"OPORTUNIDADES COMERCIALES Y PROMOCIÓN DE LAS EXPORTACIONES PERUANAS HACIA ESTADOS UNIDOS"

Introduction to the Conference

Opening Remarks

• Dr. Claudet Carranza Corina welcomes attendees, including students and colleagues from various campuses of Universidad San Martín.

• She introduces the 19th Business Experience Exchange Day as a platform for reflection, analysis, and evaluation of best business practices.

Purpose of the Event

• The conference aims to discuss commercial opportunities and promote Peruvian exports to the United States.

• Emphasizes the importance of the U.S. market as Peru's second-largest trading partner and primary destination for non-traditional exports in 2024.

Profile of Speaker Diana Elizabeth Pita Rodríguez

Professional Background

• Diana Pita has over 28 years of experience in international business management, having worked with SUNAT Perú and served as an economic advisor in China.

• Currently serves as an economic commercial advisor for Peru in New York, USA.

Academic Qualifications

• Holds a master's degree in International Culture, Society, and Economy from Universidad de Alcalá de Henares, Spain.

• Completed postgraduate studies in international business and Chinese economy at UIB China.

Conference Guidelines

Participation Instructions

• Students are required to actively engage during the session and prepare a review of the conference for submission on Moodle.

• Questions will be collected by raising hands and addressed by Diana Pita at the end of her presentation.

Overview of Commercial Offices

Locations and Functions

• Peru has four commercial offices in North America: Los Angeles (managed remotely), New York (central office), Miami, and Houston; also one in Toronto, Canada.

Key Responsibilities

• The main functions include promoting Peruvian exports based on market demand while supporting local exporters to identify potential buyers.

Investment Promotion Strategies

Encouraging U.S. Investments

• Focuses on attracting direct investments from U.S. businesses into Peru that create jobs and expand export capabilities across various sectors like manufacturing or agriculture.

Tourism Promotion Efforts

Commercial Strategies for Peru in the U.S. Market

Importance of the U.S. Market

• The commercial office's work is crucial as it leads to various activities, promotions, and strategies aimed at enhancing Peru's image abroad.

• The United States is Peru's second-largest trading partner and the primary destination for value-added exports, which are processed goods that command higher prices internationally.

• Approximately 37% of all Peruvian agroexports go to the U.S., with over 50% of textile exports directed there, highlighting its significance in international trade.

Key Export Sectors

• The focus on promoting value-added products is essential; agribusiness and textiles are two main sectors driving these exports to the U.S.

• Agribusiness has a strong position in the U.S. market, with non-traditional exports exceeding $4 billion in 2024, marking a 20% growth from the previous year.

Breakdown of Agricultural Exports

• Fruits constitute 62% of agricultural exports to the U.S., with blueberries leading as a top export product.

• Blueberries hold over a 60% market share in the U.S., making Peru a key supplier alongside grapes, which have a significant market presence as well.

Textile Sector Insights

• Textiles have seen a modest growth rate of 4%, ranking second in volume among export sectors to the U.S., following agribusiness.

• Coffee beans also show promise with substantial growth opportunities; last year's coffee bean exports grew by 35%.

Regional Focus: Northeast United States

Overview of New York's Global Influence

Importance of New York as a Global Capital

• New York is not just a significant city in the U.S. but also a global capital, influencing various sectors internationally.

• The city's cultural, gastronomic, and fashion trends set standards globally, making it crucial for Peruvian entrepreneurs to promote their presence there.

Economic Significance of New York

• The GDP of New York State is comparable to that of Canada or Brazil, highlighting its economic power.

• The Northeast region has a high concentration of Fortune 500 companies and commercial chains, which are vital for positioning Peruvian exports.

Demographics and Consumer Behavior

• With 8 million residents in NYC alone, the area represents a diverse melting pot of cultures and demands for various products.

• Consumers in this region are sophisticated with high purchasing power; per capita income exceeds $100,000.

Opportunities for Peruvian Exports

Targeting Premium Consumers

• There’s an emphasis on targeting consumers seeking premium products and unique experiences in the market.

Agricultural Exports Overview

• In 2024, Peru's agricultural exports to the U.S. surpassed $4 billion; fruits and vegetables account for nearly $3 billion.

• The U.S. imports over 50% of its fruits and 30% of its vegetables, indicating strong demand for Peruvian produce.

Growth Trends in Specific Product Categories

Coffee Demand Surge

• There’s an annual growth rate of 82% in coffee demand from the U.S., with Peru being the leading supplier of organic coffee.

Processed Food Market Potential

• Processed foods like artichokes and asparagus have significant export potential; frozen mangoes also rank highly among exported items.

Market Trends Influencing Food Products

Premiumization Trend

• The trend towards premium food products emphasizes quality attributes such as nutrition and tradition that can justify higher prices.

Market Opportunities for Peruvian Food Products

Consumer Trends in the U.S. Market

• The U.S. consumer is increasingly seeking premium products that offer added value, emphasizing quality and authenticity, which allows them to pay higher prices.

