“Amazon’s entry into the local market, offering free shipments to all of Chile, has also caused consumers to turn to this type of site.” This was one of the justifications of the Petacl company to request its voluntary liquidation. The firm was born in 2010 as an online store for the sale of computer equipment, among other products.
“Because the industry of buying and selling computer items has low barriers to entry, the number of new companies entering the market has increased significantly in recent times, which has caused a considerable decrease in operating margins” Said the company, represented by Nicolás Mella, in its liquidation request submitted to the court.
And he added: “If years ago the company could sell with margins of 15%, currently with the rise of the dollar and the increase in production costs in general, there is no longer a possible profit but a loss.”
The firm then specifically targeted the exchange rate. “The continuous increase in the dollar in recent times has caused an escalation in the prices of products, therefore, the final consumer has perceived a real increase in prices of more than 20%. And it has generated a decrease in sales without the possibility of a profit margin, ”said the company.
The firm also assured that its poor results were the product of competition from the big brands.
“Years ago, firms such as HP, Lenovo, Acer, Samsung, LG, among others, only marketed their products through large distributors such as Intcomex, Ingrammicro and Tecnoglobal, but today, however, they do so directly to the end customer, eliminating distribution chain to small merchants,” the company said. To then point out: “Many small retailers (such as Petacl) are selling the same product as the manufacturer, but at a higher price, therefore, it is a direct competition between distributors and manufacturers. In this sense there is no commercial possibility of sales, since there is no way to match or compete against the price of the manufacturers”.