By Sharon Ganney, Head of UK Trade & Investment, Peru
Do you think that British products and services are under-represented in the Peruvian market? I certainly do and it is our objective to try to change that. British exports to Peru increased by 28% in 2011 and by the end of 2014 We hope to see exports double from US$120 million in 2010 to US$240 million by 2014. Latin America with its huge population, expanding economic growth, and investment now features prominently on the radar of the UK government, endorsed by the Foreign Secretary, William Hague in his speech “Britain and Latin America: historic friends, future partners” to Canning House in November 2010. It can be frustrating to sit at my desk in Lima trying to engage more with companies in the UK and getting them interested in business opportunities in Peru. Although technology makes the world a smaller place, we are all so busy these days that emails can go unread and people can be hard to pin down to have a phone conversation. When UK Trade & Investment (UKTI) in London asked me if I was interested in taking part in a Latin America Roadshow in the UK to promote Peru, I jumped at the chance. Nothing quite beats face to face contact.
What did I plan to achieve during this visit? To convey to companies what it is like to do business in Peru, the advantages and the challenges; tell them about the economy; the business opportunities, and of course how UKTI in Lima can help them get started in the market or move forward with existing business.
The “tour” as it became know took the format of one-to-one meetings with companies interested in Peru; panel discussions represented by UKTI, FCO, businesses currently exporting; and presentations from the 11 UKTI teams representing Latin America and experienced exporters to the region.
We visited 5 cities in 5 days- London, Gloucester, Birmingham, York and Manchester, meeting around 60 companies in that time. I have been on similar tours before, focused on world- wide markets, but the real benefit of a Latin America only tour is the focus. I was struck by how serious companies where in exporting to Peru. They want to be in this market. Many companies know that Latin America is a region to watch and they are keen not to lose out on opportunities to their competitors.
What kind of products were the companies offering? A diverse range, really showcasing the innovative technological base that the UK is a world leader in: Educational software; specialist lighting for industrial use; touch screen technology; communications equipment for use in remote areas; consumer goods; architecture services; energy saving products; medical goods; electronic products that can be used for value added purposes in Peru, equipment for industry and manufacturing; consultancy and engineering services for all sectors.
One of the largest exports from the UK to Peru is Scotch whisky. In fact David Williamson from the Scottish Whisky Associating told me that exports increased last year by 90%. With the EU-FTA that will come into force later this year, this figure will increase further still. David treated us to an education in malt whisky during a tasting session. I was unaware until David enlightened me that Whisky has legs. Did I drink too much to come up with such a comment? No. If you hold up your glass of malt, swirl it around and watch the liquid run back down into the glass (known as the legs for the leg like shape as it makes its way back down the glass), then this is one way to determine how old the malt is. Slow moving = older, fast moving = younger. I know that feeling.
So why have companies been slow to notice Peru? I asked the companies this question. Distance from the UK is a factor, but not an overwhelming one, lack of knowledge of the opportunities is another, and perceptions that all of Latin America is dangerous. It is a matter of busting some incorrect perceptions, communication with companies, trade association in the UK and our UKTI colleagues based in the regional offices of the UK to tell it how it really is.
On the other side, the companies wanted to know what Peruvians think about British products. From my conversations with Peruvian contacts, I have been told that to them a British products is good quality, reliable, built to last, but can be expensive. The companies would agree with that, but they feel that they are competitive on price for the quality of the product. The cheapest product is not necessarily the best.
The inPeru association will be travelling to the UK to promote Peru as a destination to export to and to invest in. This visit represents an excellent opportunity for both Peru and UK to develop our shared trade and investment interests. We look forward to working with them on this visit to maximise the success.
Some of the companies we met on the tour will be visiting Peru over the next few months and we are already working on helping them get the most from their visit. Others are looking to us to help them make informative decisions on how they enter this market. I have around 60 companies to follow up. Results as you know don’t happen overnight, it can take an average of 2 years to export to a new market. Those who are lucky to come in when a there is a gap for their product can see much quicker results.
What am I going to do with all of these companies eager to do business in Peru? Aside from the follow up I will have with each of the companies, I want to ask you to tell me about the types of products, and services you want to represent or that you need for your business. I can make the connections.
Peru offers golden opportunities for British exporters and our aim is to help more companies take that first step in their journey through Latin America – Destination Peru.