Industry & Retail
From The Report: Peru 2018
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In 2017 Peru was struck by the El Niño Costero floods, and some industrial segments were forced to stop production as a result. Despite that, significant growth in non-primary manufacturing segments – such as food products, paper and cardboard, and construction equipment and machinery – helped the sector record a relatively positive outcome for the year. Moreover, driven by the expansion of shopping malls, low prices at supermarkets and pharmacies, and a growing middle class, the retail industry grew by 4.3% in 2017 and is projected by the Lima Chamber of Commerce and the Retail Labour Union to grow by up to 6% in 2018. Furthermore, the 2017 Global Retail Development Index claimed that Peru’s retail industry recorded the largest growth in Latin America, despite an economic slowdown. Peru ranked 9th out of 30 countries based on market attractiveness, country and business risk, market saturation and time pressure. This chapter includes interviews with Rafael Álvarez, CEO, Backus; and Mario Campodónico, CEO, Supermarket Division, Cencosud Perú.

Articles from this Chapter

Overview

Production pick-up: Reconstruction efforts following El Niño Costero expected to stimulate manufacturing segment
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In 2017 Peru was struck by the El Niño Costero floods, and some industrial segments were forced to stop production as a result. Despite that, significant growth in non-primary manufacturing segments – such as food products, paper and cardboard, and construction equipment and machinery – helped the sector record a relatively positive outcome for the year. However, El Niño was not the only thing to impede sector growth, as efforts to enhance and stabilise the industrial sector have not been…

Interview

Aiming high: Rafael Álvarez, CEO, Backus, on the importance of competition for innovation and the impact of purchasing power growth
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Interview :Rafael Álvarez What role does innovation play in enhancing efficiency and decreasing costs? RAFAEL ÁLVAREZ: Improving efficiency and productivity is something that companies should always try to accomplish. In this regard, innovation in processes and products is essential to guarantee the sustainability of efforts to enhance productivity and prevent cost-cutting measures from having a negative impact on the core business. Ultimately, it is the successful innovation of processes…

Analysis

Shipping power: Growth in manufactured exports led by chemicals subsector
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After several years of decline, industrial exports grew by 10.3% in 2017 to reach $4.8bn. This was due to a 4.3% increase in the shipment of chemicals, which hit over $1.4bn, and a 16.8% rise in iron and steel to total $1.2bn. These encouraging figures continued through to 2018. The Association of Exporters (ADEX) reported that industrial exports amounted to $1.3bn in the first quarter of 2018, up 16% over the same period of 2017. The chemicals subsector led industrial exports between January and…

Interview

Purchasing power: Mario Campodónico, CEO, Supermarket Division, Cencosud Perú, on the modernisation of the retail industry
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Interview :Mario Campodónico How did Peru achieve the highest growth in the global retail industry for 2017, and what challenges might result in the short to medium term? MARIO CAMPODÓNICO:The development of the modern retail channel in Peru had been delayed in comparison to the rest of Latin America. Although this began to change some years ago, market penetration continues to be low. The modern channel represents 20% of retail in Peru, versus the traditional channel at 80%. As Peru…

Overview

Into high gear: Economies around the world are preparing for the opportunities and challenges brought about by the next industrial revolution – Peru 2018
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The global economy is entering the Fourth Industrial Revolution (4IR), or Industry 4.0, based on the application of new digital and automated technologies in production processes and service delivery. These changes are presenting emerging markets with opportunities such as improved productivity, as well as risks, namely reshoring and the displacement of human labour by automation. Wealthier emerging markets, such as the Gulf states, that have the resources to invest in new technologies, and those with better established manufacturing sectors, such as the countries in Southeast Asia, appear best placed to reap the benefits of the 4IR. Many of these…

Overview

Sizing up: Potential for further industry growth lies in store expansion, a larger formal market and the adoption of e-commerce
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Driven by the expansion of shopping malls, low prices at supermarkets and pharmacies, and a growing middle class, the retail industry grew by 4.3% in 2017 and is projected by the Lima Chamber of Commerce and the Retail Labour Union to grow by up to 6% in 2018. Furthermore, the 2017 Global Retail Development Index claimed that Peru’s retail industry recorded the largest growth in Latin America, despite an economic slowdown. Peru ranked 9th out of 30 countries based on market attractiveness, country…