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With a portion of expertise, instinct and resilience, Peruvian winemakers are resisting the pandemic and producing their very own earnings

20, 2020

9 min read

This article has been translated from our Spanish edition using AI technologies. Errors can occur due to this process.

The opinions expressed by the entrepreneur's contributors are their own.

The new reality we have been entering for six months worldwide due to the COVID-19 pandemic can be compared to a scenario in which people and organizations such as titans and unicorns not only coexist in a different environment, but also struggle to find theirs Improve performance and ensure survival amid an unstoppable digital transformation and an accelerating fourth industrial revolution.

However, in this context it also does the same survive a apparently easy Business model Where there is a preponderance of experience, intuition, and resilience that serve to learn from mistakes and ensure business continuity as myriad facilities are shut down or remodeled.

We are talking about the inevitable shopkeepers or winemakers who have immense potential to empower and professionalize themselves as a large part of them are currently working without essential techniques and cutting edge tools to make them professional and productive. Section of the value chain in which they operate.

Despite the fact that the health emergency crippled almost all economic and productive sectors in the country, the traditional wineries or convenience stores did not stop preventing the virus from spreading, despite the restrictions and social restrictions imposed since the beginning of the pandemic.

The resilience of shopkeepers and winemakers has led us to inspiring lessons to rethink the relationship between surviving, thinking and acting amid a pandemic, as these true "own accounts" have not only secured a means of self-generation, but have also formed a great economic one Force in their respective countries.

The importance of this business model is reflected in various statistics from South American markets that suggest that store or warehouse sales may have decreased significantly in the current situation, but together they form a great economic force.

According to a study by the consulting firm Fundes, wineries or convenience stores account for 40% of food sales in Latin America, making them a major economic force.

The resilience of shopkeepers and winemakers has led us to inspiring lessons to rethink the relationship between surviving, thinking and acting amid a pandemic / Image:

To "get up earlier"

The common denominator behind each winery's stories is the need to create their own economy, in addition to having a family heritage or opportunity to raise a family, as well as the power to overcome obstacles and crises with limited resources and minimal support from traditional channels.

In the midst of the social restrictions imposed by the quarantine in Peru, especially in phase 1, I had the opportunity to speak with several shopkeeper friends from different geographic areas in Lima about their expectations regarding the continuation of their business and the adjustments to the supply chain, which enables them to continue serving their customers.

Most respondents said they had not stopped since the pandemic started and their sales continued to be almost at the same level, with the difference that it was now necessary to "get up earlier" to look for many consumer goods manufacturing centers were 30% busy, causing delays in receiving their orders.

They were also forced to work fewer hours as the health emergency and "curfew" imposed restrictions at night.

In addition, they say they feel "privileged and grateful" because, despite the sanitary restrictions imposed, they could continue to work to provide basic needs to the population while other economic activities have been paralyzed or are slowly being reactivated, let alone that this is the case in many cases you had to close.

The common denominator behind each winery story is the need to generate its own economy / Image:

Search for "best prices"

While it is true that all customers are large retailers of mass consumer brands, those who ship goods in their stores continue to believe that it is better to go to the wholesale centers to find better prices and have a significant portion of their inventory Products. In this search, the maxim that you always keep in mind is: “You have to know how to buy” and also “how to sell”.

One of the resources that has been used to mitigate the impact of declines in sales has been selling stationery, bazaars, and cleaning supplies. Additionally, a major strength in these times is having repowering and trained "delivery" that conforms to required health protocols.

The pandemic and quarantine do not seem to have panicked or scared Peruvian winemakers. It was and is the opportunity to demonstrate resilience and put into practice the lessons learned from personal, family or national crises, as Peru has experienced years of violence and economic crisis. Likewise, they should and must show that they are not conformists, that they are quick to adapt, that there is no time for regrets, and that achievable goals should be set based on reality.

In the past few years, many of them have gone through major challenges and sudden falls that staggered them and tested the direction of the ship they had en route.

It has also been difficult for many of them to switch from manual to electronic billing systems and inventory control with QR code, contactless payment methods, electronic wallets and apps to use their wholesale orders which are very helpful but they are working on customization while others have made changes that are necessary to remain in effect.

goals achieved

A large part of the Peruvian winemakers has developed from a small shop to a “mini market” with success stories that have taken between 10 and 30 years. This has enabled them to build their own house or buy an apartment and live better, as well as providing their children with better education, access to private health without over-indebtedness, among other accomplishments that show their personal improvement as a result their entrepreneurship.

The strategy they have implemented for this transformation is to offer a sale for convenience and value where the customer can pay more, while getting the immediacy, proximity and solutions in return.

Thus, they remain the option for people of all generations who want to meet an immediate need by resorting to the closest winery to their home or, in other cases, ordering via social networks or a phone call.

Added to this is the range of specialized or highly segmented products selected on the basis of the consumer knowledge of their customers. Something that might be easier to know, like the phrase "a good eye" says, and without a built-in CRM program.

As a consequence, it should be noted that if shopkeepers had more impetus to progress, access to training with educational quality programs on marketing, trade marketing, visual merchandising, canvas, design thinking, lean startup, accounting, administration, etc. We could talk about a whole power which must be developed so that in today's world it contributes to economic growth and development.

This development would have to be agile, dynamic, interactive and implemented in practice Traceability .

These traditional companies have always been at risk of disappearing due to innovation and investment by powerful economic groups. Perhaps today is an opportunity for them to envision and strengthen strategic alliances and companies that consolidate them as enduring business models as well as traditional and familiar.

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