Consumer Lifestyles in Ecuador

CONSUMER LIFESTYLES IN
ECUADOR
Euromonitor International
May 2017
CONSUMER LIFESTYLES IN ECUADOR Passport I
LIST OF CONTENTS AND TABLES

Lifestyles in Ecuador .................................................................................................................... 1
Chart 1 Consumer Lifestyles in 2016 ........................................................................ 1
Top Five Consumer Trends .......................................................................................................... 1
the Slowdown in the Economy Is Changing Spending Habits .................................................. 1
Consumers Look Online and Across the Border in Search of Cheaper Goods ........................ 2
Increasing Consumer Demand for Healthier Food.................................................................... 2
Ecuadorians Still Going on Holiday Despite Economic Uncertainty .......................................... 3
Sports Participation on the Rise ............................................................................................... 3
Consumer Segmentation .............................................................................................................. 3
Babies and Infants .................................................................................................................... 3
More Parents Connect Through the Internet To Find and Share Information ........................... 4
Stronger Demand for More Healthy and Nutritious Foods ........................................................ 5
Chart 2 Number of Babies and Infants (Aged 0-2) and Average Age at
Childbirth ...................................................................................................... 5
Kids........................................................................................................................................... 5
Chart 3 Number of Kids (Aged 3-8)........................................................................... 6
Tweenagers .............................................................................................................................. 7
Chart 4 Distribution of Tweens (Aged 9-12) .............................................................. 8
Teens........................................................................................................................................ 8
Chart 5 Distribution of Teens (Aged 13-17)............................................................... 9
Young Adults ............................................................................................................................ 9
Chart 6 Distribution of Young Adults (Aged 18-19) and Age at First Marriage ........ 11
Middle Youth ........................................................................................................................... 11
Chart 7 Distribution of Middle Youth (Aged 30-44).................................................. 12
Mid-lifers ................................................................................................................................. 12
Chart 8 Number of Mid-Lifers (Aged 45-59) ............................................................ 13
Later-lifers ............................................................................................................................... 14
Chart 9 Number of Later-Lifers (Aged 60+) and Life Expectancy ........................... 15
Eating and Drinking .................................................................................................................... 16
Eating Habits .......................................................................................................................... 16
Chart 10 Consumer Spending on Food and Non-Alcoholic Drinks: 2016 ................. 17
Drinking Habits ....................................................................................................................... 17
Chart 11 Consumer Spending on Beer, Wines and Spirits: 2016 ............................. 18
Healthy and Ethical Living .......................................................................................................... 19
Attitudes To Health and Wellbeing.......................................................................................... 19
Chart 12 Consumer Expenditure on Personal Health: 2016 ..................................... 20
Ethical Living .......................................................................................................................... 20
Chart 13 Obese and Overweight Population by Gender: 2000-2015 ........................ 21
Sport and Fitness.................................................................................................................... 21
Chart 14 Percentage of Households Owning a Bicycle: 2016 ................................... 22
© Euromonitor International
CONSUMER LIFESTYLES IN ECUADOR Passport II
House and Home ....................................................................................................................... 22

Home Ownership .................................................................................................................... 22
Chart 15 Overview of Households: 2016 .................................................................. 24
Household Profiles.................................................................................................................. 24
Chart 16 Households by Type and Occupants.......................................................... 25
Running Costs ........................................................................................................................ 25
Chart 17 Running Costs per Household: 2016 ......................................................... 26
Leisure and Recreation .............................................................................................................. 27
Leisure Time ........................................................................................................................... 27
Vacations ................................................................................................................................ 28
Chart 18 Holiday Time: 2016 .................................................................................... 29
Opportunities for Celebrations and Gift-giving ........................................................................ 29
Technology ................................................................................................................................. 30
the Internet ............................................................................................................................. 30
Chart 19 Accessing the Internet: 2015 ...................................................................... 30
Attitudes Towards Social Media and Networking .................................................................... 31
Grooming and Appearances....................................................................................................... 31
Investing in Yourself: Female Personal Grooming and Hygiene ............................................. 31
Chart 20 Consumer Expenditure on Personal Appearance: 2016 ............................ 32
Investing in Yourself: Male Personal Grooming and Hygiene ................................................. 33
Style Icons and Celebrity Influences ....................................................................................... 33
Shopping .................................................................................................................................... 34
Main Household Shop ............................................................................................................ 34
Chart 21 Main Household Shop by Retailer Type: 2016 ........................................... 35
Shopping for Big-ticket Items .................................................................................................. 35
Shopping Online ..................................................................................................................... 36
Chart 22 Internet Retail Spending: 2015 ................................................................... 38
Spending and Saving ................................................................................................................. 38
Attitudes Towards Spending ................................................................................................... 38
Attitudes Towards Savings ..................................................................................................... 39
Attitudes Towards Loans ........................................................................................................ 39
Chart 23 Key Spending and Savings Measures: 2016 .............................................. 40
CONSUMER LIFESTYLES IN ECUADOR Passport 1
CONSUMER LIFESTYLES IN
ECUADOR
LIFESTYLES IN ECUADOR
Chart 1 Consumer Lifestyles in 2016
Source: Euromonitor International
TOP FIVE CONSUMER TRENDS
the Slowdown in the Economy Is Changing Spending Habits

The uncertainty caused by the economic downturn, including nervousness about the jobs
market, has had an impact on consumers’ spending habits. Consumers have become
increasingly cautious and spend greater time looking for discounted prices and, in many cases,
they hold off on buying products altogether. Households are also planning more carefully what
they need to buy and limiting impulse purchases. In particular, consumers are looking for
cheaper alternatives when it comes to food, technology and clothing.
Spending on entertainment and going out has also generally declined. For example, per
capita spending on full-service restaurants fell by around 15% from 2011 to 2016 as consumers
go less often and, when they do, they buy less expensive meals from the lunch menu in
restaurants. A growing number of restaurants are adding cheaper items to their menus to
accommodate the shift in spending.
Consumers are also restricting their purchases of big ticket-items, not only because of
stretched household budgets but also due to the surcharge customs duty fees of between 5%
and 45% on imported products that have significantly increased prices. According to the Director
of the Ecuadorian Chamber of Automotive Industry (CINAE), more Ecuadorian consumers are
now turning down pre-approved credit to buy new vehicles simply because they fear the
financial uncertainty. Other consumers are turning to purchasing less expensive used cars.
Consumers Look Online and Across the Border in Search of Cheaper

Goods
Consumers are increasingly shopping in Colombia or Peru to take advantage of lower prices
and the favourable exchange rate. The proximity of Peru and Colombia makes it easy to travel
by land transportation to these countries and many go during weekends or on short holidays
and combine shopping with tourism. Due to tariff surcharges of up to 45% for some imported
products as well as the increased VAT rate—raised from 12% in April 2016 to 14% in June 2016
to help tackle the cost damage caused by the 2016 earthquake in 2016—domestic prices are
now much higher. As a result, for example, many consumers believe that clothing in Ecuador is
excessively expensive and a growing number now shop in Peru or Colombia where clothing
prices can be two to three times cheaper.
In addition, many consumers look across the border when for Christmas gift shopping. They
also travel to Colombia to buy back-to-school items for their kids at the beginning of the school
year. During these periods, shops in Colombia extend their opening hours to accommodate the
increased number of Ecuadorian shoppers.
Those who don’t want to physically travel increasingly look online for cheaper prices.
Consumers are able to compare prices offered on national and international websites. The most
popular products bought online are technology, clothing and make-up. The shopping events
Cyber Monday and Black Friday have gained in popularity as eager to find discounted prices
flock to international internet retailers. Amazon.com is the most popular online retailer.
Increasing Consumer Demand for Healthier Food

Despite the higher prices for organic food, demand is growing at a fast pace in line with
consumer’s growing knowledge and awareness of the benefits of a healthier diet. More
consumers are now aware that eating organic food means they get more nutrients, vitamins and
minerals than they do when consuming commercially grown food products. For other
consumers, organic foods are simply fresher and better tasting. Parents are also increasingly
buying organic baby food.
The growing demand for organic products has been reflected in their greater availability in
traditional retailers such as supermarkets and discounters as well as online. This has been
welcomed by consumers as most organic farmers’ markets are only open one day per week or
every second week.
The appeal of the vegetarian diet is also increasing among many consumers based on both
health factors and a growing awareness of animal welfare issues. There has been a proliferation
of vegetarian restaurants opening in the main cities in response to the growing demand,
particularly in Quito, Guayaquil and Cuenca. In Quito alone, the number of vegetarian
restaurants increased by 8% from 2012 to 2015.
Ecuadorians Still Going on Holiday Despite Economic Uncertainty

The number of holiday-makers taking domestic vacations is increasing, particularly those
takin shorter trips during weekends. Ecuadorians tend to take three-day, five-day or one-week
holiday trips, depending on their budget and time. During school breaks consumers tend to take
longer vacations and those that can afford it may travel to international holiday destinations.
The domestic tourism infrastructure has grown and now consumers enjoy more alternatives in
terms of accommodation. The massive tourist campaign ‘Viaja Primero Ecuador’ promoted by
the Ministry of Tourism is meant to encourage domestic vacations. The Ministry of Tourism and
private tourist companies are also offering tourist packages with discounted prices. Since 2015
Social Security System (IESS) participants can take travel loans at an interest rate of 9.75% and
chose discounted domestic tourist packages from a dedicated website. The most popular
domestic holiday destinations are Guayaquil, Quito, Manta, Esmeraldas and Coca.
Among those wanting to travel to international holiday destinations, Miami, Fort Lauderdale
and Orlando in Florida and New York City are the top choices. Those without American visas
tend to choose visa-free destinations such as Colombia, Peru, Panama or Mexico. The
favourable exchange rate makes Colombia, in particular, very attractive for those wanting to
combine shopping and travelling.
Sports Participation on the Rise

Sports have become an important part of the Ecuadorian lifestyle as more people now
participate in a wide range of sports activities. Endurance sports such as distance running,
triathlons or cycling races are especially popular amongst a growing number of both men and
women.
The Ironman Ecuador has grown in popularity each year with an increasing number of
participants. In 2015 there were 1,500 participants while for the Manta Ironman 2016, the
number of participants increased to more than 1,550 athletes despite the 2016 earthquake that
affected the city of Manta. Around 60% of Ironman participants will try again next year with more
female applicants expected every year. Quito Ultimas Noticias 15k race is another popular race
with both professional and amateur athletes participating. The 2016 race saw more than 18,000
participants, with many private groups of co-workers training together for months before the
race.
Cycling has become increasingly popular, gaining more followers across the country and with
many cycling groups practicing together on a weekly basis. Urban Mobility and Urban Cycling
are groups that organise monthly tours and share experiences about their tours, accessories
and cycling equipment. New cycle lanes called ciclopaseos are now available in the main cities.
Quito Municipality’s project BicyQuito has increased the number of public bicycles from 425 in
2015 to almost 2,000 in 2016. Around 50,000 cyclists there are using the cycle lanes in Quito
every Sunday. There are 22 bicycle races each year in different areas in Ecuador which attract
cyclists from all over the country.
CONSUMER SEGMENTATION
Babies and Infants

