Globally, 2020 has been very difficult for most industries, due to the impact of COVID-19; however, for e-commerce it was one of its best years. Many organizations have been forced to precipitate their commercial strategies towards this type of services in addition to innovative marketing and advertising strategies on social networks.
According to UNCTAD (United Nations Conference on Trade and Development), e-business worldwide reached 26.7 billion dollars. In addition, due to the effects of the coronavirus, online sales were on the rise. This figure includes B2B and B2C sales, which is equivalent to 30% of world GDP in 2019. This has caused the increase in e-commerce in the retail market, which went from 16% to 19% in 2020, according to UNCTAD estimates. One of the countries that registered the highest percentage of sales in 2020 was the Republic of Korea with 25.9%, unlike 2019, which reported 20.8% (UNCTAD, 2021).
Regarding the uneven impact, according to the UNCTAD report, uneven data has been recorded from 13 major B2C e-commerce companies, 11 are distributed between China and the United States. All companies registered strong reductions in their gross merchandise value, which generated changes in the classifications of the sector (see: annex 1). For example, Expedia went ITHGC 2023: IV International Tourism, Hospitality & Gastronomy Congress, October 25-27, 2023, Lima, Peru aldo.medinag@usil.pe (A.1); nguillen@usil.edu.pe (A.2); luz.santamaria@usil.pe (A.3); monica.regalado@usil.pe (A.4); rtolentino@ucss.edu.pe (A.5) 0000-0003-3352-8779 (A.1); 0000-0003-4080-0603 (A.2); 0000-0002-6765-2439 (A.3); 0000-0001-5298-103X (A.4); 0000-0003-2480-5869 (A.5) from being in fifth place in 2019 to eleventh in 2020; Booking Holdings fell from sixth to twelfth and Airbnb from eleventh to thirteenth.
Despite the drop in Value Based Management (VBM) of some companies, B2C e-commerce increased by 20.5% in 2020 compared to 2019, which was 17.9%. Regarding the We Are Social report, the pandemic disease triggered the use of social networks by 27% in 2020, more than the previous year. The immobility limitations increase the number of internet users, a favorable situation for its development. 60% of the world's inhabitants (4,660 million individuals) use the Internet, which reports an increase of 7.3% compared to the previous year. This equates to a yearon-year increase of over 13% (490 million new users).
At the national level, according to the official report of the Electronic Commerce industry in Peru -2020, prepared by the CAPECE electronic commerce observatory (Peruvian Chamber of Electronic Commerce), Peru represents 5.3% of the e-commerce volume in the region (11.8 million online shoppers in the country) and, in terms of online purchases, 60% are made through mobile devices. The number of companies that entered the world of electronic commerce quadrupled: 67% have made their purchases with credit cards (CAPECE, 2020). Experts estimate that 6 out of 10 people have made their purchases online during the mandatory confinement. It is estimated that 40% of these consumers will not be afraid to buy online in the future. That is, once COVID 19 is overcome (Nissen and Krampe, 2021).
The growth in the use of e-commerce in the gastronomy sector in Peru -2020 is one of the categories that has been most impacted by the COVID19 pandemic; for example, restaurants and bakeries that registered a growth of 10,190% and 2,683% respectively. It is also worth mentioning that before the pandemic there was no e-commerce in the winery business; after the pandemic its growth reached 70% (Medina and Regalado, 2021).
With the arrival of the COVID-19 virus, the traditional sales methods of companies have completely changed, going from the classic physical sale to selling through social networks to reach large audiences, there was a migration to the digital world. The MYPES in Peru, particularly in Metropolitan Lima, were not prepared for this abrupt change they had; so they must adapt electronic commerce to their future operations (Lopez et al., 2021).
Online shoppers are from the generation corresponding to millennials, most of them live in Lima and belong to the AB socioeconomic class. They are used to checking and comparing prices before making a purchase, and are less brand loyal; since, thanks to the tools that the internet provides, it is easier for them to make better purchasing decisions, making a balance between price and quality (Purani et al., 2019).
