DIY And Gardening in Chile
Euromonitor International's DIY And Gardening in Chile market report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market - be they new product developments, packaging innovations, economic/lifestyle influences, distribution or pricing issues. Forecasts illustrate how the market is set to change.
Tables: 21 | Publication date: Feb 2008
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Product coverage
DIY; Gardening
Executive summary
Construction boom boost sales of DIY products
Although the construction boom was highly concentrated in Santiago’s metropolitan area, other areas of Chile also had a boom, such as the north due to mining activity and the extreme south due to salmon breeding tourism. In both cases these factors led to an increase in construction to satisfy demand, which resulted in an increase in demand for hardware products.
Free Trade Agreements improve availability and reduce prices
As a result of Free Trade Agreements signed with various countries, including the US, EU and China eliminating import tariffs, the influx of DIY and gardening products increased due to greater demand and lower price of these products. In turn, improved availability and wider choice led to an increase in sales.
Better incomes allow people to invest in their home and garden
Increasing disposable incomes allowed people to improve their home environment and garden, as unemployment decreased people felt more comfortable and confident and therefore more willing to invest in their homes. Although mortgages have low interest rates, not everybody can afford to have a new home, but they are able to access consumer credit to purchase DIY products to improve their existing home or garden.
Use of store cards help increase sales
The use of department stores credit cards increased sales of DIY and gardening items, as Sodimac and Easy are related to Falabella and Cencosud. Interest rates on this type of credit card tend to be lower than bank credit cards, encouraging more people to use this option. This boosted not only sales through these stores, but also spending on DIY and gardening products in general.
New shopping malls improves access to DIY and gardening products
Several new malls opened in 2006, each featured a Sodimac and Easy store, this facilitated the purchase of construction, hardware and gardening goods, as consumers were able to buy these items while out shopping for other goods. Having the whole family available when purchase decisions are to be made also facilitated an increase in sales. In this way the whole family became involved in DIY product purchases.
Higher profits differentiate the leading companies
Presently at retail level profits of 8% are considered a healthy margin. However, in this market leading companies, such as Sodimac and Easy have a much higher profit level, as these DIY and gardening chains have more retail sales than other players. By contrast, wholesalers have far lower margins of around 3%.
Table of contents
DIY AND GARDENING IN CHILE : MARKET INSIGHT
EXECUTIVE SUMMARY
Construction boom boost sales of DIY products
Free Trade Agreements improve availability and reduce prices
Better incomes allow people to invest in their home and garden
Use of store cards help increase sales
New shopping malls improves access to DIY and gardening products
Higher profits differentiate the leading companies
KEY TRENDS AND DEVELOPMENTS
Small DIY stores have joined forces and built huge chains
Construction activity continued to be strong during 2006
Key players are expanding their business abroad
Gardening products are mainly present in homecentres
Online sales grow 44% in 2006
MARKET DATA
Table 1 DIY and Gardening Company Shares 2004-2006
Table 2 DIY and Gardening Brand Shares 2004-2006
Table 3 Sales of DIY and Gardening by Distribution Format: % Analysis 2001-2006
DEFINITIONS
Sources
Summary 1 Research Sources
LOCAL COMPANY PROFILES - CHILE
CHILEMAT SA - DIY AND GARDENING - CHILE
STRATEGIC DIRECTION
KEY FACTS
Summary 2 Chilemat SA : Key Facts
Summary 3 Chilemat SA : Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
CONSTRUMART SA - DIY AND GARDENING - CHILE
STRATEGIC DIRECTION
KEY FACTS
Summary 4 Construmart SA: Key Facts
Summary 5 Construmart SA : Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
EASY SA - DIY AND GARDENING - CHILE
STRATEGIC DIRECTION
KEY FACTS
Summary 6 EASY SA : Key Facts
Summary 7 Easy SA : Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
MTS SA - DIY AND GARDENING - CHILE
STRATEGIC DIRECTION
KEY FACTS
Summary 8 MTS SA: Key Facts
Summary 9 MTS SA: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
SODIMAC SA - DIY AND GARDENING - CHILE
STRATEGIC DIRECTION
KEY FACTS
Summary 10 Sodimac SA: Key Facts
Summary 11 Sodimac SA: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 12 Sodimac SA: Production Statistics 2006
COMPETITIVE POSITIONING
DIY IN CHILE
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 4 DIY Company Shares by Retail Value 2004-2006
Table 5 DIY Brand Shares by Retail Value 2004-2006
Table 6 Sales of DIY by Distribution Format: % Analysis 2001-2006
GARDENING IN CHILE
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 7 Gardening Company Shares by Retail Value 2004-2006
Table 8 Gardening Brand Shares by Retail Value 2004-2006
Table 9 Sales of Gardening by Distribution Format: % Analysis 2001-2006