How to Access the Food Market in Chile Thai Trade Center Santiago September 2007
Index Chile: 1 Geography 2. Demography3. Country Profile 4. Thailand Trade with Latin America5. Chile and Thailand Trade Exchange6. How to Set a Thai Restaurant in Chile7. Final tips of advise to Thai exporters Thai Trade Center Santiago September 2007
1. Geography Chile is situated in South America • Chile's northern neighbors are Peru and Bolivia, and its border with Argentina to the east. • Continental Surface: 756,6 thousand Km2 • Capital City: Santiago • Largest cities: Santiago, Concepcion and Valparaiso • Main Ports: Valparaiso, followed by Ports of Iquique and Antofagasta (chief links between Bolivia and the pacific)
1.2. Geography: • Main Ports: Valparaiso, followed by Ports of Iquique and Antofagasta(chief links between Bolivia and the pacific) • Main Airport: Santiago Airport called “Arturo Merino Benito”. Considered to be the most modern in Latin America.
2. Demography • Population: 15.9 Million. 86% urbanlive in the city (6.5 million live in Santiago) • Official Language: Spanish • Literacy Rate: 96.2% • Life expectancy: 73 m – 80f. Years (2007 est) • Religion:Catholic, 70%, Protestant or evangelical 15.1%, Jehovah's Witnesses, 1% and The Church of Jesus Christ of Latter-day Saints, 0.9%. • Three main Ethnic Groups: Whites 30%(5 M), Mixed Races 65% (10M) Amerindians 5% (829,903). Main indian culture is called: Mapuche.
3. Country Profile • GDP Per Capita: 756,6 thousand Km2 • GNI Per Capita (Gross National Income): US$64.2 M. • Government: Chile is a multiparty democracy with a directly elected president who serves a six-year term and has a cabinet of 20 ministers. The bicameral legislature consists of a 48-seat senate of both elected and appointed members and a 120-seat elected chamber of deputies. Administratively, Chile is divided into 13 regions. • President: H.E. Mrs. Michelle Bachelet
4.1 Introduction: The main markets in Latin America are: Mexico • Brazil Argentina • Chile • Colombia and Peru During the last three years Latin America has grown faster than industrial countries and approximately as fast as most developing country region, with the notable exception of Asia.
4.2 Thailand -Latin America Total Trade ExchangeIn Billion US Dollars Source: World Trade Atlas, July 2007
4.3 Thai EXPORTS to Latin AmericaIn Million US Dollars - January - December Source: World Trade Atlas, July 2007
4.4 Thai FOOD EXPORTS to Latin AmericaIn Million US Dollars - January - December Thailand exports a total of 97 products to Latin America. Out of these 97,19 are food products. These are the main 10 products: Source: World Trade Atlas, July 2007
4.5 Latin America IMPORTS from ThailandIn Million US Dollars - January - December
4.6 Why Thai exporters should consider investing in Latin America • New possibilities: The main economic block MERCOSUR, which totals a population of some 233 million inhabitants. • The second-biggest trade bloc is the ANDEAN COMMUNITY OF NATIONS comprising Peru, Colombia, Ecuador, Bolivia, Venezuela and as of 2006 Chile. The South American Community of Nations is expected to merge both trade Blocs. • Latin America is experiencing a period of macroeconomic stability marked by: Low interest rates, low inflation and stable foreign exchange rates. • The main inflation related problems will remain in Argentina and Venezuela.
5.1 Introduction • During the last 25 years, Chile has become the only country in Latin America with the highest GDP per capita. • Chile´s GDP is compared to the GDP per capita of the United States. The purchase power of Latin American consumers today is at its lowest in comparison to the GDP per capita of North America. Today the only exception is Chile.
5.2 Thailand and Chile TradeIn Million US Dollars Trade exchange between Thailand and Chile has been slow but constant, with positive perspectives ahead. Source: World Trade Atlas, June 2007
5.3 Thai EXPORTS to ChileIn Million US Dollars Source: Crystal Reports Viewer
5.4.1 Competitors Per Food ProductHarmonized custom code: 16Top 5 Canned Tuna country suppliers to Chile The main supermarket in Chile, LIDER offers a variety of 30 different types of canned Tuna brands
5.4.2 Competitors Per Food ProductHarmonized custom code: 20Top 5 Preserved Foods country suppliers to Chile Preserved Foods from Thailand include: Prepared in vinegar, mushroom ruffles, jam and jelly cooked, sweet corn, fruit and vegetable juices
5.4.3 Competitors Per Food ProductHarmonized custom code: 08Top 5 Dry Fruits Mixtures country suppliers to Chile Dry fruit mixtures from Thailand include: coco, cashews, pineapples, nuts and other fruits
5.5 Thailand IMPORTS from ChileIn Million US Dollars Source: Crystal Reports Viewer
6.1 Introduction • Thai entrepreneurs can expect to go through nine steps to launch a business, taking an average of just 27 days at a cost equivalent to 9.8% of income per capita. • In Chile, there is no minimum capital requirement for registering a business, compared to averages of 18.1% and 36.1% of income per capita in Latin America and the OECD, respectively. • Overall labor costs in Chile are also moderately low. This is partly the result of low additional wage costs -such as social security contributions- which are an important factor in the competitiveness of Chilean labor.
6.2 Steps to Set up a Restaurant Business in Chile This procedure runs simultaneously with previous procedures
6.3 dealing with Restaurant License (data 2006) The steps, time, and costs of complying with licensing and permit requirements for ongoing operations in Chile are shown below. It takes 12 steps and 171 days to complete the process, and costs 114.18% of income per capita.
6.4 Employing Workers (data 2006) The difficulties that employers in Chile face in hiring and firing workers are shown below. Each index assigns values between 0 and 100, with higher values representing more rigid regulations. The Rigidity of Employment Index is an average of the three indices. For Chile the overall index is 24.
6.5 Registering Property (data 2006) The ease with which businesses can secure rights to property is measured below. In Chile it takes 6 steps and 31 days to register property. The cost to register property there is 1.3% of overall property value.
6.6 Paying Taxes (data 2006) The effective tax that a medium size businessman in Chile must pay or withhold within a year is shown below. Entrepreneurs must make 10 payments, spend 432 hours, and pay 26.28% of gross profit in taxes.
6.8 Thai Restaurants ALMA Restaurant ANAKENA Restaurant ETNIKO Restaurant
Thailand must increased consumer awareness and recognition of Thai brand names in Chile. It is time to impose a world recognition of good quality and designer made products from Thailand. This is not well known in Chile.
7. Final Tips for Thai Food Exporters • Quality and presentation: strong factors in entering the Chilean market. • Knowledge of local market is essential. • Local distributors: It is important for a Thai businessmen to find a good representative or distributor. • Visiting Chile and meeting with potential distributors is important. The local partner should already have other good quality products and attractive prices, as well as good customer service and proper stock or inventory control. • Efficiency: Timely delivery, constant quality and an overall dependable service. • Advertising and Marketing: In addition, a strong campaign for Thai food must be undertaken. This will contribute significantly towards increasing the demand for individual Thai products. • Market presence: By participating in local trade shows.