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of consumers wanted a tablet computer for Christmas, while 21%
wanted a laptop. 70% of respondents said they intended to give
gadgets as presents.
Government spending on water infrastructure soars (December 2013)
Many Peruvians still lack access to drinkable water: According to
Euromonitor International data, 69.6% of Peruvian households had
access to a water supply in 2012, up from 68.2% during 2008. However,
according to official statistics, public spending in this area has risen by
64% since 2011, so this figure is set to increase markedly over the
coming years. According to René Cornejo, minister of Housing,Construction and Sanitation, access to running water means that people
no longer have to spend time and money purifying water.
Most Peruvian gamers are in their 30s (December 2013)
Very few Peruvian households have video games consoles (just 2.9% in
2012, Euromonitor International data states). 70% of Peruvian gamers
are in their thirties, according to Juan Francisco Echeandía of Smart
Gamers, a website that sells and rents video games. “These are the
Nintendo generation’ (those who grew up playing Nintendo consoles in
the 1980s and 1990s),” he said.
Echeandía added that the most popular video games in Peru at themoment were “Grand Theft Auto V,” “Pro Evolution Soccer,” “FIFA 14,”
“Call Of Duty: Black Ops 2” and “God Of War: Ascension.”
Diamond sales sparkle (November 2013)
Value sales of diamonds in Peru have grown at an average annual rate
of around 28% over the past five years, business newspaper El
Comercio claims. According to Gerardo Zela, general manager at Lima
jewellery shop Diamante Perú, consumers are increasingly opting for
arger and higher-end stones. He added that his shop was currently
selling an average of around 110 engagement rings per month, with
most priced between US$2,500 and US$3,500. As in many developedeconomies, Peruvian men often give an engagement ring to their
fiancée.
Smelling sweet, at least in the cities (November 2013)
According to newspaper La República, deodorant use, which was a rarity
n Peru as recently as a decade ago, has now gone mainstream, at least
n urban areas. Citing industry sources, it reports that 70% of volume
sales of deodorant in Peru are accounted for by Lima. Euromonitor
International data states that real value sales of deodorant in Peru rose
by 29.3%, to US$98.7 million, between 2007 and 2012, with over 80%
of the market accounted for by roll-ons and sprays.
Mining companies among the most-popular employers (November 2013)
An international survey conducted by human resources consultancy DQT
during mid-2013 has found that mining companies are popular in Peru,
with five of them making a list of the country’ s top-ten employers.
Mining companies were found to be much more popular in Peru than in
Australia, Canada or South Africa (other countries where mining is a
major economic activity). Peruvians were found to perceive mining
companies as offering good wages and conferring a degree of prestige
on their employees. Mining companies have also invested in improving
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their public perception, sponsoring cultural events, for example.
Asian marques to the fore in local car market (October 2013)
Car sales have boomed in Peru over recent years: Euromonitor
International data states that real annual consumer expenditure on the
purchase of cars, motorbikes and other vehicles rose by 26.1% between
2007 and 2012, to US$2.8 billion. By 2012, 21.3% of households had a
passenger car. Cheaper Asian models have proven to be particulalry
popular, with Korean carmakers Hyundai and Kia to the fore. A plethora
of low-cost Chinese marques, such as JAC and Chery, are also
ncreasingly visible.However, the sheer number of marques now available in Peru is
confusing some consumers. The Peruvian Car Association (AAP) states
that about 140 different marques are currently available. According to
one commenter on the AAP’ s Facebook page, “How many Asian brands
do we have in Peru? Aren’ t they too many?”
The place where Peruvians are born (October 2013)
The National Institute of Perinatal Care (INMP) in Lima is an important
andmark for many Peruvians. For some, it is akin to the Eiffel Tower in
Paris as a national monument. Founded almost 190 years ago, close to
one-seventh of the country’ s current population (some four millionpeople) were born there, according to government data. It was
particularly active during the 1960s and thus has a special place in the
hearts of many members of Generation X. These days, it mainly deals
with critical and emergency cases, but it retains an important place in
the national consciousness.
Gourmet food growing in popularity (October 2013)
Local consumers are buying gourmet packaged food in greater numbers,
usually from small retailers called gourmet shops or delicatessens.
These types of products are usually difficult to find in supermarkets and
traditional grocery retailers. This is helping to drive strong growth inreal value sales of packaged food, which rose by 23.6% in real terms
between 2008 and 2013, to just over US$9 billion.
“Until a few years ago, gourmet shops were scarce in Lima, except for
such districts as Miraflores and San Isidro. Now, you can find them in
the likes of La Molina, Santiago de Surco, Barranco, Magdalena del Mar
and Jesús María,” commented Jorge Baertl of retailer Affumicato
Gourmet, who was speaking to website Terra.pe. He added that many
consumers liked to combine gourmet snacks with premium wine,
whiskey or pisco (grape brandy).
“Buy Peruvian” campaign gains ground in textile market (September2013)
The notion of “buying Peruvian” is gaining ground among local
consumers, particulalry in the textile market, where local traditions
remain strong. In early September, a large number of textile workshops
and shops went “on strike” in Lima’ s Gamarra district to highlight what
they describe as “massive” imports of cheap Chinese products, which
they claim have already led to 9,000 job losses in the sector. “A trade
agreement has enabled one billion Chinese garments to be imported
nto Peru,” said Arturo Zavala, head of the Gamarra Manufacturers
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Federation.
“Peruvian quality is better – that is why we defend it,” said a young
man who was handing out leaflets that called on consumers to “Buy
Peruvian.” “We support Peruvian fabrics and designs, and we want
everyone to join in,” his female companion added. Both were speaking
to local media.
Healthcare the top priority for families (September 2013)
A survey conducted by consultancy Arellano Marketing during mid-2013
has found that Peruvian families prioritise spending on health and
education. “Above all things, families prioritise health, especially that
of their children, followed by their own health,” said Rolando Arellano,
head of Arellano Marketing. The survey found that 70% of households in
Social Class A had private health insurance. However, Social Class C
was found to account for the biggest proportion of private health
nsurance policies (41% of the total).
"Snail” mail in rude health (September 2013)
On August the 29th, Peruvians celebrated Postman’ s Day. The
profession is still alive and well, in spite of the growing popularity of
smartphones and instant messaging. Many marked the day by postingetters to friends and family. Serpost (the national post office)
organised an event that saw a group of postmen dress like “chasquis” ,
the ancient messengers of the Inca Empire, to bring “peace messages”
to President Ollanta Humala. This event received widespread media
coverage and was a hot topic on social media.
Meanwhile, a bookshop in downtown Lima gave away paper and pens
free of charge to book buyers in an effort to encourage them to write
etters. According to Euromonitor International estimates, consumer
expenditure on postal services in Peru will reach US$52 million in 2013,
up 42.5% in real terms since 2007.
Where’ s my bonus? (August 2013)
A growing number of Peruvian workers receive a twice-yearly bonus (in
July and December), but the practice remains less prevalent in Peru
than in many other Latin American countries. While these bonuses are
mandatory in Peru, this law is widely flouted: A survey of workers
conducted by website Trabajando.com during July found that 42% of
them did not receive bonus payments. Among those who did receive a
bonus, almost half of them (49%) said they had used it to repay debt,
while 29% said they had saved it, with just 22% spending it.
Anyplace is good for meeting (August 2013)
The rapid rise of the Peruvian middle class has outpaced the supply of
spaces they regard as suitable for them to meet for leisure or work,
such as cafés, bars and restaurants. Thus, many Peruvians will happily
meet for a chat on the street or even in a garage forecourt. Shopping
malls are also popular in this regard. A global survey conducted by
office solutions provider Regus during late 2012 found that some of the
meeting places favoured by Peruvian respondents included cars,
convents, abandoned railway tunnels and even a worm farm – locations
perhaps more appropriate to a Cold War thriller.
