작성일자: 2014.6.30

작성자: 산티아고 무역관 Xaviera Arata(mkt.kotrachile7@gmail.com)

 

 

1. Market Trend

 

□ Overview

 

 ○ The market in Chile is very variable because there aren’t many companies that distribute or sell this kind of trucks. However there are companies specializes in cleaning that uses this kind of products and are the end users.

 

□ Market Volume

 

 ○ The market in the 2013 had a growth rate of 4.3% which is an advance if we compared with the rate of 2012 (-17.4%). This market is not very popular in Chile because the companies buy when they have a new project or they want to change the actual truck.

 

Market Volume and Growth Rate in recent 3 years

      (Unit: US$ Thousand, %)

2011		2012		2013
Volume	Growth rate	Volume	Growth rate	Volume	Growth rate
43,570	69.8	35,987	-17.4	37,545	4.3

           Source: Checkpoint

 

□ Market Prospect

 

 ○ Demand Increase Factors

  - According the users and distributors’ opinions the demand increase factors are the project that some companies have. This means that the companies that work with urban hygiene or industrial cleaning need more stock of trucks to work and is for that reason that they import directly or through a distributor.

  - Also another factor is the need to renew the machinery they work with because are too old or have technical problems that can’t be fixed.

  - The consumer is also looking for a product that is friendly with the environment, because they work is to clean the streets and places and if they have a truck that contaminates more than clean that is not a good product.

  - The availability of spare parts is also an important subject to the client because if the truck came from other country they must to have a spare part seller in Chile. The main importing country is United States followed by Germany, however the distributor said that the client do not matter where comes the truck, they just need a good quality product.

 

 ○ Demand Decrease Factors

  - Distributors said that the decrease factors are that the companies that work with this kind of products do not have new projects and they do not need more trucks or they already change all the old trucks for new ones. That is the only reason why the demand decreases in this area according to Mr. Juan Carlos Araya from KDM S.A.

 

 ○ Market Prospect From Santiago KOTRA

  - The market of special trucks in Chile (Press pack truck, arm-roll truck, cleaning sewer car, water car, vacuum car, garbage dump and oil tank lorry) is not a very big market so it will be a little bit difficult to found a very good client. However the market is not dead it has demand but not in a high way, the manufacturer must focused in one special market, the companies that work in urban hygiene.

 

□ Main Consumer and Consumption Pattern

 

 ○ Main Consumers

  - The main consumers are the companies that work with urban hygiene or industrial cleaning, because there aren’t many distributors that sell this kind of trucks and that companies buy directly to the manufacturers. These hygiene companies work directly with municipalities because in Chile every municipality have to clean their neighborhood and they made contracts with these companies that apply to gain the projects.

 

 ○ Motives of Purchase

  - The reason why they buy could be that they won a project or they want to renew their fleet (end users). Some distributors buy because they sell directly to industrial companies or municipalities and sometimes a municipality made a tender to buy a truck, for example a water car and the distributor participate in this tender and import that product.

 

□ Import Trend

 

 ○ Overview

  - The import trend in Chile has shown an increase according the last year and United States is the country that leads the board of importation during the last three years.

 

HS Code 870590

Import Trend of Top 10 countries in recent 3 years (Including Korea’s Statistics)

            (Unit: US$ thousand, %)

No.	Countries	Amount			Market Dominance			Variation
		2011	2012	2013	2011	2012	2013	13/12
-	Total	40,611,610	32,055,897	36,061,019	93.21	89.08	96.04	12.5
1	United States	31,568,611	15,691,636	17,747,974	72.45	43.60	47.27	13.1
2	Germany	2,356,650	8,046,501	3,812,659	5.41	22.36	10.15	-52.6
3	Spain	1,291,890	1,701,781	3,378,573	2.97	4.73	9.00	98.5
4	Italy	1,660,589	1,162,734	2,957,619	3.81	3.23	7.88	154.4
5	United Kingdom	1,243,820	1,006,768	2,547,852	2.85	2.80	6.79	153.1
6	Austria	-	-	2,016,144	-	-	5.37	-
7	Sweden	242,324	62,104	1,717,598	0.56	0.17	4.57	2665.7
8	Canada	957,123	2,402,312	789,130	2.20	6.68	2.10	-67.2
9	China	239,783	1,724,571	673,077	0.55	4.79	1.79	-61.0
10	Argentina	1,019,720	-	405,008	2.34	-	1.08	-
	Korea	31,100	257,490	15,385	0.07	0.72	0.04	-94.0

