax subsidy cost the government 88 thousand 241 million Mexican pesos, reported the Tax Administration Service, SAT.
As one would say, the oven is not for buns. Inflation and high prices are through the roof everywhere, it is not a regional issue and each country manages it as best it can.
I am making a journey from the particular to the general. We live in a post-pandemic state and there is currently a trade war between China versus the United States, and also with the shipping companies that transported products from China to the world.
To give you an example, what used to cost $10 in transportation now costs $120 to transport, this of course is largely absorbed by the end customer. The products and services are the ones that are paying the consequences with our portfolio that things cost more every day. So, gasoline costs are getting more expensive every day, transportation is much more expensive, and products are more expensive because it costs much more money to produce them for their parts. This is a kind of universal disaster for everyone’s pocket. Rich, poor and “middle class”.
And so how do I market and communicate with this chaos?
Hybrid. The online implies many offline logistics processes and all this generates expensive costs. Implement processes that solve the needs of your clients in terms of their catalog selection time, but that the client himself is part of the solution to complete the flow of the sale or the production chain.
As the Pick Up, Collector systems or online pre catalogs. What you are going to achieve with this is that the same client enters into an online/offline sales process so that there are fewer logistics flows that imply less transportation and fuel costs.
Sell and communicate promotions accessible to your customers every week, for certain times, that imply buying better in smaller amounts of product. Which implies that they may generate more purchase missions, but spend less money in each commercial interaction, whether online or offline.
And remember: not everything online is online, on the contrary, online processes involve a lot of offline logistics and this costs a lot of money right now.