Latin America is one of the world regions that in recent years has had a special rise in terms of economy, after Asia and the Middle East; so much so that in recent days the Fitch agency pointed out that the region remains resilient in the face of the international credit crisis and that business conditions continue to strengthen in 2008. One more reason to think of Latin countries as places of investment for manufacturers, especially in the security industry, where foreign participation is becoming stronger and stronger.
Within this concept, there are some misconceptions of what this activity means, because many times the "reps" are associated with distributors, assuming that the former has an inventory of the brand, when in fact they are an extension of the brand in a region where the manufacturer does not have a physical presence.
Likewise, a representative must sell and support its customers in the assigned territory to establish sales channels, in addition to being the spokesperson for the brand and the vehicle that communicates the needs of customers to the factory; the representative is the face of the manufacturer in that region, country or territory.
But for all this to happen, they must above all develop the market, and establish relationships with customers in their space and in their culture, a factor that has made them key players in the security sector. In this industry, in which different distributor, integrator and end user market channels are managed, the "reps" must make them interested in the products through various local services such as training and technical support, among others.
However, it is worth noting that representatives do not buy and sell solutions, but are the direct channel of the manufacturer and the consumer, that is, they can sell to distributors, integrators, as well as advise end users, but not sell them. Additionally, the popularity that these firms are currently enjoying is due to the fact that working through this channel is less expensive in direct proportion to sales within a niche.
But in these favorable situations there are also some difficulties, especially those related to the character of the representative companies, since not being manufacturers or distributors is a difficult situation for customers to understand; even more so when they open the way to manufacturers that have not been very present in the Latin market.
Another difficulty is the little participation that manufacturers have within the culture of the region, especially when talking about the availability of technical materials in Spanish and Portuguese, as this in turn allows it to be easier to penetrate that niche and achieve a good promotion and positioning of the brand.
Some factors that influence the role of representatives are the conditions of the environment such as disloyalty in the market and how this influences the credibility of those who try to do business under unconventional schemes. Many times the customer acquires good or service based on price and unfortunately the cheap is expensive.
The representative should be an advisor who understands the client's needs and recommends the best solutions to meet them; the above generates good relationships of trust, which is what in the end weighs.
Additionally, the economic and political environment affects the role of the "reps", since their actions are often measured by the situation of the countries in terms of imports or free trade agreements. For example, in Peru, Chile, Mexico and Costa Rica sales have grown due to these trade agreements, but in countries such as Brazil and Argentina, among many others, they still have difficult customs and trade policies, since import costs are very high.
As a result of this, many "reps" have opted for different solutions in order to meet the needs of customers in the best way, so many manufacturers are producing products with the JIT (Just in Time) philosophy, reducing delivery time.
Today the security industry is transforming and growing more and more, and not only in the application of solutions, but also in the commercial optics and in the local distribution chain, which has been strengthened in recent years.
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