The number of babies and infants (0-2 years) reached 971,330 in 2016, up from the 957,470
recorded in 2011. Despite the fact that the fertility rate has more than halved since 1980, the
2016 figures were still above replacement (2.5 births per female) in 2016. The rate is expected
to drop to around 2.2 births per female by 2030.
In 2016, birth rates were 20.2 per ‘000 population, but by 2030 the rate is predicted to be 16.3
per ‘000. The economic situation is playing a key factor towards this decline, as many young
women are postponing having children. Firstly, they are looking to finish off their education and
then secondly securing employment for a safe economic base.
As stated in an article in El Telegrafo in 2015, a 30-year-old mother, stated that is enough to
raise one child only, despite her own family background with six siblings. She believes it is too
much responsibility to bring so many children into the world at the current time. “It is very
tiresome having to take care of a baby, work and do the housework at the same time. There is
no time to do personal things”. This woman is representative of the urban average, reflected in
cities like Quito, Guayaquil and Cuenca. For the Amazonian provinces birth rates remain high.
According to an article in El Comercio in 2015, the National Institute of Statistics and Census
INEC shows that Ecuador reached an international record in reducing teenage pregnancies
during the period 2010-2013. The figures indicate a decrease by 10.2% in girls aged 10-14 y/o
and a 12.9% decrease in young women aged 15 to 19. This achievement came as a joint
strategy involving various sectors, spearheaded by the Ministry of Public Health (MSP). The
MSP is responsible for providing information, advice and delivering free contraceptives through
their primary care facilities.
The demand for childcare centres among working parents have continued to increase,
particularly in the major cities such as Quito and Guayaquil. Working parents who have no help
from extended family, as well as low income parents, without the financial means to pay for a
private babysitter, are more likely to be looking for services with extended opening hours. The
Municipality of Quito has significantly increased funding for more childcare centres. In 2013
there were 14 of these centres, whereas the number rose to 70 centres (locally called Guagua
Centres) by May 2016 with a goal of 100 centres by the end of 2016.
These centres offer four meals a day, such as midmorning snack, lunch and two snacks in the
afternoon. In October 2016, the Foundation Patronato San Jose, an organization commissioned
to run social programmes for children, adolescents, adults and the older population, stated on
their website that 72% of boys and girls in the Guagua Centres, have improved their size and
weight.
Ecuador is still a conventional and conservative society with heavy emphasis on the extended
family and grandparents play a significant role in helping take care of babies and infants in their
own family. This is not only a question of trust but it is also more economical for parents to use
grandparents for childcare instead of hiring a babysitter.
More Parents Connect Through the Internet To Find and Share

Information
Mothers are keen on using blog channels and chatrooms to find information benefitting their
babies and infants. The most common app for this purpose is WhatsApp with mothers engaging
in groups and forums seeking and sharing advice, particularly first time mothers. The blog
www.blogmamasmodernas.com was launched in 2015 and now has more than 100,000
followers on Facebook.
Chiquitosybebes.com is also a popular website for parents who want to find information about
special activities for their babies and infants in Quito. The website offers an extensive list of free
and paid activities on their website and on Facebook, as well as a list of baby and infant
products available in Quito. Their Facebook website has almost 27,000 likes.
Parents also like baby products company Bebemundo as they offer workshops throughout
their stores in main cities such as Quito and Guayaquil, with a booking site to reserve tickets for
seminars in advance. Bebemundo has reached more than 200,000 likes on their Facebook
page.
Stronger Demand for More Healthy and Nutritious Foods

The healthy trend has continued to increase in popularity among Ecuadorian Families. Soups
are an important part on the regular menu of Ecuadorian families and are given to babies during
the first year of life. The lack of time available to prepare foods amongst working parents has
increased the need for healthy choices. Some parents’ choose to buy ready-made foods that
contain organic products with healthy proteins such as amaranth and quinoa.
Chart 2 Number of Babies and Infants (Aged 0-2) and Average Age at Childbirth
Source: Euromonitor International from national statistics/UN

Note: Data for 2017-2030 are forecasts
Kids
In 2016, there were 1.9 million Kids aged three to eight, a growth of 3.5% when compared to
the 1.84 million Kids recorded in 2011. However, the number of Kids is projected to peak at 1.94
million in 2023, before declining to reach 1.91 million in 2030.
Kids enter the education system at the age of three. Education in public establishments is free
of charge but is not compulsory. Parents have to approach a Public Early Education Centre of
their choice with proof of rental housing payments and payment of utility services in order to
show their place of residence as well as the birth certificate of their child and an identity card.
According to an article in El Comercio in 2015, in Quito there are around 809 private school
options to choose from. However, the most important factor when choosing a school is the
budget. A mother of a four-year-old boy stated that she has decided to allocate around US$480
per month including transport and the monthly school payment. Another important factor when
choosing a private school is the location and in general parents tend to choose a school that is
near their home. The average fee in private schools can vary from US$250 to more than
US$1,500 per month. Parents tend to visit different private schools to have an idea of what the
school can offer their children and are looking for schools that offer additional languages
particularly English and to a lesser extent French and German.
All private and some public schools offer transport which is not compulsory, but is practical for
working parents as it saves time. Extracurricular sport and music activities are common in
schools, particularly football, volleyball and gymnastics for kids aged five to eight years old.
School uniforms are compulsory in many private and public schools.
Parents have to provide packed lunches or have the option of sending money with their
children to buy school lunches. As stated in an article in El Diario Regional El Norte in 2016,
mothers are always asking what they can prepare as a nutritious lunch for their children. One
mother stated that the first day that she enrols her son in school she receives a menu from the
school with the options that she can buy when she is not sending a packed lunch. The menu
generally consists of sandwiches with juice, “chochos” with cheese and juice and costs
US$1.50.
According to the latest 2015 Educational Statistics developed by the Ministry of Education, the
provinces that have the greatest number of educational institutions are Guayas with 4,230
followed by Manabí and Pichincha with 3,239 and 1,951 respectively. The percentage of Kids
that go to school depends upon their ages. According to the latest figures from the Ministry of
Education, in 2013 five-year-old Kids had a 94% attendance, while six to eight years old had
almost 99%.
Parents are crossing the border to buy school materials for their children
Back-to-school materials are not free of charge in public schools. Parents have to buy a list
which cost around US$40 to US$50 per child in 2016. According to an article published in El
Comercio in 2016, the purchase of school materials at the beginning of the school year,
motivates Ecuadorians to buy in the city of Ipiales in the south of Colombia. Vladimir Arias, a
parent of two children, went to Ipiales to buy school materials for the second consecutive year
particularly to take advantage of the depreciation of the peso against the dollar. According to
Harold Delgado, the president of the Chamber of Commerce of Ipiales, in a normal period they
estimate to receive about 30,000 visitors each week. The arrival of Ecuadorians, during this
month, forced several establishments in Ipiales to extend their hours of operation, opening even
on Sundays.
Strong demand for Kids to participate in sports

Parents of different social classes are looking for extracurricular activities for their children,
that are not available at their school. Some parents are hoping to discover a talent that their
children can excel at, while others want their children to make new friends and interact with
different kids from outside their school.
The Secretary of Education, Recreation and Sports is in charge of offering sports and
recreational and physical activities in public spaces in order to promote healthy lifestyles to
children. In January 2016 in the Pichincha Province there were around 105 Sport schools,
distributed between 82 football schools, 10 athletic schools and 13 basketball schools. Children
can practice sports from 15:00 to 18:00. Each school has an instructor and a supervisor.
Chart 3 Number of Kids (Aged 3-8)

Tweenagers
This group includes the younger end of the population group ‘Generation Z’ (born from 1995-
2009). There were 1.22 million Tweenagers (aged nine to 12 years old) in 2016 up by 2% from
2011. This slight increase followed the economic crisis in 1999 that resulted in fewer couples
having children at that time. The number of Tweenagers is projected to reach 1.29 million by
2030.
Tweenagers enrolled in both public and private schools normally take the school bus, parents
that live in the surrounding areas close to school will organise their time to drive the car to
school on the way to work. Schools in big cities such as Quito and Guayaquil are located in
wider areas, and therefore it is not possible for all children to walk or cycle to school. However,
in small towns, Tweenagers can easily walk to school or use the bicycle and this is particularly
common in the Coastal region where the land is flat and the climate is warm.
School begins at 7am or 7:30am and children return at 1pm or 1.30pm. Tweenagers have the
opportunity to use their free time in extracurricular activities particularly in private schools.
According to the Ministry of Education in 2014, 20% of children go to private schools, and 74%
go to public schools, fiscomisional (state and private funding) and 1% to municipal. The number
of children going to private school has dropped from 23% in 2014 largely due to families having
less disposable income to spend on private schooling.
Normally schools do not offer lunch to students and parents have to pack a lunchbox for their
children. Tweenagers have their own money to buy food at school or to spend during the
weekend in leisure activities such as going to the cinema, recreation centres and on food. In an
interview in Diario Regional Independiente El Norte 2016, a 10-year-old student stated that her
father gives her US$1.00 every day for buying food at school. She stated: “I buy churros, corn
and some snacks”. Sometimes her mother gives her an apple or a clementine to bring to school.
Tweenagers put pressure on parents to enrol them in summer schools

Summer vacations in Ecuadorian schools last two months and many parents feel the pressure
to enrol their children in these summer schools, either private and public. Municipalities offer
summer schools called “colonies” to children between the ages of 6 to 12 years old and as a
result of the strong parental demand, the number of summer schools offered in different cities
throughout Ecuador has increased significantly. In 2016, the Municipality in Quito planned to
open 244 holiday colonies with an estimated capacity for 24,000 children.
Increased use of social media

There is several popular social media networks use by Tweenagers such as Snapchat,
Twitter, YouTube, Instagram but the leading social media network is Facebook. Tweenagers are
using social media to download pictures and search for friends with similar interests in music,
fashion and sports activities. Many Tweenagers like to share information on activities over the
weekend, and chat about fashionable sportswear and clothing, new movie releases or invite
friends to join them at leisure and sports centres.
Chart 4 Distribution of Tweens (Aged 9-12)

Teens
This segment includes the population group ‘Generation Z’ (born from 1995-2009) aged 13-
17. This group reached 1.5 million in 2016, up slightly from 1.49 million in 2011. The number of
Teens is projected to grow to reach 1.6 million in 2030.
A main characteristic of the older generation Z is that most of them are still at school or
college. According to latest figures from INEC for 2014, 81% of secondary students were
enrolled in schools while in 2006 this number was only 66%. One of the main reasons is that the
Ecuadorian Government has helped drive a decline in income inequality levels, which has made
it more accessible for low-income students to enrol in secondary schools.
Teens stay for longer in school, which starts at 7:30am and finishes at 2:30pm. Most
Teenagers take extracurricular classes such as sports, music or art, which extends the time
spent in schools amongst this group. Private schools have more budget that public schools and
are able to offer more sports facilities for students. Extracurricular activities are optional for all
students and are free of charge.
At school Teens have a lunch break and another small break. Some parents send a lunch box
with a sandwich, fruit, yogurt or juice and a small snack. Other Teens prefer to have money and
buy something they like at the canteen such as sandwich, French fries, hot dogs with some
healthy options such as vegetables and fruit salads. Schools in the public and private sector are
trying to offer healthier choices, but continue to offer products that Teens like such as
doughnuts, hamburgers or hot dogs. Instant noodles are a cheap and popular choice among
students and are available in most supermarkets.
Since February 2016, the Ministry of Education has introduced a set number of hours for
foreign languages in the public school system. Previously students did not receive compulsory
English in public schools and only private schools tended to offer a good level of English.
Teens are well connected

Teens that come from medium to high-income homes will normally spend money on an
expensive smartphone. Teens spend several hours on the internet daily and most of them use
the internet to find information for school assignments. This group learn anywhere, everywhere
and at any time of the day. They make contact with friends on Facebook and WhatsApp and are
well informed via Twitter. Some Teens share their experiences about trips, weekend, school,
sports and parties on Instagram, YouTube and Snapchat.
Even though there are no official figures on which technologies Teens use to connect to the
Internet, it is likely that Teens are using their smartphones to connect to the Internet. According
to GSMA Groupe Speciale Mobile Association Latin America, 65% of children, Tweenagers and
Teens have access to mobile phones.
Teens spend their money on drinks and snacks

Parents give more allowances to Teens than Tweenagers because they are more
independent that the earlier generation and they tend to go out alone with their friends. Teens
like to spend their money on movies, recreational activities and fast food. According to latest
figures from Ecuadorencifras.gov.ec in 2014, 82% of adolescents between 10 to 19 years old
have consumed carbonated drinks, 50% have consumed fast food such as fries, burgers and
pizza, while 64% had consumed salty snacks and candy. Teens love to go out with friends and
eat out in fast food places mostly because it is tasty and cheap.
Chart 5 Distribution of Teens (Aged 13-17)

