Chile flag Chile: Buying and Selling

Advertising and marketing in Chile

Marketing opportunities

Consumer Profile
Chile's population is ageing but remains relatively young. The median age is 35.5 years, and the population is growing at a rate of 0.71% with 33.6% of the population under 24 and 23.9% over 55 years old (CIA, 2020). Households are on average composed of 2 people, the size of the household is in net decrease in recent years. One-person households are becoming more widespread. Regarding the gender ratio, there are 97 men for every 100 women in Chile. The Chilean population is spread out with 87.7% in urban areas and 90% located in the middle of the country around the capital of Santiago and the north. The south of the country is very sparsely populated. The main cities are Santiago, Valparaiso and Concepcion. The level of education in Chile is among the lowest in OECD countries with 65% of adults aged 25 to 64 having a secondary education and 1.3% have a university education.
Purchasing Power
The GDP per capita (PPP) in Chile is approximately USD 25,155 (World Bank, 2019). The average salary per full-time worker per month is CHP 573,964 (Instituto Nacional de Estadísticas - INE). Because inflation has risen faster than wage growth at the end of the year purchasing power has declined in 2019. Confidence indexes have strongly eroded since the start of the protests, which cumulated with the deteriorating job market weakening household consumption and private investments. The Gini index on income inequality is high but has been declining for several years. Chile has one of the highest gender pay gaps in the OECD, and this gap is even greater for skilled trades.
Consumer Behaviour
Chile's consumption no longer serves to meet the needs but denote a certain social status. The country's growth has enabled consumers to have better quality products. Price remains the main factor in purchasing decisions but other determinants are quality, durability, technology, customer service, customer experience, and availability. In 2019, consumer confidence in products declined. Purchases are made in bricks and mortar stores but also online. Often, consumers will preview products on the internet before buying it in a store. E-commerce platforms are growing and online sales reached USD 6 billion in 2019 (+17% year-on-year). Consumers are generally open to international brands but may prefer local brands for certain products (such as wine). Chileans are generally not very loyal to brands with 67% expressing their independence from them. Access to social networks is growing in the country but mostly for entertainment purposes. However, some consumers consult brand profiles when they want product information. Chileans generally have enough confidence in the authorities regarding the protection of personal data.
Respect for the environment is becoming increasingly important in consumption decisions. In Latin America, Chile is considered the most aware of environmental issues. Consumers are paying increasing attention to labels on the products they consume. The second-hand market has developed through markets or thrift stores. Collaborative platforms are developing in Chile, like Airbnb and Uber, but mainly in big cities.
Consumers Associations
Asociación de Consumidores y Usuarios de Chile
National Consumer Association
Consumer Association
Main Advertising Agencies
Chile Advertising Agencies (in Spanish)
Members of the Chilean Association of Advertising Agencies (Asociación chilena de agencias de publicidad) (in Spanish)

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Latest Update: June 2022

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