Category: Chile Economy

July 4, 2019
TopReasonsChile

Chile is one of the most prosperous Latin American countries, consistently ranking among the countries with greater economic freedom, transparency, and competitiveness.

 

Why should you consider exporting your products to Chile?

 

Growing middle class

According to The World Bank, “Chile has been one of Latin America’s fastest-growing economies in recent decades thanks to a solid macroeconomic framework, which enabled the country to reduce the population living in poverty (on US$ 5.5 per day) from 30 percent in 2000 to 6.4 percent in 2017”.

A study from Libertad y Desarrollo (LyD) revealed that a total of 11.3 million people in Chile are part of the middle class. By far, the largest socioeconomic group in the country, which already represents 64.3% of the population.

Growth potential

The Department of International Trade of UK says that “GDP growth dipped to 1.9% in 2014 but since 1990 has averaged 5.3% per year. Expectations for growth in 2015 were around 3%.

Chile ranks seventh globally in the Index of Economic Freedom. In other rankings such as Ease of Doing Business, World Competitiveness, and Business Environment, it is ranked either first or second in Latin America.

 

Retail (from gov.uk)

According to global research in 2015 Chile was the third best emerging global market for retail opportunities. It is the second best-emerging market for retail opportunities, according to global research in 2013. There are considerable opportunities for foreign consumer and retail goods in Chile. These cover a wide range of sub-sectors, including:

  • Clothing and footwear
  • Health and beauty
  • Home and kitchen appliances
  • Food, especially convenience foods
  • Alcoholic beverages, especially high-quality whiskey

Trade

According to the International Trade Administration, “Chile has successfully negotiated Free Trade Agreements with 62 countries around the world. Chile has given its 18 million citizens unprecedented access to the world’s products and services. This offers a unique opportunity for U.S. exporters interested in expanding their businesses in arguably the most open and stable market in Latin America”.

 

Education and training (from gov.uk)

Education spending has doubled in real terms since 1990 and today represents 4-5% of GDP. The percentage of students undertaking further education has doubled in the last decade.

There are opportunities for UK companies in areas such as:

  • Hardware, e.g. laboratory equipment and interactive whiteboards
  • Software and platform-based learning, especially for English language learning
  • Simulators for technical training

Universities are actively seeking collaboration in research and teacher and student exchanges. The UK has attracted one-third of all Master and Ph.D. candidates studying abroad on a Chilean government grant scheme over the last 6 years.

 

Infinitus has successfully introduced several products and services to Chile. We offer you our experience to take yours! Contact us so we can build a market entry strategy designed especially for your business needs.

 

SOURCES:

https://www.export.gov/article?id=Chile-Market-Overview

https://www.gov.uk/government/publications/exporting-to-chile/doing-business-in-chile-chile-trade-and-export-guide

https://www.chiletoday.cl/why-asian-business-appetite-for-chile-continues-to-grow/

https://www.worldbank.org/en/country/chile/overview

https://www.eldiarioexterior.com/clase-media-en-chile-crecio-49559.htm

February 17, 2019
Chilean_Profile_InfinitusBlogPic

Today, consumers around the world have access to many products manufactured in other countries.

Among other things, this has motivated individuals to be more demanding and selective consumers.

 

Global preference

Chile's economy has remained stable and growing in recent years, which has encouraged consumers to have greater purchasing power.

What does this mean? That in addition to being willing to spend more, consumers want better quality products.

In 2018 Nielsen published a study that reveals that the Chilean consumer prefers to buy local brands when it comes to food (especially dairy products and beer), but prefers international brands in the following sectors:

  • Baby products (such as diapers and formula foods),
  • Carbonated drinks,
  • Vitamins and supplements
  • Beauty products
  • Personal hygiene products for women.

In fact, only between 7 and 10% of the people surveyed said they preferred local products over international brands in these sectors.

 

E-commerce tendencies

According to Americas Market Intelligence, a survey of Chilean online shoppers done by Chile3D and GfK, indicates that the top-selling e-commerce products in Chile are:

  • Clothing (38%)
  • Technology products (32%)
  • Plane tickets (19%)
  • Tickets to events (15%)
  • Discount coupons (11%)

In terms of online purchase decision, Chileans seek:

  • Good prices (79%),
  • Fast delivery (58%),
  • Return conditions (48%) and
  • Tracking of shipments (48%).

The e-commerce platforms are complementary to the stores, because Chileans tend to review the products online before making a purchase in a retail establishment.

 

Opportunities

A study by Gfk Adimark recognizes new segments with great commercial potential:

  • The new middle class: focused on better consumption standards, increasing their experiences (consumption and travel) and financial stability.
  • Adults: 78% of adults have social applications on their phones and 49% of them own a vehicle. They look for social activity.
  • Women between 30 and 50 years old: 51% of them declare themselves satisfied with their physical appearance and are not tied to social stereotypes. They look for authenticity.
  • Millennials: 80% of them are optimistic about the future; 23% are stressed, 67% are interested in beauty, fashion and personal care; and 45% buy clothes regularly. 

SOURCES

https://www.nielsen.com/cl/es/insights/news/2017/8-de-cada-10-chilenos-estan-total-o-parcialmente-dispuestos-a-pagar-mas-por-productos-premium-con-altos-estandares-de-calidad.html

https://www.america-retail.com/estudios-consumidores/estudios-el-nuevo-perfil-del-consumidor-y-el-e-commerce-chileno/

https://www.nielsen.com/cl/es/insights/news/2017/conoce-como-las-marcas-globales-ganan-terreno-en-chile-y-otros-paises-latinoamericanos.html

https://americasmi.com/insights/the-best-selling-e-commerce-products-in-latin-america/

https://es.portal.santandertrade.com/analizar-mercados/chile/llegar-al-consumidor