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Celebrating independence by leaving the country (August 2013)
Every year on July the 28th and 29th, Peruvians celebrate their
“National Holidays,” which commemorate their independence from
Spain. Some affluent consumers use this event as an opportunity for
foreign travel. According to the National Tourism Association (Canatur),
the most popular destinations this year were the USA, Mexico, Colombia
and the Dominican Republic, with the average trip lasting a week and
the average traveller spending US$2,000. Carlos Canales, head of
Canatur, said that Peruvians favoured all-inclusive bundles and warm-
weather destinations, such as Miami, Cancun in Mexico and Caribbeanbeach resorts.
Illegal cable TV hook-ups widespread, but crackdown is having an effect (July 2013)
According to Euromonitor International data, 23.1% of Peruvian
households (1.8 million) had cable TV in 2012. However, with illegal
cable hook-ups commonplace, the true figure is actually much higher.
According to 2012 data from the Peruvian Household Survey, which was
conducted by the National Statistics and Computing Institute (INEI),
more than 2.5 million Peruvian homes were watching (as opposed to
paying for) cable TV.
However, the government and cable companies are attempting to dealwith this problem: Between May 2011 and May 2013, Operation DUNA
saw 208,000 illegal connections severed. This led to 90,000 illegal
users switching to legal cable TV services.
Survey profiles Peruvians living abroad (July 2013)
About three million Peruvians (almost 10% of the country's population)
reside overseas, and virtually every family has at least one member
iving abroad. The first Worldwide Survey of the Overseas Peruvian
Community was conducted during 2012 by the National Institute of
Statistics and Informatics (INEI), the Ministry of Foreign Affairs and the
International Organization for Migration. 80% of respondents said theywould return to Peru if they could, while 70.5% were of the opinion that
ife in Peru was getting better.
The survey also found that 52.7% of Peruvian migrants were female,
with half of all migrants aged between 18 years and 39 years. 56.6% of
them had a higher education, 52% were married and 62% rented a
home in their destination country.
Learning to live with earthquakes (July 2013)
Earthquakes are a part of everyday life across Peru. According to the
country's Geophysical Institute (IGP), 94 earthquakes that could be felt
by people occurred during the first quarter of 2013 alone. Most of themhappened along the coastline, where the population tends to be more
nformed and better prepared for these events.
“Everyone should know what they have to do and start planning ahead
n order to minimise the damage that occurs when an earthquake takes
place,” said Hernando Tavera of the IGP. Many Peruvians take seismic
vulnerability into account when choosing a place to live or building
materials.
Digestive health a major issue (June 2013)
According to nutritionist Diana Mesones, who was speaking to news
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website Diariocorreo.pe, eight out of ten Peruvians suffer from gastritis
(an inflammation of the lining of the stomach). She said that this was
due to poor eating habits, stress and drinking excessive amounts of
coffee and alcohol. Eating on the street, irregular meal times, smoking
and high-fat foods were also cited as contributory factors. She added
that the fact that many Peruvians were lactose intolerant also played a
role.
Mesones was citing data from a nationwide study that was conducted
by the Peruvian Ministry of Health during 2010. Such is the extent of the
problem that some restaurants in Lima even offer antacids to departingcustomers.
Despite mobile phone boom, a fifth stil l lack telecoms access (June 2013)
Mobile phone use is expanding rapidly in Peru: Euromonitor
International data states that 60.5% of households had a mobile phone
n 2012, up from 34.7% during 2007. However, according to data
published recently by consultancy Grupo PPP, as of late 2012, around
20% of the country's population lacked access to a telephone (either
andline or mobile). This problem was found to be particularly acute in
solated rural areas. “Why would I buy a mobile phone? There are no
antennas here, so we cannot get a signal,” commented Gladys, whoives in a mountainous region.
Earthquakes rattle Lima (June 2013)
Sitting as it does on the edge of the “Ring of Fire” (the highly
seismically active Pacific Rim), Peruvians are no strangers to
earthquakes. However, two tremors in as many days during mid-June
(the second of which measured 5.1 on the Richter scale, according to
the Geophysical Institute of Peru – although the US Geological Survey
reported it as 4.6), have worried Lima residents, even though the
damage they caused was relatively minor.
News agency United Press International reported that “People fled intothe streets in panic, but there were no immediate reports of injuries or
damage.” Telephone services were disrupted, but they were quickly
restored. The epicentre was just 35km northwest of the city, and some
are fearful that these tremors may indicate that a reprise of 2007's
much more powerful 8.0 quake is in prospect in the near future.
Fewer living in poverty (May 2013)
The number of Peruvians living in poverty fell by half a million during
2012, to 7.8 million (around a quarter of the population), according to
data from the Peruvian National Statistics and Computing Institute
(INEI). According to Alejandro Vílchez, head of INEI, strong economicgrowth and increased spending on social programmes were the key
factors in this. Euromonitor International data states that real GDP in
Peru expanded by 6.3% during 2012.
As a result, many now have significant discretionary income for the first
time. “I bought cheese spread for the first time in my life,” said a
woman from Lima, who was speaking to radio station RRP. While the
poverty rate remains acute in rural areas, it is falling even here, from
56% to 53% between 2011 and 2012.
Peruvian design goes back to its roots (May 2013)
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During Lima Fashion Week, an event that aims to promote local
designers, the catwalks featured designs inspired by pre-Columbian and
regional Peruvian traditions. Such Peruvian designers as Sitka Semsh,
Amaro Casanova and Ani Álvarez Calderón reflected these influences in
their collections.
Semsh displayed outfits based on a contemporary interpretation of how
Inca princesses dressed; Álvarez Calderón was inspired by the Puno and
Lake Titicaca regions; while Casanova was influenced by La Fiesta de la
Candelaria, a regional religious festival. Such clothes are becoming
ncreasingly popular with affluent female consumers in Peru. Moregenerally, the use of Peruvian cotton and alpaca fibre by local designers
s also on the rise.
Even mothers now shop for Mother's Day (May 2013)
A survey conducted by consultancy Datum Internacional during early
May found that average expenditure for Mother's Day in Peru (celebrated
on the second Sunday of May, which fell on May the 12th this year) was
US$50. It also found that a majority (66%) of respondents intended to
spend the day at home with their families. It also identified what it
called “self -gifting” (saving up for a special treat) as a growing trend
among the country's mothers.Surge in credit card use, but defaults also on the rise (April 2013)
A decade ago, credit cards were almost unheard of in Peru, but
according to Euromonitor International estimates, there were 3.8 million
personal cards in circulation during 2012, up 50.4% since 2007.
However, the number of non-performing loans is rising, according to
business newspaper Gestión, which reported an increase of 14.2% in
the number of defaults on credit card debt between 2011 and 2012.
According to industry sources quoted by the newspaper, some card
holders have been overly optimistic about their financial prospects,
while others lack budgeting skills.Peruvian sports fans prefer foreign teams and players (April 2013)
Peruvians are well known for their patriotism, so it came as something
of a surprise when it was revealed that their most popular sports-
related Facebook pages mainly revolving around foreign teams and
players. According to data compiled by online analytics company
Socialbakers during early 2013, the most popular Facebook pages
among Peruvian internet users were those of Portuguese football player
Cristiano Ronaldo, who had around 900,000 Peruvian followers, FC
Barcelona (890,000) and Argentine player Lionel Messi (887,000). The
exceptions to this were local football club Alianza Lima and Peruvian
player Paolo Guerrero. Socialbakers estimates that 34.5% of Peruvians
are Facebook users.
What do time-poor young executives want to do? (April 2013)
45% of Peruvian executives aged under 45 years are not fully satisfied
with their lives, a survey conducted by polling company Ipsos Peru
during February and March 2013 has found. 61% of them complained
that pressure of work meant they could not spend as much time as they
would like with their families. 45% said they wanted to spend more
time travelling, while 30% desired to play more sports and 23% wanted
to devote more time to hobbies. Returning to education (16% of
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respondents), spending time with friends (11%), having time for
themselves (6%), resting (5%), starting a business (5%) and outdoor
activities (3%) were also popular choices.