Therefore, the objective of this research was to analyze the growth of e-commerce in social networks for entrepreneurs in lasagna sales. Diaz (2015) details that the most used social networks to make sales are through Facebook; second, Twitter and finally Google Plus. Thanks to social networks, these companies have been able to increase their "customer portfolio" and state that this medium "is necessary for the new lifestyle of their customers." In conclusion, they consider that it is important to know how electronic commerce develops in MYPES, what elements prevent its development and what solutions they find in a given scenario. Contreras et al. (2015), argues that social networks are important for the work carried out by these women. There are two aspects that stand out the most: being able to establish an economic advertising channel that makes it easier to become known and that time can be saved by contacting the public. Bo et al. (2023) point out that the information related to the management of the platform is important for the execution of transactions. In-depth interviews were carried out with all the representatives of the organizations to corroborate the information obtained. It was concluded that the management practice that has the greatest influence is the relationship with customers, thanks to the knowledge that the founder of the platform has in matters related to marketing and the bond that other people who work in the e-commerce have retail studied. Lamb (2019), considers that, according to e-commerce statistics, it continues to evolve every year: in 2017 it grew 28% with sales of $2.382 billion, in 2018 it grew 22.9% with sales of $2.928 billion. Globally, the countries that lead the e-commerce ranking are China, the United States, the United Kingdom, Japan, Germany, and South Korea. In Latin America, Brazil, Chile, Argentina, Colombia, Peru and Ecuador stand out. Chung (2023) affirms that SMEs direct their products and services to the national and international market, use e-commerce a lot, even reaching more public from different places; that is, they see it as an advantage to spread and generate more information about the companies of their future clients.
The use of the Internet has allowed a rapid evolution in the different ways and methodologies for doing business. Purchase transactions made through electronic means enabled by companies are within the concept called e-commerce (Spruit and Almenar, 2021). Electronic commerce reached its peak in the early 1990s with a rapid spread of information and the development of "dot com" businesses. After 2000, there was a decline in some businesses causing distrust among investors. By overcoming this crisis, companies adapt to the tools and new trends in the use of the Internet, with the aim of positioning themselves in the market; such as, for example, the existing correlation between social networks and e-commerce (Lin et al., 2021, Medina, 2020). The term "electronic commerce" includes the carrying out of purchase and sale operations through the Internet. It is based on the premise that "the use of the internet and the web are made to do business. We focus on digitally authorized business transactions between structures and individuals. These involve the exchange of values (such as money) across structural or individual boundaries, in exchange for products and services (Music et al., 2022).
Michael Aldrich created in the decade of the 70s a concept that would cause a revolution. He achieved the first computerized electronic sales transactions by trying to connect a modified TV via telephone via a PC to a multi-user line. The UK, Ireland and Spain were the first to test the technology (Guillen et al., 2022). The companies bought and sold tourist packages, sale and purchase of cars, economic loans, among other things (Degutis et al., 2023).
At the end of the 20th century, there was a real explosion of opportunities for e-commerce in Latin America, when portals such as Mercado Libre began to appear, a famous web page that was invented in Argentina (Belanche et al., 2015).
The e-commerce model is mainly defined in how the business develops connecting 4 very important pillars: the company that is the one that offers the product or service, the company workers, the consumer and the company administrators who are considered " electronic government" (Regalado et al., 2021). The business models that are implemented depend a lot on the communication and relationship that is maintained between these four pillars already mentioned. Today there is more than one e-commerce business model. Next, some current market trends will be explained (Duarte et al., 2023).
It is the agreement between two companies so that both generate profit for the low cost of the product: large orders are made (Regalado and Medina, 2023). Ecommerce is available not only for large organizations; but it is also for small and medium-sized companies. Trade-to-trade transactions are made between one company and another over the network. Most of these transactions are previously executed so that the product or service reaches the hands of the consumer in the best way (Oberg, 2023).
Most of the sales are made through the internet. The buyer fills out the form with personal data, product selection, payment method, etc. Then, wait for confirmation from the contacted seller or brand and finally the transaction ends with the delivery of the product through a delivery (Aspara et al., 2021).
It is the most traditional and convenient model for entrepreneurs who want to open a new business to benefit from the direct relationship that the client has with the producer. Indeed, when you purchase a product or service from an online store or create a web page to offer them, you are participating in the B2C electronic business where the development of technology has allowed an extremely significant increase (Regalado et al., 2023). At the same time, as more ebusinesses are born or more use is made of the Internet for their growth, then the competition becomes tougher. However, there are many ways to take advantage of this scenario by planning and developing a strategy that allows for an efficient digital marketing campaign (Bargoni et al., 2023).
The client provides what the company needs according to the activity exposed by them. For example, when an influencer recommends the product to his followers through his networks, he is advertising, which in this case is paid. This is beneficial for the brand, because the followers begin to browse, place orders, follow the page and recommend it. This model gained importance as a result of the increase in the use of websites, blogs, podcasts, video clips, social networks and all the media most recognized by the consumer (Claveria et al., 2021).