Young Adults
Young Adults includes older consumers in Generation Z (born 1995-2009) and younger
Millennials (born from 1980-1994). The number of Young Adults (aged 18-29 years) reached
3.42 million in 2016 up by 5.8% from 2011. The size of this age segment has continued to be
biggest of all consumer groups and is projected to reach 3.66 million in 2030.
The number of Young Adults that have finished school and want to continue their education
continues to increase. According to an article in El Comercio in 2016, more Young Adults of low
income are entering university instead of following their family tradition of leaving school and
starting work. Young people want to change their life and get out of the cycle of poverty. Low
income Young Adults can apply to Eloy Alfaro National Scholarship Program. Those who are
accepted after passing the necessary tests will receive a basic salary of US$366 per month.
Currently the National Scholarship Programme has 5,095 students.
In the higher education system there are 736,000 students with an additional 136,000 more
students enrolling between 2006 and 2014. The scholarships offered by the government
supports low-income students who historically were excluded from studying due to their high
costs. According to the Ministry of Higher Education, half of all Ecuadorians that enrol at
university come from a family where neither parent attended university.
Students that want to study in Ivy League universities or universities with high prestige have
to take a National Examination for Higher Education (ENES). There are 1,759 students who
belong to the High Performance Group. From this group the majority study in Australia, the UK
and Canada. The most popular careers are electrical and mechanical engineering, biomedical
science, mechatronics, aerospace and architecture.
Unemployment among Young Adults is high in Ecuador. According to the Ecuadorian Institute
of Statistics and Census INEC, the unemployment rate of young people between 15 and 24
years old rose from 10% in December 2014 to 12% in December 2015. In the segment aged 25
to 34, the unemployment rate went from 4% in 2014 to 5% in 2015. In 2015 there were around
250,555 unemployed Young Adults in these two segments. INEC registered 1.5 million young
people between the ages of 15 to 34 years with jobs that have at least 40 hours per week and
received the minimum wage or over in 2016. An Economic analyst explained that the problem is
that much of the economic growth was through the public sector and not in the private sector.
There are also many young people who have university careers but there are no jobs to
implement their abilities.
Popular among Young Adults when watching TV series, documentaries, sports and films is
the use of streaming technology. According to an interview in El Comercio in 2016 with the Vice
President of HBO Networks Latin America, the demand for international television shows was
because the audience has become more sophisticated and wants more series and movies on
TV. Popular streaming technology in Ecuador is Netflix, HBO family, HBO GO and new ones
such as Claro Video.
Young Adults are more dependent on mobile phones

According to an article in El Comercio in 2015, Young adults between 18 to 24 years old are
those who dedicate more time to their mobile phones and check them over 50 times per day.
The fear of missing the latest information or the latest’s activities on social media, such as
Facebook or Twitter, is a constant problem, with notifications motivating users to stay connected
through their phone for longer periods of time. This segment is more likely to buy good quality
smartphones because it allows them to download apps and offers a high-resolution camera
phone on the same device.
Young Adults want to take English courses for better job prospects
Students that graduated from school before February 2016 did not receive compulsory
English via the public school system. As a result, there are many students that want to take
English courses to help find jobs that are more attractive. According to an article in El Comercio
2016, the Director of Instituto de Idiomas of the Salesiana University stated that it is now more
common for Ecuadorians to want to specialise in English or achieve a level of proficiency. She
also stated that they have between 5,800 and 6,200 students per level with 5% of students
having no previous knowledge of English, 50% having a beginner level and the remaining 45%
having high levels of English.
According to an interview with EF (Education First) in El Comercio in 2016, EF stated that
from a survey involving 6,500 Ecuadorians amongst others, that measured the capacity to read
and listen among 70 countries, Ecuador ranked at number 38 behind Argentina, Chile and Peru.
Chart 6 Distribution of Young Adults (Aged 18-19) and Age at First Marriage

Middle Youth
This consumer group includes older Millennials (born from 1980-1994) and Generation X
(born from 1965-1979). The Middle Youth population (aged 30-44) reached 3.37 million in 2016,
up from 3.1 million in 2011, a 9.5% increase. The Middle Youth segment is the second biggest
of all consumer groups behind Young Adults. The size of this consumer segment is projected to
reach 4.2 million by 2030.
The average age of women at first marriage was 21.7 years while the average age for men at
first marriage was 25.1 in 2016. However, marriage rates (per ‘000 population) in 2016 had
declined by nearly 25% since 2011. Both men and women are focusing more on their studies
and careers, and want to have a stable income before getting married. This situation allows
them to have more freedom to spend on clothing, restaurants and leisure activities.
The divorce rate in Ecuador has continued to increase in this age group. The percentage of
the population divorcing grew by 24.7% (per ‘000) over a five-year period 2011-2016.
Millennials drive the generation of the enterpreneur

According to the latest Global Entrepreneurship Monitor (GEM) report, Ecuador has the
highest rate of entrepreneurs in Latin America, registering 33% in 2014. In an article in El
Telegrafo in 2016 a report by Radar Ecuador, found that Millennials want to be their own boss
instead of working for a company. This segment has finished their university careers and is
considered independent. They want to gain experience, knowledge and want to establish
productive careers.
According to a Director of Espol Centre for Entrepreneurs, Middle Youth can take advantage
of the fact that they can grow a business without the need for many resources due to the
Internet. Approximately 64% of young entrepreneurs stated that developing their own business
is a possible source of income besides a steady job.
Middle Youth have more economic power

According to INEC’ latest figures, consumers between 24 to 34 and 35 to 44 years old are the
greatest users of mobile phones. The fact that the great majority in this segment has a job gives
them more economic stability and they are also more likely to put down the first payment on a
property.
Middle Youth are able to buy expensive products and services that can give them status such
as a popular car brand. According to Patiotuerca.com an Ecuadorian portal that enables clients
to publish ads for buying or selling cars, in 2015 the most popular cars brands were Chevrolet,
Volkswagen, Ford, Toyota and Nissan. According to the Asociación Ecuatoriana Automotriz del
Austro (AEADA) latest statistics 2015, Pichincha province registered the majority of car sales
with 40%, with 35 to 45 year-olds being the largest segment of buyers. Guayas province was in
second place with 27% of overall sales.
Chart 7 Distribution of Middle Youth (Aged 30-44)

Mid-lifers
This consumer group comprises older members of Generation X (born 1965-1979) and Baby
Boomers (born 1946-1964). Mid-Lifers (aged 45-59) reached 2.31 million in 2016, an increase of
14.5% when compared to 2011. This group represents the third largest proportion of the
population in Ecuador and is this segment is projected to reach 3.2 million by 2030.
According to INEC latest statistics in September 2016, there were 2.27 million people
between 45 to 64 economically active, which represents the highest number of employed of all
groups. This segment’s main characteristic is that they are still working and have been able to
invest in their own property but many are still paying for their mortgage. Mid-lifers also tend to
support other family members in terms of housing, food, clothing and leisure activities. Mid-lifers
that have children are continuing to pay for their children’s education in schools or universities.
Mid-lifers have experience in terms of travelling and are more demanding on the services and
activities offered. They like to travel both domestically and internationally, depending on their
budgets and prefer to stay in comfortable cabins and hotels.
According to an article in Revista Lideres in 2016 concerning the study “Women and Work”,
four out of 10 women think that if they earn a higher salary that their husband, it can cause
problems. Another finding indicated that when there is a shortage of work, 23% believe that men
have more right to get the job over a woman. However, for many women the most important
part is the lack of balance between work and home life, followed by receiving a lower
remuneration, no flexibility in schedules, not having access to childcare not having the same
employment opportunities as men.
This segment spends more on good quality food such as organic products and eating
healthier foods as they are concerned about their lifestyles and want to be healthy and to
exercise. Popular activities include yoga, walking or swimming. Mid-Lifers get together in
neighbourhood groups to walk together not only for exercising but also for making friends and
socialising. Municipalities in different cities offer free courses of yoga, aerobics, dancing
(bailoterapia) and meditation.
Consumers go online for their health and beauty products

According to an article on Quebakan.com website in 2016, when purchasing online Mid-lifers
prefer to buy health and beauty products rather than technology. As stated by General Manager
for Ecuador at Linio, the largest online store in Latin America, popular products include
multivitamins such as calcium, Omega 3, vitamin C, dietary supplements that help support
muscle, bones, heart and immune health. Serums, anti-aging creams, moisturising and
hydration creams with retinol, vitamin C or dark spot creams are also important for this group.
Some pharmacies are also now adapting to the Internet and are offering an online platform to
buy products through their websites.
Mid-Lifers interested in investing in property in Miami

Many Mid-lifers have gained economic stability enabling some of them to invest in a second
property outside the country. The economic insecurity in Ecuador has encouraged consumers to
invest their savings in properties in the United States. Miami is seen as a good destination to
buy because there are direct flights from Quito and Guayaquil with round trips costing from
US$400. In addition, the wider variety of properties and legal and tax security in cities like Miami
are seen as an added bonus and a safer investment.
Chart 8 Number of Mid-Lifers (Aged 45-59)

Later-lifers
Later-Lifers include older Baby Boomers (born from 1946-1964) and the Swing Generation
(born from 1925-1945). Later-Lifers (aged 60 plus) reached 1.67 million in 2016, up from 1.35
million in 2011. This consumer segment experienced the highest increase across any consumer
segments with a growth of 23.8% over this period. This group will continue to grow over the next
15 years by a massive 70% to reach 2.84 million by 2030.
For accessing the retirement plan offered by the government through The Banco del Instituto
Ecuatoriano de Seguridad Social (BIESS), Later-Lifers have to have 30 years of monthly
contributions equivalent to 360 deposits and be 60 years old. For those aged 65, they have to
provide 15 years of contributions equivalent to 180 deposits and people retiring at 70 have to
provide 10 years of contributions, the equivalent of 120 deposits. There is also an option of
retiring regardless of age, where individuals have made 480 deposits with 40 years of
contributions. Contributions to the IESS are made monthly based on the total salary earned.
The Ecuadorian Constitution and in the Senior Law right states that people from 65 years old
and older can access discounts and benefits to enjoy a better quality of life in Ecuador. Some of
the benefits are a 50% discount to all civil, cultural, sports, and recreational events. Public
transport is also half price and airline tickets can be reduced by 25% to 30% depending on the
destination. To access these price reduction Later-lifers have to submit a certificate of
citizenship when entering in any event. There is also a 50% discount on costs relating to water
consumption, electricity and telephone without exceeding a limit of 120 kilowatts in electricity, 20
cubic meters for water and discounts on telephone bills.
According to an article in El Telegrafo in 2015 the National Institute of Statistics and Census
(INEC) stated that 11% of Later-lifers live alone but this figure increases to 12% for those living
near the coast. Around 49% of Later-Lifers live with a son, 16% live with their grandson and
15% live with their spouse or partner.
Quality of life was also measured by INEC where 81% of Later-lifers stated that are satisfied
with their lives, while 28% considered themselves helpless; 38% feel sometimes that their life is
empty and 46% think that something bad can happen. Those Later-Lifers who live with
somebody have 83% higher life satisfaction versus 73% of those living alone.
In this segment 42% do not work and their level of education is primary school only. Despite
wishing to work, this group stated that 50% of men stopped working due to health reasons, 23%
due to their retirement age and 8% because their family does not allow them to work. For Later-
lifer women, 50% of them stop working due to health reasons, 20% because their family is
opposed and 8% due to reaching retirement age.
Grandparents raising their grandchildren as parents work abroad

Due to cultural traditions, grandparents help their children and grandchildren not only as a
responsibility but also as an obligation. Many Ecuadorians have left the country for economic
reasons leaving their children with their grandparents. According to an interview in El Telegrafo
in 2015, a grandparent who lives in Llano Grande parish in Calderon, stated that his son and
wife went to Spain and he was left in charge of the two grandchildren aged 5 and 8 years old.
Their grandsons are now 15 and 18 respectively and his son has not yet returned and will not
return home in the near future.
Retirees indulge in travel and leisure pursuits

Many retired people in Ecuador have become more adventurous and they are more confident
about organising and planning their own trips. For many retired people, the time to travel is not
an obstacle and traveling during the low season enables them to find the best prices for their
hotel, bus and airplane tickets. According to the US Department of Commerce over 372,000
Ecuadorians of all ages travelled to the US in 2015, and of these 95% went for leisure purposes.
Chart 9 Number of Later-Lifers (Aged 60+) and Life Expectancy