Fear of crime makes many reluctant to socialise outside of the home (March 2013)
According to a study conducted during the second half of 2012 by INEI,
Peru's national statistics bureau, 86% of Peruvians feel insecure. This is
mainly due to the country's high crime rate, with murders and other
violent crimes relatively commonplace. Those aged between 30 years
and 44 years and Lima residents were found to be the most likely to
feel insecure. This insecurity leads many Peruvians to spend theireisure time at home, rather than going out. According to the INEI, 38%
of Peruvians over 15 years of age have been a victim of crime.
Affluent consumers view billionaires as role models (March 2013)
Affluent Peruvians consumers are increasingly mimicking the habits of
high-profile billionaires. According to Forbes magazine, there are ten
Peruvian billionaires that influence local consumption habits in this
manner: Eduardo Belmont, CEO at Belcorp (a manufacturer of beauty
products); Carlos Rodríguez, CEO at Intercorp (a holding company);
Juan Fernando Belmont Anderson, CEO at Yanbal (cosmetics); Eduardo
Hochschild, CEO at Hochschild (mining); Alberto Benavides, president ofMinas Buenaventura (mining); the Brescia family, who own holding
company Grupo Brescia; and the Rodríguez family, owners of grocery
retail chain Gloria. For example, Juan Fernando Belmont Anderson's love
of golf has helped to popularise this game among Peruvian
entrepreneurs and executives, partly as a way of networking.
With gyms booming, Peruvians feel the burn (March 2013)
Until fairly recently, there were virtually no gyms in Peru. However, such
chains as Sportlife, Golds Gym and Bodytech are now sprouting up in
urban areas, especially in the vicinity of Lima. According to newspaper
La República, 12 new gyms are planned for Lima and other cities in Peruduring 2013.
“Around 3% of Peruvians will go to a gym this year,” said César López
of Bodytech Peru. While this figure is still relatively low by the
standards of many other Latin American countries, it is rising rapidly. A
growing number of consumers are opting for six-month or annual
membership, rather than merely joining for a month or two to get in
shape for summer. This reflects the fact that fitness and personal
appearance are increasingly important to middle class Peruvians.
Consumers adopt a more conservative attitude towards credit (February 2013)
A nationwide survey conducted during December 2012 by marketresearch firm Datum found that 85% of Peruvians did not intend to take
on more debt during 2013. This follows several years of booming credit:
The outstanding balance of consumer credit in Peru grew by 83% in real
terms between 2007 and 2012, to just over US$2.4 billion, according to
Euromonitor International estimates.
According to Jorge González Izquierdo, an economist at Universidad del
Pacífico, there are three main reasons for this: Families are now “more
aware of the risks of excessive debt,” interest rates are increasing, and
“rising incomes mean that consumers have less need of short-term
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credit.”
Migration stories (February 2013)
More than 2.4 million Peruvians left the country to live abroad during
the period 1990-2012, according to data from the INEI, the country's
national statistics bureau. This was largely driven by “the search for a
better life and more income,” the bureau said. This figure represents
around 8% of Peru's total population (30.2 million in 2012). According
to the INEI, the leading destinations for these migrants were the USA
(31.5% of the total), Spain (16%) and Argentina (14.3%).
However, according to Euromonitor International data, Peru's netmigration rate has been falling for several years, declining from 2.2% in
2007 to 1.3% in 2012. Economic difficulties in such countries as the
USA and Spain, as well as rising incomes at home, have been the main
causes of this. One example of this trend is Rocío Pérez Regalado, who
returned to Peru from Spain after her home there was repossessed by
the bank when she could no longer pay her mortgage.
Surging smartphone sales drive app boom (February 2013)
As in most of the rest of the world, smartphones are one of the most
desired gadgets in Peru. According to Euromonitor International
estimates, around 1.5 million smartphones were sold in the countryduring 2012, compared to just over 300,000 feature phones. A survey
conducted by Ipsos Apoyo during late 2012 found that while 75% of
Peruvian adults had a mobile phone, just 15% had a smartphone. 32%
of smartphone owners were found to use these devices to access the
nternet for at least two hours every day.
Most (76%) of them used pre-paid devices, with users topping up their
credit at bodegas (neighbourhood grocery shops), rather than having a
contract. Social networks like Facebook were found to be the most
popular online activity for smartphone users. Meanwhile, an increasing
number of Peruvian businesses, particularly retailers and banks, areaunching apps to target this rapidly growing audience.
More landlines, but fewer calls (January 2013)
According to a report published during December 2012 by the Peruvian
Statistics and Computing Institute (INEI) entitled “Information
Technology and Household Communications,” the number of landlines in
Peru is rising: 30.5% of Peruvian households had a landline during the
third quarter of 2012, up from 30.1% a year earlier. Landlines were
found to be particularly popular in the Lima metropolitan region (where
58% of households had one) and other urban areas of the country
(27.5%). However, just 2% of rural households had one.This growth can largely be attributed to the emergence of a new middle
class in Peru. According to Euromonitor International data, there were
almost 3.3 million telephone lines in use in Peru during 2011, up from
2.6 million during 2006. However, the number of minutes of calls made
on them fell by 18% over the same period, to 5.9 billion. There may be
more landlines, but in general, local consumers are using them less and
their mobiles more.
Rallying the hot new spectator sport (January 2012)
The Dakar Rally, which has been held in Argentina, Peru and Chile since
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2009, is captivating Peruvians. For the first time since it came to South
America, the race started in Lima on January the 5th, with 189
motorbikes, 155 cars, 75 trucks and 40 quad bikes participating in front
of thousands of spectators. It will finish in Santiago, Chile, on January
the 20th.
The race provides a significant economic boots to shops, restaurants
and hotels in the cities it passes through. José Silva Martinot, Peruvian
Minister of Foreign Trade and Tourism, estimated that a record one
million people would travel around the country to watch it. “This year,
we will watch the race in two Peruvian cities: Ica and Arequipa,” saidone local, who follows the event with his family. “I never thought I
would enjoy racing, but this is so thrilling,” said a young woman from
Lima.
Clothing top Christmas gift (January 2013)
Clothing beat toys as a Christmas gift in 2012, according to a survey
conducted by market research company GFK during December 2012. It
found that 69% of Peruvians wanted clothing for Christmas, while 59%
favoured toys. Local media interpreted these results as showing that
Christmas was now as much for adults as children.
“Everyone will get something, not just kids – we are getting clothes forourselves and toys for them,” according to Lima resident Fabricio Soles,
who was speaking to RRP Peru. According to the survey, 7% of
Peruvians desired gadgets as gifts, 6% personal care products and 3%
jewellery. Money was not found to be a popular gift option.
Increasingly affluent drivers no longer content with used cars (December 2012)
For decades, used vehicles were the norm in the Peruvian car market,
with vehicles from Brazil, Chile and even the USA imported into the
country. However, this is changing: “Nowadays, 95% of Peruvians would
rather buy a new car,” according to Iván Besich, head of the Peruvian
Car Representatives Association (Araper). According to EuromonitorInternational data, new registrations of passenger cars in Peru surged
from just over 20,000 in 2006 to more than 93,000 in 2011.
Falling prices and the rise of the middle class have driven this change:
Edwin Derteano, head of the Peruvian Car Association (AAP), said that
many Peruvians now had much more purchasing power than previously.
“Some people are going from social segment D to C or from C to B.
Therefore, they have new demands and look for more comfort,”
according to Derteano.
