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Over 500 entrepreneurs from Colombia and U.S.A. will meet next week in Los Angeles, California, to participate in the Business Macroround organized by PROCOLOMBIA as part of the activities surrounding the Free Trade Agreement between the two countries.
There will be a total of 340 exporters, from 16 departments, from the agro-industry, apparel and manufacturing industries that will hold business meetings with 231 U.S. buyers interested in the Colombian offering. The encounter will be on November 8th and 9th at the Langham Huntington Hotel.
PROCOLOMBIA has identified that there is a demand for products that can be satisfied by Colombian entrepreneurs, in the 22 western states in the U.S.A. The food sector for example, has opportunities for palm oil, fishing and aquatic products, coffee derivatives, fresh flowers, plantain flour and cookies among others.
There is also a possibility for exporting fresh fruit and vegetables, specially tropical products such as papaya, mango, Tahiti lime, and exotic fruit like uchuva (cape gooseberry) gulupa, maracuyá (passion fruit), granadilla, curuba (banana passion fruit) and tree tomatoes. Under the processed food segment, there is a demand for juice, fruit pulp, and frozen vegetables, among others.
"Consumers seek fresh and practical products. They prefer prepared foods or fast cooking foods. They also choose healthy and fortified foods", stated María Claudia Lacouture, Chairwoman of PROCOLOMBIA Colombia.
On the other hand, PROCOLOMBIA found that apparel producers have the possibility of exporting underwear, for body support (control), and clothes for domestic use, as well as swimwear.
Two important states were identified for this industry. "In California, 85 percent of the demand is focused on complete package products such as jeans, underwear, sports clothes, swimwear, beach clothes, and leather accessories. The remaining 15 percent requires products from Colombian companies that produce underwear and sports clothes, swimwear and leather accessories", explained Lacouture.
Texas is also important for this sector as it is considered as an important distribution center for textile and apparel, and where several apparel manufacturing companies are located.
With respect to other manufacturing products, there is a possibility of entering with packages and containers, construction materials and ceramic coatings, auto parts, cleaning products and cosmetics.
Organic and natural product stores are ideal for distributing the latter, where Colombian products would represent innovation and would not have to compete with large corporation brands. Likewise, agents and importers open the door to drugstores that do not import directly and wish to enhance their offering.
For construction materials, PROCOLOMBIA found it is necessary to identify ally distributors in the area, with experience, stock, and a significant client portfolio.
Products identified as potential, in addition to being required by U.S. consumers, have a free tariff entry with the Free Trade Agreement (FTA) signed between both countries and in force as of last May 15th.
The Macroround in Los Angeles will be the second round carried out in 2012, in the U.S.A. The first one took place in New York and had an outcome of USD$ 100 million in business expectations.
In addition to the Business Macroround, PROCOLOMBIA organized a tourist promotion seminar for wholesalers in that region in the U.S.A., an exploration mission with companies that have not exported to that country and commercial visits that allow exporters to know how their products will be traded.
Main consumer trends
In general, U.S. citizens know their rights as consumers fairly well and enforce laws that protect them, and although price is a relevant variable when making a buying decision, elements such as quality, warranty and post-sale support are important.
According to PROCOLOMBIA's analyses, the interest of consumers is mostly towards products that offer nutrition, convenience and quality, are presented in small portions, with easy to use packages, simple labels and more nutritional formulas.
A consumer spends 20 minutes in average in a store and goes through less than a fourth of its area, which is why they prefer smaller stores.
The most important wholesaler markets in the region are the Los Angeles Wholesale Produce Market, The City Market of Los Angeles (Ninth Street), Seventh Street Produce Market, San Francisco Produce Terminal, Golden Gate Produce Terminal, Oakland Produce Market (Franklin Street Market) and Seattle Terminal Food Market.
The appeal of an area with purchasing power
The western region in the U.S. is comprised by 22 states: Arizona, Arkansas, California, Colorado, North Dakota, South Dakota, Idaho, Iowa, Kansas, Louisiana, Minnesota, Missouri, Montana, Nebraska, Nevada, New Mexico, Oklahoma, Oregon, Texas, Utah, Washington and Wyoming.
Altogether, they contributed with 42.1 percent of the national GDP for 2011, for a value of USD$ 6,301,696 million and a growth of their economy of 4.9% with respect to 2010, according to information from the U.S. Bureau of Economic Analysis (BEA).
There are 128.3 million inhabitants in the area, with a per capita income of USD$ 49,079 in 2011, above that of the entire U.S.A (USD$ 41,560) and seven times as much as that of Colombia, according to information from the U.S. Bureau of Economic Analysis (BEA).
Another advantage of this market is its importing culture. In 2011, this region carried out 50 percent of the total imports carried out by the U.S.A., which is USD$ 1,093,586, with a growth of 15.4 percent in comparison to 2010.
According to information from the Ministry of Trade, Industry and Tourism, and information from DANE (National Statistics Department) out of the total exports to the U.S. in 2011, 56.4 percent (USD$ 12.64 billion) had this region as destination in the U.S., which has also recorded a 65.2 percent growth with respect to 2010.
In the area of transportation, from the Caribbean coast, direct services by sea towards Los Angeles and Long Beach, last approximately 10 days, with a connection in Panama which can add up to 20 days.
In the area of transportation, from the Caribbean coast, direct services by sea towards Los Angeles and Long Beach, last approximately 10 days, with a connection in Panama which can add up to 20 days.
From Buenaventura, in the Pacific Coast, the transit time is of 13 days and the connection is through Panama or Mexico, which can take 15 days.
The flight towards Los Angeles takes five hours and 25 minutes, approximately.
