Container costs increased by 500%! Peruvian product prices are expected to rise during Christmas

With the arrival of various year-end promotions, people's desire to consume has also increased. However, due to factors such as port congestion and the intensifying supply chain crisis, sellers in many countries have said that the year-end promotion may be in short supply and out of stock everywhere .

Faced with this situation, the relevant sales prices in Peru have also been affected. Previously, the cost of shipping a container to Peru was about US$2,000 to US$3,000, but now the value of each container has risen to between US$12,000 and US$15,000, a cost surge of nearly 500%.

The Lima Chamber of Commerce (CCL) of Peru said that the unprecedented fivefold increase in logistics costs, coupled with the nearly 30% appreciation of the US dollar in Peru , will seriously affect Peruvian retailers during the Christmas season, and product prices in the retail sector may increase by 20%.

Based on past experience, textiles and footwear are the most popular items among Peruvian consumers during Christmas.

Peru is the fifth largest Internet market in Latin America. With a population of approximately 32.8 million in 2020, it is the fourth most populous country in South America. The average age of the population is 30 years old. In 2020 and 2021, the Latin American e-commerce market ranked sixth.

With the in-depth penetration of Internet technology, Peruvian consumers are becoming more and more enthusiastic about online shopping. In 2020, the number of e-commerce users in Peru increased by 32%, ranking first in Latin America. According to data from Cámara Peruana de Comercio Electrónico, in 2020, the share of e-commerce in total retail sales in Peru increased by more than 185%.

Affected by the epidemic, consumers have increased their demand for entertainment products, groceries and clothing. According to a report recently released by market research firm eMarketer, more than 90% of Peruvian adults have shopped online at least once, and electronic technology, home clothing, daily health, leisure and entertainment products are the most popular in Peru.

Although various reasons have led to an increase in sales prices of various categories during the Christmas season, CCL expects that Christmas sales in 2021 will recover to 80% of the 2019 level, due to favorable factors such as the gradual recovery of the economy and the increase in household income.

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