In 2020, the biggest claim made by merchants to the National Government and local authorities was the closure of their businesses. The measure, which was implemented to avoid crowds and, therefore, contagion in the pandemic, represented for many a significant drop in sales, the delivery of premises that could not continue paying, and even bankruptcy.
According to Confecamaras, in the first quarter of 2020, the creation of companies in the country fell 11%, while in the second quarter it fell by 47%, reflecting the crisis in the business sector. And although the formal ones were able to benefit from the Formal Employment Support Program (PAEF), the temporary exclusion of certain taxes and sales on days without VAT, the real reactivation came in 2021, with the gradual opening of the economy in exchange for strict capacity controls and biosecurity protocols.
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After more than a year and a half of uncertainty for this line, merchants are now preparing for Halloween, one of the seasons in which Colombians spend the most and which is the prelude to the last quarter, the most anticipated period of the year. by industry. Candy manufacturers, costume shops, decoration stores and even bars see this quarter as an opportunity to recover what the pandemic took from them.
“This time is very important for merchants, because they sell everything from piñatas to costumes and decorations for parties, homes and offices. It makes the San Victorino sector begin to have cash flow and the economy begins to recover," says Yansen Estupiñán, manager of Neos Centro and member of the board of directors of Asosanvictorino, the association that represents merchants in this area of Bogota.
San Victorino is, as some members of the sector call it, "the Corabastos of clothes" for the city. With 57 shopping centers and 17 blocks dedicated to commerce, it is one of the key places to measure the pulse of this activity in the capital. Although its premises were closed for much of 2020, the arrival of customers has not been long in coming in 2021.
“In 2020, due to the quarantines, everything was very lonely. There was not the movement that there always is on Halloween. Right now we are slowly recovering what was lost from last year and we cannot say that it has been like in previous years, but it is a little better,” says Chiquinquirá, a costume vendor who has her shop on 11th Street.
On a good day, Chiquinquirá can sell between 25 and 50 costumes, both for adults and children. In fact, they outsell their masks or accessories. In the area, the base price is $45,000 and suits can be found for up to $1,800,000.
“Last year was bad, bad. But this one has seen more fluidity: weekend sales are up 80% compared to last year and the year before. It must be because we don't have so many restrictions,” says Rafael, who is in charge of Assemblies and Ornaments, a store that has five locations in the city.
Another vendor agrees with that, who preferred not to give her name. "This year is much better than last, but because of the street vendors, sales are down," she says. According to the young woman, who sells themed plates, cups and decorations for parties, in one day she can sell between $2 and $3 million. "I hope this gets better by the end of the year and that Claudia doesn't lock us up," he adds.
The rest of the year, these stores tend to accommodate the season: in January they sell school supplies, from February to October they sell piñatas or themed parties, and the last quarter they sell costumes, Halloween decorations and Christmas items.
Street vendors are also hoping that this will be a good opportunity to adjust their finances between now and December. Alejandro Gutiérrez is one of them. He sells socks, candy and masks on the busiest street in the area. “This year the businesses are reactivated. Some say that there are days when $1 or $2 million are sold on the streets, but that is a lie. One good day I sell $700,000. By November I hope to make December for my children”, he affirms.
Likewise, the large shopping centers promise to control their capacity (which today is at 75%) and expect that this last quarter they will manage to exceed 2020 sales by 70%, which were driven by digital channels.
"We've come from several confinements, so now people are starting to overflow to buy things they couldn't buy before," says Carlos Leiva, director of operations at Gran San.
Leyva says that as of October they usually receive two more employees in each of their 700 stores, since the end of the year season is approaching. They also prepare a security campaign to prevent children from being separated from their parents at this time.
the month of sweets
A virtual survey, carried out in 2020 by Fenalco in the main cities of the country, revealed that 53% of the people consulted would celebrate Halloween, compared to 47% who said they would not. The figures showed the change in social dynamics caused by the pandemic, since in 2019 the number of those interested in celebrating was 73%.
The percentage of people who would give candy also fell, from 76% to 50%. However, the confectionery industry managed to overcome the crisis, export and maintain good figures in the pandemic. Even for some merchants in the center of Bogotá, October was one of the best months in an atypical year.
This is how Valentina Castañeda tells it, in charge of a candy store in San Victorino. The woman says that in 2020 the sales season began on October 2, and since children could not leave their homes, many parents bought candies to consume at home. In 2021, sales promise much more.