Source: Checkpoint

 

 

2. Import System, Tariff rate and Distribution Structure

 

□ Import Regulation System

 

 ○ The importation of this kind of truck does not have any regulation. However, if a distributor wants to import a press pack truck, this must be a new one because in Chile there is a prohibition to import used trucks or cars. The other special trucks like cleaning sewer car, water car, etc, can be imported if are not of the year (used).

 

□ Tariff

 

 ○ Tariff Rate

 

South Korea	Germany	United States	Spain	Normal tariff
0	0	0	0	6

 

□ Main Distribution Channels(On-line market, local agents, major distributors, etc.)

 

 ○ The distribution structure could be divided in two:

  - Structure 1:

   · Manufacturer → Distributor → End User

   · In this structure, the distributor buys the product and offered to different users. In this case the distributer can have a small stock.

  - Structure 2:

   · Manufacturer → End User

   · In this case, big companies buy directly to the manufacturer because if they buy throughout a distributor the price will be higher than if they import directly.

   · There is also the national manufacturer of some products, for example the company Majesa (Maestranza Jemo) which manufacturer press pack trucks and sale directly in Chile.

 

 

3. Competition Trend

 

□ Competition Products (of local or foreign companies)

 

Manufacturers	Model	Price for end-users (US$)	Market Dominance (%)	Origin (Export Country)
Majesa	Apollo 20m3	51,026	10	Chile
Scarab	Cleaning Sewer Car M6	170,000	1	United Kingdom
Mercedes Benz	Model 3336	150,000	2	Spain
Scania	Cleaning Sewer  Model P94	35,000	15	Sweden

Note: Market Dominance - Buyer’s interview

 

□ Recognition degree of Korean Products and Preferred Brands

 

 ○ Recognition degree of Korean Products

  - The recognition of Korean products is low. According the opinion of some distributors, in these market Korean brands has a very low profile if they compared with other brands; the reason why they said is because there aren’t enough companies of this kind that promote their products in the country. They said that some brands are the normal ones like Kia and Hyundai.

 

 ○ Preferred Brands

  - Kia, Hyundai

 

 

4. References for Marketing Activities

 

□ Exhibition specialized in the field

 

 ○ Overview

  - This exhibition is about general transport here in Chile is the most important in the area because is also organized by ANAC (National Automotive Association of Chile).

 

Name (English/Spanish)	Fenatran Chile 2014 (Transport Exhibition)
Main items	Trucks, cars, other transport services
Country, City, Host Cycle	Espacio Riesco, Santiago, Chile
Number of Participated companies	57 brands and 100 distributors companies
Host period (2014)	May 14 to 18
Website	www.fenatran.cl

 

□ Characteristics of Local Buyers  

 

 ○ Characteristics of Local Buyers

  - The local buyers are always looking for products with a good price and also technology and quality. For this market the quality is not only in the truck it is also in the machine (in this case the press pack, cleaning sewer, etc).

  - Also the buyer want a product with good spare part availability because according to some clients the spare part market sometimes is not good when they have to search for a new one, for that reason they want to have a good communication with the company that sell them the product in case something happen it means a good after sell service.

 

 ○ Factors to consider primarily in meeting with local buyers (Price, Quality, A/S, Relations based on the mutual confidence, etc.)

  - Some factors to consider with local buyers are the relation based on the mutual confidence and the quick response in case something happen. The distributors said that they also want a product that fulfill the need of the company in every sense this means that the want a price/ quality relation, if the product have a high price they want the same quality. Also the national distributor is looking for good prices because they have to sell to other person and if the product have a high price maybe de end user will prefer another brand that maybe have more trucks in the market that they had been offered.

 

□ Target Clients

 

 ○ The target clients are the companies that work with the urban hygiene or industrial cleaning and some truck importers.

 

 ○ Companies

  - General Trade S.A

  - Texinco Ltda.

  - Gea Ltda.

  - Comercial e Industrial Usimeca Chile Ltda.