Transcript
【Guy】You know, I've always been fascinated by how brands figure out what people actually want to pay for stuff. Like, how do you price a body lotion in Brazil versus Chile? Today, we're diving into a fascinating case study from Atypica.AI about a natural skincare brand trying to crack the South American market.
【Ira】Right, and this isn't just about slapping a price tag on a product. This is about understanding what makes young women in São Paulo, Santiago, and Buenos Aires tick when it comes to skincare. What are they worried about? What gets them excited? And here's the thing—this brand is betting everything on TikTok and Instagram.
【Guy】Exactly! So picture this: you're a natural skincare company, you've got this body lotion that's perfect for sensitive skin, and you're staring at three completely different countries in South America. Brazil alone is the fourth-largest beauty market in the world—we're talking $33 billion and growing. But here's the kicker...
【Ira】Wait, let me guess—just because it's a huge market doesn't mean you can just copy-paste your strategy everywhere?
【Guy】Bingo! And that's where Atypica's research gets really interesting. They discovered that young women across these three countries share some surprising pain points, but the way they think about money and value? Totally different stories.
【Ira】Okay, so what's the biggest problem these women are facing with body lotions?
【Guy】Oh man, this blew my mind. It's not what you'd expect. Everyone talks about wanting "natural" products, right? But when Atypica dug deeper through their interviews, they found the number one complaint across Brazil, Chile, and Argentina was... fragrance.
【Ira】Fragrance? Really?
【Guy】Yeah! Artificial fragrances were causing redness, itching, flare-ups. Even some essential oils. And here's what's wild—these women have become incredibly skeptical of anything labeled "natural" because they've been burned before by products that claimed to be gentle but weren't.
【Ira】Huh, so they're not just looking for natural—they're looking for proof that it actually works for sensitive skin.
【Guy】Exactly. And the second biggest frustration? Texture. In humid places like São Paulo and Rio, nobody wants a greasy lotion that takes forever to absorb. They want to put it on after a shower and immediately get dressed without feeling sticky.
【Ira】That makes total sense. So how did Atypica figure out what these women would actually pay for this stuff?
【Guy】This is where it gets really clever. Instead of just asking "What would you pay?" they used something called the Van Westendorp Price Sensitivity Meter. They asked four specific questions: At what price would you think this is too cheap to trust? When would it be a bargain? When does it start feeling expensive but you'd still consider it? And when is it just too expensive, period?
【Ira】Oh, that's smart. Because "too cheap" is actually a red flag for quality, especially for sensitive skin.
【Guy】Right! So in Brazil, they found that anything below 32 reals—that's about $6.50—made people nervous about quality. But the sweet spot? Around 80 reals, about $16. That's higher than the local favorite, Natura, but women were willing to pay it if they could trust the ingredients.
【Ira】What about Chile and Argentina?
【Guy】Chile was fascinating. They were willing to go up to about $18 for the right product—these are educated consumers who really research ingredients. Argentina was trickier because of their economic situation, but they still landed around $16 when they saw value.
【Ira】So we're talking about roughly the same price point across all three countries, even though the economies are different?
【Guy】That's what surprised me too. But here's the thing—it's not really about the price. It's about the story you tell. Atypica discovered that Brazilian consumers want to hear about sustainably sourced Amazonian ingredients. Chileans want scientific proof—like, show them the dermatologist studies. Argentinians want to know it's better than what they can get at the pharmacy.
【Ira】Wait, so the same product, same price, but completely different marketing messages?
【Guy】Exactly. And this is where the social media strategy gets really interesting. Remember, this brand is selling directly through TikTok Shop and Instagram. So Atypica developed three different campaign angles based on what resonates in each market.
【Ira】Okay, lay it on me.
【Guy】First, there's "The Soothing Power of the Amazon, Backed by Science." Picture TikTok videos with dermatologists explaining how Cupuaçu butter from the Amazon actually works on a molecular level. This hits both the local pride and the scientific credibility.
【Ira】That's brilliant. What else?
【Guy】Then there's "Finally, A Natural Lotion That Actually Works for Sensitive Skin." This one addresses that skepticism head-on. Think "Get Ready With Me" videos where influencers show how fast it absorbs—no sticky feeling, you can put your clothes on right away.
【Ira】And the third angle?
【Guy】"Your Daily Ritual of Conscious Self-Care." This taps into that whole sustainability movement. Behind-the-scenes content showing how the ingredients are ethically sourced, connecting the product to values, not just results.
【Ira】It sounds like they really understood their audience. But I'm curious—what could go wrong here?
【Guy】Oh, Atypica was smart about this. They identified three major risks. First, price perception. If you're charging more than Natura in Brazil, you better have a damn good reason why. Second, that whole "natural" skepticism we talked about—you can't just slap that label on and expect trust.
【Ira】Right, because they've been burned before.
【Guy】Exactly. So instead of leading with "natural," lead with "100% fragrance-free" or "dermatologist-tested for sensitive skin." Be specific, be provable. And the third risk? Thinking one message works everywhere. A São Paulo college student cares about different things than a Buenos Aires professional.
【Ira】So what's the big takeaway here? If you're trying to enter a new market, you can't just look at the economics?
【Guy】That's exactly right. You've got to understand the emotional landscape. These women aren't just buying moisturizer—they're buying trust, they're buying the promise that this won't irritate their skin like the last five products did. They're buying into a story about who they are and what they value.
【Ira】And the price? That's almost secondary to getting the value proposition right.
【Guy】Bingo. When Atypica showed these women a clear ingredient list, a compelling sustainability story, and proof that it works for sensitive skin, suddenly $16 for a body lotion felt like a bargain instead of expensive.
【Ira】Man, this makes me think differently about how we research any new market. It's not just demographics and purchasing power—it's about understanding the real problems people face and how they think about solutions.
【Guy】Absolutely. And for any company looking at international expansion, this shows why you can't just translate your existing marketing. You need to understand what success looks like through your customers' eyes in each specific place.
【Ira】Well, Guy, this has been eye-opening. Thanks to everyone at Atypica.AI for sharing this research, and thanks to all of you for listening. Until next time!
【Guy】Thanks for listening, everyone!