Peru - ECommercePeru - ECommerce
The number of people with internet access is increasing every year with the current access rate at the highest it has ever been at 56%, creating opportunities for eCommerce. The number of online marketplaces increased by 70% since 2015. During this period, in-store sales dropped by about 5% while online sales increased between 15-20%. ECommerce in Peru is promising. Although it is still a new market, eCommerce growth has a positive growth projection, due to rapidly increasing internet access and the presence of strong, reliable platforms. In the Lima metropolitan area, 53.1% of homes have internet access, while urban areas outside of Lima only have 24.4% access and rural areas only have 1.9% access. This is a key obstacle for eCommerce in Peru.
Current Market Trends
Potential for eCommerce growth exists due to Peru’s strong economic performance yet Peru has one of the lowest internet access rates in the region. With a large, youth population (55% under the age of 30) and a high internet usage rate among young people (77% of individuals aged 18-25), Peru’s youth population is the most well-connected to internet.
In Peru, 22% of internet users have made a purchase online, with consumers specifically preferring to buy accessories and applications (38%), technology (30%) and clothing and footwear (30%) on the internet.
Domestic eCommerce (B2C)
Several domestic e-marketplaces are taking advantage of eCommerce opportunities in Peru. Some of the most popular sites being those that follow:
Mercado Libre: Online platform in Latin America and Portugal for buying and selling a wide range of items. It has two types of accounts: free and paid.
OLX: Classified ad platform present in 114 countries, especially in emerging markets, which puts buyers in contact with sellers.
Linio: A platform where many different suppliers sell a wide range of products. Available in Mexico, Chile, Argentina, Peru, Ecuador, Colombia, Venezuela and Panama.
Falabella: Department store with a presence in Chile, Argentina, Peru, Colombia, Uruguay, and Brazil. Belongs to the SACI Falabella group and their main business areas are clothing, accessories, and homeware retail.
Ripley: Chilean chain of department stores, with presence in Chile, Colombia and Peru. Its main businesses are clothing, accessories, and homeware retail.
Platanitos: A group that sells fashion, especially footwear and accessories, by Platanitos Boutique and other brands. Available in Peru.
Wong: Peru’s largest supermarket chain. This website allows for ordering via internet from local and foreign-based consumers for local delivery.
Rosatel: Rosatel allows online orders of flowers and gift baskets.
For B2B eCommerce, businesses are beginning to use their own custom email domain servers instead of using an informal personal email address (Hotmail or Gmail) to conduct business. This new trend of owning one’s own email domain servers allows Peruvian businesses to legitimize their online presence.
There have been advances in the use of the internet in several Peruvian government institutions, including the tax collection agency, SUNAT, the public registry, SUNARP, and the Peruvian state-owned bank, Banco de la Nación (which handles the Treasury accounts). Additionally, the National Elections Bureau, ONPE, is testing electronic voting and improving internet usage.
Intellectual Property Rights
With regards to Intellectual Property (IP), Peru has signed the World Intellectual Property Organization Treaty and the 1996 Interpretation and Phonograms Treaty. Within the framework of the United States – Peru Free Trade Agreement there is a chapter on Intellectual Property that includes aspects of IP such as brands, geographical indications (GI), Internet domain names, innovation, and technological development. It also seeks to protect the moral and economic rights of the authors who own the intellectual property. The aspects covered in the chapter of Intellectual Property of the United States - Peru Free Trade Agreement were incorporated into national legislation through the Law No. 29316 on January 14th, 2009. However, Peru remains on the U.S. Trade Representatives section 301 “Watch List” since 1992 because of continued high piracy rates, inadequate enforcement of IP laws, and weak or unenforced penalties for IP violations.
The Peruvian government has established a special task force, E-Gob Peru focused on online payments. It is managed by the National Office of E-Government and Information Technology (ONGEI) under the President of the Council of Ministers. This office is continuously developing Gov2Citizens solutions for tax payments, and providing information on customs and foreign trade, as well as Gov2Gov transactions to reduce expenses within different agencies. Operational services include a citizen ID service portal and business-assistance services for small and medium-size companies. Additionally, the Peruvian government is implementing an Electronic Procurement System (SEACE: Sistema Electrónico de Adquisiciones y Contrataciones del Estado) with a goal of improving transparency and efficiency of government purchasing.
Peru has the lowest smartphone utilization among the main economies in Latin America, but estimates show e-commerce purchases to reach 57% by 2020. It is projected that 6.2 million Peruvians will acquire a smartphone by 2018 and 10.1 million Peruvians will own a smartphone by 2019. In 2015, according to the latest report of ASBANC, the number of mobile banking transactions in national currency with debit card and account transfers reached 109,233 in January and 198,210 in February of that year.
Currently the main means of digital marketing in Peru are:
• E-mail marketing
• Social networking sites
• Search engine optimization (SEO)
• Publicity (banners) in search engines
In 2013, 56% of online shoppers reached vendor sites through social networking sites. Additionally, according to recent surveys, the main retail companies plan to develop mobile marketing strategies.
Major Buying Holidays
Since 2012, the Lima Chamber of Commerce of Lima promotes “Cyber Monday” which take place on the Monday after the U.S. Thanksgiving holiday. “Cyber Monday” usually occurs in late November or early December. Additionally, the Lima Chamber of Commerce promotes “CyberMami” held on Peruvian Mother’s Day which is the second Sunday in May. Some companies, like Saga Falabella, a large retailer, also launch their seasonal offers like “Madrugo” which take place at the arrival of a new season. In the travel and tourism sector, tour packages and promotions with pre-determined dates occur around major Peruvian holidays such as Christian Holy Week, Peruvian Independence Day in July, and the New Year’s Holiday.
Peru eCommerce Industry Trade Development and Promotion eCommerce