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Rolando Arellano: “The classification will make people more optimistic and the entire economy will move”

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Rolando Arellano comments that the sectors most affected by the pandemic will be the most benefited by the possible classification of Peru to Qatar 2022. In addition, he recounts the main changes in the purchasing behavior of Peruvian consumers after the arrival of the pandemic of COVID-19.

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What will be the sectors that will benefit the most from the possible pass from Peru to Qatar 2022?

The first will undoubtedly be those that are a little more hit, such as restaurants and bars, the food sectors in general. Also the textile sector due to the issue of t-shirts, but much more so in the small textile sector, such as Gamarra.

By how much would sales in these sectors increase?

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Much will depend on what happens in the coming months. You can’t talk about a figure now because it depends on how long our qualification lasts and how far we go. Without a doubt, in some sectors it can be 15% or 20% more sales.

And the level of employment?

More or less in the same proportions, but they are data that cannot be given now. It will depend a lot on the features. What is certain is that it will be significant because the level of activity that these sectors have been having has been very low, because beyond the pandemic and political uncertainty, people’s spirits have been very low. That pessimism that is taking place at the moment will change and will cause the entire economy to move.

What products and brands will be the most benefited?

Classic products such as televisions are the ones that are going to move the most. It is also being seen that there is an entire industry of online gambling.

What factors will drive consumption?

The most important element that will give the classification will be that people are more optimistic and being more optimistic increases consumption in all sectors. If optimism grows, some larger consumer items like electrical appliances, as well as TVs and other things, may start to move.

In addition, there is now a large women’s movement in football. They have been entering little by little, but in recent years there has been a much greater participation of women in this sport, not only as a spectator, but also as a player, which means the entry of more people interested in the sector.

What does this translate to?

In a greater consumption of everything, because if before the man was the only one who was in what are liquors or beers, now there will be a greater number of women interested in the subject.

Sales are reactivated. Businessmen from Gamarra estimate to sell more than 1 million garments alluding to the Peruvian national team, if it qualifies for the World Cup. Photo: John Reyes/The Republic

new trends

In line with what was explained above, how have the consumption trends of Peruvians changed in the two years of the pandemic?

The first thing that has happened is that when one sees the future not so optimistically or with greater pessimism, one embarks on few long-term expenses. So, you don’t start buying the apartment you wanted because you don’t know if you’re going to have a job in the next few years or the car or eventually study at the university. Pessimism moves you. If there is some element of optimism, albeit external, that can be unlocked. Entrepreneurs themselves begin to invest a little more for the future. All this also has to do with what is happening in parallel with the Government.

Are Peruvians investing in the short term?

That’s how it is. The expense, if they have it, is done in the short term. That is why it is now possible to go out to eat something, for example, and there is a certain movement in restaurants and shopping malls. They are small purchases. They are not like the long-term purchases that are the ones that really move the market.

And what is your behavior towards saving and borrowing?

At the time of the pandemic, there has been a third of the population that has had the same or higher income. They increased their savings, that’s why there was a growth of savings in the banks, although it sounds counterintuitive, that’s what happened. However, the other party has decreased their income and their expenses have decreased. All the money they have they are directing more towards the basics.

What needs are being prioritized?

The first of all is food, the second thing that is being given is housing, for maintenance not for buying a new home. The last things being prioritized are clothes and fun. These last two aspects, which have been the most attacked, are the ones that will have a little more opportunity in the event that we qualify for the World Cup. This is because people are going to go out a little more to have fun.

In these two years, how has the expansion of ecommerce changed the purchasing styles of Peruvians?

There has been a very strong growth in online shopping. It has doubled, but it must be taken into account that having doubled, it still does not reach 10% of sales. In Peru, 90% of trade and even a little more is still done in the physical system. Ecommerce will continue to grow, but the strongest behavior is the physical system.

After COVID-19, did this type of trade decrease?

What happened after COVID-19 is that e-commerce purchases dropped in many sectors because department stores have already reappeared. That initial peak decreased, but although consumption fell, people learned that they could buy. That behavior will guide them and keep them using ecommerce, although not as intensely as when they had no other choice. He entered to stay, although he will hardly replace the physicist.

How are companies acting in the face of the increase in electronic commerce?

Most companies are betting on multichannel. It is rare the company that is dedicated only to the digital side. What most companies are seeing is how it reached the consumer on the digital side and on the physical side. The same happens in information and advertising.

Do you bet on this type of trade?

Certainly yes, but there is a long way to go. They are betting that it will grow and they don’t want to be left behind, but physicality is still central.

Source: Larepublica

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