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CHILE 2017 | E-commerce : The new rules of the game

With the ever-growing number of touchpoints reaching consumers, and an amazing chance to market products, leading brands to good results has become an increasingly difficult challenge.



Director Client Management, Kantar TNS Carolina.Livacic@tnsglobal.com

Roberto Rojas.pngFEDERICO DI NENNO

Director Accounts,

Kantar TNS Federico.DiNenno@tnsglobal.com

Carolina has a degree in Sociology and another in Customer Intelligence, both from Universidad de Chile. With more than 13 years of experience in Quantitative Research Methodologies, she has taken part in projects across several categories, specializing in Retail, Telecommunications and FMCG.

She has led, amongst others accounts for key players in the retail, telcos, financial institutions as well FMCG in Chile. Carolina joined KANTAR TNS in 2010, taking over the direction of the Retail & Shopper division.

Federico studied Social Communication Sciences at the University of Buenos Aires. He has been working in the market research industry since 2004 for different international companies. For the last seven years he has been at KANTAR TNS, where he is in charge of both local and international accounts.
He has focused his professional development in FMCG in the Consumer & Retail Division. Federico has taken part in different projects such as CPTs, U&As and New Product Launches for global and local brands in categories such as tobacco, alcoholic drinks and FMCG.


Undoubtedly, the use of digital devices has been gaining significant traction in how people spend their time. Whether logging-in to social networks and messaging, or searching for entertainment or information, virtually everything today begins with an online contact. This is significantly enhanced in millennials, who today set the trend for the things that tomorrow will become habits. They show a strong tendency to complement the online and the offline worlds, sometimes choosing the immediacy of social media through smartphones and other mobile devices.


According to Kantar TNS Connected Life , the percentage of Internet users in Chile is one of the highest worldwide (80% via smartphones). This is almost comparable to the level of penetration in developed countries, and way above the global average. Additionally, Chile has great access to credit, either through banking or payment opportunities offered by retailers. These features make Chile a fertile land, with a really high potential for the development of e-commerce without barriers. Only Brazil is above us regionally, with 65% of the region’s e-commerce.




In this shaping environment, it is crucial for brands to start considering these media as a new platform with particular features, and focusing their marketing strategy on the online world. It is here that Chilean Internet users spends a daily average of six hours, connected via different devices (54% of the time mobile ones, with a strong predominance of social media and messaging). Another point to keep in mind is that the challenge for brands is larger than in offline channels, since Internet users spend their time in a space where they have more control over what they consume. A simple click allows them to incorporate something into their consumption, or make communications in their screen disappear.


In this context of multiple channels of contact with consumers, the online and offline worlds coexist, complementing each other and making themselves stronger. This allows consumers to have a more all-encompassing experience with brands according to their needs and beyond the physical limits of a shop: they can search for information, compare prices and characteristics,

and finally purchase from the channel they find most convenient. Falabella. com has really understood this. Besides being one of the brands with the highest development in e-commerce in Chile, it has been recognized for three consecutive years as the best website in Latin America. Falabella has understood that its online channel multiplies opportunities, setting the trend for the development of electronic commerce in Chile.




We know that e-commerce has mainly developed in product categories with a long lifecycle, such as travel, technology and finance. For example, travel is the most developed category for online purchase in Chile. Almost the same behavior is seen in all Internet users, irrespective of their age, sex or socio- economic realm. Those who travel buy online. Why? Because they save money and have more available information to compare choices. So consumers feel they are more in control.


LAN (now LATAM), is still the main travel player, not only in Chile but now in Latin America. It has played a fundamental role in tilting the balance towards e-commerce, inviting consumers to modify their purchase habits. How? By delivering a better benefit: optimizing time, facilitating choice comparison, and mainly offering better prices than the offline offer. LAN became leader by developing digital consumers in Chile.


Another business that has also worked well in the digital arena is BCI Bank, which is renowned as an innovator in local banking, leveraging its positioning as a “different bank” in the digital environment. It has been the first to bet on mobile apps customized according to consumers’ profile, offering solutions tailored for each consumer.




The main challenge is to understand how connectivity has changed consumers’ behaviors and how to develop brand content and strategies that appeal on all levels and that can turn every contact between consumers and brands into a useful and memorable experience.


Finally, it is most important to learn to play by new rules, for the online space tends to democratize the asymmetric power relations that have historically regulated the market. On the one hand, consumers face brands with much more information and demands, and on the other, smaller players are now competing with large brands in fairer conditions than ever before. In this context, there are great challenges but also great opportunities that Chilean and Latin American brands can and should use to their advantage.