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The Peruvian Markets

Home
Background Information
Peru's Competitive Advantage
Working in Peru
Peru's Economy
Meet the Culture
The Peruvian Markets
Risk Management in Peru
Social Issues and Concerns in Peru
Conclusion and Recommendations
Bibliography

Household Markets
When figuring out the market there are many factors that come into play. The first is that Lima would most likely be the only location to sell household products. It is extremely hard to reach the outlying towns due to the mountains and terrain. Lima has a huge population base of well over 7.5 million people. However, the unemployment in Lima is reaching 30% and the GDP per capita of just over $6,600 (CAD). The primary concern of most citizens in Peru is to survive, and buying household products would be done by only 10% of the country, which has a great amount of wealth. 
Therefore, the market is very small for household products priced at $13 Nuevo Sols. The citizens are more concerned with food and survival so it is our strong recommendation that you do not sell to Peru.

Trade Show Opportunities
Listed below are some of the trade shows and exhibitions going on in Peru. As you can see, the most common industries that profit from this type of promotion are industries like mining, fishing, and industrial equipment. This only makes sense, considering these industries serve as the base of survival for counties like Peru.
 
EXPOPESCA'2003
INTERNATIONAL FAIR OF FISHING AND WATER CULTURE EQUIPMENT, SUPPLY AND SERVICES
Type
Trade Fair
Events Data
Edition 1
Coverage International
Starting 20/11/2003
Closing 22/11/2003
Additional Sectors
Hunting and Fishing
Description

Novelties for the fishing and water culture industry, the most profitable sectors in Peru.

FIP'2003
INTERNATIONAL PACIFIC FAIR
Type
Trade Fair
Events Data
Edition 25
Coverage International
Frequency Every Two Years
Starting 17/11/2003
Closing 22/11/2003
Starting Time 13:00
Closing Time 21:00
Web Site http://www.feria.com.pe/fip-index.html
Additional Sectors
Multisectorial
Description
A trade fair for capital goods and inputs for the general industry.

FITO EXPO'2003
INTERNATIONAL EXHIBITION OF MEDICINAL PLANTS AND PHYTOTHERAPY
Type
Trade Fair
Events Data
Coverage International
Starting 06/08/2003
Closing 10/08/2003
Additional Sectors

Alternative Therapy

FERIA DEL HOGAR'2003
HOME TRADE FAIR
Type
Trade Fair
Events Data
Starting 24/07/2003
Closing 03/08/2003
Additional Sectors

Home Appliances

EXPOESCOLAR'2003
EXHIBITION OF SCHOOL SUPPLIERS
Type
Trade Fair
Events Data
Starting 14/02/2003
Closing 16/03/2003
Additional Sectors
Education

CONSTRUCTECNIA´2002
INTERNATIONAL FAIR FOR BUILDING AND CONSTRUCTION MACHINERY, EQUIPMENT AND MATERIALS
Type
Trade Fair
Events Data
Coverage International
Frequency Every Two Years
Starting 18/11/2002
Closing 24/11/2002
Starting Time 13:00
Closing Time 21:00
Additional Sectors
Buidling Industry

TECNOMIN´2002
INTERNATIONAL TRADE SHOW OF THE EXTRACTION INDUSTRY
Type
Trade Fair
Events Data
Coverage International
Frequency Every Two Years
Starting 18/11/2002
Closing 24/11/2002
Starting Time 13:00
Closing Time 21:00
Web Site www.feria.com.pe
Additional Sectors
Mining
Description
This trade show presents a wide range of offers: machinery, equipment, instruments, accessories, tools and mining materials. It opens a business opportunity for commerce in this sector.

Media Sources for Advertising Opportunity
Below is a list of the media sources in Peru. Use the legend to define what type of source each one is.

