Czech companies have discovered the Peruvian market. CzechTrade has opened the door for them
4. 7. 2018 | Source: BusinessInfo.cz
Yglesias Loayza SAC, the main supplier of exclusive products to the largest Peruvian pharmacy chain, InRetai Pharma, was looking for new business partners in the Czech Republic. “I’m confident we can agree on specific cooperation with Czech producers. They can deliver “Western” quality at reasonable prices,” said Elvis Yglesias, a company representative.
Local manufacturers of cosmetic, hygiene and medical aids, medicines and health supplements can now penetrate one of the most important South American markets.
Peru is a promising destination for Czech exporters. The country has thirty million people and is proud of its swift economic growth, with an increasing demand for high-quality European products. And Czechs can offer “top quality at a reasonable price” to South America.
At the traditional Sourcing Day in Prague in June, the purchaser for the Peruvian company met with the representatives of nine Czech companies: Goldim, B.A.R.D., Dr. Müller Pharma, Team for You, Deva Nutrition, Adsec – consulting, Dermacol, Spokar and Lifefood.
The trade support agency, CzechTrade, organises regular Sourcing Day meetings (usually with companies from European countries, newly also from distant exotic destinations). Purchasers of large foreign or multinational corporations meet with local companies. At the same time, CzechTrade mediates the full service from interpretation services to meetings and visits to their production plants.
What is Sourcing Day?
CzechTrade chooses and addresses several Czech companies who might become interesting suppliers for a given foreign corporation. From their list, representatives of a foreign partner make a short list of their own, based on information about products and production supplied by the companies.
A Czech company participates in subsequent meetings based on actual interest in the foreign purchaser. At the meeting, they can focus directly on the particular terms of business, if any, without having to undergo the introductory and persuasive part of the meeting.
Local companies appreciate most of all that the project makes it possible for them to meet purchasers of companies which they would find it hard to contact on their own, right in the Czech Republic. They save considerable travel expenses and time. They also appreciate CzechTrade’s assistance with the meeting preparations, progress and subsequent communication with purchasers. Foreign companies appreciate the knowledge of CzechTrade employees about the Czech Republic’s production potential, flexibility in event organisation, sending of samples acquired in the meeting, possibility to visit plants and/or help with accommodation and interpreting.
Peruvian purchaser: We won’t leave empty-handed
Managers of the agency’s foreign offices play a key role in preparing the meetings. It is up to them to convince the bosses of large foreign corporations to come to seek business in the Czech Republic.
The Czech producers’ offer for Peru includes products missing on the local market or unique products manufactured only by Czech companies, for example, preparations Pythium Oligandrum, known locally as the clever mushroom, which is a mould killer. It is a Czech patent, and the world is only about to discover its effects. The B.A.R.D. company wants to be the supplier of these preparations to the Peruvian market.
“We are interested in this offer. It is something brand new,” Elvis Yglesias said.
“The great advantage of the Sourcing Day for us is that we were able to choose from offers of multiple companies in advance. This means before the meeting. There is a great potential for demand of their product in this market. For example, Goldim produces infant formula from goat milk. The advantages of such nutrition are known but such products are not available in Peru,” he added.
“Czech producers offer exactly what our company demands,” the entrepreneur from Lima said. “We have exclusive products only in our pharmacies. Previously, they were often products from India or China but they often lacked quality and were not in steady demand. We believe that the Czech products can be,” Yglesias said. He is certain that the advantage of Czech producers is mainly that they comply with the EU standards, offering high quality at reasonable prices at the same time.
In the purchaser’s opinion, the meeting format at the Sourcing Day has even more advantages. “Personal contact with company representatives is important for us. We need to get to know these people and establish positive relationships with them. Normally, they are introduced to us at fairs or exhibitions, but we miss the closer contact there. We will definitely have special business opportunities in the Czech Republic,” Yglesias added.
His Peruvian company has experience with a Czech partner from previous years. Their partner is Walmark, producer of dietary and health supplements. Thanks to Walmark, Peruvians could meet Emil Ulrych, manager of CzechTrade’s foreign office in Lima.
“We have received positive feedback from the Peruvians. We gave them a list of 23 companies from which they chose those whose offers they regard highly. They said the meetings at the ministry held as part of the Sourcing Day were very helpful and informative,” Ulrych said. The trip to the Czech Republic is a part of Elvis Yglesias’s European-wide program. He is about to visit Russia, too, where the World Cup in football is currently going on.
People from the South America simply love football
“We will obviously be discussing the particular business after the championships. Now, there is no time for it. People from South America simply love football,” Jaroslav Roučka, Director of the Goldim company said, with a touch of a hyperbole.
On a more serious note, he confirmed he felt good about the meeting with the purchaser of Yglesias Loyaza SAC. His company offered the infant formula from goat milk to the Peruvian partner.
“We want to supply them baby ceresals, too. We can start right know. The product registration is simple. They are interested in other products, too. We believe there’s a great potential in Peru as you can see there very quickly whether customers are interested in your products or not, even based on a small quantity of supplied products,” Jaroslav Roučka said.
Currently, Goldim is exporting mainly to former Soviet countries, under the private trademark of its partner, and to Turkey. Peru would be their South American debut. According to Roučka, the expansion to this market entirely fulfills their visions.
“The Peruvian company met our expectations to the letter. We prefer smaller markets, and Peru offers, in fact, a liberal environment to exporters, but of course it is part of South America, which has its specifics. In this case, the CzechTrade agency will surely help us,” Roučka said.
They have been cooperating with the agency for a long time already; the agency assisted them for example with exports to Turkey. They consider the meetings at the Sourcing Day to be ideal for concluding business partnerships. The advantage is that the partners have enough time for each other, and the foreign company knows beforehand what the Czech producer will offer and at what price.
Let’s go to the America
“We are quite successful in Asia, Africa and Europe, but we have never managed to penetrate South America,” revealed Andrea Sodomková, the project manager of Dr. Müller Pharma, another one of the addressed companies.
“Not long ago, my colleagues tried to enter the Brazilian market; however, the market is very protected, with complicated customs politics, so in the end, they gave up. Luckily, we have received the CzechTrade offer. I must say that the Peruvian company’s demand is just right for us. They are looking for exactly what we offer, so we do not have to intrude or look for opportunities ourselves. The advantage is that they are suppliers to the largest pharmacy chains in Peru which means guaranteed sales for us. What they take, they’ll sell,” Sodomková said.
Also in the case of the renowned Czech producer who supplies to pharmacies only in the Czech Republic, the Peruvians showed interest in particular products. “They told us they were not interested in full product lines but in individual items to complete their own product lines. Currently, they focus on diabetes, so they are interested in our herbal tea for diabetics,” Dr. Müller Pharma’s representative said.
The purchaser negotiated with the representatives of nine companies in Prague. With four of them, they arranged visits to their production or operation plants. “This confirms the Peruvians’ interest in the Czech products,” Emil Ulrych of Czech Trade said.