Peru: Foreign investment continues to increase and generates employment

Although Peru is lately considered on the international scene as a politically unstable country, and the economy following the same path, it is surprising how it grows in other areas. The item of entertainmentfor example, had a breakthrough this past year.

Despite the fact that between October and December 2022, according to data from the BCR (Central Reserve Bank), foreign direct investment fell by 37% compared to the same quarter of the previous year, many foreign companies targeting the same sector have continued to invest in the country, trusting in his return by 2023.

STLTH is a company of Canadian origin that has been present in Peru since the middle of last year. It focuses its activity on the entertainment industry, dedicating itself to the production and marketing of electronic cigarettes; an activity that in recent years has managed to position itself and grow in the country. This has led to the creation of a consumer association called the Peruvian Association of Vapers, as well as the increase in various companies dedicated to this area.

LOOK: Peru received US$110 billion of foreign investment in the last 20 years, PromPerú reported

“In our country, the consumption of electronic cigarettes has been increasing in recent years. It is now more common to see people vaping than it was a few years ago. This is a phenomenon that has been taking place worldwide, as consumers see vaping as a less harmful alternative to quit smoking. Remember that according to the Ministry of Health of England, vaping is 95% less harmful than smoking. This evolution of the market has led different companies and entrepreneurs to seek to venture into the commercialization of vaping products in Peru. As an ASOVAPE consumer association, we seek to carry out responsible trade, aimed only at adults, and that the products are of quality and that the rights of consumers are respected.”, commented Jorge Palma, President of ASOVAPE.

Thanks to the success of the Canadian company, in 2018 it began to expand globally, entering countries such as Ukraine and Morocco. But later they decided to enter Latin America, looking with interest at specific market elements such as the dollar exchange rate. They started with Colombia, which was a resounding success; that helped them to enter Peru in 2022.

“We decided to enter Peru with our operation, since it is a country in which we saw many opportunities, since, since there was no brand in the same category with a great presence in the market, we had the possibility of implementing the necessary educational processes around of vaping, as well as expanding our business in the different conviviality stores that, in turn, were growing. So far, we have already invested more than 1 million dollars.”, commented Juan Pablo Sánchez Zuluaga, General Manager of STLTH Peru.

On the other hand, STLTH assures that this 2023 has large investments scheduled to meet the needs of Peruvian consumers and contribute to the employment rate in Peru, since they are willing to open vacancies for people who are well prepared, but who are sentences take a few years of work experience. “With our entry into Peru, we not only seek to grow as a company, but also to generate industry and employment around the category. This has been reflected during the time we have been operating, because when we opened our doors, we started with 6 employees, and today, we have 14 people on the team. In other words, in less than 7 months, we have managed to increase to more than 50% of the staff and we are certain that this will continue like this.”, commented Sánchez Zuluaga.

With this, the company hopes that, during 2023, the volume of its sales can double, to become a profitable company for the country. They also want to set an example for many other foreign brands in different fields, which, despite the current situation in Peru, continues to be a great ally of foreign investment.

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