When we stop to think about branding, marketing, innovation, technology and connectivity, we think of Silicon Valley, China's Greater Bay Area, Israel or London. When we think of brand and business management, we think of the world's major markets and globalized financial centers. And when we think of expat life, we think of New York, Dubai, Shanghai.
It's certainly not Cuba, the land of Fidel Castro, a self-proclaimed socialist republic famous for representing the Latin American antithesis to the global capitalist model, that comes to mind.
That's why it was fascinating for me to discover that Eduardo Abritta worked and lived there, managing the brands of one of the largest Latin American markets for BAT. As he himself described it, it was an anthropological experience to understand this very different consumer.
In addition to my natural curiosity, I really believe that understanding a consumer who is inserted in such a different culture and political-economic system can be a source of many insights. After all, consumers are human beings, and some characteristics of how we consume and relate to brands and companies in our lives are universal, anthropological, cognitive of our species. Others, however, are evidently influenced by our culture, social, political and economic systems and our access to technology.
We had a very interesting chat that we decided to turn into a column for you.
Ricardo: Eduardo, first of all, tell me how you ended up in Cuba?
Eduardo: I received the invitation to take on the position of Head of Marketing in the second quarter of 2020, as a professional move in my career (at that time I was responsible for managing the portfolio of premium brands for South America). I confess that my first reaction was surprise! I had never visited the country before, so I had many doubts about what life would be like in such a different place. We all have our imaginations about the island, but because it's a very different environment from our reality (culturally, politically, socially and economically), it was difficult to imagine what daily and professional life would be like in such a place. In addition, we were at the height of the COVID-19 pandemic, which created more uncertainty about the impact on the economy and life in the country. After talking to expats living in the country and gaining a better understanding of the dynamics of life there, I accepted the challenge!
A: And what was your reaction when you got there? Your first impressions and first impacts.
E: My first reaction was that I had stepped into a time machine! But this machine allowed us to mix the past with the present, creating a curious and even contradictory atmosphere. The first impact was that of seeing American cars from the 1940s and 1950s circulating normally on the streets: Cadillac, Dodge, Buick, among others, are used by the population and coexist with current vehicles such as Mercedes Benz and Peugeot, for example (obviously in smaller numbers), as well as electric motorcycles, which are in growing demand. The architecture also contributes to this feeling of a return to the past, with low-rise buildings and centuries-old mansions, many of which are still in good condition.
But this time machine is contradictory. As soon as we arrived at the airport, we saw the massive use of cell phones. Internet is still an expensive service, but smartphones are present, as are selfies and social networks. And in my first experience of using a local cab app, I was picked up by a 1951 Chevrolet with original seats, but with the steering wheel replaced by a Honda one and the dashboard by a digital model, which was very peculiar...
A: What "shocked" you most about the whole experience? What did you not expect to find?
E: One of the things that surprised me the most was the use of the internet and all the transformations associated with this technology, especially through smartphones. The data connection service became more massively available less than three years ago with the implementation of 3G and 4G networks. Before that, access to the mobile internet was only possible at specific wi-fi points provided by cities, mainly in public squares, which concentrated a large number of users who wanted to surf the web. Access to the internet today is mostly through pre-paid data packages and cell phone top-ups. The cost is still expensive, but the service is widespread among the population. In general, these top-ups are paid for by family members who live abroad and want to keep in touch with their relatives on the island.
Along with the internet came digital transformation, a movement similar to that which has taken place in other countries around the world. Social networks are a fever in the country, especially Instagram and Facebook, and with them came local influencers, who share their lives and address various topics through posts, stories and reels. WhatsApp and Telegram are also among the population's top apps. The internet is also allowing people, especially the younger generations, to be more connected with other countries and to receive greater international cultural influence. This has led to young people who are more critical and questioning of the country's social, economic and political reality.
With the advent of the internet, e-commerce was another factor I didn't expect to find. It's still in its infancy, but the online shopping service, focused on supermarket products, food and drink, is already being used by part of the population. The cost of the products is still a major barrier to entry.
Another surprise factor was the entrepreneurship of the private sector, known locally as "cuentapropistas". Tourism-related services such as hotels, bars and restaurants have developed considerably over the years through private entrepreneurs with no connection to the government. The internet has also enabled the expansion of cuentapropistas, who offer their services and products through their social media pages and WhatsApp business accounts, as well as the emergence of food delivery and cab service apps.
