Food and Drink E-Commerce in Chile

PROSPECTS

Household distribution and fast-paced lifestyles boost sales

As property values continue to rise in the main Chilean cities and traditional large families become rare among new generations, household composition has gradually changed, also altering grocery shopping habits. Single-person households are more common, as can be perceived from estate agents’ offer in the capital, and these consumers no longer have the need nor the space to purchase groceries on a weekly or monthly basis.

Chileans’ preference for click and collect changes outlet distribution

Even though a great part of the population, mainly older generations, are still attracted to in-store shopping, there is an increasing wave of Chileans turning to online shopping as they have less time available and want to avoid stores’ congestion. These consumers are highly connected and value experiences, so a frictionless, easy-to-use and secure online service is the perfect solution as it allows them to minimise the effort and time spent grocery shopping.

Logistics is the main challenge to achieve service excellence

As e-commerce continues to grow rapidly, companies must adapt quickly to demanding trends such as immediacy, proximity and convenience. Because of rising demand in the online channel, logistical capacity can determine consumers’ perception of the entire company as the industry has standardised delivery services towards faster distribution, as people value scheduled purchases as they lack time to do the grocery shopping.

COMPETITIVE LANDSCAPE

Jumbo innovates with its own grocery app

With the arrival of delivery services such as Rappi, Uber Eats and Cornershop, Chilean consumers have become accustomed to immediacy at its very best with regard to online grocery shopping. In order to maintain their competitiveness, most retailers have jumped to the 90-minute maximum delivery service in order to meet consumers’ requirements.

Last mile delivery apps are key partners to increase customer loyalty

Since the entrance of last milers, grocery retailers have achieved higher sales through strategic partnerships as they benefit from the business traction that these companies can offer. As these online companies operate as an online hub where consumers can access different products from several shops through one easy-to-use mobile app, grocery retailers depend on negotiating good deals to ensure customers’ preference and in-app visibility.

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