Lady Gaga sells out everywhere, except in Lima (December 2012)
During late November, American pop singer Lady Gaga played to anarena that was less than a third full in Lima. There were just 17,000
fans in the 52,000-seat stadium, according to the Peruvian Songwriters
Association (Apdayc). This was in stark contrast to her other shows in
the region: the Born This Way Ball Tour sold out in Brazil, Chile,
Colombia, Argentina and Paraguay.
According to a report on Radio Programas del Perú, a ticket that
originally cost PEN1,288 (US$490) could be purchased on the night for
just PEN150 outside of the arena. The news of this “failure” spread
quickly through social networks and traditional media, with many airing
their thou hts on the matter. One said that “it was not Lad Ga a's
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fault,” rather that “Peruvians prefer other things, such as local music.” A
few said that they did not attend the show due to high ticket prices,
while another claimed that Peruvians “do not like big shows.”
Ají de calabaza exemplifies the new Andean cuisine (December 2012)
Peruvians love cooking, with many national dishes having pre-
Columbian roots. Many get together with friends and family to cook,
recommend recipes to each other and argue about cooking as if it were
a sport. This year, one of the most popular dishes has been ají de
calabaza, which is considered to exemplify “new Andean cuisine” by
some. It is made from potatoes, pumpkin, garlic, red chilli, onions,
beans, cheese and milk. Several restaurants in Lima have added this
dish to their menus this year.
It originated in Arequipa in the south of Peru, where picanterías remain
popular eateries. These are small restaurants with thatched roofs
whose regular customers come every day at noon for a long lunch that
usually consists of spicy food.
Happy Crioween! (November 2012)
Halloween has grown more popular in Peru over recent years, but it has
also become a source of conflict. This is because it coincides with the
day when Peruvians celebrate criolla (Peruvian folk music). This dispute
s largely intergenerational in nature, with older people preferring to
celebrate criolla and younger Peruvians favouring Halloween.
“For years, adherents of these two celebrations have been at
oggerheads. It was very common to hear talk of how someone was
more or less Peruvian due to the fact that they had opted for one
celebration or another,” according to newspaper El Comercio. “However,
peace has now been declared, with the two celebrations united as
Crioween.'” This fusion combines Halloween costumes with national
music instruments. Many shopping centres hold fun events adorned with
black-and-orange decorations and portraits of Peru's greatest musicians.
The young party, while the old disapprove (November 2012)
Young Peruvian consumers are now less austere and more hedonistic
than previous generations. “The younger the consumer, the greater the
preference for hedonism. Young people care about their status and their
social life. On the other hand, older people are generally far more
conservative and austere – their aim is to save,” said Hernán Chaparro
of research firm GfK Conecta.
He added that many younger Peruvians preferred products that offered
entertainment, were indulgent or reinforced their social status.
According to Chaparro, young people are seeking “original experiences”
and “services related to leisure and entertainment,” which should fuel
the growth of shopping malls in Peru. “One word defines today's youth –
arrogance,” said one 57-year-old man with a 15-year-old son.
Where street food is king (November 2012)
39% of Peruvians usually eat on the street “several times a week,” a
survey conducted by McCann Worldgroup during late 2011 and published
n November 2012 has found. 67% of respondents were of the opinion
that eating on the go “is not harmful.” “Those who eat here do not get
sick,” “what's truly unhealthy is being hungry,” and “hot oil kills germs”
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were among the comments attributed to respondents. Two thirds of
them thought that street food was as tasty as their mother's cooking.
In Lima, the most popular street foods are salchipapas (sausages with
French fries), ceviche, kebabs, sandwiches and chicken. According to
Euromonitor International data, the value sales of street stalls/kiosks in
Peru grew by 7.5% in 2011, to US$1.44 billion.
Tourists go online (October 2012)
A growing number of Peruvians are researching their travel plans,
comparing prices and making bookings online. Moreover, they are
ncreasingly doing this for short domestic trips, as well as for long-haultravel. According to travel firm Atrápalo.pe, for the Feast of Santa Rosa
de Lima, which fell on August the 30th this year, its sales rose by 68%
over the previous year, with sales of one-day packages to destinations
close to Lima surging by 275%. “A majority (55%) still pay via bank
transfer, but the use of credit and debit cards is growing fast (45%) ” ,
said Greta Armestar of Atrápalo.
A third lack health insurance (October 2012)
According to the latest National Household Survey, which was conducted
during the second half of 2011 by Peru's national statistical body, the
INEI, 36% of households were not covered by medical insurance. In fiveregions (including Lima), this figure was higher than 40%.
The survey found that 36% had access to healthcare through the
country's Health Insurance System (SIS), which is supposed to act as a
safety net for the poorest Peruvians, while 24% were covered by
EsSalud, which is provided via employers. Just 2% of respondents had
private insurance, while another 2% had access to healthcare services
provided by the police or the armed forces. The survey also found that
36% of Peruvians suffered from chronic diseases and that 46% did not
seek treatment when they were ill.
Migration slows as economy booms (October 2012)
With the Peruvian economy growing strongly (real GDP growth stood at
6.9% in 2011), the number of Peruvian migrants is declining, although it
remains significant. According to Euromonitor International data, net
migration to Peru fell every year between 2006 and 2011, from -66,300
(a net migration rate of -2.4%) to -44,800 (-1.5%).
However, the emigration of skilled workers remains a worry for the
government. According to the Parliament of the Andean Community of
Nations, 735,234 Peruvian “professionals and technicians” were living
abroad in 2011. The government is currently working on strategies
aimed at enticing them back to Peru.Number of luxury consumers surges (September 2012)
Strong economic growth in Peru (real GDP expanded by 6.9% during
2011) is fuelling rapid growth in the number of high-net worth
ndividuals. According to data from consultancy Wealth-X, there are now
at least 25,000 Peruvians with a net worth of at least US$1 million, and
t predicts that this number will double within five years, fuelling strong
growth in demand for luxury goods. Wealth-X also found that 775
Peruvian families had bank account balances of more than US$30
million.
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Debate highlights water quality and supply issues (September 2012)
Access to clean water is a hot topic in Peru, with the National
Agreement (a forum where the participants include political parties,
representative groups and individual citizens) recently discussing the
question of water resources. During the debate, it was claimed that ten
million Peruvians did not have ready access to water at home, with
many more only having access to water that was not of sufficient
quality to be used for drinking, cooking or bathing.
It was pointed out this that led to an increase in the consumption of
carbonated beverages (as an alternative to tap water) and canned fruitsand vegetables (which unlike fresh ones, do not have to be washed
prior to consumption) in these households.
Survey finds rising stress levels (September 2012)
A survey conducted by HR consultancy Regus during early 2012 has
concluded that many Peruvians are too tired or stressed after work to
go to exercise or even eat out. The global survey found that 33% of
Peruvian respondents said that their stress levels had risen over the
past year. Work (61% of respondents) and personal finances (47%)
were found to be the leading causes of stress.
Small towns get wired (August 2012)
According to government data, around 3,600 small towns in Peru have
been connected to the outside world via mobile phones masts and fibre
optic cables for the first time over the past twelve months, providing
hundreds of thousands of people with access to telecommunications for
the first time in their life. According to Carlos Paredes, the Peruvian
communications minister, while some of these villages were already
using satellite or microwave technology to connect, “fibre optics will
make it much simpler to implement electronic government programmes
n such areas as health and education.”
All that one resident from a small town in the country's southern regioncould say was “Joy, joy” as Spanish firm Telefónica installed the first of
two mobile phone antennas locally. Annual volume sales of mobile
phones in Peru doubled from 2.7 million units to 5.5 million units
between 2006 and 2011, according to Euromonitor International data.
Survey highlights influence of teachers (August 2012)
A survey conducted by employment website Trabajando.com in Peru
during June 2012 has found that teachers are among the most
nfluential figures in Peruvian society. 91% of Peruvians said that their
teachers had “a large impact” on their lives. 41% even said that their
teachers had a bigger influence on their lives than their parents. Thesurvey also found that almost half of respondents (46%) were still in
contact with their old teachers.