A: How do Cubans relate to brands? From afar, you'd think that in a communist country like Cuba, brands wouldn't exist or would play a minimal role. However, one thing that really surprised me when I went there on a trip was to see the average Cuban consumer and their passionate relationship with certain brands (at the time, I paid close attention to the relationship with Red Bull, the brand I worked for, and some clothing brands, especially Adidas). What role do brands play for Cubans?
E: The population's relationship with brands has similarities to what we see in other countries, but also many particularities due to the local context. The main particularity is the fact that the dynamics of consumption are highly governed by the availability of goods: this means that consumption is a result not only of consumer demand and desire, but also of the availability of goods. Most of the products consumed are imported because local industrial production is small, which represents a logistical challenge (after all, it is an island) and a financial one due to exchange rate variations and the devaluation of the local currency. In addition, the retail chains and the entire operation of buying and distributing goods are the responsibility of the state. This context means that supplies on the island are intermittent and it is common for products to disappear from supermarket shelves for a while and then reappear (but not necessarily the same brand). To deal with this factor, people stock up on goods at home and resell/exchange products via WhatsApp groups or online marketplaces. Another local feature: the state provides the population with basic necessities (rice, beans, milk, etc.) in pre-established quantities.
Despite the irregularity of supply, brands play an important role, as in other countries, in expressing consumer identity, differentiation, indulgence and affiliation. International brands are objects of desire and are consumed by part of the population, who obtain them by buying them abroad, ordering them for relatives who live off the island and visit the country, or through resale between people. iPhone, Nike and Adidas are top of mind, especially among young people, as are smart watches. Brands also go viral and become trendy, even if it's through counterfeit products. I was struck by the number of people wearing T-shirts with the Supreme brand printed on them, which were clearly copies of the original.
Differentiation between brands in the same category also exists, as does differentiation between consumers. In the soft drinks category, for example, there is a clear scale of comparison between local brands due to different prices and perceived quality, generating different consumer profiles and status. This scale of comparison is expanded with the inclusion of international brands, which represent the aspirational top.
A: What's it like to LIVE there? Tell me a bit about what life was like for you or the average expat in such a different country.
E: It is indeed a very different country and one that requires a lot of adaptation on the part of the foreigner. An expatriate goes through an adaptation process in any country in the world, but there are characteristics there that are very different from what we're used to. The main one is the supply of products that I mentioned earlier. We are used to finding all the products we want very easily in our country, as availability is not a point of concern for us. When you live on the island, you need to plan your household supplies, always have a high stock of goods and buy products whenever you find them (even if you don't need them at the time), because you don't know when they will be available again. Freezers and pantries are essential items in a home that are no longer part of our lives in Brazil or in other countries.
Another adaptation factor is the computerization of services. Despite the spread of the internet and the existence of apps and other online facilities, many services still involve face-to-face steps, such as signing documents. Banking is one example, as many operations need to be carried out at the branch.
There is a relatively large community of expats (many Brazilians), many of whom live in the same housing estates, which creates a very important support network for the adaptation phase and daily help.
A: And what is the Cuban's relationship with technology like?
E: Technology has been gaining a lot of ground in people's lives, especially over the last three years, with the implementation of 3G and 4G networks and the challenges generated by the COVID-19 pandemic. As I said earlier, the digital transformation is taking place, and with it the use of social networks, e-commerce, service applications and chats.
Technology is also opening up the country's cultural doors, especially among young people, who are becoming more connected to global trends and expressions, as well as more questioning. Films, series and music consumed around the world are also consumed by the population. Access is not always easy, as data consumption for downloading or streaming is expensive. To compensate for this, there is the "paquete" market, which is a parallel trade in content. For a pre-defined fee and frequency, you receive a USB stick with the latest movie releases, series and international publications. This market has spawned the profession of the paquetero, who is the person responsible for accessing and recording this content for you.
Access to technology also creates greater differentiation between people. As we see in other countries, there are those who are adept at this movement and those who don't participate in it, either because of the cost involved, difficulties with the technology or because they aren't interested in the movement.
A: Cuban NFTs? Influencers?
