In celebration of the Chinese New Year, the country's promotion agency has announced overseas activities aimed at strengthening our strength in the market.
The Peruvian Commission for the Promotion of Tourism and Exports (PROMPERÚ) is taking various measures to promote the exportable offer of Peruvians in the attractive market of the Asian giant, which contributes to the growth of exports of products such as avocado, red fruits, quinoa and coffee; aquatic products such as shrimp and squid. In addition, wooden floors, dolls, clothes and alpaca accessories are made of this beautiful fiber, they also had a growth in this market.
It is worth mentioning that there is an increase in the export of quinoa and alpaca in the Chinese market, where these seeds reached US$ 3 million in the first three quarters of 2021, which represents an increase of 193%. Meanwhile, the export of alpaca toys has increased from US$ 8,612 to US$ 233,630 million. In both cases, actions have been taken such as the advertising campaign of Alpaca de Perú (alpaca clothing, accessories and toys) throughout the year in digital and physical media have allowed reaching 500,000 consumers, with a market sales volume exceeding US$ 150,000 and The special entry of specialty coffee from Peru to 2021 has been implemented on the Chubbo E-Commerce platform to expand its entry into the Chinese market.
During 2021, PROMPERÚ in Shanghai supported 139 exporters and carried out activities with 59 Chinese buyers. In addition, they held 18 in-person and virtual seminars on various topics, such as fishing, e-commerce, specialty coffees, alpaca products, among others. In southern China, information on new products included chocolate, Sacha Inchi oil, indigenous potatoes, Maca capsules, and Santo Palo.
Compared to last year, PROMPERÚ held 20 in-person and virtual seminars in Beijing. In addition, 48 trade agendas were established between Chinese exporters and importers.
PROMPERÚ mentions that in China there is great potential to enter quinoa and maca, due to their high nutritional value. Products manufactured with these characteristics are very attractive for the domestic market. Currently, Chinese consumers are interested in consuming healthy products and Peruvian superfoods, such as sacha inchi, coffee and cocoa derivatives, are on the rise.
On the other hand, the market is also accepting alpaca clothing, ornaments and dolls, as evidenced by the positive figures for the past year. It should be noted that in 2021 a prospective study was carried out in China regarding the identification and characterization of the Chinese textile market for alpaca clothing. This helps to identify 50 new potential business contacts, as well as information on Chinese buyer expectations.
As part of the Pacific Alliance promotion plan, seminars are being held to prepare and promote investment for access to the e-commerce channel in Asia, as well as a specialized program to evaluate the Peruvian Exporters Association (APE) that has the potential to enter these small markets, reported the head of PROMPERÚ.
The activities carried out by the promotion unit (PROMPERÚ) do not stop, so it has organized presentations from Peru at the Hotelex, Caffex, SIAL, Shanghai Fisheries, Guangzhou Fisheries, Central Fisheries National, FHC, CIIE and CAFFEX exhibitions, which are currently taking place and will take place in 2022. Likewise, this year various digital campaigns and promotions will be carried out in JD Perú stores and soon Tmall, the largest virtual store in the world, which handles an average of US$2,000 million annually in online sales.
Peru's exports to China
Over the past ten years, China has become Peru's main trading partner. Shipments to the Asian giant doubled from US$7,841 billion in 2012 to US$16,856 billion between January and November 2021.
96% of exports came from the mining and energy sector, which showed an increase of 9,0% in the last decade, and not especially from copper ore and concentrates (US$ 9,967 million), iron ore (US$ 1,640 million and fishmeal and pellets (US$ 1,421 million), among others.
On the other hand, in the non-energy sector, the fishing sector is concentrated with 52%, followed by the agricultural sector with 27%, which has consolidated itself as one of the fastest growing sectors in the last decade, reaching 15,7%. This is followed by textiles with 7% and wood and paper with 6%.
Among the main commodities exported to the Chinese market are frozen squid (US$98 million) and canned squid (US$65 million); blueberries (US$60 million), shrimp tails (US$59 million), other spongy products (US$33 million), fresh avocados (US$28 million) and more.
During 2021, 548 companies exported to China; Of these, 86% of their shipments come from the regions, with Ancash leading with 17%, followed by Arequipa (13%), Ica (12%), Apurímac (11%), Cosco (9%). and Mukwigwa (8%).
Forecast and some impacts on international logistics
It is February and the Chinese New Year has already begun, thus observing the official holiday period set by the government, from January 31 to February 6. As usual, the popular holiday will have a sectional effect on state operations, in addition to affecting the production of companies since most of these companies will remain closed. Although the official deadline is only seven days, but the logistical pressure will increase before and after the mentioned dates. Currently, port congestion and equipment availability are still significantly limited. This situation is considered one of the most important logistical challenges in the world and in the case of China it particularly affects large ports such as Shanghai, Ninbo, Qingdao, Shenzhen, Xiamen, Dalian or Vigor Duong.
Below is a perspective and impact on key players in the Asian country's international supply chain:
Textile Company / Production Center / Factory:
They are usually closed for four weeks to allow their workers to travel to see their families. Production lines will be shut down from early February, leaving equipment in service until the government makes a formal decision. The return to work will be extensive and could last until early March.
National and Regional/Last Mile Shipping:
They remain closed from January 31 to February 6.
Ports:
They will continue to operate despite the national holiday, but cuts in the flow of operations have led airlines to announce empty departures and cuts will be introduced.
Customs clearance and related operations will also be affected, although a security force has been established to ensure minimum services.
Airports:
Operations will continue as usual, but with a restart of the working groups. Although customs have little influence, they will not have as strong an influence as in maritime transport.
Mayron W. Ponce de Leon Sierra is a data analyst at the Directorate of the Origin Unit in the Ministry of Foreign Trade and Tourism of Peru. PhD candidate in Global Business Administration at Ricardo Palma University.
Highlighted
- Arola Group (2022). Chinese New Year 2022: Forecast and impact on international logistics. Available https://www.arola.es/nuevo-ano-chino-2022-impacto-logistica-internacional/
- PROMPERÚ (2022). Peru consolidates exports with Asian tiger https://www.gob.pe/institucion/promperu/noticias/580816-promperu-peru-consolida-exportaciones-con-tigre-asiatico
PhD | Dr. (c) in Global Business Administration, MBA with a focus on strategic management and Master's in Public Management; University Professor and thesis advisor at the Universidad Privada del Norte (UPN); Partner and Commercial Manager of the Marketing Consulting Firm Peru; expert in trade fairs and missions, business roundtables, professional registered and authorized by the Regional College of Graduates in Administration of Lima, consultant on export issues, market research, business plans; Scrum Master with extensive experience as Key Account Manager and Project Manager.
The undersigned has served as Head of Market Research at the Centre for Business Studies (CEE).