• There is a strong focus on health and wellness, with consumers preferring clean ingredients and functional foods that are free from allergens and preservatives.

• American consumers are valuing unique gastronomic experiences, leading to a demand for gourmet products that bring high-end restaurant flavors into their homes.

• The trend towards global flavors includes an interest in authentic tastes and spicy options, presenting opportunities for Peruvian cuisine to thrive in this market.

• Consumers now have a sophisticated awareness of quality and purpose behind brands they choose, creating a demand for authentic food experiences.

Strategic Positioning of Peruvian Food Products

• Peru aims to position itself as a reliable supplier of high-quality food products with added value across various categories beyond just fruits.

• Despite uncertain tariff contexts, Peru maintains competitive advantages with lower tariffs compared to other Latin American countries like Brazil.

• Continuous efforts are needed for sustainable positioning in the market regardless of changing tariff situations or international competition.

Product Categories with Growth Potential

• Key product lines identified include premium foods such as superfoods, oils, processed foods, and gourmet items that can be marketed effectively in the U.S.

• Notably, Peru is the leading supplier of 'perico' fish to the U.S., highlighting significant opportunities within seafood exports.

• Beyond fruits and vegetables, there are substantial prospects in processed foods like snacks made from native ingredients (e.g., potato chips).

Specialty Products Targeting U.S. Consumers

• Native snacks combining nutrition with flavor present great potential; examples include nutritious native potato chips.

• Superfoods such as quinoa flakes and maca can serve both as standalone products or ingredients for gourmet snacks produced domestically in the U.S.

• Frozen fruits like passion fruit and mango also show promise within the processed food sector targeting health-conscious consumers.

Opportunities in the Vegetable Oil and Cacao Markets

Unique Origin Identification in Oils

• Discussion on microlotes and the potential for identifying oils with unique origins, specifically focusing on vegetable oils.

Growing Interest in Vegetable Oils

• Highlighting the increasing demand for various vegetable oils such as coconut oil and avocado oil (palta), noted for their health benefits and versatility in culinary uses across different sectors including restaurants and hotels.

Nutritional Benefits of Cacao

• Emphasizing opportunities within the cacao market, particularly fine cacaos used both as final products and ingredients in nutritional items like dietary products, shakes, and fitness foods.

Cacao's Role in Health Products

• The incorporation of cacao into health-focused products to enhance flavor profiles while appealing to consumers interested in fitness and wellness trends.

Competitive Edge of Fine Cacao

• Noting that cacaos with origin identification are more competitive in the U.S. market, underscoring the importance of quality standards.

Expanding Avocado-Based Products

Peru's Positioning in Avocado Exports

• Peru's established reputation as an exporter of fresh and frozen avocados is discussed, along with emerging industries creating avocado-based products like oils and dressings.

Versatility of Avocado Ingredients

• The use of avocado not only for oil but also in dressings, snacks, and other food items is highlighted as a significant opportunity for value-added product development.

Functional Beverages Market Potential

Rise of Functional Drinks

• Mentioned recent trends towards functional beverages such as yerba mate from Argentina, indicating a growing market for energizing drinks that offer health benefits.

Demand for Nutritious Snacks

• The need for convenient yet nutritious snacks is emphasized due to fast-paced lifestyles; these snacks should be flavorful while providing essential nutrients.

Key Requirements for Export Success

Importance of Certifications

• Buyers prioritize certifications related to fair trade, sustainability, and traceability; having these credentials can significantly enhance market access.

Commitment to Agreements

Transparency and Communication in Exporting

Importance of Transparency

• Emphasizes the need for transparency in business dealings to find joint solutions rather than hiding information.

• Stresses that established terms, quality standards, and deadlines must be met; failure to do so can lead to losing clients and negatively impact the entire industry.

Effective Communication

• Highlights missed commercial opportunities due to slow responses from Peruvian exporters; quick communication is crucial.

• Notes that efficiency in time management is vital for entering the U.S. market successfully, aligning with local expectations.

Keys to Successful Relationships

• Lists essential factors for successful partnerships with U.S. counterparts: clear and rapid responses, transparency, sustainability, and supply capacity.

Commercial Promotion Strategies

Role of Commercial Offices

• Describes functions of commercial offices in identifying potential buyers for Peruvian exporters through various tasks including trade missions.

Trade Fairs as Promotional Tools

• Discusses participation in significant trade fairs like Seafood Boston, where 16 companies showcased their products.

• Mentions a specific event focused on promoting Pisco with six Peruvian companies participating.

Specialty Food Market Insights

Summer Fancy Food Show Participation

• Highlights the importance of the Summer Fancy Food Show for specialty food products; Peru's participation includes a diverse range of premium processed foods.

Product Highlights and Trends

• Details various products presented at the show such as olives, spicy sauces, and unique jams that cater to consumer preferences in the U.S., particularly spicy flavors.

