Francisco Muñoz - Philips Latam

In a region as diverse and dynamic as Latin America, brand growth depends on more than simply having a strong product. Consumer behaviour is evolving rapidly, driven by digitalisation, changing media habits, and new technologies that are reshaping how people discover, evaluate, and purchase products.

For Francisco Muñoz, Head of Insights & Analytics LATAM at Philips, growth starts with understanding consumers deeply, anticipating how their behaviour is changing, and adapting quickly enough to stay relevant. Looking across markets from Mexico to Chile, Francisco sees a future where consumer understanding, shopper excellence, and learning from global innovation will increasingly determine which brands succeed.

Understanding Consumers before Selling Products

For Francisco, one of the biggest mistakes brands can make is becoming too focused on their products and not focused enough on the people they are trying to serve. While product quality remains essential, growth ultimately depends on understanding consumers, where they are, how they shop, and what role a category plays in their lives. “Having a good product is not enough,” he explains. “You have to know how to sell it, but you also need to know who you are selling it to.”

“Having a good product is not enough; You have to know how to sell it, but you also need to know who you are selling it to.”

This consumer-centric mindset goes beyond traditional demographic targeting. Brands need to understand the moments when consumers are most receptive, the channels they use, and the different journeys they follow before making a purchase. A consumer who shops primarily online behaves differently from someone who visits physical stores regularly. As those journeys become increasingly fragmented, understanding where and how to reach consumers becomes a critical growth driver. “The better we understand where consumers spend their time and how they behave, the better we can build strategies that actually reach them.”

This understanding is particularly important in Latin America, where younger generations represent not only the future but also a significant part of the current market. Francisco believes brands need to continuously adapt their understanding of emerging consumer groups, especially Generation Z and the generations that follow. “Today’s biggest consumer opportunity is no longer my generation,” he says. “We need to understand Generation Z and how to reach them with our products.”

“Today’s biggest consumer opportunity is no longer my generation. We need to understand Generation Z and how to reach them with our products.”

Communication is the New Differentiator

While many categories continue to innovate, Francisco believes that true differentiation increasingly comes from communication rather than the product itself. In categories where products become more similar, and consumers face an overwhelming number of options, the brands that communicate their value most effectively are often the ones that win.

“There are categories where products have become fairly generic,” he explains. “Consumers walk down an aisle and see thousands of options. Often they choose the brand that communicated its point of difference most effectively.”

For Francisco, differentiation is increasingly about creating emotional and rational reasons for consumers to choose one brand over another. Even when products offer similar functional benefits, communication can create preference. “At the end of the day, many brands are telling consumers the same things. But one brand communicated differently and managed to make consumers believe in it. That is the one they take home.”

This challenge is becoming more complex as traditional mass media loses influence, particularly among younger consumers. The media landscape has become fragmented, and consumers are no longer passively consuming advertising. “How do we continue reaching consumers when they are no longer watching traditional media?” Francisco asks. “And when they are on digital platforms, they are not there because they want to see advertising.”

As a result, brands need to become more flexible in their communication strategies and create content that fits naturally within the environments where consumers spend their time. The same message cannot simply be copied across television, YouTube, Instagram, TikTok, and emerging AI-driven platforms.

“The behaviour of someone on TikTok is very different from someone on Instagram, Facebook, or Google. The context is different, and therefore the communication needs to be different as well.”

“At the end of the day, many brands are telling consumers the same things. But one brand communicated differently and managed to make consumers believe in it. That is the one they take home.”

The E-Commerce Shift Changed Everything

One of the most important growth decisions Francisco has witnessed during his time at Philips was the company’s early commitment to e-commerce. While online shopping already existed in Latin America, Philips recognised early that consumer behaviour was changing and that e-commerce would become a fundamental growth driver. “Seven years ago, hardly anyone would have imagined doing their entire monthly shopping online,” he says. “Today, many people do exactly that.”

