Peru - Distribution and Sales ChannelsPeru - Distribution and Sales
Peru’s population is highly centralized, with 30% of all inhabitants living in the capital city of Lima. Fifty percent of GDP is generated in and around Lima, with the national government serving as a key buyer. As a result, a large portion of sales activities of U.S. firms occur in Lima. Sales opportunities exist and are growing in other major cities such as Arequipa, Chiclayo, and Trujillo, and representatives in Lima typically have sales agents in these areas.
Sending letters internationally via express delivery can take up to two weeks, or longer for packages due to lengthy administrative procedures by Peruvian customs. Appointment of a local representative is the most common method of distribution in Peru. This practice is recommended for U.S. companies pursuing business opportunities to maintain a sustainable market. The Government of Peru is decentralizing elements of government authority and decision-making, including implementation of spending programs utilizing the “canon” (a revenue-sharing scheme of taxes imposed on some extractive industries). This increase in regional authority is an important consideration when contemplating a local representative outside of Lima. Decentralization of government budgeting and spending authority can further complicate the fulfilment of sales, especially in municipalities or provinces where government agencies lack experience in project implementation, financing, and procurement.
An alternative approach to distribution is establishing a local subsidiary or branch office. Companies with a complicated product or service pursue this method to improve promotion and after-sales service of products. In general, commercial and industrial spaces are relatively costly in Lima and several other main cities.
Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.
Sending letters internationally via express delivery can take up to two weeks, or longer for packages due to lengthy administrative procedures by Peruvian customs. Appointment of a local representative is the most common method of distribution in Peru. This practice is recommended for U.S. companies pursuing business opportunities to maintain a sustainable market. The Government of Peru is decentralizing elements of government authority and decision-making, including implementation of spending programs utilizing the “canon” (a revenue-sharing scheme of taxes imposed on some extractive industries). This increase in regional authority is an important consideration when contemplating a local representative outside of Lima. Decentralization of government budgeting and spending authority can further complicate the fulfilment of sales, especially in municipalities or provinces where government agencies lack experience in project implementation, financing, and procurement.
An alternative approach to distribution is establishing a local subsidiary or branch office. Companies with a complicated product or service pursue this method to improve promotion and after-sales service of products. In general, commercial and industrial spaces are relatively costly in Lima and several other main cities.
Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.