Security the top concern for shoppers (August 2012)
According to a survey conducted by Arellano Marketing during May and
June 2012, “large discounts” and “affordable prices” are no longer what
Peruvian consumers are most concerned with when they visit a shopping
centre. Instead, “security” is now their top priority. The survey also
found that shoppers were eager to see such services and amenities as
theatres, medical services, nurseries and discos added to shopping
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malls. On the other hand, they were not particularly interested in more
restaurants and food courts, as there are already plenty of these.
Bringing banking to the deepest jungle and the highest mountain (July 2012)
The Central Reserve Bank of Peru and the country's navy have launched
a campaign to use mobile banks to bring financial services to 167
remote communities in the Amazon and Altiplano regions, where
banking services are currently “non-existent,” according to local media
reports. The goal is to provide banking services to the 1.3 million
people inhabiting these regions, and the navy's role is to help transport
equipment and personnel into remote regions where roads are oftennadequate but rivers are plentiful.
This launch of this scheme followed a successful pilot programme that
saw thousands of people gain access to banking services for the first
time in their lives. This represents a continuation of the strong growth
experienced by the country's banking sector over recent years: According
to Euromonitor International estimates, the number of financial cards in
circulation in Peru increased by just over 50%, to 18.5 million, between
2006 and 2011.
Government push for healthier eating habits (July 2012)
Many Peruvians have poor eating habits, according to Héctor Velarde, agastroenterologist at the Clínica Ricardo Palma in Lima. He says that
“more than 40% of Peruvians suffer from acid reflux or heartburn due to
eating habits that irritate or damage the oesophagus.” This problem is
exacerbated by the fact that many Peruvians are lactose intolerant or
sensitive to spicy foods.
Since January 2012, the Ministry of Health has been leading a campaign
to improve local eating habits. “The idea is to reach Peruvians on every
front so that they begin to change their habits, adopting healthier diets
and eating schedules,” according to an unnamed ministry official, who
was speaking to Andina, a local news agency.Getting patriotic about cocoa (July 2012)
Peruvian farmers are celebrating a record cocoa crop: According to
Euromonitor International data, the country produced 50,300 tonnes of
cocoa during 2011, up from 46,600 tonnes in 2010 (itself a record) and
almost double its 2005 output of 25,300 tonnes.
However, some are wondering why more of it is not being consumed
domestically: According to the Ministry of Agriculture, over 90% of
Peruvian cocoa is exported. “Peruvian cocoa is highly popular
everywhere but here - why?” wondered one Twitter user. Another simply
said “Long live Peruvian cocoa!” Some now talk of “patriotic cocoa fever”among both consumers and producers. Meanwhile, a Cocoa and
Chocolate Hall has been opened in Lima to showcase the industry, while
theobroma cacao (the cocoa tree) has been declared part of the
“national heritage of Peru” by the government.
Reduction in poverty gives birth to “new consumers” (June 2012)
According to the Peruvian Institute of Statistics (INEI), the rate of
extreme poverty in the country declined from 7.6% to 6.3% between
2010 and 2011. This implied that 362,000 Peruvians were no longer in
extreme poverty. Local media have dubbed them “new consumers.”
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However, according to Alejandro Vílchez of INEI, there are still 1.9
million Peruvians living in extreme poverty. They are concentrated in
rural areas, where 205 per 1,000 inhabitants still live in extreme
poverty, compared to just 14 out of 1,000 in urban areas. 56% of those
n extreme poverty work in agriculture, fishing or mining, according to
INEI.
Rural dwellers happier than urbanites (June 2012)
A report on wellbeing published by the National Institute of Mental
Health in June 2012, which based on data collected over the course of a
decade, has found that those living in smaller urban areas or in thecountryside tend to be happier than their counterparts in large cities.
The regions with the highest proportion of respondents who claimed to
feel happy “always or almost always” were the mainly rural ones of
Chimbote (79.5%), Tarapoto (77.9%), and Tumbes (76.5%). On the
other hand, urban areas like Tacna (58.7%), Ayacucho (60%), and Lima
(61%) had the lowest proportions of “happy” people. Substance abuse
s thought to play a role in this, with the report arguing that “Addiction
s related to opportunity, and you have more opportunities to drink
alcohol in urban areas.”
Young workers aspire to entrepreneurship (June 2012)
A survey conducted in February 2012 by the Peruvian Youth Secretariat
(Senaju) has found that many young Peruvians harbour entrepreneurial
ambitions: 31% of those surveyed (who were aged between 15 and 29
years of age) said they “intended to open a business within the next
twelve months.”
According to Senaju, the entrepreneurial zeal of these young people
may be related to the fact that many of them have had a “rough” start
to their careers and are in poorly paid positions with no social security
benefits. This trend towards entrepreneurship is helping to drive sales
of such consumer durables as computers and mobile phones, as well asservices aimed at small businesses, such as broadband internet access.
Junk-food marketing blamed for the poor eating habits of school children (May 2012)
More than half (54%) of all students attending Peruvian public schools
(at both the primary and secondary level) drink at least one soft drink
every day, according to the Ministry of Health's Survey on School
Healthcare. Just one third of respondents were found to eat fruit at
east twice a day, with 11% eating fast food at least three times a
week. The study, which was published in May 2012, was conducted
during 2010. The study also found that 20% of students were
overweight, while 3% were obese.Many claim that children (particularly those from low-income families)
are eating too much processed food, while others point to the heavy
marketing of junk food: A study conducted during late 2011 by
consultancy Perú-Concortv found that 66% of all TV advertising shown
before 10pm was related to junk food, exposing the average child to 22
minutes of such marketing daily.
Consumers flock to cheap chicken (May 2012)
As in much of the rest of Latin America, inflation has traditionally been
a significant worry for Peruvian consumers, making recent falls in the
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price of chicken (a Peruvian staple) particularly welcome for local
families. During early May, the price of chicken fell to a three-year low,
according to the Peruvian Poultry Farming Association (APA).
Some are trying to make the most of the price drop by buying in bulk.
“The price of chicken is always fluctuating. Now we are in a period of
ow prices, and housewives are seizing the opportunity to buy more
chicken,” according to the APA's Pedro Mitma. “I have a large freezer
with more than ten full chickens,” according to one poster on the
website Peru.com.
Fog catchers used to fight water shortages (May 2012)
Thousands of Peruvian families are using an innovative and cheap
technology called a “fog catcher” to cope with a severe shortage of
water. Introduced to Peru by a group of German students a few years
ago, they are “starting to bear fruit” on the outskirts of Lima and in
other areas facing serious water shortages, according to news portal
RPP.
Fog catchers are special nets that are strung up in areas prone to cloud
or fog. The Peruanos sin Agua (Peruvians without Water) movement is
teaching people how to set them up and use them. Many families are
also being helped in this regard by local government, and in some casesthey are sharing special filters to make the water potable. Currently,
there are thought to be around 200 fog catchers in operation
nationwide.
Asian marques benefit from booming automotive demand (April 2012)
Sales of new cars rose at an annual rate of 35%, to 44,345, during the
first quarter of 2012, which was a record, according to data from the
Peruvian Association of Car Dealers (Araper). More than two thirds of all
these cars were Asian marques. Toyota was the biggest selling marque,
accounting for 16.3% of all sales, followed by Hyundai (14.1%), Kia
(10.7%) and Nissan (9.4%). The biggest-selling non-Asian marque wasChevrolet (8.3%).
“When Peruvians think of cars, they see a Japanese car. This concept
has gradually expanded to include other Asian countries, especially
Korea and now China as well,” according to a 25-year-old Peruvian
student living in Argentina. Price is also a factor: Thanks to a trade
agreement between Peru and Japan, Japanese cars are usually cheaper
than the competition. Strong cultural links between Peru and Japan also
play a role– Peru is home to one of the largest Japanese communities in
the world.