Notes: (1) Percentage of people over the aged of 65 per people aged 15-64.
(2) Data for 2017-2030 are forecasts
EATING AND DRINKING
Eating Habits
Consumer expenditure on food reached US$3,732.00 per capita in 2016. The economic
instability in Ecuador has caused consumers great uncertainty and as a result they have been
more cautious about spending. In order to keep food costs down consumers are cooking more
homemade food. The most spent in 2015 was on meat at US$187 per capita, this is due to the
cultural tradition of eating meat daily with lunch or dinner.
Breakfast is the main meal of the day and the type of breakfast depends on the region. In
urban areas throughout the Sierra, breakfast can include black coffee, milk, yogurt, fruits, bread
and cereals. Mothers with children are quite aware that a good breakfast contributes to better
school performance among children and prepare a varied breakfast every day. In the Coastal
regions, breakfast consists of black coffee with plantain (green bananas), cassava (prepared as
bread), corn, eggs and fruits.
According to an article in El Comercio in 2016, people in Quito lack the time to prepare
breakfast and are opting for eating out in bakery shops or cafeterias. In an interview one man
stated that it is difficult to prepare breakfast because he has very little time and he prefers to go
to a cafeteria and spend 30 minutes taking breakfast alone or with a friend. He normally orders
coffee, juice, fruits and eggs. He stated that he can spend US$80 monthly on breakfasts and
that breakfast is a cheaper option than lunch.
Preparing food such as lunches and dinners at home is more often done by stay-at-home
mothers. According to the latest INEC data, Ecuadorians spend 6 hours per week preparing
food at home. Many people that work in offices bring their own lunches or opt for eating out at
convenient prices. Restaurants offer menus that include soup, a rice platter, a small dessert and
juice. The cost of a lunch menu can vary depending on the restaurant, location and the quality
but generally, varies between US$2.50 to US$8.00 per meal.
Consumers are changing their eating habits and now want to eat more healthy food.
According to an interview in El Comercio in 2016, the owner of restaurant, La Casa de la Roca,
stated that people are choosing healthy options because there is increased health awareness in
terms of nutritional values. In his restaurant people ask him for more dishes containing salad,
fresh juices without sugar or vegetarian meals.
The appeal of vegetarian food is increasing among consumers. The range of vegetarian
restaurants has increased in Quito accounting for a rise of 8% from 2012 to 2015. Some
restaurants are specialising in serving “super food” products such as almond milk, goat butter,
chia puddings, exotic fruits and detox fresh fruit juices as a result of consumer demand. Some
restaurants are even offering cooking classes and selling organic products on their stores to
promote the culture of eating healthier.
Fast food is also a popular choice particularly for students and low-income consumers who
want to eat cheap meals without counting calories. Hamburgers, wraps, cold sandwiches,
French fries or nuggets are popular choices for adults and children. On average, middle and
lower class families eat out at least twice a month at fast food restaurants, often to reward a
child when they do something well. The Ecuadorian government has contemplated imposing a
tax on fast food as part of an effort to combat obesity in the country.
Consumers spend less on eating out

Per capita spending declined overall by 15% (in real terms) in full service restaurants from
2010 to 2015. According to an article in El Comercio in 2016, consumers are looking for cheaper
options and while the demand for lunch menus has continued from Monday to Friday, Saturday
and Sunday are very slow. According to an interview with owner of La Petite Mariscal
Restaurant in Quito, the demand for à la Carte meals had declined by 50% since the end of
2015. Consumers are more likely to purchase a lunch that cost US$3 than dishes that cost
US$10 and upwards.
According to article in El Comercio in 2016 the owner of Kayu restaurant, a supplier of food
for public institutions stated that the demand for lunch menus has continued, while business
dining declined by 50% between 2014 and 2015. To cope with the drop in demand, they have
had to reduce the price of each dish by 10% and offer consumers more economically priced
dishes.
Food trucks, the new urban trend for accessible food on the go
Mobile food is a new concept in Ecuador and has increased in popularity at a fast pace. The
downturn in the economy has pushed many consumers to buy lower-priced food and food trucks
are offering very tasty food of higher quality than some fast food restaurants.
At the beginning of 2015, there were only 3 food trucks in Quito and by October 2016 there
were more than 80 food trucks, with a further 70 projected. Food trucks are using Facebook or
Twitter to increase interest and to share their locations. These trucks are currently present in
cities such as Quito, Santo Domingo de los Tsáchilas, Ambato, Otavalo and Guayaquil.
Chart 10 Consumer Spending on Food and Non-Alcoholic Drinks: 2016
Source: Euromonitor International from national statistics/Eurostat/UN/OECD

Note: Per capita (in constant 2016 prices)
Drinking Habits
Since May 2016, the Law of Balance and Public Finances increased the price of soft drinks by
US$0.18 for every 100 of grams of sugar content. This measure increases the price of a litre of
soft drink from US$1.00 to US$1.25. A 32-year-old father of three children stated that in his
home soft drinks and milk are consumed in similar proportions. He stated that soft drinks are
easy to consume, they don’t have to boiled before consuming and come in more practical
containers. According to an article in El Comercio in 2016, a Geo Data study stated that of the
total demand for drinks in convenience stores in Quito, soft drinks account for 13% and 8% for
bottled water. In Guayaquil the tendency is lower with 11% for soft drinks and 6% for bottled
water. For consumers that are concerned about health, the traffic light system for food labels
introduced in 2015, has increased the negative sentiment towards drinks high in sugar.
There is also a high consumption of bottled water mainly because the quality of tap water in
Ecuador is not perceived as being very good. According to INEC latest figures in 2013, 30% of
families consume water from water dispensers with only 76% of homes nationally having access
to drinking water. Households also boil water before drinking to purify it.
Drinking alcohol in Ecuador is part of a long tradition, although consumption of spirits has
been in decline, going from 2.0 litres per capita in 2010 to 1.7 litres per capita in 2015. The main
reason is the high taxes ranging from 5% to 45% introduced by the External Commerce
Committee (COMEX) particularly on imported spirits such as whisky, rum, vodka or tequila.
The official hours for selling alcohol depend on the establishment. Restaurants, bars, cafés or
fast food restaurants can sell alcohol from 06:00 to 00:00 with the exception of restaurants that
are opened until 02:00. Bars, clubs or karaoke places open from Monday to Thursday from
12:00 to 01:00 and from Friday to Saturday from 12:00 to 04:00, Sundays from 12:00 to 20:00.
Since May 2016, the Ministry of Interior and the Ministry of Tourism signed an agreement
allowing the selling of alcohol on Sundays, which has been restricted since 2010. This measure
is hoped to increase tourism and commercial activities in the country.
The consumption of wine in Ecuador is not as popular as other drinks like beer. Ecuador is
not a big wine producer and most of the good quality wine is imported. The import taxes
introduced in 2012 has raised the price of wine and low income consumes have switched to
more economic alcoholic drinks, such as beer.
The growth in the demand for beer can be attributed to the increase in the price of imported
spirits, which has led price conscious consumers to buy more beer than spirits, and beer is
widely available and accessible. Per capita consumption went from 32.4 litres per capita in 2010
to 35 litres per capita in 2015.
Consumption of craft beer is increasing among different consumer segments

Artisanal or craft beer varieties are becoming a very popular drink amongst consumers of
different ages and incomes. Even though prices of craft beer can cost up to US$2 to US$4 more
than the price of a normal beer, consumers are willing to pay a higher price for quality beers.
The popularity of craft beers began in 2012 with few players and now there are more than 40
craft beer producers in cities such as Quito, Guayaquil, Cuenca and Baños.
Both men and women have driven the strong demand for craft beers, and as a result a Craft
Beer Tour was started in Quito. During the tour, customers can visit 28 breweries where they
can taste different beer and can try some small “tapas”. Consumers are more demanding and
are looking for new bitter and fresh flavours. The quality of craft beer produced in Ecuador has
continued to improve with some winning international awards for quality and taste.
Music and beer festivals are growing in popularity. ShafolBeer is a festival that brings together
musicians with the common goal of show casing a variety of locally produced craft beers.
Customers that visit and taste the beer can vote for their favourite beer over the 30 different
brands available at the festival. Consumers of different ages like to get together at this type of
festival to enjoy the music, good food and good quality craft beer.
Chart 11 Consumer Spending on Beer, Wines and Spirits: 2016

Note: Per capita in 2016 constant prices
HEALTHY AND ETHICAL LIVING
Attitudes To Health and Wellbeing

There were 3.2 million Ecuadorians covered by public health insurance according to IESS in
2015, which is a significant increase when compared to the 1.4 million covered in 2006.
However, dissatisfaction with the current public health sector with long waiting lists in some
cases and inefficient service in others, has caused many Ecuadorians with medium to high
income to opt for public and a private health insurance. According to IESS, there were 420,714
Ecuadorians covered by health insurance that also have private insurance in 2014.
Prescription costs vary depending on the medical insurance chosen by the individual. The
higher-cost insurance policies will ensure that most prescription costs are covered, particularly
in the private insurance sector. Low income Ecuadorians will continue to rely on the public
health system, as they do not have the resources to pay for a private health insurance that
cover their treatments.
There has been a strong public campaign to increase the awareness amongst consumers on
diabetes, hypertension, overweight and heart diseases in children and adults. The latest
National Nutrition and Health Survey conducted in 2014 states that on average 9% of children
under the age of five years are overweight. However, among those aged 5 to 11 years old the
figure triples to 30%. The traffic light system, mandatory food labelling since 2014, has helped
consumers identify high levels of sugar, fat and salt content. In 2015, 86% of food products had
the traffic light labelling. Moreover, a new law introduced in 2016 charges additional tax on
sugar in drinks.
Chronic malnutrition has declined from 28.9% in 2004 to 23.9% in 2014. Indigenous children
which represent 10% of the total population account for 20% of cases, while Mestizos children
account for 5% of chronic malnutrition. The Action Program implemented by the Ministry of
Social Development in schools, community health centres and the media, is promoting healthy
social habits and a healthy and nutritious diet to improve the intellectual and social development
of young children.
Self-medication is common among Ecuadorians and is part of Ecuadorian culture.
Ecuadorians tend to ask to close relatives such as parents or grandparents for advice, while
others tend to search for information through the Internet. The main reasons for self-medication
are the lack of economic resources to go the doctor or to pay for medicines. Medical
consultation can cost between US$10 to US$60. Many Ecuadorians go to their nearest
pharmacy and ask for OTC medicine for pain relief. As stated in an interview in El Comercio in
2016, an 80-year-old women stated: “Since we were children, we follow ancient tradition which
is listening to grandparents. When we feel ill, they were the ones who knew which plants or
home treatments could cure us. That wisdom has been passed down over generations”.
The most common cases for self-medication are flu and stomach aches. One of the main
concerns for the government has been to self-medicate when a person believes they have a flu
because of the risk associated with being infected with H1N1 and not been treated on time. For
this reason the Ministry of Health is promoting campaigns to motivate patients to avoid self-
medication. In addition, pharmacies are not allowed to sell OTC flu medicine without
prescription.
Increasing demand for alternative medicine

Ecuadorians are searching for alternative solutions for their health problems. The main
reasons are that consumers want to find alternative medicines without the need to go to the
doctor, while other consumers have no means to buy medicines at pharmacies. According to
figures from INEC, there were 276 establishments specialising in natural medicine in 2014.
Homeopathy, acupuncture or osteopathy is a common alternative to medicines among
Ecuadorians. Naturopathic remedies are also increasing in popularity. According to a
Naturopathic doctor, people want to use any alternative medicine that can keep them healthy
without the use of formal medicine. In addition, people do not want to use aggressive medicine
on their bodies but for serious injuries, naturopathic centres send their patients to specialists.
Chart 12 Consumer Expenditure on Personal Health: 2016

Note: Per capita spending in constant 2016 prices
Ethical Living
According to INEC latest survey of Environmental Information based on a total sample of
30,033 homes, there has been more concern among households towards recycling or reducing
waste. In 2010 there were 25% of households recycling, rising to 39% in 2015, an increase of
14%. The most popular products for recycling are plastic with 33%, organic waste 23%, paper
22% and glass 12%. The survey also found that 35% of Ecuadorians are not able to recycle
because they do not have the right type of recycling containers near their homes. Eighteen
percent stated that they are not interested, 20% do not recycle, 15% believes that they are not
aware about the benefits or recycling and 12% are sceptical about the garbage collection
system. In addition, 95% of respondents stated that they are concerned about the environmental
situation in their neighbourhood or town whilst 14% of all households nationally are involved in
environmental activities or participate as environmental volunteers.
Another positive initiative has been the use of bicycles instead of cars. The Quito car-free day
is celebrated on September 22 every year and encourages motorists to use other alternatives
such as using a bicycle or walking. The Mayor of the city of Quito led a group of cyclists to the
Municipality. The Mayor asked city officials to set an example and go to work by bike at least
once a month.
Ecuadorians are also saving water as a way to decrease their water bills and help the
environment. The latest figures from Survey of Living Conditions INEC states that for 60% of
households the most common practice for saving water at home is to turn off the tap when
washing dishes, bathing or washing clothes. Other ways of saving water at home is to re-use
water.
Chart 13 Obese and Overweight Population by Gender: 2000-2015
Source: Euromonitor International from WHO/OECD
Sport and Fitness