Mobile Commerce. These are the sales and transactions that the customer makes through their mobile device through different tools and applications (Dastane et al., 2023). Several years ago, cell phones did not have the capacity they have today (Rodríguez et al., 2022). The growth in the use of cell phones and tablets, as well as Internet connections, added to technological advances, made the development of purchases by these means viable. According to Lin et al., (2022), indicate that 53.3% of people use their cell phones, followed by 44% who use their computers to connect. People who use the internet worldwide have increased to 4.540 million, compared to 2019. Likewise, there are 3.80 billion more users who use social networks through their mobile device.
As the days go by, e-commerce is replacing traditional physical sales. Every year users and companies in the virtual world increase, proving that this is the best sales method, leaving aside the traditional world (Ghanem et al., 2022). There are several reasons why the company should have a presence in the virtual world. One of these is customer service; since, you can enter and review the company's website 24 hours a day without any restrictions, another reason is the global reach and market expansion that the company can obtain by creating its own website (Kao and L'Huillier, 2022).However, there are some limitations in the virtual world, such as the security of the operations carried out by the client due to the majority of frauds that exist; added to the real shopping experience in which the consumer can only imagine what he is about to buy, since he cannot touch it or try it on (Liu et al., 2022).
The advantages and disadvantages that the company should know before entering the world of e-commerce were analyzed.
The qualitative approach research developed a study where the collection and analysis of important data of each entrepreneur and their business was used, based more on logic and an inductive process: it sought to explore and explain to produce theoretical perspectives. The design selected for this work was the phenomenological one. Escudero and Cortez (2018) point out that this design seeks to explain each of the experiences collected so that it is possible to better understand the event or phenomenon presented.
The researchers worked directly on the units or statements of the entrepreneurs and their experiences with electronic commerce through their social networks, reflecting to produce a model based on their interpretations as well as on existing theory (Kejriwal et al., 2021).
Regarding the sample as a subgroup of a population, it is specified and parameterized so that it is adequate. In the present investigation, this sample has been chosen from a non-probabilistic vision, thus understanding that it is a "selection procedure oriented by the characteristics of the investigation" (Hernández et al., 2014).
Likewise, the sampling technique was non-probabilistic for convenience. This technique fits perfectly with the investigator's criteria; Since, as entrepreneurs, it offers the opportunity to find out the growth and benefit they obtained with the growth of e-commerce in social networks for their lasagna sales. They will be able to have a better overview of the entire sales process through e-commerce on social networks, from different channels such as B2B, B2C and Mobile commerce (Nusair and Hua, 2010).
The technique that was used was the interview that consists of a dialogue that can be governed by a composition of questions or not. In the situation of this research, the interview will follow a specific composition that will allow a structure of questions to continue, starting from the easiest to the most complex. The questions that the interview will address will be opinion, experience and knowledge of e-commerce and social networks (Wang et al., 2023).
The instrument used was a semi-structured interview guide. According to Hernández, Fernádez and Baptista (2014) point ot that it is carried out based on a pre-designed guide that contains the questions that will be asked to the interviewee.
For data processing, a double-entry table was prepared to code the responses of the interviewees. This served to extract the main information and make comparisons between the data obtained. Finally, triangulation was carried out in order to analyze the responses as a whole to obtain a result by category; that is to say, the most relevant information was transferred to the main tables that allowed for a more enriched material for the discussion of the results.
Questions Comparison Results How developed and competitive do you think the lasagna market is for sale?
Both interviewees 1 and 2 agree that the sale of lasagnas in San Borja occurs more occasionally.
As for interviewees 3, 4 and 8, they comment that there is a lot of competition in the district, but there is also a "market" for everyone. Interviewee 7 tells us that he has two types of competitors: large traditional companies and entrepreneurs that emerged in a pandemic.
As the interviewees comment, San Borja is a very competitive district in the field. They request their orders for special occasions. Despite the fact that it is a district where there are lasagna restaurants, there are entrepreneurs who compete with these, demonstrating better quality and price. Does it allow you to set a price that guarantees a good margin or do you think it is a fragmented market? Interviewee 4 tells us that depending on market demand, he can get his percentage of profit. As for interviewee 1 and 2, they have the clearest analysis with a percentage of 30 and 50 correspondingly. Interviewee 7 tells us that due to the pandemic and political crisis, most entrepreneurs have found themselves in need of frequent promotions, which affects everyone competing in the range of those prices to make it a competitive market. Instead, interviewee 5 points out that there will always be competition, but if your product is good; it will be worth the cost benefit.
