Panama - Selling Factors and TechniquesPanama - Selling Factors and Techniques
Panama has the highest per capita income in Central America. However, the majority of income is skewed to a small, consumer goods-oriented economic class. These upper-middle and upper income class families have high levels of disposable income. They are interested in purchasing high quality, trend-setting goods. Price is less of a factor in purchasing decisions made by this class than for the middle and lower income classes. The majority of Panamanians are interested in quality, but price still plays a more important role in the purchase decision.
In recent years Panama’s growth as a passenger air hub for Latin America and its competitive consumer retail environment have contributed to a proliferation of shopping malls that promote Panama as a shopping destination for the region’s growing middle class. It is not uncommon to see Brazilians, Colombians, Venezuelans, and Central Americas flooding the malls, particularly during holidays. As a result, U.S. consumer retail and franchise companies can expect more sales opportunities than Panama’s small population would at first indicate.
The use of the U.S. dollar as legal currency and consumer preference for high quality products at competitive prices are two reasons for high acceptance of U.S. products in Panama. Overall, U.S. products are well accepted in the market and are considered to be of good quality. However, in many instances, U.S. products must compete against lower priced products, especially from Asia. For example, as in the U.S. itself, Japanese and Korean electronics dominate the market because of aggressive market entry techniques and good quality at competitive prices. Note that U.S. brands, many of whom manufacture outside of the U.S., enjoy a prominent position in the marketplace and in the Colón Free Zone. Such brands as Nike, Oakley, and Columbia sportswear fall into this category. Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.
In recent years Panama’s growth as a passenger air hub for Latin America and its competitive consumer retail environment have contributed to a proliferation of shopping malls that promote Panama as a shopping destination for the region’s growing middle class. It is not uncommon to see Brazilians, Colombians, Venezuelans, and Central Americas flooding the malls, particularly during holidays. As a result, U.S. consumer retail and franchise companies can expect more sales opportunities than Panama’s small population would at first indicate.
The use of the U.S. dollar as legal currency and consumer preference for high quality products at competitive prices are two reasons for high acceptance of U.S. products in Panama. Overall, U.S. products are well accepted in the market and are considered to be of good quality. However, in many instances, U.S. products must compete against lower priced products, especially from Asia. For example, as in the U.S. itself, Japanese and Korean electronics dominate the market because of aggressive market entry techniques and good quality at competitive prices. Note that U.S. brands, many of whom manufacture outside of the U.S., enjoy a prominent position in the marketplace and in the Colón Free Zone. Such brands as Nike, Oakley, and Columbia sportswear fall into this category. Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.