E: The emergence of influencers was a natural consequence of the growing use of social networks. Influencers focus mainly on Instagram, complementing their expressions with YouTube. There are different styles of influencers, from young people who post fashion, culture and beauty tips, to people who use the online environment to criticize the country's political and social system.
The monetization of influencers is also happening. There are paid partnerships with restaurants, nightclubs, independent local brands and, above all, online e-markets. There is also the case of an influencer who created her own clothing brand after becoming famous on Instagram, and a YouTuber who makes live videos with the possibility of viewers offering financial contributions.
The online connection is also allowing artists to explore new trends, such as NFTs. It's important to note that this is still happening to a much lesser extent than in other countries, as is the proliferation of influencers, but it's already something interesting to observe. One of these artists, for example, has just launched a collection of NFTs called Cryptocubans, inspired by the Bored Ape Yatch Club: there are 1492 collectible photos of local people, and each of those photographed will own part of the image, so that he receives part of the income each time the NFT is sold. He was even invited by Time magazine to create a piece for a collection of NFTs celebrating the magazine's 100th anniversary. Just a curiosity: the number of images (1492) is a reference to the year Christopher Columbus arrived.
A: And what's it like managing a team in Cuba? I imagine that apart from the cultural issue, of course, there are many other very peculiar characteristics of this relationship.
E: Managing a team in another country is naturally challenging due to cultural issues. In my case, this was exacerbated by the pandemic, as the country's borders were closed during my first 6 months of work, and I didn't know any of them and had never been there before.
To overcome the cultural barrier, the first thing I did was to learn about the country's history in order to understand how its past has influenced today's reality, and consequently people's lives. Documentaries, books and reports allowed me to understand the main historical milestones and their impact on shaping society. Next, I dedicated myself to getting to know the local culture: musical rhythms, typical cuisine, favorite sports, among other aspects generated a repertoire so that I could start conversations with my team and allow myself to get closer to them. It was through this immersion that I discovered the existence of a great influence of Brazilian culture in the country, mainly through our soap operas, broadcast at prime time on local television.
As well as having content to start conversations, it was also important to know how to talk to people: the best way to greet someone, which words, slang or expressions to avoid in formal conversations (and which can be used in informal settings), controversial subjects that should be avoided, among other aspects. In this way, you avoid creating a conflict or wear and tear with someone you don't yet know well because of behavioral issues.
One point I had to adapt to was remote communication with the team. As I said, the use of Whatsapp is common, but as data is expensive, many people still use SMS to exchange quick messages at work, and thus save available data. Going back to using SMS to talk to some people was quite curious.
A: Well, I think everyone's tired of talking about the pandemic, but I can't help being curious: how did Cuba deal with the virus?
E: This was a major challenge for the country, especially from an economic point of view. It is estimated that 40% of the local GDP comes from the tourism sector, which has been hit hard all over the world by the reduction in international travel. In Cuba, this impact has been even more serious because the country closed its borders completely for six months, and after reopening them, implemented a mandatory quarantine control of one week and two PCR tests for almost a year, which makes any tourist travel impossible. In this context, unemployment is expected to rise considerably and the population's income will fall. In addition, the economic downturn has also had an impact on the availability of foreign currency for importing products for the population (it's worth remembering that the country relies heavily on imported goods to supply markets and stores). Over the last few months, with the progress of the vaccination, the country has returned to a "normal" context, without the need for mandatory quarantine, the normalization of international flights and the reopening of the hotel sector.
A: And with this fascinating experience, are there any lessons you can take back to your position in Brazil today? What do you think you took away most valuable in terms of professional learning from this experience?
E: The first thing you learn is the challenge of working and living in a culture that is different from your own. Being an expat challenges you in every way, because you have to adapt to another reality and respect it, even if there are dynamics and values that you don't agree with or that are different from your country of origin. This means constantly reflecting on yourself, your values, priorities and interests, in a strong process of self-knowledge. In addition, comparisons with our country of origin are inevitable, which makes us value the positive things more, but also be more critical of the negative aspects of Brazil.
Cubans are a very resilient people who have a great ability to adapt to adversity and overcome challenges, always trying to see the positive side of every situation. I mention this because a great lesson I've learned can be represented in a very common expression among them: "Pa 'lante", which means something like "forward". Despite difficulties, problems and challenges, you have to overcome them and move on. I think this is an expression that applies to all of us.