Internet retailing going mainstream (April 2012)
It seems that Peruvians are losing their fear of shopping online. “15%
of Peruvians shop online,” according Edmundo Cavalli, head of local
consultancy Cavalli Bureau-Estrategia y Negocación. “Sales are
ncreasing exponentially,” he added. Based on data from such retailers
as Carrefour and Wal-Mart, Cavalli reckons that the figure may rise to
20% or even 30% within a few years. Online shopping in Peru is driven
by young consumers, according to Cavalli, “because they consider
shopping at stores a waste of time.”
This growth is mainly being driven by increased purchasing power,
better internet access and the fact that local consumers are becomin
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more comfortable spending online, according to newspaper Gestión.
According to Euromonitor International data, internet retailing in Peru
was worth US$57.4 million in 2011, having doubled in real terms during
the period 2006-2011.
Consumers lose appetite for US dollars (April 2012)
As in most Latin American economies, where inflation and devaluation
are usually persistent worries, American dollars tend to be the currency
of choice for savers, borrowers and investors in Peru. Even credit cards
and mortgages tend to be dollar denominated. The dollar's importance
s so great that it accounts for 44% of all money in circulation in the
country, according to the newspaper La República.
However, “An increasing number of Peruvians are losing their fondness
for the dollar [due to its falling value against Peru's neuvo sol] and now
prefer to save and borrow in local currency” , the paper said. According
to Enrique Arroyo, head of the Peruvian Bank Association, “There is
tendency towards de-dollarisation in the financial system.” One of the
other reasons behind this change is the fact that local interest rates are
falling.”
Most clothes buyers favour domestic fashion (March 2012)
A survey of clothes shopping habits was conducted during December
2011 by consultancy Directo Perú on behalf of the National Industry
Society (SNI). It found that the most popular place for clothes shopping
n Lima was the Gamarra district, followed by the Chilean department
stores Ripley and Saga Falabella. 27% of respondents admitted taking
nto account global fashion trends when shopping, while 37% said they
based their choices on discounts. 59% of men and 68% of women said
they favoured domestically produced clothing over imported products.
More drivers switching from petrol to LNG (March 2012)
In the face of rising petrol prices, a growing number of Peruvian drivers
are converting their vehicles to use liquefied natural gas (LNG). Over
the past decade, Peru has become a significant producer of natural gas,
and the government is increasingly promoting its use. According to
Jorge Merrino, minister of energy and mining, drivers who convert to
LNG “can stop worrying about what goes on in the world with regard to
oil prices.”
“Taxi drivers with gas-powered cars do not feel the impact of oil price
ncreases— why should I?” said one 50-year-old man who had recently
converted his car to LNG. With electricity prices rising, a growing
number of households are also seeking to connect to the country's
natural gas network, and department stores are increasingly stockinggas cookers, rather than electric ones.
Rise in remittances likely to boost d iscretionary spending (March 2012)
Remittances sent home by Peruvians living abroad totalled US$2.7bn in
2011, up 7.8% on the previous year, according to Euromonitor
International data. A decade previously, this figure stood at just over
US$750 million. Remittances are generally regarded as discretionary
ncome by Peruvians, who tend to spend them on non-essential items,
such as consumer durables, as well as on home decoration and repairs,
rather than saving them. They also boost spending on travel, cultural
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goods and communications, according to Peru's central bank.
Native furs back in fashion (February 2012)
Formerly regarded as old fashioned, particularly by younger consumers,
clothing made from camelid fur is now growing in popularity in Peru, and
the coming winter season is predicted to see a further increase in
demand for textiles made from vicugna and alpaca fur.
“It is not just the fur, but also the tailoring process. Today's
vicugna/alpaca-fur tailoring follows millennial traditions, a fact that is
ncreasingly appreciated by Peruvians,” according to a report on Lima-
based Radio Capital. The products most commonly made from thesematerials include blankets, sweaters, scarves, body warmers, stockings
and jackets, with Perú Quiri, Navale and Michell among the most
popular brands.
Peruvians declare war on writer critical of local cuisine (February 2012)
When novelist Iván Thays criticised Peruvian cuisine on his blog, Vano
Oficio, claiming it was “indigestible and not very healthy” and “a symbol
of a sociologically fragmented country,” his blog and twitter accounts
were swamped by a wave of complaints from outraged Peruvians. He
was also attacked on television and radio programmes. Thays also
criticised Peru's ongoing gastronomy boom, claiming that it was a“marginalising factor that breeds the worst kind of nationalism.”
Such comments as “If he does not like it, he should shut up - no one
asked him for his opinion;” “He is as expert in cuisine as in nuclear
engineering… he knows nothing;” and “millions of people around the
globe love our food, and they can't be wrong,” were typical of the
feedback he received from his countrymen. This row underlines how
Peruvian cuisine has become an integral part of the country's culture
and identity.
Consumer credit boom creates problems for younger borrowers (February 2012)
Consumer credit is booming in Peru, expanding by 19.6% in real termsduring 2011, to US$4.9 billion, according to Euromonitor International
data. However, the increased indebtedness of young Peruvians is a
growing cause of concern for some. According to Óscar Banda from
research agency Sentinel, those aged under 25 years are much more
ikely to run into problems with indebtedness. Writing in newspaper Los
Andes, he said that young consumers were not financially savvy and
were racking up debts buying clothing and electronic gadgets. He also
said that aggressive marketing strategies from banks and other lenders
were partly to blame for this. “This increase in the number of young
debtors may turn them into a financially excluded class in the long run, ”he added.
Too much violence and discrimination on television (January 2012)
According to a survey conducted by the Consultative Council on Radio
and TV (ConcortTV) during September 2011, the vast majority of
Peruvians agree that there is “too much violence” (89% of respondents)
and “discrimination” (81%) on television. 63% agreed with the notion
that TV portrays women negatively, while 65% and 55% thought it did
the same for children and the elderly, respectively.
“It is always the same, whether it is the news, series or films:
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Television depicts violence, sex or foul language. It is not something I
want my children to watch,” according to 29-year-old Amanda. 85% of
respondents said they controlled what their children watched, while
91% said they did not allow them to watch TV after 9pm. 82% said
they usually watched TV with their families. The most popular
programme types were found to be news bulletins (favoured by 65% of
respondents), films (57%), series and soap operas (47%),
entertainment shows (23%) and children's programmes (13%).
Private healthcare on the rise, but with enough room to keep growing (January 2012)
According to a report published by the National Institute of Statistics(INEI), 65.9% of Peruvians have access to some form of healthcare
coverage, either public or private. According to “Life Conditions in Peru,”
n the third quarter of 2011, 37.9% of Peruvians had healthcare services
provided by the Comprehensive Healthcare Insurance (SIS), while 22.2%
had EsSalud. While the former is government mandated, the latter is
operated by private insurance companies.
Peru's recent spurt of economic growth has fuelled demand for private
nsurance. “I pay up to US$800 a month for my healthcare insurance,
but I only have it since last year. Previously, it was not available in my
region,” according to one unnamed executive with a multinational firm.Previously, most of those with private insurance worked for
multinational companies, but a growing number of high-income
Peruvians, particularly in Lima, are now availing of it.
How many are smokers? (January 2012)
According to Euromonitor International data, sourced from the country's
Ministry of Health, the smoking rate among Peru's adult population has
declined slightly over recent years, from 20.3% in 2005 to 20%.
However, a report published by the INEN (Institute of Neoplastic
Illnesses) Anti-tobacco Committee claims that there are actually five
million, rather than four million (as implied by a rate of 20% among thecountry's adult population), smokers in the country.
The figures diverge because the latter estimate includes underage
smokers and what the INEN estimates to be half a million “secret
smokers.” In total, about ten million Peruvians have had some
experience of smoking at some point in their lives, the INEN claimed.
