CHILE Retail

Facts & Figures

Accounts for 29% of the country’s GDP (US$76 billion), employing 13% of the country’s total workforce.

Chile ranks second in Latin America and third in the world retail opportunities among emerging economies globally.

2009-2014 saw overall sales grow by 53%. From 2015-2020, store-based retailing will grow by 11%, non-store retailing by 46%.

From 2009-2014, the largest non-store retailing sales channel (Internet retailing) grew by 184%.

Bilateral trade agreements between the UK and Chile ensures that British products given the EUR1 classification can be imported tariff-free.

The two largest Chilean retail groups, Falabella and Cencosud, have a large presence in other Latin American countries including Colombia, Peru and Argentina.

The calibre of British companies already in the Chilean market has resulted in the native public holding a high opinion of British brands, associating them with high quality.

Business Opportunities

Higher disposable income is a growth driver for goods such as: electronic appliances, home and garden products and beauty products. High growth trends of over 50% from 2009-2014 are expected to continue.

Increasing health awareness has created demand for Health and Wellbeing products, marketed as being natural, healthy and free of artificial ingredients. Chilean men are the highest per capita spenders on beauty products in the region, creating demand for specifically tailored products for the modern day gentleman. Due to EUR1 classification, Internet retailers can enter the Chilean market without traditional start-up costs or physical market presence. The internet is seen as a well-used and trusted sales channel, evident by the predicted annual growth of 11% between 2015 and 2020. Major retail chains in Chile are looking to expand into the regions away from the capital, implying demand for investment in logistics, construction, communications and other technologies to manage the growing scale of operations. Convenience is king for the Chilean consumer who is willing to pay premium prices in exchange for faster and innovative services – technologies improving the shopping experience are in high demand.

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% of Adults using E-Commerce

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2014 Global Retail Development Index Score - Top 10

CHILE Retail

Key Players

The key players in the following retail sectors are:

Supermarkets & Convenience Stores: Wal-Mart, SMU, Cencosud, Falabella

Department Stores: Falabella, Cencosude, Ripley, La Polar, Corona, Hites

Home & Garden Stores: Sodimac, Easy, Construmart

Challenges

Growth is slowing and so consumption, whilst still increasing, will not be at the same rate as it has in recent years.

Due to the devaluation of the Chilean Peso, the public have less purchasing power.

Current easy access to credit is not sustainable in the long run and is likely to be restricted by new laws which could lead to a contraction in disposable wealth.

Key Events

E-Commerce Day – May 2016 – Santiago, Chile - www.ecommerceday.cl

Chilean Congress of Marketing – May 2016, Santiago, Chile - www.icare.cl/eventos/marketing

Latam Retail Congresshop – May 2016 – Santiago, Chile – www.retailcongresslatam.com

Expodigital, July 2016, Santiago, Chile - www.chile-digital.com/expodigital

How Britcham Chile Services can help you

We offer Entry, Contact, Professional, Growth and Development services to facilitate your success in one of

the leading developing economies in the world.

These include:

Market overview & analysis

Identification and assessment of potential business partners

Introductions & appointments

Commercial representation

Marketing support

Networking

Back office and legal support

For more information and further discussion on how we can help, feel free to contact us on:

Telephone: +562 23704175 Email: business@britcham.cl