With an e-commerce sector expected to double its size to US$2.3 billion by 2020, Chile is the latest market targeted for domestic B2C delivery expansion by DHL eCommerce, a division of the Deutsche Post DHL Group (DP-DHL).
In addition to a 1,662-square meter central hub in Santiago and a growing ground fleet, DHL eCommerce now offers next-day delivery in Santiago and other major cities within Chile, and two- to three-day delivery across the rest of the South American country. This final point is remarkable considering much of the 4,300-kilometer-long country looks like this:
DHL eCommerce will manage the end-to-end delivery of packages from the store to the customer, with real-time tracking available.
Multinationals are falling over themselves to cash in on rising consumption in what have historically been peripheral economies, valued mostly for their capacity to extract and export raw commodities. Now, Chile’s GDP per capita has risen to $14,660 in 2015, and its millennials want iPhones and whatever else the kids are into these days; 40 percent of Chile’s inhabitants are aged between 15 and 39, as the country continues its recovery from the Augusto Pinochet years.
In 2015, Chile’s B2C e-commerce turnover grew by 22 percent to an estimated $2 billion. That’s small, compared to other emerging markets, but markets like Chile are both incipient and not as crowded.
The entire e-commerce sector across Latin America is expected to see a 21 percent compound annual growth rate, and is expected to reach $54 billion by 2020, according to Charles Brewer, CEO of DHL eCommerce. “Chile is number-one in the region for online shopping, with rising incomes, improving digital connectivity and seven out of 10 shoppers already shopping online.”
DHL realized that “getting it right” in Chile solidifies its presence in the regional market. “Fulfillment and last-mile delivery are the new game-changers in e-commerce,” Brewer said. “Brands and e-tailers must aim to deliver the best experience for their shoppers in this highly competitive sector.”
The goal is to “change the rules of the game in Chile,” said Hugo Donoso, country manager for DHL eCommerce Chile. “We know that distribution is the main weakness of online businesses, and along with our team of e-commerce experts, we aim to be a true strategic ally for our customers, to take care of their logistical needs so that they can focus on their business.”
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