After a year in which the traditional meeting of Red Acero members had to be replaced by a virtual alternative that brought together 55 companies in the sector – the in-person event was rescheduled for the end of next August – Luis Alcázar, its president, reflected on what happened in the midst of the crisis due to the COVID-19 pandemic, and outlined what the objectives are for 2021.

By Hernán Murúa

What was the evolution of sales of appliances, electronics and other products by the members of Red Acero, since the pandemic broke out until today?
Sales in the sector, since the beginning of the pandemic, were very limited. During the first two months because they were closed, since until then only approximately 20 percent of the members were selling online. Then, quickly, 40 percent more was added to the system. And due to the inability of people to move, the growth in that segment was very good. In short, according to the estimates we had, sales were not as bad as everything suggested. We understand that we had a drop of around 15 to 20 percent compared to what was estimated a priori. And compared to the previous year, we can talk about a similar figure of loss. This decrease in sales was not due to less demand, but rather due to lack of supplies and personnel who could not go to work.

What was the most complex thing that you had to modify to adapt to this unprecedented circumstance and stay in the market?
We understand that commercial management changed violently out of obligation, given the circumstances. To make it clear, many of us were working in the online channel but in a non-aggressive way. And this situation accelerated the estimate by two or three years, to grow at the levels of the most advanced countries in the matter. As for the changes that had to be made, they were very important. Logistics were completely rescheduled. Staff were specially trained. And we had to adapt to the new sales systems, which are totally different from the traditional ones.

"According to the estimates we had, sales were not as bad as everything suggested. We understand that we had a drop of around 15 to 20 percent compared to what was estimated a priori. And compared to the previous year, we can talk about a similar figure of decline.

From now on, what projections do you have for the 2021 market and based on what indicators are they supported?
The projections for this year must be divided into quarters. What happened was very bad, with drops of up to 40 percent compared to what was projected. This occurred due to the extinction of the existing restrictions, with permits to gather in groups of up to twelve people, with the opening of bars and restaurants, the possibility and need for people to vacation, the increase in their school expenses, transportation and clothing. But for April, May and June we expect an increase in sales, mainly of televisions, since we have the Copa América soccer tournament, which will be held in our country and in Colombia, between June 11 and July 10. These types of events always have favorable traction, without counting on a good performance by our National Team. By July, August and September we will already have elections, and governments always try to ensure consumption. And for the last quarter, we have Mother's Day and the end of the year holidays. If the heat is good, the sale of air conditioners may be good, since this season was terrible.

Do you already envision a post-pandemic future?
As for the post-pandemic future, it is very difficult to predict, because it is still very difficult to foresee its end. But what is certain is that the growth of online sales is here to stay.

TRUST: The president of Red Acero trusts that the performance of the National Soccer Team in the next Copa América will boost television sales and that the next elections will leverage consumption.