Getting your product into market
Chile’s business environment is sophisticated and competitive. Relationship marketing should be a central part of any entry strategy.
Key points to note include:
- Chile is divided into 15 regions. Santiago, the capital city, is the business, banking, financial and commercial centre.
- Chile has a highly price sensitive and competitive market.
- Importers are normally also distributors, usually demanding exclusivity.
Most products from New Zealand enter Chile duty free. Exceptions are dairy products, and textiles and shoes.
Tax
Remitting profits on foreign investment in Chile is subject to a 35 percent tax. A value added tax on goods and services is 19 percent.
New Zealand has a double taxation agreement with Chile.
Opportunities
- Chile’s central and southern regions are similar to New Zealand in terms of productive sectors. In central Chile, export-oriented horticultural and viticulture activity is predominant, while in the south forestry, fishing, aquaculture, beef, dairy and sheep farming are the main economic activities. New Zealand’s technology, equipment and know-how are highly sought after in these sectors.
- Chile is facing an energy crisis caused by a number of factors, including a rise in demand due to increasing quality of life and economic growth, a gas shortage from long-term supplier Argentina, and recent droughts that have significantly affected hydro capacity. Due to these factors, Chile has redefined its energy strategy to focus on diversifying the matrix and supporting the development of alternative renewable energies.
Cultural and business tips
- New Zealand business people travelling to Chile do not need a visa for visits of up to three months.
- Spanish is the national language. Middle managers and engineers in large companies generally speak English, although English speaking is less frequent in medium and small companies.
- In Chile business culture, relationships and ‘insider’ status are much more important than in the English speaking world.
