Due to the economic crisis, it is expected that during 2021 the number of business alliances and company sales will increase, especially in the most damaged sectors, such as tourism, hotels, restaurants, entertainment, education and real estate.
Monday, October 26, 2020
The restrictions imposed by the governments of the region due to the covid-19 outbreak, has generated economic losses in most of the productive sectors, including reported business closures and increases in unemployment levels.
Since March of this year the commercial reality began to change, with the growth of collaborative businesses and the rise of e-commerce, one of the proofs that consumer habits have changed quickly. The need to get closer to consumers and to strengthen digital marketing channels could lead to strategic alliances.
The economic crisis combined with the change in the ways of consuming are phenomena that would promote a recomposition in the share of participation of competitors, which would be reflected in the increase of business mergers and purchases of companies, according to specialists.
Andrey Dorado, partner of the Competition practice area of the Arias law firm in Costa Rica, told Elfinancierocr.com that "... we have already identified interest from groups to acquire from the tourism, hotel and franchise sector in general, who at the same time are interested in finding a strategic partner or ally."
For Juan Manuel Godoy, partner of Consortium Legal, "... the opportunities of the region could be presented by the lack of a developed stock market and the economy has a component of family businesses with little margin for refinancing. These companies will possibly be much more attractive targets because they have few alternatives beyond those related to the possibilities that the banks give to those who already owe them. This, together with a possible desire to have liquidity, could lead a certain level of businesspeople to be ready to open up their capital."
Maintaining proper inventories to meet demand, having a robust logistics system and an electronic sales channel that protects your customers when they make a purchase, are part of the challenges that businesses face in this new reality.
With "Black Friday" and Christmas approaching, commercial establishments in the region are beginning to apply their sales and promotion strategies, with which they will try to recover part of their income.
In a transaction valued at around $272 million, German company Delivery Hero acquired Glovo's operations in eight Latin American countries, including Costa Rica, Honduras, Guatemala, Panama and the Dominican Republic.
Delivery Hero strengthens its position in Latin America, adding Peru, Ecuador, Costa Rica, Honduras and Guatemala to its existing presence, and further expanding its existing operations in Argentina, Panama and the Dominican Republic, the German business group reported.
The abrupt change in consumer habits forced companies to digitalize their operations and sales, but the challenges do not stop there, as companies will have to implement effective logistics systems to reach their customers.
Identifying and correcting failures in the logistics process of product delivery, while maintaining the satisfaction levels of their customers, who demand facilities to buy online, is the main challenge facing companies in the new commercial "normality".
The outbreak of covid-19 in Central America and the severe home quarantines decreed by the governments, caused the market to undergo deep changes and to be deeply and rapidly transformed, to the point of establishing a new commercial reality.
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2617Government Procurement Opportunities in the region
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