Football is the most popular national sport and Barcelona Sporting Club is the team with the
most fans followed closely by Emelec and Liga. For many Ecuadorians practicing sports is not
only fun but is also a way to stay fit and healthy. According to INEC latest figures in 2014, 37%
of the overall Ecuadorian population from 15 years and older practice some kind of sports, 8%
more than in 2006. Men practice more sports than women, with 50% of all men playing a sport,
whilst for women, it is only 25%.
Cycling continues to be a popular and trendy sport among Ecuadorians. Ciclistas Urbanos de
Quito is an independent group of people interested in Urban Mobility and Urban Cycling who
have made the decision to use the bicycle as a means of transportation. The group has a
Facebook page with 5,384 likes. There are several other groups in Facebook were people can
share experiences, tips on sports equipment and clothing and to get people together and
participate in cycling tours.
In 2016, 24% of Ecuadorian households owned a bicycle, 9% less than in 2011. The decline
in the number of households with bicycles can be attributed to more people using cars or public
transport but there are more people using their bicycles as a means of exercise and leisure
activities. As a result, some cities are incorporating cycling lanes on their roads. In Quito, new
bike lanes have been built and in addition, there are on-going additional investments in the
modernisation of the public cycling system. In addition to cycle lanes there are also more public
bicycle stations to make it easier to hire a bicycle in different areas around Quito. Currently there
are 87 km of cycle lanes in Quito with 17.8km in the urban area of Guayaquil.
BicyQuito, the public system to hire bicycles in Quito, has increased the number of bicycles
from 425 bicycles in 2012 to almost 2,000 in 2016. It includes also 300 new electric bikes which
are distributed over 26 different stations. There are between 3,500 to 5,000 users of public
bicycles in Quito.
According to INEC latest survey of Environmental Information for 2015, 13% of Ecuadorians
use bicycles. Around 39% of five to 14 years old use a bicycle followed by 21% of 15 to 24 year
olds,14% of 25 to 34 year olds, and 12% of both 35 to 44 year olds and 45 to 64 year olds. Of
the over 65 year olds, only 2% used a bicycle in 2015. Of all Ecuadorians that use bicycles, 51%
of them use their bicycle once per week, while 35% use them every day. In 2014, 44% of
Ecuadorians use bicycles for necessity, 33% to save money, 19% because it is convenient, and
3% for environmental awareness.
“Quito Ultimas Noticias 15k” race, motivates thousands of people to participate

“Quito Ultimas Noticias 15k”, the most popular pedestrian race in the country, inspires many
Ecuadorians of different ages to participate as well as international athletes. The 2016 race
brought together 18,000 athletes with a registration cost of US$25. In an article in El Comercio
in 2016, 40 employees of an Insurance company stated that they decide to participate for the
first time in this race and prepared for 5 months to get fit enough to participate.
Chart 14 Percentage of Households Owning a Bicycle: 2016
Source: Euromonitor International from national statistics
HOUSE AND HOME
Home Ownership
Home ownership in Ecuador continues to be more common than renting. Of a total of 4.5
million households in 2016, there were 2.84 million homeowners without a mortgage, 187,000
homeowners with mortgage and 1.07 million households renting a home. According to INEC
living conditions survey, Guayaquil has the highest ownership rate at 61%, whereas Quito has
44% home ownership.
Houses are still the most popular dwelling type in Ecuador, with 3.4 million in 2016.
Apartments account for 592,000 dwellings in 2016. Urban households have continued to be the
most popular in Ecuador with 2.9 million dwellings. Rural households account for 1.6 million
dwellings in 2016.
The middle and upper class in Ecuador tend to look for homes that are close to work.
According to an article in El Comercio 2015, the Major of Ciudad Celeste in Samborodon stated
that the main driver for purchase in the Samborondon area is anchored in people's desire to be
close to urban facilities that offer security. For the lower class in Ecuador, public infrastructure,
such as access to roads and public transport near their homes, appear to be the main
considerations for buying or renting a home. A significant number of low-income families do not
own their own car.
According to INEC latest figures, 57% of families in Guayaquil live in residential areas with
individual houses and 32% live in apartments. The figures for Quito indicate that 55% live in
apartments and 36% in houses. Apartments are popular in Quito because of the different
topography characterised by a hilly environment and multiple valleys. Guayaquil, on the other
hand, is the country's most important port city, and is also significantly larger than the capital city
of Quito. The Guayaquil real estate market is more informal and low-income families particularly,
are more pragmatic about the specific area that they live in. In this respect, Quito is more
socially segmented, and there is a more pronounced hierarchy on which areas correspond to
different social segments of the population.
Many people in Quito and Guayaquil, are considering moving out of the cities to suburban
areas. According to an article published in El Comercio in 2016, the expansion in suburban
areas in Guayaquil are fuelled by three main factors; shortage of supply, social unrest and
insecurity, and various financial stimulus packages, such as home credit loans. According to
Mayor of Daule, a canton located in the Guayas province of Ecuador, ten years ago the
population of La Aurora parish had a population of only 3,000 inhabitants. In 2016 this figure
almost grew to 80,000 people with 56 residential complexes and nine shopping malls. The
suburban areas are growing at a fast pace due to the greater availability of land for construction,
opportunities for trade and services; and less traffic congestion and pollution. People who live in
suburban areas are autonomous in their everyday life and do not need to go into the urban
centres for shopping and services.
Outside spaces for residents of urban apartments are now becoming more sought after.
According to an article in El Comercio in 2016, the manager of property developer Proaño
Proaño, stated that there is an increasing demand for communal spaces and green spaces.
Typically, this translates into terraces. According to an article in El Comercio in 2016,
homeowners are becoming increasingly more demanding and conscious about the need for
both communal spaces and small outside spaces adjacent to each apartment unit.
Sense of insecurity has boosted demand for home security

Manual security and sophisticated software solutions are in high demand amongst
consumers. The high crime rates in both Quito and Guayaquil, is fuelling demand for more
home security solutions, such as alarms and electric fences, as well as other monitoring
systems. An increasing number of citizens are benefitting from modern smartphone
technologies to remotely video monitor their homes. A similar example is a panic button on the
smartphone connecting directly to the local police Unidad de Policia Communitaria (UPS).
According to President of La Casa del Cable, Ecuadorians are showing interest in
sophisticated security systems featuring so-called intelligent alarms that do not require physical
wiring. Homeowners are increasingly using apps to access programmes that will secure
entrance doors, open or close curtains and even remotely control lighting to give the illusion that
someone is at home.
Economic downturn has pushed Ecuadorians to search for low cost housing
Ecuadorians looking to acquire a home have the opportunity to access a pre-approved
mortgage. In addition, the Ministry of Housing deliver a non-refundable property bond between
US$4,000 and US$6,000 for social housing. BIESS (the Government funding agency for home
credit loans) is promoting credits at favourable interest sponsored by the Government. The
upper threshold for a BIESS credit is US$70,000 at an interest rate of 6%. The BIESS disbursed
US$1,250 million for 27,000 transactions in credits in 2015. For 2016, BIESS announced a fund
of US$1.350 million, which is estimated to reach 30,000 credit loans. However, due to the
serious downturn in the economy, BIESS is facing serious underfunding, and it remains
uncertain to what extent it will be able to grant credits for housing purposes.
Chart 15 Overview of Households: 2016
Household Profiles
Couples with children households represented 24% of total households in 2016. The number
has grown from 1.026 million in 2011 to 1.096 million in 2016. However, this type of household
are projected to decline to reach 22% of total households by 2030. In 2011, there were 1.4
children per family, this number dropped to 1.2 per household in 2016.
Single parent family households represented 23% of total households in 2016. The number of
single parent family households experienced a growth of over 15% from 2011 to 2016. This
increase can be attributed to the high divorce rate which reached 1.6 per ‘000 population in
2016 up from 1.41 in 2011. Single households showed a whopping growth of 39% over the
same period to represent 15% of the total in 2016. The number of single households are
projected to continue to grow to reach nearly 1.1 million in 2030 as life expectancy increases
and rising incomes will allow young people to choose to live alone before they get married.
Households of couples without children have also grown by over 8% from 2011 to 2016.
Buying a car is a goal for many people in Ecuador but can be expensive. Consumers have to
pay the Special Consumption Tax (ICE), which varies depending on the cost of the car with a
tax of up to 35% of the total price.
Ecuador is a pet loving nation with Ecuadorians choosing to buy or adopt a pet. There are
currently no statistics on the number of pets but in 2017, a census for all the pets in the city will
be held in Guayaquil. Pets are considered a very important part of the family and there is now
more awareness among consumers than before about the importance of taking care of their
pets.
Chart 16 Households by Type and Occupants
Running Costs
Household expenditure on electricity gas and other fuels reached US$509.7 in 2016, a
decline of 4.5% since 2011 as result of many consumers adopting more energy efficient electric
and induction stoves to replace their old gas stoves. The government announced the removal of
the gas subsidy in 2016 as the country was largely importing Liquefied Petroleum Gas (LPG)
and allocating more than US$800 million to support a national price of US$1.6 for a tank while in
other countries, such as Peru, a tank was around US$20. This situation has proved to be very
costly for the government who wants to allocate the gas subsidy for the construction of 200
schools.
Consumers find that the use of induction stoves is more energy-efficient and will save money
in the long run. The government is offering strong incentives for consumers to replace gas with
electricity. Some of the incentives for consumers are the free consumption of 80 kWh of
electricity for cooking and 20 kWh for electric showers until 2018. After 2018, the 100 kWh will
cost US$4.00.
Ecuadorians are gradually buying new domestic and international brands of electric and
induction stoves. The prices range from US$200 to US$2,000 depending upon whether stoves
are countertops or induction stoves with an oven. Since 2014, the government’s goal was to
change 3.5 million gas stoves to electric induction stoves but as of 2016, there is still some way
to go to achieve this change over. The government wants to boost sales with the help of the
private sector and the Inter-American Development Bank and de IESS. As of 2016, only
432,500 electric induction stoves have been sold and so to boost sales the government is
offering instalment credit of up to 36-months through monthly electricity payments.
Ecuadorian households are now more aware of products that can save electricity bills in the
long term. According to INEC Environmental Survey for Households 2015, of all households,
91% used energy-efficient light bulbs in 2015, up from 85% in 2010.The increase in the use of
energy-efficient light bulbs is the result of strong governmental campaigns on the benefits of
using these types of bulbs with 16 million free bulbs distributed in 2008 and 2014.
According to the INEC Environmental Survey for Households 2015, 94% of households
turned off the lights when leaving the room in 2015 whilst in 2014 only 86% used this saving
practice. Around 86% of households avoid putting hot food in the refrigerator, 86% open
curtains or mini-blinds to take advantage of the sunlight, 75% of households switch off
appliances when they are not in use, 44% households iron as many clothes as possible at one
time while 20% of households have energy saving appliances at home.
The high cost of water has also changed the way consumers use water at home. As stated in
INEC Environmental Survey for Households 2015, between 2014 and 2015, 80% of household
stated that for saving water they turn off the tap when washing dishes and when brushing their
teeth. Other water-saving practices carried out by households include 50% of households using
a bucket instead of a hose for some purposes at home, 55% regularly check their water pipes
while 41% will reuse water where possible.
Homeowners like to keep their houses in good condition and feel it is important to keep a
house clean inside and outside as well as maintaining the condition of the paintwork and
repairing any leaks. For those homeowners that want to undertake a bigger maintenance job,
they will visit a large home improvement supply stores and buy all their requirements in one
place. For small repairs at home, people tend to go to hardware stores located in
neighbourhood areas.
Increasing awareness on the use of solar panels to save energy at home