Beer consumption surges (December 2011)
Per capita consumption of beer in Peru is now at a record level,
according to the Gestión newspaper. “We started to drink beer along
with pisco (a type of gin) at night, but also on weekends at home,” said
Franco, a 25-year-old living in Lima. He added that his father used toconsider beer to be “childish” but that he was now drinking it as well.
According to Euromonitor International data, Peruvian per capita beer
consumption (among those aged 15 years or older) rose from 59.8 litres
to 64.3 litres between 2010 and 2011, having stood at just 45.7 litres
as recently as 2006. Peruvians are now bigger beer drinkers than
Argentines (average per capita consumption of 62 litres in 2011) and
Colombians (51.5 litres).
Survey highlights holiday habits (December 2011)
An online survey conducted by MercadoLibre.com and market research
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firm OH! Panel during September and October 2011 found that around
eight out of ten Peruvians will choose a domestic destination for their
2012 holiday. “To rest, there's nothing better for a Peruvian than
staying in the country - going to the beach or the mountains and saving
money,” according to Gladys, a 30-year-old Peruvian who lives in
Buenos Aires.
Staying in a hotel was found to be the most popular option, favoured by
46% of respondents. Just 11% favoured renting private accommodation,
such as an apartment or a chalet. 67% said they took their main
holidays in January or February, with 13% holidaying in December. 39%said they would take no more than a week off, 37% a fortnight and
13% a full month. 70% said they favoured beach holidays, with 24%
opting for the mountains. 41% said they intended to holiday with their
families, 27% with their partners and 13% with friends.
Credit card use grows (December 2011)
The number of credit cards in use in Peru is rising steadily, increasing
from 3.2 million to 3.4 million between 2010 and 2011, according to
Euromonitor International data. As recently as 2006, this figure stood at
just 2.1 million. “This growth is due to the increased use of cards, not
just for financing purchases, but as an alternative to cash,” according toAsbanc, the trade association of the country's banks.
However, a survey conducted in eight cities by the Superintendent's
Office for Banking and Insurance during September 2011 found at least
a third of those interviewed did not understood what an “interest rate”
was. “34% answered wrongly, and 26% did not give an answer,”
according to the regulator.
Book sales boom (November 2011)
Peruvian parents are increasingly buying their children books, something
that was previously regarded as “an unaffordable luxury,” by many.
According to trade group The Peruvian Book Chamber, children's booksales are set to rise 15% during 2011. Lilian Minaya, head of the
chamber, said the boom in sales of children's books was partly down to
the fact that local bookshops were now stocking more of them.
These books are increasingly being published locally, with such Andean
characters as “el Cholito” and animals like llamas, guinea pigs or furless
Peruvian dogs prominent. According to Euromonitor International data,
consumer expenditure on newspapers, magazines, books and stationery
n Peru grew by 15.3% in real terms between 2005 and 2010, to US$251
million.
Fear and loathing in Lima (November 2011)
Feeling of insecurity have an important impact on commerce and
ifestyles in Peru, as they discourage consumers from going out to
restaurants in some areas and increase the attractiveness of self -
contained shopping centres. A survey conducted by Ipsos Apoyo during
October 2011 has found that 87% of Peruvians regard going to sports
events as “unsafe.” 91% were of the opinion that the best way to
reduce violence was to stop fans with a previous history of violence
from entering grounds. The survey found Lima to be the country's most
nsecure place, followed by northern cities Trujillo and Chiclayo, while
Cuzco was regarded as the most secure. 65% of respondents agreed
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with the contention that Peruvian society was violent.
The poll was conducted in the wake of the death of an Alianza Lima
football fan during late September: He was thrown to his death during a
match against local rivals Universitario. The death, which occurred at
the Estadio Monumental in Lima, was particularly shocking to Peruvians
because the victim, 23-year-old Walter Oyarce, was watching the game
from a VIP box, well away from most fans. Increased violence at
football grounds has encouraged a growing number of fans to stay away
and watch games on TV instead, boosting demand for cable television,
among other things.Peruvians discover cruises (November 2011)
Not long ago, it was almost impossible to find a Peruvian who had
taken a cruise, but this is now changing rapidly. In 2010, the domestic
cruise market was worth US$5 million, according to market data
published by broadcaster Terra, with Peruvians travelling as far afield as
North America, Europe, Asia and Oceania.
While overall demand remains somewhat limited, it is growing at a
rapid pace. According to Fernando Campodónico, general manager of
Peruvian Net, which represents three cruise lines in Peru: “We have
been growing at an annual rate of 100% over the past three years.”“Those who go on a cruise tend not to be inexperienced tourists, but
people who have already travelled and are looking for new experiences,”
he added.
Junk food blamed for youth obesity (October 2011)
A survey conducted during 2010 by the Ministry of Health found that
20% of school children and university students were overweight,
blaming this on “bad diets.” According to the survey, one in ten ate junk
food three or more times a week, while almost half of them regularly
consumed soft drinks.
However, the older members of this cohort do appear to be taking moreexercise. According to website Peru21, gyms and sports centres are
rapidly growing in popularity, mainly due to an influx of young people.
University students account for a quarter of all their clients, according
to the website. Attendance triples with the arrival of spring, as
youngsters strive to get into “beach body” shape.
Everybody is talking about Gamarra (October 2011)
Located in Lima, Galarias Gamarra is Peru's main shopping area for
clothing. It boasts a staggering 14,000 clothing shops, many of them
ow-cost, making it particularly attractive to low- and middle-income
households. It is not unusual for entire families to take a trip to Limajust to visit it and stock up on clothes for the coming season.
Following a recent government-led redevelopment, it now also offers
restaurants, coffee shops and banks. More importantly, what had
previously been a chaotic, dirty and insecure environment now looks
very much like a large shopping centre in any other part of the world,
with proper security and adequate parking. As a result, it is now
attracting more high-income consumers, many of whom now profess “to
ove” a place they “were previously afraid of ” on social networks like
Twitter. A growing number of tourists are also visiting the area.
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Many savers prefer the mattress to the bank (October 2011)
Peruvians do not appear to trust banks and other financial institutions
very much. According to a study conducted by government regulator the
Superintendence of Banks, Insurance Companies and AFP (SBS) and the
Universidad del Pacífico during early 2011, more than a third (35.4%) of
Peruvians keep their savings “under the mattress,” a popular practice
throughout Latin America.
29.5% of respondents used banks for saving, while 6.9% of
respondents use “ juntas,” which are local organisations that provide an
nformal way of saving. However, some juntas are little more thanotteries. The rest (23.3%) do not save any money at all. According to
the study, many Peruvians “mistrust” banks or are “simply not seeing
the advantages of opening a bank account.”
Gastronomy boom (September 2011)
Food is an essential part of Peruvian identity. “Through our cookery, we
reveal our idiosyncratic features, where we came from and who we are,”
says Alfredo Perret, head of the subcommittee of gastronomy of the
Chamber of Commerce of Lima (CCL). It also has great economic
significance: According to Arellano Marketing, gastronomy accounts for
13% of the country's GDP. According to The National Institute ofStatistics (INEI), during the first half of 2011, the restaurant sector
grew by 9.3% in year-on-year terms, with roast-chicken and fast-food
chains performing particularly well.
“It is a boom. We have more than 80,000 young people studying
cookery, and 95% of those who graduate quickly find a job,” says
Nicolai Stakeeff, former president of the subcommittee. Perret claims
that “we are seeing improvements in food preparation techniques and
fostering awareness about the proper handling of ingredients,” due to
pressure from consumers, who he says are becoming “increasingly
demanding.”
Nearly half want a new job (September 2011)
According to a study conducted by the employment website
Trabajando.com between May and July 2011, nearly half (45%) of
Peruvians would change their job if they could. 55% of those surveyed
claimed they would not change their profession. “Almost half of
Peruvians would choose a different life,” as a presenter at Lima-based
Radio Comas put it. Many also claimed to have been let down by the
country's education system, with 60% of respondents claiming that “it
had not exploited their full potential.”
