The following is the executive summary of an article, Chile-A Liberal Market in Latin America, posted at china.hktdc.com:
With the highest per-capita GDP and lowest inflation in the region, Chile, the freest economy in Latin America, offers steadfast business prospects for Hong Kong companies.
Thanks to Chilean consumers’ ready acceptance of China-made products, plus the Chile-China Free Trade Agreement (FTA) effective since October 2006, China became Chile’s No. 1 export destination (outperforming the US) and No. 2 import source in 2007.
But given a population of 16 million, Chile is a relatively small market. Therefore, Hong Kong exporters should keep an eye on the countries nearby, such as Peru, Bolivia and Ecuador, using Chile as the first port of call.
Also worth noting is that Chilean consumers are conservative. Bearing less sense of showing off, it is not uncommon to see Chilean consumers picking unbranded but more reasonably priced products rather than branded and stylish ones.
Aside from distance and language barriers, Hong Kong exporters should take note of the intensifying competition from indigenous mainland suppliers. They should endeavour to justify their higher prices, for instance, by enhancing quality and service.
To read the entire article, please visit china.hktdc.com.