Nearly all islanders buying Made in Puerto Rico products.

Virtually all consumers purchase locally grown and/or manufactured Puerto Rican products, according to the latest CARIBBEAN BUSINESS/WOSO Radio/Gaither International weekly poll. A resounding 95% of those polled said they do so regularly, indicating untapped potential in the market for local products. 

“We also believe that awareness about the importance of buying locally grown or manufactured products has been growing among the population. It is a guaranteed way of supporting local jobs and reinvesting in our economy, which is more important now than ever,” said Manuel Figueroa, president of the Puerto Rico Products Association (APPR by its Spanish initials). 

Moreover, Figueroa said, poll results validate the lasting impact APPR’s Busca el sello, invierte en ti (Look for the stamp, invest in you) campaign has had among local consumers and retailers alike. Long after the campaign concluded in mid 2008, stickers denoting Puerto Rico products are still visible in many retail outlets and on fleet trucks used to transport produce and other products and mentioned in local public-service campaigns.

Poll results clearly show that the perception of local products has improved dramatically over the years, according to Beatriz Castro, research analyst for Gaither International.

“Traditionally, local products were considered not as good in quality or presentation as imported products hence the value perception was inferior when compared with imported products. That situation has changed dramatically over the past 20 years. Today’s consumers consider that locally produced/manufactured products are in most cases of even better quality than imported products,” said the Gaither analyst. 

An impressive survey finding is how frequently consumers purchase local products. Nearly six out of every 10 consumers (57%) report having purchased a local product during the last seven days, while a substantial 86% reported making such a purchase during the previous two weeks.

“These figures show that consumers are not only expressing a willingness to acquire local products, but also clearly show that the intention has actually turned into a common consumer pattern. The implications of this new trend in consumer behavior are far-reaching and indicative of tremendous growth opportunities for the near future,” said Castro. 

“That is, of course, the best news to start a new year,” said APPR’s Figueroa. “The campaign was an important trigger, but it has been the support of local corporations, media outlets and partner organizations such as the Manufacturers Association that has truly helped strengthen the value proposition of our local products in the marketplace.”  

For example, the local Walmart operation already stocks more than 700 locally grown or manufactured products throughout its local and stateside stores. Walmart’s suppliers program has also been critical to supporting local manufacturers as was the case of Mayagüez’s Bumble Bee operation, which packs Walmart’s private-label tuna fish. Sears’ buying programs have long supported such local designer labels as Nono Maldonado and Frank Mora, whose fashion and shoe collections, respectively, are sold in the retail chains’ local and stateside stores. Walgreens, the island’s leading drugstore chain, also carries a significant number of locally manufactured pharmaceutical products. 

Everybody buys local

The survey results showed no major demographic differences or preferences when it comes to buying local products as there were no major response differences based on age group or socioeconomic level.

Asked which local product(s) they purchased most recently, the vast majority of respondents mentioned food-related products such as viandas (root vegetables), other vegetables, fruits and milk. One-third of respondents frequently buy local coffee. 

Seafood was mentioned by 6% of consumers and eggs by only 2% of respondents.

“This latter figure is somewhat revealing, since the local egg industry has a significant market share. However, this does not necessarily mean that the market share of local eggs has decreased in recent years but rather is a reflection that consumers are less aware of the origin of the eggs in local stores,” Castro said.

Apparel and leather products, mostly on the handcraft market, were the non-food products most mentioned by consumers. 

“It is important to note that many of the food products that Puerto Rican consumers consider locally produced are not. For example, most consumers consider viandas and plantains as local products, whether they come from the Dominican Republic or Costa Rica. The fact remains, that in today’s increasingly health-conscious society, many consumers find additional value in many of these products and are willing to pay for that value, especially if they think they’re local products. And it certainly represents a timely opportunity, as well as a challenge, for the local government and industry to exploit and develop this niche to its full potential,” concluded Castro.

To see more charts CLICK above on ‘More Images’.

For more information at http://www.caribbeanbusinesspr.com

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