LatAm 2015: CHILE | TOP 15 MOST VALUABLE CHILEAN BRANDS
Falabella is the leading department store retailer in Chile.
Falabella operates 40 large department stores throughout Chile and is the leading brand in the retail channel. The brand appeals to Chile’s more affluent shoppers with a consistently executed fashion forward merchandising strategy that enables it to remain the industry leader. The brand’s first store opened in 1958. Following several decades of expansion throughout Chile, its presence was extended regionally in the 1990s.
There are now 39 Falabella stores in Peru, Argentina and Colombia. The origins of the brand date back to 1889 when Italian immigrant Salvatore Falabella opened a tailor shop.
Today, the brand he created is synonymous with department store retailing and also serves as the corporate identity of parent company SACI Falabella. This major conglomerate has extensive interests across the retail industry including the Mall Plaza shopping center brand, the Sodimac home improvement brand, the Tottus supermarket brand as well as financial services offered under the Banco de Falabella brand created in 1998.
Homecenter Sodimac is Chile’s Leading Home Improvement brand.
The Homecenter brand appears on 67 stores throughout Chile that are focused on serving consumer needs for home improvement products. The brand is the most prevalent of
the three formats its parent company Sodimac uses to serve the home improvement, building and construction materials – a market it has segmented by homeowners, contractors and medium-to-large construction companies. The origins of the Homecenter brand date back to the 1940s, when a small company known as Sogeco began providing construction companies in Valparai?so with building materials. In 1952, the company became known as Sodimac. It entered the home improvement retail space in 1988, with the introduction of the Homecenter brand. In 2003, Sodimac became part of the Falabella retail conglomerate, which just two years earlier had bought out Home Depot’s ownership interest in a joint venture established in 1997. The Homecenter brand now enjoys a regional presence beyond Chile, with 52 stores located in Argentina, Colombia and Peru.
The Lider supermarket brand is owned by Walmart.
Lider operates 69 supermarkets and 57 smaller format Express Lider stores. In early 2009, Wal-Mart Stores, Inc. acquired a controlling interest in the Lider brand’s parent company, Distribucio?n y Servicios D&S SA. The following year D&S changed its name to Walmart Chile SA. Under Walmart’s ownership, the Lider brand has placed an increased emphasis on everyday low prices in keeping with the longstanding strategy of its parent company. In addition, growth of the Lider brand has taken a backseat to Walmart Chile’s other food formats, Ekono and SuperBodega aCuenta, which serve the market in a no frills and limited assortment fashion.
Copec is Chile’s leading fuel brand.
Copec has been in existence for 78 years and is Chile’s best-known brand of fuel, with an estimated market share of 62 percent.
The company leveraged its petrochemical expertise to enter the market for lubricants in 1996. To enhance the Copec network of 620 fuel stations, the company created a complementary brand called Pronto. Pronto describes three convenience store formats where expanded assortments of general merchandise and food are offered at Copec branded service stations under the banners of Ciudado, Pronto or Barra. Copec also operates a chain of 200 small format non-fuel convenience stores under the Punto Copec brand, introduced in 2000.
Banco de Chile is one of the nation’s largest full service financial institutions.
Banco de Chile is a commercial bank focused on serving individuals and corporations with traditional banking products and services. It ranks among Chile’s leading consumer lenders and originators of mortgage loans. The bank’s branch network has 441 locations. As part of a plan adopted in 2010, Banco de Chile is focused on expanding its branch network in areas outside of Santiago.
Founded in 1893, with the merger of Banco Nacional de Chile, Banco Agricola and Banco de Valpariso, Banco de Chile became the nation’s largest privately held bank. The bank remained privately controlled through the 1970s when the Chilean government asserted ownership of other Chilean financial institutions. The bank’s long history and record of independence have enabled the brand to associate itself with stability and reliability, attributes that were reinforced in 2002 with the merger of Banco de A. Edwards and again in 2008 with the Banco de Chile and Citibank Chile merger.
LAN is Chile’s top airline.
The LAN brand is instantly recognizable throughout Latin America due to the company’s extensive aircraft fleet, which features a distinctive blue and white color scheme
and the signature LAN logo in large letters. LAN provides passenger service to 15 cities in Chile as well as to hundreds of destinations throughout the Americas and overseas with direct service and through code share agreements with other carriers and participation in the Oneworld alliance since 2000. LAN also operates a cargo business that generates nearly 30 percent of its revenue. The Chilean government established the airline in 1929 as Lan Chile SA. In 1989, LAN began a privatization process that was concluded in 1994. LAN is finalizing a merger with top Brazilian airline TAM SA that has created a company known as LATAM Airlines Group SA. With a combined fleet of more than 300 aircraft, the new company’s aspiration is to become the 3rd largest carrier in the world.
