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Smartphone penetration to Upsurge Chile's Online Retail Market Outlook: Ken Research by Ankur Gupta

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Smartphone penetration to Upsurge Chile's Online Retail Market Outlook: Ken Research by
Article Posted: 10/25/2016
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Smartphone penetration to Upsurge Chile's Online Retail Market Outlook: Ken Research

Ken Research announced its latest publication on, “CONSUMER ATTITUDES AND ONLINE RETAIL DYNAMICS IN CHILE, 2015-2020”, offer insights on the changing trends and key issues within the Chile Online Retail market. The publication includes an insightful analysis of the latest trends in online consumer shopping, covering the factors driving online shopping, consumer insights, market dynamics and reviews of the latest best practice in online retail site design. It also provides data for historic and forecast online retail sales, and also includes information on the business environment and country risk related to Chile's online retail environment. In addition, it analyses the key consumer trends influencing Chile's online retail industry.

Economic Environment of Chile

According to the World Bank, Chile is one of the highest income economies and one of the most prosperous nations in South America. Chile leads the Latin American nations on a number of parameters such as per capita income, competitiveness, economic freedom etc. Chile is ranked as the 30th most competitive country in the world and the first in Latin America. In terms of ease of doing business, Chile is ranked as 34th in the world by the ease of doing business index.

Chile is the largest exporter of copper in the world and also a leading exporter of minerals, wood, fruit, seafood and wine. It is the first South American country to join the Organisation for Economic Co-operation and Development (OECD). Chile has also entered into a number of free trade agreements and maintains the best investment profile in the region. On the imports front, the country is open to imports, there are no trade barriers and most of the imports are duty free.

Looking at the key economic snapshot of the country, Chile is the home to 17.8 million people. With a GDP of USD 409.3 billion and a per capita income of USD 22,971, Chile has a global ranking of 7th and a regional ranking of 1st in the South and Central American region. The GDP has a growth rate of 1.8% and a 5 year compounded annual growth rate of 4.6%. However, the GDP growth in Chile has fallen recently, reason being the slowdown in the mining sector, falling copper prices and the decline in private consumption. All these factors together with the increasing unemployment rates and fiscal deficit are coming across as challenges for the economy and preventing it from growing to its full potential.

Brief Overview of the Online Retail Market in Chile

Considering Chile being one of the fastest growing economies in the world, its retail sector also has a huge potential. Chile not only dominates the other Latin American countries in terms of competitiveness, GDP per capita etc. but also is the leading country in Latin America when it comes to electronic commerce transactions.

Although the online retailing segments accounts for less than 2% of the overall retailing business in Chile, but this scenario is expected to change fast as the online commerce is growing at a faster rate than ever before. A large number of factors are contributing towards the increasing penetration of online retailing in Chile. Increasing Broadband penetration and easy access to internet is one of the most important factors contributing to the development of e commerce as this particularly expands the number of young consumers. According to a Chilean retailer Falabella, efforts are being made to ensure that the product information available online is 100% accurate, thereby further boosting the consumer confidence in online retailing.

Apart from e commerce, with the increasing penetration of smart phones and tablets and internet access being the highest in Latin America, the mobile commerce platform is also expected to gear up. Advanced telecom infrastructure and regulatory system has done away with the leading negative factor of internet retailing that is security of online payments. Now consumer’s main area of worry has moved to delivery timing of online orders.

Major Players in Chile’s Online Retail Market

Since the online retail market in Chile is very small, the competition is not very intense. The most popular E commerce sites among consumers are Falabella, and Mercado Libre with Falabella leading internet retailing with a value share of 12%. The company’s most important strategy that has been effective in helping the company maintaining its leadership is the development of m commerce applications for mobile devices. One of the most significant feature of such an application is that they allow the consumers to see how they would look using or wearing a wide range of products by uploading a photograph then “testing” prospective purchases.

The Chilean consumers’ favourite products for online shopping are electrical and electronics, tickets to concerts and shows and plane tickets

Chile’s Online Retail Market Prospects

The online retailing market is expected to flourish and maintain a positive growth rate during the forecast period. Some of the key factors expected to drive demand in the Chilean online retail market are:

Easy and affordable internet access

Chile has a broadband penetration rate of 8.8%, one of the highest in Latin America. The number of internet users in Chile increased manifold between 2003 and 2008. Chile also has the highest penetration of personal computers.

Increasing penetration of smartphones

The increasing use of smartphones and tablets is likely to boost the m commerce market in Chile.

Government initiatives

The Chilean government is also taking initiatives to improve infrastructure as required for the development of internet retailing such as developing the necessary infrastructure to offer free wireless internet connections in public spaces throughout the country.

The projecteddevelopment of internet penetration in Chile is therefore expected to have a strong positive impact on internet retailing and boost sales in the channel substantially over the forecast period.

Key Topics Covered in the Report

Detailed profile of the Online Retail Market in Chile Consumer demographics, trends and behaviours Historic and forecast online retail sales value & growth in Chile Competitive landscape of the Chile’sOnline Retail market Emergence of M commerce and Chile’s Online retail market KeyConsumer trends influencing Chile's online retail industry. Detailed analysis of the latest trends in online consumer shopping

To know more on coverage, click on the link below:

Related Reports:

Consumer Attitudes and Online Retail Dynamics in Spain, 2014-2019

Consumer Attitudes and Online Retail Dynamics in Australia, 2014-2019


Ken Research

Ankur Gupta, Head Marketing & Communications


Related Articles - Online Retail sales value in Chile, Chile Retail industry, Global Retail Industry Research Report, China Clothing and Footwear Market, Chile E-commerc,

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