T1

Business Faculty

"Commercial Economic Reality of Peru, considering

Teacher:

Narby Maritza Izaguirre Ciña

Members:

 Marycielo Fernanda Alvarez Tenorio

Group: 3

Lima – Perú
2020

Introduction:

If we want to analyze the economic - commercial reality considering trends and cultural
changes, we must first see the situation in which we find ourselves, the reality due to Covid
-19 is that Peru projects that the economy would contract -9.5% in an optimistic scenario ,
while in the moderate and pessimistic scenario the economy would fall -12.9% and -14.5%
(Adex), this generates a daily drop of 0.2% in GDP. In the commercial sphere, the national
productive supply and both national and international demand have been reduced, this
situation has led to many companies going bankrupt, others reinventing themselves in new
areas and new ventures are born that boost the country's economy

Development:

The reality of the commercial sectors that were economically affected in Peru 2020.

- Construction: In April of this year this sector had a fall of almost 100% since this activity
was completely paralyzed due to the severe confinement, this was reflected in the internal
consumption of cement, which they took as an indicator to measure the activity of
construction, currently in the month of September the minister of economy affirms that "this
sector has had a rapid recovery since in three months it has reached the levels it had before
the Covid -19.

- Mining: In the mining sector, it is known that Peru has a wide portfolio of mining projects
under construction, according to the Ministry of Energy and Mines, these projects such as the
expansion of Toromocho in Junín, Mina Justa in Ica, Quellaveco in Moquegua and The Santa
María Expansion in La Libertad totals an investment of 8.365 million dollars. These projects
have not been totally affected, since in the case of Mina Justa work has continued and the
construction work is soon to be completed, other projects such as Moquegua have been a bit
delayed in their construction, but it is not hard hit by the pandemic.

- Manufacturing sector: This sector in the month of March was severely affected by the
extensive quarantine that was held in Peru, the indicators that showed a drastic drop in this
sector were electricity consumption, physical payment vouchers and electronic In addition to
this, the panelists of the Focuseconomics Consensus Forecast predicted that Peruvian
manufacturing activity will decline by 20.1% due to the effects of the pandemic.
Now after a few months of the gradual economic reactivation we can see a scenario that
reflects greater dynamism in its activities such as exports and trade that have already reached
pre-covid levels, this information is supported through electronic payment vouchers.
 From a cultural point of view, this sector is recovering rapidly because the Peruvian is an
entrepreneur and is always innovating to get ahead, this can be clearly seen in all the new
"ventures" that have been born as a result of the quarantine, even before The pandemic Peru
was a country sustained by MSEs that are the livelihood of many families.

Consumption trends: four changes in the Peruvian consumer 2020.

The new normal originating from the Covid-19 crisis has modified consumer behavior in our
country, in such a way that new trends in consumption have arisen.

In the framework of a recent webinar organized by the Interactive Advertising Bureau (IAB
Peru), the general director of Planning of Omnicom Media Group Peru, Juan Pacheco, shares
four keys to consumption to increase sales in the online channel.

1. Most consumed categories

In the online sector, purchases are concentrated in two main categories: entertainment and
learning. Thus, in recent weeks Peruvians admit that the main products or services they have
used or bought have been classes and courses (55%), streaming services (49%), bank
accounts (46%), technological devices (44 %) and clothing (42%).

2. Preferences for instant messaging

In the new normal that we face, messaging platforms have become one of the main sales tools
and, to sell more, it is essential that you know the favorite platforms of consumers.

According to the OMG regional study, 63% of those surveyed bought through communication
platforms (WhatsApp and Messenger), 60% did so through social networks (Facebook and
Instagram), 46% bought through brand websites and 43% through delivery apps.

3. Most used payment methods

In the last month it was observed that purchases in the online channel are led by the use of
credit and debit cards when buying from brand sites, delivery apps and multi-brand online
sites.

However, when buying from social networks like Facebook or Instagram, the majority of
consumers pay in cash (33%).

4. Delivery options
Electronic commerce obtains one of its greatest strengths with the convenience of delivery.
74% of respondents said that home delivery of the product is their favorite delivery option and
only 17% indicated that they prefer to pick up the product in store.

Despite delivery being a basic attraction of the online sector, 36% of those surveyed indicate
that they encounter difficulties in their purchases, the most frequent being non-compliance with
delivery times.

Savings

There is a degree of uncertainty in the security of international exchange products, which are
caused by global crises. The world will have to redesign all the supply that exists and this will
generate large fluctuations in welfare in all the countries that the consumer will have to face
(impact on society). Consumers are not especially saving money due to the aforementioned
insecurity, but due to the global situation, their wages and monthly income have been affected,
therefore they consume less.