Textile Industry Opportunities

Positioning Peru as a Textile Leader

Textile Manufacturing Opportunities in Peru

Overview of Textile Segments

• The textile hub in Peru serves as a global production and manufacturing center, focusing on two main segments: sourcing for international brands and developing independent private labels.

Key Products and Market Trends

• Cotton t-shirts are highlighted as a significant product due to the quality of Peruvian cotton, with notable brands like Hugo Boss utilizing local manufacturing.

• Premium cotton polos and alpaca sweaters represent luxury yet affordable fashion options, appealing to consumers interested in ethical and sustainable fashion.

Home Décor and Gift Items

• Opportunities exist in home décor items such as alpaca throws, which are gaining traction in both boutique settings and e-commerce platforms.

Industry Requirements

• The textile sector demands faster delivery times, quick inventory turnover, transparency in manufacturing processes, and adherence to fair trade practices.

Marketing Strategies

• Digital marketing is crucial for brand visibility; factors like online presence, website traffic, and social media engagement significantly influence buyer decisions.

Inclusion and Diversity in Product Offerings

• Brands must reflect diversity not only through product origins but also by offering various styles, sizes, and shapes to cater to all consumer preferences.

Consumer Preferences for Authenticity

• There is a growing consumer appetite for authentic brands with unique stories; Peru's rich textile heritage provides a competitive advantage.

Sustainability Trends in Fashion

Color Trends

• Pastel colors and neutral tones are trending in apparel design; simplicity is favored over complexity.

Ethical Fashion Awareness

• Sustainability is increasingly important to consumers; brands that utilize eco-friendly materials have better market access.

Production Practices

• Many Peruvian factories focus on organic cotton production with traceable supply chains, enhancing their appeal to environmentally conscious buyers.

Market Engagement Through Events

Trade Shows

Promoting Peruvian Brands in the Textile Sector

Overview of Market Participation

• Six Peruvian brands showcased their products in a market, achieving positive results with items made from alpaca and other materials, highlighting national pride.

• The textile sector's emblematic event promotes various clothing lines, including baby and children's wear, as well as home decor items.

Event Outcomes

• On May 1st, 49 companies participated despite adverse conditions like political instability and new tariff policies in the U.S., leading to promising outcomes.

• The event resulted in 190 buyers and 427 meetings, generating significant business expectations for the next year.

Strategies for Specialty Coffee Positioning

• A question was raised about positioning specialty coffee with a score above 85 among premium consumers; effective strategies were discussed.

• Participation in promotional activities organized by PROM Perú is crucial for gaining visibility and connecting with international buyers.

Business Development Opportunities

• Upcoming fairs like Fafé provide opportunities for Peruvian coffee exporters to meet international buyers directly.

• Exporters should register with PROM Perú to receive information on activities that support their export efforts.

Investment Needs for Agroexports

• Discussion on agroexportation highlighted the need for foreign direct investment and strategic alliances to enhance value-added processing capabilities.

Impact of Political Noise on Tourism and Exports in Peru

Challenges Faced by the Tourism Sector

• The political noise in Peru has made it difficult for tourism entities to operate effectively. Despite this, they maintain a focus on their technical role as promoters of commercial activities.

• The organization emphasizes that its promotional actions are separate from political issues, allowing them to continue operations despite instability.

Export Growth and Economic Dependency

• Peru's economy is increasingly reliant on exports, with a significant portion of wealth generated through international trade agreements established over recent years. Approximately 90% of exports stem from these free trade agreements.

• In contrast, China is working towards boosting internal consumption as a primary growth driver, while the U.S. market remains focused on consumer spending but faces current retraction due to economic conditions.

Effects of U.S. Trade Policies

• The protective policies under President Trump have had minimal impact on Latin American exports, including those from Peru; export figures remain strong despite political changes in the U.S.

• Continuous monitoring of both local and international political climates is essential for promotional activities, although they do not rely solely on these factors for operational continuity.

Ideal Balance Between Internal and External Demand

• There is no one-size-fits-all formula for balancing external and internal demand; each country's unique situation must be evaluated individually to determine an ideal ratio.

Strategies for Expanding Export Markets

• For businesses looking to expand into new markets (e.g., exporting lemons), initial steps include registering with Promperu and participating in relevant activities aimed at identifying opportunities abroad. Contact information was provided for further assistance: dediana@promperu.gob.pe.

• Agricultural products follow similar marketing strategies as coffee; establishing connections with commercial offices can lead to targeted opportunities in various markets.

Navigating Regulatory Barriers

• Non-tariff barriers such as sanitary regulations can pose challenges but also present strategic opportunities for innovation within Peruvian export chains; compliance with high international standards can enhance market competitiveness over time.

• Adapting to regulatory requirements is crucial; maintaining awareness and meeting standards allows exporters to thrive even amidst stringent protocols that may slow down processes like phytosanitary approvals globally.

Conclusion and Acknowledgments

• The session concluded with gratitude expressed towards the speaker, participants, students, professors, and authorities involved in the event organized by Universidad San Martín de Porres.