Rather than treating e-commerce as a small additional channel, Philips made a deliberate decision to view online and offline as two equally important ecosystems. This required new capabilities, new partnerships, and a deep understanding of digital shopper behaviour. In Latin America, much of that growth was driven by Mercado Libre, which Francisco describes as the closest equivalent to Amazon in the region. “They were able to capitalise on the opportunity, especially during Covid, and their logistics capabilities are extraordinary.”

Beyond marketplaces, Philips also invested heavily in its own e-commerce operations and worked closely with traditional retailers as they developed their online businesses. Many of the principles that had been refined in physical retail had to be translated into digital environments. “What we had learned about physical stores—promoters, merchandising, visibility, product availability—we translated into the online environment.”

That meant optimising product pages, imagery, descriptions, reviews, and every element that influences conversion. The experience reinforced a broader lesson: brands need to be willing to develop new shopper channels, even when existing channels are still performing well.

“What we had learned about physical stores—promoters, merchandising, visibility, product availability—we translated into the online environment.”

Winning the Last Battle: The Shopper

While communication, innovation, and consumer experience all matter, Francisco believes the shopper remains at the centre of brand growth. “At the end of the day, capturing the shopper remains the final battle.”

He argues that even the strongest marketing campaign can fail if consumers do not choose the product at the moment of purchase. Whether online or offline, brands must understand the factors influencing shopper decisions and ensure they are present at the right moment. “We can create all the marketing strategies in the world, but if consumers do not choose us when they stand in front of the shelf, then much of that effort is lost.”

This shopper focus extends to promotions, pricing, and channel strategy. In Latin America, price remains a significant consideration for many consumers, making promotional periods such as Cyber Days, Black Friday, Mother’s Day, and Father’s Day particularly important.

At the same time, Francisco stresses that promotions should always serve a strategic purpose. “We should not offer promotions simply because a retailer wants one. Every channel should have a clear role within the broader strategy.”

Understanding consumer journeys has become equally important. As e-commerce has made those journeys more flexible and less linear, Philips has invested heavily in mapping the touchpoints where it can influence consumers. “Once we understand the journey and know how to reach consumers, it becomes a shared roadmap for the entire team.”

“At the end of the day, capturing the shopper remains the final battle. But we should not offer promotions simply because a retailer wants one. Every channel should have a clear role within the broader strategy.”

Looking to the Future for Inspiration

One of the most interesting themes in Francisco’s perspective is the importance of looking beyond local markets for inspiration. Thanks to digitalisation and global connectivity, brands can increasingly learn from developments taking place elsewhere and adapt them to their own markets. “We can see what Turkey is doing with our products, what is happening in the United States, or how another country is succeeding in a category where we may be struggling.”

While cultural differences remain important, Francisco believes consumers around the world are becoming more similar in some respects because they are exposed to the same innovations and experiences. That is why he pays close attention to developments in markets such as China and India. Whether it is mobile payments, hyper-fast delivery services, or entirely new consumer experiences, these markets often provide a glimpse into the future. “When consumers experience a solution that removes a problem from their lives, they want it. There is really no way around that.”

Artificial Intelligence as an Accelerator

Looking ahead, Francisco sees artificial intelligence as one of the biggest opportunities for brands. Not because it simply reduces costs, but because it enables companies to understand consumers better, make faster decisions, and reinvest resources more effectively. “For the first time, we have access to enormous amounts of data,” he says. “We can identify where we are succeeding, where we are failing, what gaps exist, and how to close them.”

The brands that learn how to use customer and internal data effectively will gain a meaningful competitive advantage. However, Francisco believes the real value lies in reinvesting efficiencies into stronger consumer experiences and more effective communication. “The objective should not simply be to save money. It should be to use those efficiencies to grow the brand and connect with consumers more effectively.”

Ultimately, Francisco sees brand growth as a continuous process of understanding, adapting, and learning. Whether it is understanding emerging generations, embracing new shopper channels, adapting communication strategies, or drawing inspiration from innovations happening on the other side of the world, the brands that stay closest to changing consumer behaviour will be best positioned to grow. “The better we understand consumers, the better we understand where to find them and how to influence them.”

“For the first time, we have access to enormous amounts of data. We can identify where we are succeeding, where we are failing, what gaps exist, and how to close them.”