Ten questions you should ask yourself when thinking of exporting childrenswear to Latin America

Gabriela Castro-Fontoura, Director, Sunny Sky Solutions

With a population of around 600 million, Latin America is a huge market for most sectors in terms of size.

According to UKTI, the middle class population of the continent is 300 million people, showing that there is also purchasing power. Children’s fashion businesses will understand the possibilities that Latin American demographics offer them. In Brazil, for example, over 3 and a half million babies are born every year.

1.       Where do I start? You might have an ideal already of what markets you want to get into or might already have generated some contacts at trade shows. The key here is what follows – make sure you understand the markets.

2.       What do my potential markets look like? To start with, you will want to know what clothes children wear, where, when, how they are bought and where, and how much they cost. For example, Christenings and Baptisms are important occasions, and godparents and grandparents are key buyers. Is shopping done in department stores? Online? In small boutiques? What brands are there already? What are the trends? What are the import duties? All these questions should be answered before taking things any further. And bear in mind that Latin America has over 20 countries which have their own ways of doing things...

3.       How will I enter those markets? – you will have many routes to market – from distribution to opening your own store, from franchising or licensing to finding an agent. You might also want to think about manufacturing locally.

4.       How will my products sell? – Through department stores, small boutiques, e-commerce?...

5.       How will I generate enough brand awareness? – parenting magazines and social media are just two methods to consider, and making sure your local partners will invest in your brand

6.       How much will I charge for my products in these markets? – bearing in mind import duties and exchange rate fluctuations, plus shipping costs.

7.       How will I get paid? Just like with any sale (particularly overseas) you will need to make sure you are paid, and on time.

8.       How will I look after my customers? – you will want your customers to become loyal followers – make sure you look after them

9.       What are the regulations, certifications and registrations (if any) that apply to your products?

10.   What are the investment requirements and what timescales are we talking about? – Latin America is not a market for quick-wins, so are you prepared to invest time and resources?

By Gabriela Castro-Fontoura, Director, Sunny Sky Solutions x