AG - News Agency
MG - Magazine
IN - Internet
NP - Newspaper
RD - Radio
TV - Television

IN   24 Horas Libre (Lima)
AG   Agencia Católica de Informaciones (Lima)
NP   Ajá (Lima)
AG   ANDINA (Lima)
NP   Bocón, El (Lima)
NP   Business Peru (Lima)
RD   Cadena Peruana de Noticias (Lima)
NP   Caretas (Lima)
NP   Chino, El (Magdalena)
NP   Comercio, El (Lima)
NP   Correo (Lima)
NP   Crónica Viva (Lima)
NP   Diario Oficial El Peruano (Lima)
MG   Ecomundo (Lima)
NP   Editora Sport (Lima)
IN   Encuesta, La (Lima)
NP   Expreso, El (Lima)
NP   Gestion (Lima)
NP   Heraldo, El (Lima)
MG   Líbero (Lima)
NP   Ojo (Lima)
NP   Peru .21 (Lima)
IN   Perú al Día (Lima)
NP   Peru News de Miami
NP   Peruano, El (Lima)
IN   Primera Pagina
MG   Quehacer (Lima)
NP   Razon, La (Lima)
NP   Referendum (Lima)
NP   República, La (Lima)
RD   RPP Noticias (Lima)
NP   Todo Sport (Magdalena)
NP   Tu Diario (Lima)

Product Distribution
Listed below are some different retailers and forms of distribution which are popular in Peru. Options must be kept open when looking to distribute a product, so looking outside the box of stores and malls, you must consider using resources like the Internet or trade shows (see above for a listing).
 
Peru Gallery
They sell Peruvian silver jewelry, ceramics and sculpture (wholesale and retail). Peruvian stones and plastic artists.

Via Compras (Internet)
Formerly known as MallPeru.com, Via Compras still claims to be the first electronic mall of Peru. However, it seems that since they changed their name they are more like an online store, but they still sell the same type of merchandize: Books, music, travel, perfumes, delivery of flowers, hardware, software and liquors.
http://www.viacompras.com/

Rules, Laws, and Labelling Standards in Advertising
Canada has very strict advertising laws compared to Peru. In Canada, there are no specific laws that force an advertiser to withdraw or amend an advertisement. There are however, some statutes that do have some power over the content and style of an advertisement as in the case of the Food and Drugs Act, the Consumer Packaging and Labeling Act and the Textile Labeling Act, or in relation to specific situations, as in the case of the Broadcasting Act. The Competition Act, the only federal statute that applies to all Canadian media advertising, ensures that competitive advertised claims are fair and not misleading. There is also a lot of requirements for promotional contests. The advertiser must disclose the number and approximate value of prizes, they must disclose the chances of winning, and select participants or distribute prizes randomly or on the basis of skill.
In Canada you are also required to have labels in both English and French. There can also be no messages of hate or pornographic material.
Other rules and regulations require reference to warranties, and prevent double ticketing. Parties found guilty of violating the provisions of the Act are subject to fines or imprisonment for up to five years of conviction. To date, the highest fine imposed has been $1,000,000. Specifically in the province of Quebec, there exists legislation, which prohibits television advertising aimed at children under the age of 13. In Prince Edward Island and New Brunswick, the law does not permit the advertising of alcohol.
Labeling requirements are relatively simple in Peru. Products normally retain their original labels and the name and taxpayer identification number. The number of the importer/distributor must be added to the packaging. This is monitored by the recently revamped Peruvian Customs Authority. The language used for advertisements is Spanish.

Pricing Considerations
Due to Peru’s economic difficulties and the very low GDP per capita, a business must take this into consideration when deciding on a price. If a company were to set the price of their product too high, the general population will not buy into it. Pricing will be a huge factor in a company’s success due to the high unemployment, crime rate and homelessness that is rabid in the slums of Lima. The location of where you are selling the product will also be a factor as to whether the citizens have money to spend. It is also important to note that there is an 18% General Sales Tax on all goods and tariff rates of 4-16%. These taxes will greatly raise the intended price so companies must consider this.

peru.jpeg

Advertisement Strategies
Although the Peruvian culture is very different from Canadian culture, their goal is still the same, and that is to win over the consumer. In the picture above, it is apparent that techniques like children smiling (creating empathy), colour, and simplicity are used to attract an audience, much like in Canada or the United States. The views of each country are different though, and this is shown when comparing advertising, literally. North America being wealthy, makes their advertising priorities based on personal wants, like clothing, music, cars and food. Meanwhile, in less fortunate countries like Peru, they are selling education, and pushing their popultion towards a future, so that not only they can be successful individually, but they can aid in the success of their country.

©Copyright 2004 Peru-4-U