Social networking tops with internet users (September 2011)
A report published by ComScore in September claims that Peruvians
“devote 65% of their time online to entertainment and social
networking” and that most of them spend this time using such networks
as Facebook and Twitter, rather than checking their e-mails. The report
was based on a survey conducted during July and August 2011.
According to the research, social networks were used by 92% of
respondents, while 85% used e-mail and 75% used instant messaging.
The survey also found that 82% of Peruvian internet users downloaded
multimedia content. Other popular types of websites were travel (31%),
entertainment (64%) and news (46%). Many Peruvians also visit retail
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(57%) and banking (39%) websites. According to Euromonitor
International data, the number of internet users in Peru more than
doubled between 2005 and 2010, to 10.1 million.
Where chicken is king (August 2011)
Pollo a la Brasa (also known as Peruvian Chicken or Charcoal Chicken), a
simple, traditional dish, is hugely popular in Peru. In 2004, it was
recognised as a “special Peruvian dish,” and it even has its own day -
the third Sunday in July (July the 17th in 2011) is Pollo a la Brasa Day.
According to the Ministry of Agriculture, nearly two million chickens were
consumed on that day at “chicken stores” (specialist stores that only
sell chicken and chicken products), restaurants and at home. “People
who go out to eat prefer chicken stores to chifas (outlets selling
Chinese food) or those selling ceviche (another popular dish). Chicken is
the mainstay of Peruvian cuisine,” said Víctor Noriega of the Ministry of
Agriculture. According to Euromonitor International estimates, per
capita consumption of chicken in Peru stood at 13.3kg in 2010,
compared with 6.4kg of beef and veal and just 1.9kg of pork.
Stronger economic growth leads to reduced migration to Chile (August 2011)
The first decade of the millennium was marked by significant Peruvian
migration to Chile. In 2010, there were 138,525 Peruvians living in
Chile, according to Chilean government data, with more than half of
them working in the domestic service, construction and commercial
sectors. However, according to the Chilean Ministry of Interior, the
Peruvian community in that country increased by just 6% in 2010,
having expanded by 22% in 2009.
The Chilean government attributed the decrease to an improved
economic environment in Peru: According to Euromonitor International
data, the annual rate of real GDP growth in Peru surged from 0.9% to
8.7% between 2009 and 2010. However, overall net migration from Peru
declined only marginally (from 54,000 to 50,000 between 2009 and2010), which suggests that Peruvian migrants are going elsewhere,
rather than remaining at home.
A Who's Who of Peru's cultural exiles (August 2011)
Newspaper El Comercio runs an influential weekly piece entitled
“Las10+” (“The Top Ten” ), which ranks various aspects of Peruvian
culture based on reader input. As the annual celebration of the country's
ndependence (July the 28th) grew near, it ranked “the ten most
mportant Peruvian artists abroad” during mid July.
Among the artistic luminaries featured were Nobel Prize-winning writer
Mario Vargas Llosa, fashion photographer Mario Testino, film directorClaudia Llosa, actor Christina Maier and painter and sculptor Fernando
de Szyszlo. Other choices included tenor Juan Diego Flórez; Susana
Baca, a leading figure in African-Peruvian music and a Latin Grammy
winner; singer Eva Ayllón; musician and ecologist Pedro Suárez Vértiz;
and Gian Marco, a composer of pop songs.
However, the newspaper noted that these “ambassadors” tended not to
be as prestigious in Peru as they were abroad. An internet forum poster
commented that “No one is a prophet in their own land.”
Quality becomes more of a factor in purchasing decisions (July 2011)
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Peru's strong economic performance over recent years has begun to
have an impact on local shopping habits. In the past, price ruled, but it
has now taken a backseat to quality for the swelling ranks of the
country's middle class. According to Peru21, a news portal, the new
motto of the Peruvian consumer is “Cheap becomes expensive,”
particularly in relation to clothing and household goods.
In recent years, consumers “have stopped checking prices before
purchasing a product or service,” according to Gonzalo Ansola, head of
the Peruvian Shopping and Entertainment Centre Association. He says
that Peruvians now focus on quality, regardless of price: “Peruvianconsumers are well informed and are willing to spend more for
something durable,” he adds. Hans Eben, CEO of Unilever Peru, says:
“In some sectors, people pay up to 10% more.” In such sectors as
personal care, he maintains that consumers are increasingly prepared to
pay extra for products with “added value.”
Dairy industry wakes up to issue of lactose intolerance (July 2011)
64% of Peruvians are lactose intolerant, according to a study conducted
during 2010 by researchers at the Faculty of Medicine of the Universidad
de San Marcos in Lima. Peru is quite an ethnically diverse country by
Latin American standards, and for some ethnic groups (particularlyAsians), this figure can approach 100%. For many years, this issue was
gnored by the dairy industry, but many producers have now begun to
aunch milk, cheese and yoghurt products aimed at those who are
actose intolerant.
Consumers warm to corporate sector (July 2011)
According to a report called RepTrak Pulse Peru 2011, which was
published by the Reputation Institute and Inmark Peru, Peruvian
consumers are now more trusting of companies. The Pulse index
measures the trust, respect and overall impression of companies by
consumers. The average score (out of 100) of the index's ten leadingPeruvian companies jumped by 4.43 points between 2010 and 2011.
The leading Peruvian companies were found to be Grupo Gloria (with a
score of 83.99), a holding company involved in everything from dairy
products to cement; media company RPP (81.70) and supermarket chain
Wong (78.35). In general, Peruvians tend to favour indigenous
companies over multinationals. Some notable performances from
multinationals included Visa (77.99), Kraft Foods (75.72), Nestlé
(75.60) and The Coca-Cola Co. (74.77).
High hopes that the migration tide will turn next year (June 2011)
Most Peruvian families have at least one member living abroad, withthe USA, Spain, Argentina and Chile among the most popular
destinations. In 2010, the government estimated that the number of
Peruvians residing abroad doubles every ten years. Currently there are
about four million Peruvians living abroad, 90% of whom are aged
between 15 and 49 years.
Migrants have been a hot news topic recently due to their key role in
Ollanta Humala's successful presidential campaign, with 750,000
Peruvians voting for her from abroad. The country's new president hopes
that the economic boom currently being experienced by Peru will allow
many of them to come back. Indeed, it is hoped that next year the
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number of returning migrants will at least match the number of
departures for the first time in many years.
The new middle class - thriving, but vulnerable (June 2011)
The expansion of the Peruvian middle class has been a major driver of
the country's economic growth over recent years. However, a report
published by BBVA Research describes this new middle class as
“vulnerable,” since 80% of them still work in the informal sector of the
economy. According to David Tuesta, head of pensions and financial
markets for BBVA Research, most of them have no pensions, as they do
not make social insurance contributions. Moreover, they must pay fortheir own healthcare. However, according to one 23-year-old man from
Lima who has just started his first job: “If you do have a job, there's
nothing to complain about, even if it's not the best one.”
Peruvians show no love for pork (June 2011)
Five years ago, the Peruvian government and trade associations set
themselves a daunting task: convincing consumers that pork was just
as good as, or even better than, other types of meat. However, they
have been quite unsuccessful in this regard. Peruvians still have the
second lowest consumption level in the whole of Latin America (ahead
of Colombia), with per capita consumption of just 1.9kg per annum in2010, according to data from Euromonitor International. In contrast, per
capita consumption of pork in Chile stood at a whooping 15.6kg during
the same year. According to one local consumer, “there are many myths
n Peru that spoiled pork can cause death or that it is pure fat.” He
added that another factor is that pork production is considered by many
to be poorly regulated.
© Euromonitor International 2014
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