Purchases of goods and services

This will take place according to the relationship that companies have with consumers. The
goods are more difficult to mold to people, compared to the service, which can be
individualized and you only need to generate trust and security so that the consumer can
access. An example of this is Netflix, which today is quite consumed in homes and is part of
entertainment.

The education

It is a service that must be learned to provide at home. We have a paradigm in how education
should be provided, which has always been conducted in person through a mentor,
addressing a group of learners. The current situation generated a great impediment for
education to develop, retraining is failing even Latin America and of course in Peru, but this
must change so that people can be trained in a virtual way, because the educational system is
already changing .

Change in the workplace

The educational system that is developing will also bring about a change in the workplace. The
education received will allow flexible tasks at work. Administrative areas are already
performing their functions from home, although there are still areas that need to be developed
in the field, but you can have something a little more hybrid, which allows a balance between
personal life and work life which is healthy, in addition that it is going to create robustness in
companies and if we face another shock like the current one, the whole system will be created
to work from home.

Globalization of transactions

Opportunity and cost for Peru. The pandemic is generating two situations. The first is
something that was already happening and is that the world is closing down and becoming
less globalized. In the last 5 years there have been countries that have been resisting
globalization, if this happens, remittances will fall brutally and one of the damaged sectors will
be tourism. Tourism will have to be safer in our country so that it does not decline, one that is
of the highest quality, and people not only have exclusivity but also the health and protection
that is needed.

The second situation is that the conflict between the US and China is going to exacerbate and
it is the opportunity that Latin America and therefore our country can take advantage of:
American companies that need to produce manufacturing will seek to diversify because they
need to leave China, for the conflicts and pandemics faced in the last 20 years since it would
generate a great cost in the supply. The production options should be made in an emerging
country, in which we find ourselves as one of the three options (India, Asia and Latin America)
and therefore we would have an advantage in production diversification generating income.

Conclusión:

At this time we know little about what the real impact of the coronavirus crisis will be on our
economy. Some estimates from the more prudent entities indicate that growth will slow to 4%.
But, can you guess how much it will cost us to get out of the crisis? That seems like magic.

We are living today in a time of containment of the epidemic to reduce the spread and prevent
our hospitals from collapsing due to insufficient health infrastructure. Also to buy time so that
the problem does not overwhelm us due to the lack of doctors, beds and respirators.

Peru must also prevent companies from going bankrupt, for which it must be prepared to
reactivate the economy as soon as possible with surgical precision. The reactivation formula
involves building country-reputation foundations that allow 2021 to take off. Promotion and
strategic planning must be started in parallel with containing the crisis.

A body in charge of promoting reactivation works as long as its strategic role can be
strengthened, endowed with authority, independence in its technical role and incorporating it at
the apex of the umbrella. The objective should be to change the current disorder of dispersed
organizations underlying ministries such as PRODUCE, MINCETUR, MINAGRI and many
others, as well as Promperú and Proinversión.
The crisis will end sooner if we perceive that there will be a reactivation of the economy in
2021. It is in our hands to move towards the path of building that new reality with continuous
growth and development of Peru.

Bibliografía:

- Pérez, C. (13 de mayo del 2020). Impacto del Covid -19 en la economía peruana.
(2020). Centro de investigación de economía de negocios latinoamericanos. ADEX.
Extraído de http://www.cien.adexperu.org.pe/impacto-del-covid-19-en-la-economia-
peruana-2020/.
- Andina. (04 de septiembre del 2020). Perú tiene proyectos mineros en construcción
por $ 8,365 millones. Noticias economía Perú. Circulo de estudios
Latinoamericanos. Extraído de https://www.cesla.com/detalle-noticias-de-peru.php?
Id=15625
- Andina. (09 de septiembre del 2020). MEF: economía peruana se recupera y se
acerca a niveles antes del Covid. Noticias economía Perú. Circulo de estudios
Latinoamericanos. Extraído de https://www.cesla.com/detalle-noticias-de-peru.php?
Id=15758
- Andina. (05 de septiembre del 2020). Tendencias de consumo: cuatro cambios en
el consumidor peruano. Extraído de https://realidad.pe/produccion/tendencias-de-
consumo-cuatro-cambios-en-el-consumidor-peruano/
- Diario gestión. (27 de mayo 2020). Webinar MIT: Cinco tendencias en los nuevos
patrones de consumo en Perú la región frente al COVID-19. Extraído de
https://gestion.pe/tendencias/webinar-mit-cinco-tendencias-en-los-nuevos-patrones-
de-consumo-en-peru-y-la-region-frente-al-covid-19-mit-roberto-rigobon-noticia/?
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