Paris is the second largest department store brand in Chile.
Spanish entrepreneur Jose? Mari?a Couso established the Paris brand in 1900 with the opening of the Paris Furniture store. In 1950, the name changed to Almacenes Paris and in 2005 the company’s name reverted to Paris following an acquisition by retail conglomerate Cencosud.
Paris is the second largest department store brand in Chile where it operates 36 stores in leading shopping centers. It appeals to shoppers with a differentiated product assortment that includes brands from well-known designers complemented by a range of well-established proprietary brands available in key categories such as apparel, home and electronics.
Tottus, a network of supermarkets and hypermarkets, was first established in Peru in 2002, as part of the Falabella group. In 2004, Falabella brought the brand to Chile by acquiring a local supermarket chain and renaming it Tottus. With 41 outlets in Chile and 34 in Peru, the Tottus chain includes supermarkets that sell traditional categories of food and personal care product, and hypermarkets offering durable goods, white goods, electronics and homeware.
Jumbo was Chile’s first hypermarket chain.
Jumbo opened its first hypermarket in Santiago in 1976. Founded by German Horst Paulmann, he used Jumbo as a stepping stone to build parent company Cencosud into what today is one of Latin America’s dominant retail holding companies. Currently, there are Jumbo 32 stores in Chile, including 13 in the Santiago area. The company operates large format stores that average 8,250 square meters. Cencosud uses the Jumbo brand for some of its hypermarkets outside of Chile, particularly in Argentina. The brand offers a broad assortment of merchandise at low prices. It also offers private brands, backed by a double guarantee that allows dissatisfied customers a choice of a refund or double the quantity of a comparable item.
The Pension Fund Administrator Provida (Provida AFP) is the leading manager of pension funds in Chile, with 59 branches nationwide.
Founded in 1981, the main business of Provida AFP is the management of individual capitalization accounts and the provision of life and disability benefits, such as senior retirement pensions. In October 2013, the company was acquired by MetLife Inc., from Banco Bilbao Vizcaya Argentaria S.A. (BBVA).
Parque Arauco was founded 32 years ago and it is the third largest shopping mall company in Chile. The company has ambitious plans for international expansion; currently its portfolio includes 27 shopping centers that operate in Chile, Peru and Colombia
Cristal is the leading brand from Chile’s largest brewer.
The Cristal brand has been a market share leader in Chile for the past 20 years thanks to strong and consistent advertising support. It is regarded as the flagship brand of Compan?i?a de Cerveceri?as Unidas (CCU). The origins of the brand date back to 1850 when Chile’s first brewery was opened in Valparai?so by don Joaqui?n Plagemann. It later merged with other brewers and in 1902 became Compan?i?a Cerveceri?as Unidas SA. In 1992, the company’s shares began trading on the New York Stock Exchange under the symbol CCU.
Ripley is a major brand within the retail sector in Chile, operating 39 department stores that sell apparel and household products.
The company also has a financial services arm that offers credit cards and other financial services. Brothers Lazaro and Marcelo Caldero?n founded Ripley in Santiago in 1956. The brand began expanding outside of Santiago in 1986. Originally focused on serving low-to-middle income customers, Ripley has broadened its appeal to more affluent shoppers during the past 15 years. In 1997, Ripley expanded its presence to Peru.
Bci specializes in savings & deposits, securities brokerage, asset management and insurance.
The bank enjoys the distinction of being one of the few financial institutions that remained private during Chile’s period of nationalization. Since 1984, Bci has promoted its positioning statement, “We are different.” The bank reinforces that brand identity with a distinctive and colorful logo. The bank was founded in 1937 in Santiago and opened its first branch, in Valparai?so, in 1956. In 1987 it created its first subsidiary, Bancre?dito Securities SA Agent and in 1999, the first international branch opened in Miami. Bci’s range of service offerings, and presence throughout Chile with 300 offices, has enabled it to remain one of the nation’s most important banks.
Easy is Chile’s second largest home improvement retailer.
The Easy brand was founded in Argentina in 1993 with the opening of its first home improvement store. The following year saw the brand enter Chile where it now operates 29 stores (compared with 39 Easy stores in Argentina). Easy stores stock roughly 35,000 items and a core aspect of the brand’s value proposition is low prices. Easy offers a “never pay more,” guarantee that provides shoppers a 10 percent discount on comparable items if they find a lower price elsewhere. Easy is among the leading retail brands owned by Cencosud, Chile’s largest retail conglomerate.