The use of solar heating systems is not a new trend in Ecuador but is becoming more
common in public and private properties as consumers become more environmentally aware.
According to INEC Environmental Survey for Households 2015, 1.2% of households have solar
panel systems at home. Solar power is used for heating swimming pools but the demand for
heating domestic water supplies is growing. However, installing solar panels is an expensive
investment, and the increase in tariffs for solar heating systems of up to 35% in 2014 has
prevented a stronger growth in demand, particularly among medium-income consumers.
Chart 17 Running Costs per Household: 2016

Note: Consumer expenditure per household in constant 2016 prices
LEISURE AND RECREATION
Leisure Time
During the weekends, people tend to relax with family and friends. Part of the Ecuadorian
lifestyle is to spend time with their nearest family such as grandparents, uncles and nephews.
People organise meals or activities such as going to the park or playing sports like football,
cycling or just walking. Young adults prefer to spend time with friends and like to go out to bars,
cafes or restaurants.
Listening to music, watching TV and reading are some of the activities that Ecuadorians
prefer the most during their leisure time at home. As stated by INEC Survey “The use of time”
Ecuadorians at a national level spent 15 hours per week doing these activities in 2014.
According to an article on Eltiempo.com in 2016, a survey of 580 people from Cuenca; 67% of
them stated that they prefer to listen to music during their free time followed by meeting with
friends, then visiting shopping malls. A survey of around 1,800 people from Guayaquil and
1,500 from Quito reported that listening to music is an important activity in their free time.
Spending leisure time at home is also popular among different consumer segments. The
proliferation of cable TV, satellite TV and media streaming services such as Netflix, allows
consumers to watch movies and television series and shows whenever they want. According to
Agencia de Regulación y Control de las Telecomunicaciones (Supertel) pay-TV subscriptions
including cable TV and satellite TV registered 5.1 million number of users in 2015 with a
penetration of 31.5%, a significant increase when compared to 2010 ‘s figures of 1.3 million
number of users with a penetration of 9.6%.
Consumers are reading more, especially in big cities such as Quito, Guayaquil y Cuenca.
According to Agencia Pública de Noticias del Ecuador y Sudamérica, there has been an
increased interest in reading on tablets among children and young adults. In 2012, reading
using a device registered 5.3% and by 2013 this had increased to 11.7%.
According to the survey Estudio de Audiencias de Cine en el Ecuador 2015 by Consejo
Nacional de Cinematografia del Ecuador (CNE) and Marketing Consulting (MC) of people
between the ages 15 to 65 years old from Quito, Guayaquil and Cuenca, 94% watch movies
through national TV, 76% through cable TV, 60% by DVD /Blu-ray, 46% at cinemas, 23% use
the internet and 4% through subscription TV such as Netflix. When respondents were asked
about the frequency of using these services, 56% stated that they use it primarily over the
weekend, 24% stated once a week, 8% stated 4 days a week, 7% every day, 3% once every
fortnight and 2% once per month.
Buying an affordable DVD or Blu-ray represents better value than going to the cinema
The main factor when choosing to watch a movie at home is budget. People like to go to
cinemas in their leisure time but consumers are aware that this can represent a significant cost
particularly if going with family members. The main reason is that people tend to not only buy
movie tickets, but also snacks, combos, and upgrade their seats.
According to a survey by Consejo Nacional de Cinematografia del Ecuador (CNE) in 2015,
80% of respondents said that they chose to go to the cinema because it is highly entertaining.
Seventy-two percent stated that they go to movies because it is a unique experience, and 32%
stated that that they go to the cinema when there are discounted prices such as 2x1 or ladies’
night. As a result, 39% of consumers prefer to watch movies on DVD or Blu-ray at home while
22% would rather go to the cinema.
Vacations
The most important holidays are Christmas, New Year’s Eve, Easter or Carnival. The two-
month school break is an important time for taking vacations for families with children. For
travelling within the country, Ecuadorians prefer to book their tours without using a travel agency
as it is easy to buy transport and hotel tickets directly from the company. In addition, consumers
can buy directly from hotels and lodges that offer packaged tours including transportation,
accommodation, food and trips. It is more common to travel overland due to the relatively small
size of the country.
As stated on Ecuadorencifras.com the most popular destinations for Ecuadorians when
travelling domestically are public parks with 35%, protected areas and natural reserves with
24%, followed by hotels, hostels, and farms with 13%. The Ministry of Tourism encourages
Ecuadorians to travel locally. The slogan “Viejas Primero Ecuador” is strongly promoted
through YouTube and Facebook.
According to Despegar.com, an online travel agency, the most popular local destinations are
Guayaquil, Quito, Manta, Esmeraldas and Coca. Popular international destinations include
Miami, Fort Lauderdale, Orlando and New York.
The most popular places for Ecuadorians when travelling outside the country are the United
States, Peru and Spain. Ecuadorians tend to travel to long haul destinations in June, July and
August during the school break. Demand for tour packages in the school break is very high.
According to a Travel Sales Consultant, theme parks such as Disneyland in Orlando are some
of the favourite places for Ecuadorian families, helped by the warm climate. Other popular
destinations are Mexico, Peru and Panama, particularly for travellers who do not have a US
visa. Chile and Argentina are less popular destinations in the school break because it is
wintertime.
The contraction of the economy and the oil price collapse has put great strain on private
consumption particularly when travelling. Although despite the economic downturn, Ecuadorians
are still travelling, but choosing to take shorter vacations and opting for cheaper destinations
within the country.
Consumers prefer to travel to Colombia to combine shopping and tourism

Tourists come from the provinces of Imbabura, Pichincha, Azuay, Tunguragua, Cotopaxi and
Guayas. As stated in El Telegrafo 2016, in the Day of the Death or “Día de los Difuntos”
celebration in September where Ecuadorians had five-day holidays, people chose to travel by
land mostly to Colombia. The President of Commerce in Ipiales stated that there has been a
change in the behaviour of Ecuadorians, as previously they focused on travelling Friday,
Saturday and Sunday, and now the visits are during the week. In addition, Ecuadorians have
changed their purchasing behaviour as in 2015, consumers tended to buy appliances and
electronics such as TVs, computers, washing machines or freezers. In 2016, people bought
home cleaning products, detergents, toilet paper and nappies.
Chart 18 Holiday Time: 2016
Source: Euromonitor from trade sources/national statistics
Opportunities for Celebrations and Gift-giving

In Ecuador, the most popular celebrations are connected to the calendar of the Roman
Catholic Church as 80% of the population is Catholic. The popular religious holidays are Three
Kings Day (January), Easter and the Holy Week starting with Palm Sunday; Holy Saturday,
which is the only official holiday on which stores must be closed, All Saints? Day (1 November),
All Souls? Day (2 November), Christmas Eve (24 December) and Christmas Day (25
December).
The official public holidays are New Year’s Day (1 January), carnivals in February and March
celebrated just before Lent, Labour Day (1 May), the anniversary of the Battle of Pichincha (24
May), the birthday of Simon Bolivar (24 July), Quito Independence Day (10 August), Guayaquil
Independence Day (9 October), Columbus Day (12 October) and Cuenca Independence Day (3
November).
Valentine’s Day has become more popular and gifts given on this day include chocolates,
flowers, perfumes, romantic cards and dining out. According to the latest INEC figures,
Ecuadorians spent around US$1.5 million during this celebration in 2015.
As stated in an article in El Comercio in 2016, a survey conducted by website Linio.com
Ecuadorians planned to spend between US$30 to US$100 on Valentine’s Day. According to the
survey people in Mexico and Argentina planned to spend a maximum of US$30.
The biggest gift exchanges come at Christmas time. Consumers will save money during the
year in order to spend on Christmas presents or will use facilities in stores such as the use of
credit payments to spread the cost. Greeting cards are also popular to send to relatives and
friends.
Some consumers travel to Peru to buy clothing and gifts for Christmas and New Year. The
main reason is the price difference and the exchange rate, which in recent times has made
Peruvian articles three times cheaper than Ecuadorian prices. Before Christmas, most
Ecuadorians arrive during the weekend to make purchases in Peru of clothing and toys, as well
as buying ingredients to prepare Christmas dinner.
TECHNOLOGY
the Internet
The percentage of households with internet access was 34.5% in 2016 showing a very strong
growth when compared to 16.9% of households in 2011. This significant increase can be
attributed to the popularity of young internet users connecting to social media as well as the
increase in the number of households with access to broadband internet. In 2016, 18.3%
households had access to broadband internet up from 8.9% in 2011. The Ecuadorian
government is also providing internet access in public places such as schools, educational
institutions and community telecentres or “infocentros”, which has helped increase internet
access.
Tweenagers, Teens and Young adults are the biggest users of the internet. According to
INEC 2015, the province with the largest number of internet users is Galápagos with 67.7%,
followed by Pichincha with 58.2%. Bolivar and Los Ríos are the provinces with the lowest
number of people who use internet with 32.1% and 35.2%, respectively. The research shows
that 50.5% of Ecuadorians have used the Internet in the last 12 months. In urban areas there
were 58.5% users while there were 33.8% in rural areas.
Security is one of the main problems for consumers when using the internet. In March 2016,
The Committee on Hemispheric Security of the Organization of American States (OAS),
presided by Ecuador, approved the first unconventional measure of Confidence and Security
Promotion in the Hemisphere, promoted by the Andean country. This measure aims to
guarantee a safer internet in the country.
The most popular places to use the internet at a national level in 2015 was at home with
52.7%, public centres with 27.5%, at work 8.6%, educational institutions with 7.5% and the
house of another person with 3.6%. In 2015, 36.9% of households used the internet for finding
information, 29.4% for communicating in general, 25% for education and learning while 4.1% for
work reasons. Ecuadorians search for information regarding different interests such as news,
reviews on trips, products and services, information about health conditions and medicines, real
estate listings or government services.
The percentage of households owning a smartphone reached 61.7% in 2016. According to
INEC, in 2015 there were 3.08 million Ecuadorians using a smartphone which is five times more
than in 2011, when there were 522,640 users. Young adults are very dependent on mobile
devices for online access.
The Municipality of the Metropolitan District of Quito offers citizens free internet access in
parks, bus stations and public spaces and mass concentration points, through its project
“QuitoTeConecta”. The main idea behind offering this free service is to connect more citizens to
the internet. On the website www.quitoteconecta.gob.ec Ecuadorians can find a map of Quito
with free wi-fi locations. However, according to an article in El Comercio 2016, users of this free
service are not using internet for finding tourist information of the city but for social media. The
parks with free wi-fi have become the new meeting places, especially for young people.
Popularity on the demand of taxi apps

According to an article in El Comercio in 2016, 13,000 taxi drivers were registered with Easy
Taxi and with 8,000 of these registrations in Quito alone. Fastline is another taxi app available in
Quito and Guayaquil with 1,600 registrations of taxi drivers and more than 28,000 consumers
per month between the two cities. In Ecuador an average of 10,000 trips a day are made with
Easy Taxi. This type of app is considered by many Ecuadorians as a safer option than taking a
taxi from the street.
Chart 19 Accessing the Internet: 2015
Source: Euromonitor International from International trade sources/Telecommunications Union/OECD/national

statistics
Attitudes Towards Social Media and Networking

According to the latest figures from INEC in 2014, 39.6% of the overall Ecuadorian population
over 15 years old has activated an account on a social network. About 98% of people who are
over the age group of 12 have a Facebook account. At the national level, the results show that
41.4% of respondents have an account on a social network such as Facebook, Instagram,
Twitter, YouTube, LinkedIn, WhatsApp, YouTube, Skype, Pinterest, SlideShare and other
networks.
According to Formación Gerencial website, Facebook is the most popular social networking
site in Ecuador with 8.8 million users, followed by Instagram with 1.5 million users, LinkedIn with
1.2 million users and Twitter 700,000 users. Some consumers are using social networking such
as Facebook or Instagram to share experiences of reviews about products. For example, the
website chiquitosybebes.com on Facebook share information about dental care for children,
clothing for pregnant women, nappies, events, tourist destinations for families, and day care
services amongst others.
GROOMING AND APPEARANCES
Investing in Yourself: Female Personal Grooming and Hygiene