“Thank God I've been here for three months and since the store opened, it's been sold every day. The product that we sell the most is the 'Halloween' package, in which 300 cheap sweets come. On average, we sell between 200 and 300 wholesale packages of candy a day, ”says she Castañeda.
Although they are in the middle of the season, the young woman says that the end of October will be “crazy”, because many Colombians wait for the fortnightly payment to start shopping. In addition, companies and foundations visit the sector in search of sweets to donate. "On October 31, it fills up and sells 200% more," she points out.
Valentina's words echo the results of the sweets and confectionery sector in the country. César Caicedo, president of Colombina, a company recognized for iconic brands such as Bon Bon Bum and Nucita, assures that in 2020 the company managed to overcome the effects of the crisis and closed the year with revenues of $1.9 billion.
“Despite the difficulties that the businesses faced, mainly as of the second quarter of 2020, the company maintained adequate financial strength, keeping the key economic indicators at a good level,” he tells El Espectador .
Within the framework of the economic reactivation, Colombina managed to close the first half of 2021 with revenues of $948,599 million, a net profit of $24,522 million and a 5% growth in sales. "We are sure that the Halloween season will be the protagonist of this economic reactivation," says the executive.
For his part, Sergio Ocampo, Andean commercial director of Comestibles Aldor, affirms that the pandemic was very demanding, especially in the way of serving the channels and the final consumer. "This category was hit very hard in the months of April and May, after the opening of the economy gradually it recovered month after month, ending the year with figures very similar to those of 2019."
The company, owner of Frunas and the Yogueta and Pin Pop lollipops, was affected by the blockades, the shortage of supplies and the road damage caused by the national strike, to the point that it had to suspend its production.
Despite the effects, Ocampo mentions that they have felt a strong reactivation of consumption in all channels, “due to the opening of many sectors of the economy, such as schools, bars and restaurants. These growths are in double digits and we budget to close with sales higher than 2019 in all categories in Colombia and the Andean markets”, he points out.
These companies also take advantage of the season to launch a differentiated portfolio on the market in order to attract more consumers. For example, they dress their products with motifs alluding to the celebration or temporarily change their name.
The reactivation of the confectionery sector is also reflected in the export figures. According to Procolombia, between January and July 2021, US$82.7 million were exported, that is, 20% more than in the same period in 2020.
"Sweets are a key part of Colombian tradition, especially when it comes to sharing important moments with the family or celebrating dates like Halloween," said Camilo Montes, executive director of the Andi Food Chamber. "We are proud to say that during 2020 the main category of exports of the affiliated companies was confectionery and chocolate, thanks to the 71,379 tons that we sent to 338 countries," he added.
And the theme parties?
Another sector that sees Halloween as an opportunity for reactivation is that of bars and nightclubs. Although a roadmap has not yet been defined between the Mayor's Office and the private sector for this date, there are already establishments that have planned events and parties.
Without a doubt, this line was one of the most affected by the pandemic, as they were closed for more than a year. Only until June 8, 2021, the Mayor's Office of Bogotá authorized the opening of bars, discos and massive events.
“We lasted a year and three months closed. If the bars didn't open in June, we were going to have to close," recalls Édison Ramírez, owner of Theatron, a well-known gay club located in the town of Chapinero, in Bogotá. “Luckily we had good finances and in all this time we managed to keep 22 employees. In June, when we were able to open, we started to get the ship afloat.”
Traditionally, Halloween is one of the most iconic parties in the place. Before the pandemic, from Tuesday to Saturday, it had the capacity to gather 7,500 people and had 350 employees, but today it has a capacity of 50%, has eliminated its open bar and is open from Thursday to Saturday.
“The reactivation has been gradual. We have had support from the distributors with whom we work and together we have held meetings to see how we are going to try to return to a new normality. The fact of working together makes us feel gratitude, we have many women heads of household, older people and young people who have come back with a lot of energy. We are now rehiring and we are at 178 employees. The subject of the clients has also been very positive, because they needed the space. His mental health was affected. For heterosexuals, bars can be anything, but for us it was a place of identity”, adds the businessman.
As for Halloween, Theatron bets on a party whose theme will be "Movie Villains." However, Ramírez clarifies that it will be a different celebration than in previous years, because he will have to control the capacity.
Like the club, there are other bars in different areas of the city that have begun to promote their celebrations and, with them, to boost their sector. “We cannot speak of reactivation without knowing the night and the party. To reactivate the economy we have to reach a consensus, understand the situation and work together. This is how we will keep jobs”, concludes the businessman.