Most of the interviewees tell us that the prices they place on their products do guarantee them a good margin despite the fact that the market is competitive. Having passed a political and economic crisis, the client became more exquisite, having a variety of products, prices and quality that caused competition in terms of the price of the products. Does the company have an annual marketing plan on the use of social networks, aligned with the general objectives of the company? Most of the interviewees do not have an annual marketing plan. Only interviewees 3, 5 and 7 have a monthly marketing plan which they update according to what is currently happening.
As entrepreneurs, they have a monthly marketing plan that adapts to what the market demands. It is up to each one to find their strategy to publish their product on networks.
Results What has been the change in customers obtained thanks to e-commerce? Interviewee 3 tells us that he only increased customer variation by 50% thanks to ecommerce; On the other hand, for the majority there was a 100% variation because they started the development of their brand through this means. For interviewee 7 it was very beneficial, because thanks to the sales he obtained through e-commerce he was able to open his first store.
Selling through social networks helped all those interviewed to get clients, increase sales and become better known as a brand.
What kind of experience do you give your customers when they order lasagna?
Regarding the experience that the interviewees offer their clients, they coincide in the direct and personalized treatment.
Interviewee 1 applies the choice of being able to send it baked or unbaked; Interviewee 6 sends them the step-by-step explanation of cooking.
Each brand has a different way of providing the experience to its customer. Each one stands out as a brand, but they always coincide in the personalized treatment and the generation of trust for the quality of the product.
What were the benefits you obtained as a brand thanks to e-commerce?
For interviewee 4, the benefit was being able to become known by his own name. For interviewee 1, 2 and 3 it was the increase in followers and being able to reach more people.
E-commerce has benefited all entrepreneurs by increasing sales, followers, and product innovations.
What effect has incorporated an ecommerce platform into your brand had on sales? If positive, what was the percentage increase in sales obtained?
For interviewee 2 there was no difference, because they started on an e-commerce platform, for interviewee 3 it only increased to 50%. On the other hand, for interviewee 1 it was 90%, because he began to sell his products through social networks.
was well received by the public in 2020. Everyone began to make their purchases and sales through social networks. For that reason, for all those interviewed there was a positive effect on their platforms, helping them with their sales.
Questions Comparison Results How do you consider social networks in the purchase decision?
Interviewee 4 considers it effective and fast. For interviewee 1 it influences a lot because you can compare brands and prices. For interviewee 6, photos and videos are important: the more provocative it looks, the more efficient the sale is.
networks greatly influence the purchase decision of customers because it is an open window for criticism and opinions, as well as the publication of photos and videos to find out before buying.
Which social network has represented the greatest benefit for your business? Why?
Only for interviewee 1, WhatsApp business is the social network that has served him in those times. The other interviewees agree that Instagram and Facebook are the most used networks in 2020 to make their purchases.
The networks most used to make purchases by users in 2020 were Instagram and Facebook, according to the interviewees. By this means the majority began and became known as a brand.
How important do you think it is for an entrepreneur to have their own website?
The only interviewee who considers it important is 7, because they also have a physical store and help them organize orders. The others consider that a good investment is necessary: they do not believe it necessary, but they do believe it is important.
Having a web page, as a company, facilitates and benefits in many ways for a better organization of the company and the consumer, as long as the entrepreneur has the investment to create it.
In verifying the general objective, it has been determined that the market allows them to set a price that guarantees a good margin based on different factors, which makes the market very competitive. Regarding marketing, each entrepreneur has realized that it became very important to be able to invest in the digital world; because due to the political, economic and health crisis that the country is going through; Most people began to make their purchases and sales through e-commerce. On this platform, each company develops strategically to exceed the expectations of its customers and build their loyalty. Social networks greatly influence the purchase decision of customers through photos, opinions, comments, videos, etc. that are displayed before making the purchase.
Research Bo et al. (2023) It is related to what was obtained, because it affirms that social networks influence a lot when making purchase decisions. They analyze the strategies they use as a company and study the influence of social media on the consumption of their brands, including the existence of some rationale that supports it. In turn, they analyze the purchasing movements of their target audience and the relationship between influence and purchasing habits. It should be noted that the results obtained also coincide with the theory of Dastane et al. (2023), who point out that electronic commerce focuses on digitally authorized commercial transactions between structures and individuals in exchange for products and services through social networks where it is confirmed that the use of the internet and the web are made to do business.