Consumer expenditure on personal care increased from US$102 in 2011 to US$109 per
capita in 2016. Spending on personal care is projected to remain static, partly as a result of the
tariff surcharges imposed by the current government, of up to 45% on some imported beauty
and personal care products, which is likely to impact demand.
Women in Ecuador continue to have high standards regarding personal grooming. Skin care
products, deodorants and hair products remain the most used products. There is a greater
acceptance among consumers about the use of natural and organic products, particularly in bar
soaps, bathing products and skin care products.
There is high demand for shampoos which include compounds such as keratin, biotin, argon
oil, aloe vera and royal jelly. Keratin treatments are very popular, particularly in coastal regions,
where high humidity is considered a problem for some women’s hair.
According to an article on quebakan.com in 2016, Marketing Manager of La Fabril indicated
that people want value added when buying personal care products. They want high quality and
accessible prices that fit their budgets.
With respect to skin care products the most popular products that can fulfil two functions at
the same time. For example, products that contain high SPF and tinted moisturising such as
BB/CC skin-perfecting creams are seen as value for money. Women in the coastal regions tend
to wear lighter makeup than women in the Sierra.
Consumer expenditure on clothing has declined from US$193 per capita in 2011 to US$172 in
2016. It is projected to continue to decrease to US$158 per capita in 2020. Apart from the tariff
surcharges increasing the price of clothing, for many consumers, fashion is a luxury in the time
of economic crisis, and people tend to renew their closet less often. According to a survey made
by El Comercio in 2016, 92.6% of consumers stated that they are buying less clothing this year
[in 2016], due to the economic situation. In addition, 52% stated that they buy their clothing in
malls, 7% buy locally, while 34% buy their clothing when travelling outside the country.
Moreover, 84% of consumers, believe that clothing in Ecuador is excessively expensive.
When it comes to clothing and fashion, people in the Sierra are more conservative than in the
coastal region. While in the coastal region, people tend to use brighter colours with more skirts,
shorts and revealing clothing. However, women in Ecuador experiment more with clothing and
fashion and want to take more risk by using more modern clothing with brighter colours.
Growing demand for chemical free beauty products

Ecuadorian consumers are paying more attention to labels and the ingredients contained in
skin care, body and hair care products. Consumers want products free of chemicals because of
the fear that it can be harmful for their health and are demanding products with natural and
organic ingredients which are perceived as safe and good quality at the same time.
Chart 20 Consumer Expenditure on Personal Appearance: 2016

Note: Per capita consumer expenditure (in constant 2016 prices)
Investing in Yourself: Male Personal Grooming and Hygiene

The most popular grooming products are razors and deodorants. These products are
demanded by all-income consumers and are used on a daily basis. Skin care products are not
so popular among low and some medium income consumers, mainly because they are not
perceived as a necessity. However, people with medium to high incomes are more aware of the
benefits of using skin care products and post-shave products are available in different brands
and prices. Men’s bath and shower and men’s hair care are more related to the young
professional segments of the middle-high- and high-income consumers.
More men are visiting cosmetic clinics to remove skin imperfections, fight the signs of aging
and prevent hair loss. As stated in an article in El Comercio 2015, a Doctor at Kalos Estética
said that 3 out of 10 patients who come to their office are men. The most popular non-surgical
treatments among men are Botox followed by facial fillers, bio stimulation and capillary
treatments.
The “undercut” haircut has been a popular hairstyle due to the influence of famous football
players such as Lionel Messi and Cristiano Ronaldo. Some players in the popular Barcelona
football team surprised followers with a blonde platinum colour and some younger consumers
have adopted this style as well.
Men in Ecuador are more conservative with their fashion choices than their counterparts in
Europe or the United States. Popular Ecuadorian designer Gustavo Moscoso has his own line of
men’s care products and colourful clothing with the brand GM757. This brand is popular
amongst men due to the perceived good quality and elegant designs. This designer offers
clothing that fits tight to the body and shorts that show more leg than usual in both informal and
semiformal clothing. The brand is marketed in hypermarkets Megamaxi all around Ecuador and
is desirable to consumers in the medium income segment.
Style Icons and Celebrity Influences

Celebrities and style icons play an important role on culture and consumer patterns in
Ecuadorian society. Selena Gomez, the teen pop artist is admired by many young girls and is
perceived as a good role model with a strong fashion style. Young Ecuadorians identify with the
artist mainly because she has a Mexican Latin background. She influences fashion with her
website selenascloset.com where teenagers and young consumers find information on her
latest outfits and where to get them. It also influences consumers clothing style, makeup and
even hairstyle.
Maria Eugenia Donoso is an Ecuadorian top plus model that influences young girls on how to
look beautiful without being skinny. She offers courses on how to makeup and what clothing
plus size women need to wear. Many women admire Maria Eugenia Donoso because she
suffered from anorexia and after recovering and gaining weight she continued being a model.
She is the image of the perfume BE-U and clothing that is sold in supermarkets.
Another influence was the series Game of Thrones or Hunger Games with the most stylised
hairstyles worn by Khaleesi and Katniss characters. Ecuadorian young women were
bombarded by these images in magazines like Cosmopolitan and also were able to watch
tutorials in YouTube on how to make French braids and fishtail plaits, amongst others. As stated
in an article in El Comercio 2016, beauty salons saw a strong demand among women on these
types of hair styles. Kim Kardashian also influences the fashion style, make-up and beauty
procedures and hair styles of some women.
The model Kendall Jenner will be the face for the new collection of Mango Tribal Spirit 2017
and is an example of the new influence of beauty among women in Ecuador. There are positive
influences provided by sport celebrities like Lionel Messi who inspires young boys to strive more
in football and has an influence on their hairstyles and clothing as well. The national football
player Antonio Valencia who plays as a right winger and right-back for Manchester United and
Ecuadorian national football team is also admired by many young boys for his talent and his
achievements. Antonio Valencia has inspired many young boys in Nueva Loja de city where he
was born, to play football and wear clothing associated with his name.
SHOPPING
Main Household Shop

Ecuadorians are very price sensitive and price is an important factor when shopping.
Consumer spending in traditional grocery retailers declined from US$1,279 in 2011 to US$862
per household in 2016. This trend is likely to continue with more consumers buying from
supermarkets and hypermarkets. Demand in supermarkets has grown by 33% in the period
2011 to 2016 and by 22% in hypermarkets over the same period. The main reason for this
increase is due to consumers being able to buy everything they need at these new and modern
grocery retailers. Prices are discounted more than at traditional retailers. Additionally, many
consumers have very hectic lifestyles and supermarkets and hypermarkets can save both
money and time. Furthermore, consumers tend to buy groceries near home and/or close to
work.
According to an article in Revista Lideres, Corporacion Favorita CA, the owner of leading
supermarkets such as Supermaxi, Megamaxi (hypermarket) and Aki (discounter), stated that
consumers have migrated from buying in their supermarkets and hypermarkets to the discounter
Aki. Aki, the discounter, accounted for 34% of the total demand. They also stated that
consumers decreased spending on premium or high quality products. This situation can be
attributed to the increase in prices. In March 2015 the government applied a surcharge or
customs duty fee oscillating between 5% and 45%. This fee was added to imported products
such as fruit, meat or dairy products.
As stated by an economic analyst in Revista Lideres in 2016, that there is now a budgetary
consideration amongst consumers before buying. “This implies a reduction of extra expenses
and an increase in the possibility of saving at home”. He also stated that consumers are more
attentive to what they buy and they check prices and migrate to places that sell food with quality
and low cost.
Consumers are vigorously looking for promotional campaigns or discounted prices when
buying products. It is also popular for some consumers to buy private label brands at lower
costs. People also prefer to buy larger volumes as these turn out to be more cost-effective.
Many grocery retailers offer six products for the price of five to attract consumers who are eager
to buy larger volumes as a means to save money.
Consumers with low purchasing power tend to make their purchases at informal grocery
markets, while consumers with medium to high purchasing power will make their purchases at
supermarkets located in big shopping malls. There are few informal markets and are almost
exclusively found on the outskirts of the bigger cities. On average, prices at these informal
markets will be roughly half of prices charged at supermarkets and hypermarkets with shoppers
typically buying fruits, vegetables and meat at a significantly lower cost. Difficulties in parking
safely and general ease of access prevent many people from using these markets but in times
of economic hardship, people tend to shop more frequently at these venues. Informal markets
are open during Saturdays and/or Sundays only and therefore, consumers buy products that will
remain fresh for at least two weeks or even more.
Consumers prefer to buy groceries in physical stores and it is not expected that online grocery
retailers will expand as a new venue for consumers. There is a clear preference for carefully
selecting the products in physical stores. However, there are a few online retailers that focus on
selling organic food products. These retailers however, manage low volumes and cater only to a
very small and select consumer group.
Chart 21 Main Household Shop by Retailer Type: 2016

Note: Per Household in constant 2016 prices
Shopping for Big-ticket Items

Shopping for big-ticket items, such as furniture and cars, remains slow due to the difficult
economic situation. The additional taxes imposed by the government aiming at preventing
consumers buying goods from outside of the country, has spurred a 40% increase in taxes on
cars and other vehicles. As a result, fewer consumers are willing to pay the difference.
According to an article in El Comercio in 2016, the Director of the Ecuadorian Chamber of
Automotive Industry (CINAE) stated that “the market has halved... People have the prospect
that they will lose their jobs in the coming weeks, months or this year”. There have been more
consumers rejecting the pre-approved credits to buy vehicles, because they simply fear the
uncertainty.
Household appliances are important to consumers because many items are considered
essential. According to the Minister of Electricity and Renewable Energy (MEER), 60,000
households acquired an induction cooking stove in 2016, and 147,000 households are
registered in the MEER for the acquisition of an induction cooking stove. The fact that propane
gas will no longer be subsidised by the government, has increased the demand for electrical
and induction cooking appliances, and stalled the demand for propane gas cooking appliances.
When buying big-ticket items, consumers tend to check prices and quality in different stores
before buying. They look for stores offering not only promotions, but down payment options for
a 12-month period with no interest or 36 months’ credit with low interest payments.
In general, consumers prefer to buy big-ticket items in person rather than through the internet.
Ecuadorians are more accustomed to buy directly from the store, as there is not a strong digital
culture for online purchases. There is also a lot of fear among consumers regarding online
fraud, particularly when there are large amounts of money to transfer. Medium to high income
consumers like to browse different stores online to compare products and prices, but they are
still more likely to place the order directly at the physical store.
Shopping Online
Spending on internet retailers increased from US$13.5 per household in 2010 to US$34.6 in
2015. This growth is projected to continue in the future and by 2020 is expected to reach
US$54.6. The percentage of households with access to the internet has increased significantly
in recent years, up from 16.9% in 2010 to 34.9% in 2015. In addition, the percentage of the
population using the internet increased from 31.4% in 2010 to 48.9% in 2015. There has been
an increase in the number of mobile devices with access to online sales platforms, while more
commercial chains have integrated platforms on their websites to allow direct purchases without
the need for consumers to visit physical stores. All these factors have boosted online sales
among consumers in Ecuador.
One of the main problems among consumers for online shopping is that Ecuadorians still lack
confidence in internet as a purchase channel. However, consumers are becoming more
educated and skilled in terms of how to make safe transactions, such as checking the website
privacy policy, using secure platforms such as PayPal, as well as avoiding the transfer of money
to a third party personal bank account.
In 2014 the surcharge tax on imported goods via courier was US$42, provided that the
product costs less than US$400 and weighs less than four kilograms. This surcharge tax
inevitably affected spending, since Ecuadorian consumers are highly sensitive to prices.
According to the Ecuadorian Central Bank, from January to November 2015, spending via
courier has decreased from around 41%. In addition, foreign credit card payments are subject to
a 5% tax on the total value of the purchase, which adds to the total price. Before 2014
regulation, consumers used to buy apparel and footwear products more frequently due to its
lower price. As stated in an article in El Comercio 2015, a private employee was quoted to say:
“It will be very expensive if I bring a single product and pay for the fee. I will get a little less than
in the warehouse, but the price I would pay would be for a single article”. The employee went on
to say that in February 2015 she decided to buy multiple items in the same shipment, including
a CD, a poster, two dresses, a pair of shoes, mascara, creams and a toy. For all of these things
she paid US$380 plus the US$42 surcharge tax.
One of the main reasons for buying online is that consumers can make price comparison on
the same products at different websites, saving time and money. It is convenient for consumers
to buy from home or anywhere on the go 24/7. In addition, some websites offer better prices as
often there are no intermediaries and also less overhead costs for operations. The majority of
online shopping is made in Quito and Guayaquil, where a higher penetration of internet is
registered.
The majority of internet retailers in Ecuador are of the bricks-and-clicks type. This is because
the channel is small and not very popular among Ecuadorians. Popular listings such as OLX
and Mercado Libre for classified ads, allow buyers and sellers to buy/sell items at a fair price,
including both new products and used items. Other national companies, such as Creditos
Económicos for household electronics and appliances, offer a wider variety of products including
bicycles and motorcycles. Consumers can order online and pay with MasterCard or Visa. The
company offers the Dogcart EV SSL certificate, a secure site seal to help build trust among
consumers. The Fybeca pharmacy chain also has online payment systems, allowing consumers
to pay with a variety of different credit cards.
According to Alexa´s Marketing Stack, the most visited online retailers are
Mercadolibre.com.ec (this website is associated with eBay in America). However, for processing
online transactions, Amazon.com is the most common platform, followed by Alibaba.com.
Amazon.com scores high with consumers in terms of ease of use.
According to an article in El Universo 2016, regarding a study carried out by Linio.com, an e-
commerce company, smartphones and tablets are the best selling products through online
channels in Ecuador. Around 76% of online purchases are related to smartphones and tablets, if
compared to the overall sales of technology responding to 74% of total internet sales.
Consumers tend to use online banking to make payments or to pay taxes. Popular products
among consumers when buying online are apparel, footwear, electronics and computers. The
company De Prati SA is at the forefront of this recent trend and takes advantage of local
production to avoid customs surcharges on imported goods. In contrast, home furnishing
products are the least sold at the online market place. The latter is explained by consumer
preference in Ecuador to buy these products in physical stores.
Internet grocery retailing is not popular in Ecuador, mainly because consumers prefer to
check the quality of the product personally. However, online organic grocery retailers are
available in Ecuador with good acceptance among consumers, albeit not at a very large scale.
The main reason is that organic farm markets are only available one day per week, or every
second week. Consumers like to have the option of ordering and buying online and have a
pickup location, or have the products delivered directly at home for a small extra fee. New
vendors are adding to this market, such as Megaorganik.com, Organiclife.com and
Ayaorganica.com. Some internet organic markets offer a basket of fruits and vegetables with a
variety of products at a fixed price, as well as allowing customers to select products on a needs
basis. Payments are made directly to the company bank account as these sites do not have an
online payment system.
Black Fridays and Cyber Mondays attract more to online shopping