In the verification of the Business-to-business subcategory, it has been determined that entrepreneurs take into account different important factors to place their prices, they analyze the competition and the market a lot. By investing in marketing, they realize how important it is to make themselves known as a brand in the digital world. They carry out monthly and annual marketing strategies according to the current situation and the needs of their target audience. Contreras et al. (2015), in his research, states that the analysis is developed from the perspective of the consumer. Here the first variable is considered if they make purchases online using electronic commerce. Another of the variables is the indicator of income that has an active economic life, it is obtained through this network. According to the statistics analyzed in this study, electronic commerce is evolving by leaps and bounds every year, Peru is in the global ranking. Currently, the market is in constant contact with existing technology media, following the evolution and transformation of new strategies and behaviors that the market adopts for future sales. This is related to the investigation of Dastane et al. (2023) who ensure that the different methodologies and ways of doing business, through the internet and social networks, have evolved quickly and with an easy use for companies and consumers who use them daily to carry out different transactions with implications for the exchange of values in exchange for products and services.
In checking the business to consumer subcategory, selling through social networks has definitely benefited most entrepreneurs in 2020. New ways have been discovered to maintain communication with their customers, boosting sales and reaching more people providing a totally personalized treatment, always highlighting its competitive advantage. It is also related to the investigation of Contreras et al. (2015). Regarding the effect of the use of virtual social networks, the aspects that stand out the most in terms of satisfaction with the use of social networks have been establishing an economic advertising channel that helps them reach more audiences and saving time when contacting with the client, having the freedom to express themselves through photos, promotions, publications, videos, the quality of their products to their clients and the ease that they have to obtain their product. As the investigation concludes Dastane et al. (2023). After a period of crisis, companies begin to take into account the importance of using the Internet, social networks and the tools that this entails for better use in order to adjust and show themselves in the market. Most sales are made through the digital world. Here everyone can show the product and quality they offer in a different way, they also use various strategies in their publications, photos, videos and communication with the client.
In the verification of Mobile commerce, it is clear to those investigated that it is a strategy that has benefited everyone to keep in touch with customers, to be able to follow up on pre-sale, sale and post-sale and keep them informed of the latest promotions that the company has. brand. The social network most used by entrepreneurs to generate sales and publicize their products is Instagram and Facebook because they allow a complete purchase process from viewing the product to paying for it.
Among the strategies to attract a client are social networks, a good marketing strategy and knowledge about what should be published, on which platform to publish and the publication schedule according to the brand's target audience. This is related to the investigation of Diaz (2015) and the exploratory study of the e-commerce offer in micro and small companies where it can be corroborated that there is a high percentage of companies and people that use social networks to make their purchases and which are the most used by them. It should be noted that the results obtained in the investigation coincide with Dastane et al. (2023) who point out that there are several virtual tools that are useful for starting a virtual store. Likewise, propose better digital marketing strategies, online transactions and legal aspects that each social network asks you to be able to publish photos, videos of the products and reach the brand's target audience.
E-commerce on social networks in 2020 has updated and taught many people that the digital world is a much easier, more practical and safer tool to be able to get and publicize what they want to sell. As for entrepreneurs, it has allowed them to get to know their audience better and allows them to set a price for their products that guarantees a good margin, taking into account the different factors that make them competitive in the market. Based on the experience they are having in the world of e-commerce, they have been able to create more effective strategies to reach more people, become known as a brand, teaching why they are different from others and giving the customer the ease and security that they can pay for your product by any means of electronic wallet that exists today.
Regarding subcategory 1, Business to business, this first e-commerce business model explains how to reach an agreement between company and company where both win. In this case, entrepreneurs analyze prices, product quality, supplier experience, the public they are going to target, and various other factors that help them make the decision to be in a competitive market. The above goes hand in hand with the marketing that they can invest in social networks to publicize their product and meet the demands of their future client.
Regarding the business to consumer subcategory, the lasagna entrepreneurs assure that the benefit obtained in terms of the increase in sales and followers was thanks to e-commerce, in addition to being able to expand and become known to more markets. Another benefit for them is the challenge they had to face to be able to provide a unique and personalized experience to each customer through the internet, where each one strategically stands out to highlight their competitive advantages and build customer loyalty.
Regarding the Mobile Commerce subcategory, the interviewees recognize the increase in the use of cell phones and applications that exists today, they use it to make a purchase, sale, transaction, communication, etc.; For this reason, they can carry out any type of transaction by cell phone, since it is easier, more comfortable, faster and safer for their purchases. They have identified as a strategy to create a monthly or annual marketing plan to make the product they offer known through the different social networks, either by video, photos, publications, comments, etc. The majority agree that the social networks most used by them are Instagram and Facebook, which allows them to expand their presence in the market and position the brand by increasing the demand for their products, in order to increase the volume of sales and billing.