Black Fridays and Cyber Mondays are gaining more momentum every year with more
consumers eager to find highly discounted prices on products online. For many consumers,
Black Friday and Cyber Monday mark the beginning of Christmas season, and offer the
possibility to get ahead of buying presents for family and friends at convenient prices. “Cyber
Monday Ecuador” is an initiative of the Guayaquil Chambers of Commerce seeking to boost e-
commerce and online shopping. This initiative clearly draws inspiration from Black Friday in the
United States. Consumers can register on the website www.cybermonday.ec and buy products
with unique discounted prices ranging from 50% to 70%. The window of opportunity for buying
lasts only 24 hours. According to the latest figures from Guayaquil Chamber of Commerce,
Ecuador billed around US$600 million for online purchases, while only 15% were made from
physical stores. Black Friday deals are also available in stores such as De Prati, Etafashion or
Créditos Económicos. According to an article in Revista Líderes in 2015, Linio.com.ec, the main
e-commerce website had 150 to 200 orders per day in 2015. The goal for Linio.com.ec during
Black Fridays is to reach a 500% increase in sales. For this particular website, the most popular
products were technology gadgets, makeup and corset craze.
Chart 22 Internet Retail Spending: 2015

Note: In constant 2016 prices
SPENDING AND SAVING
Attitudes Towards Spending

Consumers in the main cities such as Quito, Guayaquil and Cuenca undertake the highest
spending in Ecuador compared to other cities. In urban areas consumer expenditure per
household was US$15,745 in 2016, whilst in rural areas consumer expenditure was US$9,549.
The fact that urban areas have more developed services and manufacturing sectors, and rural
areas depend largely on primary sectors, has resulted in big disparity of wages between urban
and rural areas.
According to an article in El Comercio 2016, referencing Estudios Económicos de Informe
Quantum, consumers want to try and spend less. Around 42% of households indicated that their
spending level should decrease, while 50% of Ecuadorians want to maintain the same spending
level. Less than 10% of consumers believe that they will have to increase their spending. In April
2016, 32% of Ecuadorians were very concerned about the country´s economy, due to falling oil
prices; this indicator fell to 26% in September 2016.
Cash payments have continued to be the leading method of payment among consumers.
Many establishments accept only cash and consumers are more comfortable paying cash for
small payments like coffee, soda, beer or sandwiches. The use of cheques is declining in
popularity as many consumers are favouring the use of debit cards as banks are not charging
fees for debit transactions.
Electronic payments have grown with the increase in the number of consumers using
electronic devices such as mobile phones. This system does not require internet access or an
account with a financial institution. According to an article in El Telegrafo in 2016, the
Ecuadorian Central Bank stated that there are 257,416 active accounts for electronic payments
in Ecuador and about 60,000 establishments that carry out transactions through this type of
payment. Consumers are using electronic payments to pay for water, electricity and telephone
bills.
Attitudes Towards Savings

According to an article in Ecuador Inmediato in 2016, a survey of Measurement of Financial
Capabilities in the Andean Countries, prepared by the Latin American Development Bank (CAF)
in Ecuador, reveals that the financial product that Ecuadorians are most comfortable with when
investing in is savings accounts. However, for many low-income households opening a saving
account can be difficult because they believe there is a lot of paperwork, there is a lack of
information, or opening a saving accounts is too far away from their rural area. The study shows
that 90% of households think before spending their money and in addition, higher socio-
economic level households have more knowledge about financial institutions and how to save
their money.
For some households that are working in the private sector, receiving annual profits at the end
of the year is a way to save for a future emergency. In an interview with one woman in Revista
la Hora in 2016, she commented that she takes advantage of her annual profits to maintain her
house, but she always saves some money for a possible emergency.
According to a survey conducted by Crisfe Fundacion in 2016, Ecuadorians define
themselves as spenders. The way they handle their money is based on basic needs. Around
54% of households save their money in the bank instead of in the house. For those who save in
the bank, 65% of households save their money in a saving account, 34% in a cooperative and
only 1% in mutual funds. In addition, 49% of households stated that their first option of saving is
to keep their savings at home. This is because many consumers do not trust financial
institutions. The 1998/1999 financial crisis known as “banking holiday” which resulted in 70% of
financial institutions closing and a government priority of saving banks and not the deposits of
Ecuadorians, which has resulted in an on-going fear among households of saving, with many
choosing to spend everything they earn.
According to Crisfe Fundation survey, when asked consumers how they spend their money,
38% stated that they almost never save money, 33% save their money frequently, 25% very
frequently while 4% never save money. In addition, Ecuadorians define savings as having
money for unexpected situations in the economy or for increasing their economic security. Only
4% of households identify savings as an investment.
Saving for retirement is not very common in Ecuador. The majority of households who are
affiliated to the IESS increased their contribution from 9.35% to 9.45% of their monthly salary.
Of that total a percentage goes to health, unemployment and retirement benefits.
According to Ciudad Futuro and based on a survey among 5,000 Ecuadorians, the majority of
people that visit their website want to save money for a personal goal they have in mind such as
vacations, studies, or buying goods. For others consumers, saving money is to be used for
unforeseen events, emergencies, regular expenses, health and medicines and to invest. For
many consumers, a good way to secure their savings is by buying properties or a car instead of
having their savings in a financial institution.
Attitudes Towards Loans

Mortgages are necessary for those consumers who want to purchase a new home, construct
their own, remodel their current house, or even buy a car. The number of credits granted by the
Ecuadorian Social Security Institute (BIESS) to its affiliates experienced a significant decline in
2016. From January to August 2016, US$1.135 million of unsecured loans were granted by the
BIESS. This figure is down by US$213 million from 2015.
Heavy debt burdens have continued to worry Ecuadorian households. The economic
contraction in the country and the fear within many households of losing their job has pushed
consumers to reject pre-approved credits to buy vehicles. According to an article in El Comercio
in 2016, 36% of people who had a pre-approved loan in 2015 decided not to use it in the face of
uncertainty in their ability to re-pay their borrowing. This percentage rose to 59% in January
2016. Half of this group explained their decision was based on future uncertainty in terms of
work and the economic outlook in general.
Raising loans to travel around the country

Since October 2015, members with the Social Security System (IESS), can increase their
loans for travelling within the country. According to IESS, the loans can be up to 80 basic
salaries at an interest rate of 9.75%. This initiative is part of a national campaign promoting
domestic travel for Ecuadorians. The plan is part of a massive tourist campaign, “Viaja Primero
Ecuador”, for which the Government encourages its citizens to explore their own country. Loan
requests can be processed directly with all the IESS offices, or via their web portal. Once the
loan is approved, the money will be directly deposited onto the accounts of tourist companies
that participate with BIESS and the Ministry of Tourism. The offer extends to four regions;
Galapagos, Highlands, the Coast and the Amazon.
Chart 23 Key Spending and Savings Measures: 2016

Note: In constant 2016 prices

Consumer Lifestyles in Ecuador

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Consumer Lifestyles in Ecuador

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CONSUMER LIFESTYLES IN

LIST OF CONTENTS AND TABLES

House and Home ....................................................................................................................... 22

Source: Euromonitor International

TOP FIVE CONSUMER TRENDS

the Slowdown in the Economy Is Changing Spending Habits

Consumers Look Online and Across the Border in Search of Cheaper

Increasing Consumer Demand for Healthier Food

Ecuadorians Still Going on Holiday Despite Economic Uncertainty

Sports Participation on the Rise

Babies and Infants

More Parents Connect Through the Internet To Find and Share

Stronger Demand for More Healthy and Nutritious Foods

Source: Euromonitor International from national statistics/UN

Strong demand for Kids to participate in sports

Chart 3 Number of Kids (Aged 3-8)

Source: Euromonitor International from national statistics/UN

Tweenagers put pressure on parents to enrol them in summer schools

Increased use of social media

Chart 4 Distribution of Tweens (Aged 9-12)

Source: Euromonitor International from national statistics/UN

Teens are well connected

Teens spend their money on drinks and snacks

Chart 5 Distribution of Teens (Aged 13-17)

Source: Euromonitor International from national statistics/UN

Young Adults are more dependent on mobile phones

Source: Euromonitor International from national statistics/UN

Millennials drive the generation of the enterpreneur

Middle Youth have more economic power

Chart 7 Distribution of Middle Youth (Aged 30-44)

Source: Euromonitor International from national statistics/UN

Consumers go online for their health and beauty products

Mid-Lifers interested in investing in property in Miami

Chart 8 Number of Mid-Lifers (Aged 45-59)

Source: Euromonitor International from national statistics/UN

Grandparents raising their grandchildren as parents work abroad

Retirees indulge in travel and leisure pursuits

Chart 9 Number of Later-Lifers (Aged 60+) and Life Expectancy

Source: Euromonitor International from national statistics/UN

EATING AND DRINKING

Consumers spend less on eating out

Chart 10 Consumer Spending on Food and Non-Alcoholic Drinks: 2016

Source: Euromonitor International from national statistics/Eurostat/UN/OECD

Consumption of craft beer is increasing among different consumer segments

Chart 11 Consumer Spending on Beer, Wines and Spirits: 2016

Source: Euromonitor International from national statistics/Eurostat/UN/OECD

HEALTHY AND ETHICAL LIVING

Attitudes To Health and Wellbeing

Increasing demand for alternative medicine

Chart 12 Consumer Expenditure on Personal Health: 2016

Source: Euromonitor International from national statistics/Eurostat/UN/OECD

Chart 13 Obese and Overweight Population by Gender: 2000-2015

Source: Euromonitor International from WHO/OECD

Sport and Fitness

“Quito Ultimas Noticias 15k” race, motivates thousands of people to participate

Chart 14 Percentage of Households Owning a Bicycle: 2016

Source: Euromonitor International from national statistics

HOUSE AND HOME

Sense of insecurity has boosted demand for home security

Chart 15 Overview of Households: 2016

Source: Euromonitor International from national statistics

Chart 16 Households by Type and Occupants

Source: Euromonitor International from national statistics/UN