Demographic
Geography
Chile is one of the Southern South American countries that borders the South Pacific Ocean and is located between Peru and Argentina. The country geographic coordinates are 30 00 S, 71 00 W, and occupies a total area of 756,102 square kilometers that include 12,290 square kilometers of water and 743,812 square kilometers of land. Compare to other countries in the region; Chile is slightly smaller than the size of Montana (CIA). The general climate of the region is temperate climate with Mediterranean in the central region, desert in the north, and damp and cool in the south. Concerning the country terrain, Chile has a fertile central valley, low coastal mountains, and the rugged Andes in East. Agriculture land constitutes 21.1 percent, while forest constitutes 21.9 percent and 57 percent falls in the category of others (CIA).
People and society
According to the 2012 census report, the country has a total population of 16,634,603 residents, with the majority of women constituting 8,532,713 compared to men whom are 8,101,890. The figure has increased slightly from the 2002 population, which was 15,116,432. As per July 2015, the country had a total population of 17,508,260 residents. The country has a diverse ethnicity. Non-indigenous and white are the majority with 88.9 percent, followed by Mapuche, and Aymara accounting for 9.1 percent and 0.7 percent respectively. Other indigenous groups constitute one percent and include Likan Antai, Rapa Nui, Colla, Quechua, Kawesqar, Diaguita, and Yagan. 99.5 percent of people in Chile speaks Spanish as the main language while only 10.2 percent speak English. The common religions include Roman Catholic with 66.7 percent, Protestant with 16.4 percent, and Jehovah's Witnesses at 1 percent. The majority of the population in the country falls in the age group of between 25 and 54 years, accounting for 43.21 percent of the age structure. The total dependency ratio is at 45.2 percent with an elderly dependency ratio of 16 percent and 29.3 percent of youth dependency ratio.
Psychographics
Consumer trends
One of the predominant consumer trends is the rise of the online shopping. People in Chile are continuously embracing technology and integrating it into the lifestyle. For instance, according to the e-market services website, the e-commerce market in Chile has grown tremendously. The website illustrates that the sales in the online market increased to approximately $1.6 billion in 2013 compared to $450 in 2008. This lifestyle is attributed to the increase in the number of people with the access to the internet in the country. In addition, people in Chile are becoming more and more willing to use their electronic transaction such as credit cards to purchase products online. Another important trend of the consumer in Chile is the increase of the homeowners. For instance, in 2012, the home sales increased to 69,191 units, which was a 17.8 percent increase. The consumers are willing to spend on owning homes irrespective of the rising real house prices from 2004 to 2012 by 30 percent (Global Property Guide). In addition, like many other countries across the world, the consumers in Chile are aware of the environmental and health issues, and hence affecting their purchasing habits.
Consumer segmentation
The consumer segmentation in Chile is divided into various groups such as infants and babies, kids, teens, young adults, Middle youths, Mid-lifers, and late-lifers. The segmentation of the infants and babies has resulted in the increased demand for the baby clothes and products. This is because the country is having more informed mothers than before. The technology has resulted in the leisure activities among kids. However, mothers are inclined to healthier options for their children. The rise of the social media has also helped in shaping the lifestyle of the teens and young adults. The consumption behavior in this segment is constrained by the high dependency ratio of young adults and teenagers. However, the entrepreneurship among young adults has increased. As a result, youths and young adults are increasingly traveling overseas for studying opportunities and working holidays.
Economic status
The country constitutes of a market-oriented economy associated with reputable financial institutions, the growth of foreign trade, and sound policy to support business. The country's exports of products and services constitute about a third of the country's Gross Domestic Product (GDP). The mining industry is one of the significant sectors of the economy and accounts for 20 percent of the government revenue. The GDP on the purchasing power parity has increased from an estimate of $407.3 billion in 2013 to $424.3 billion in 2015. The economic growth rate fluctuates over the years. For instance, in 2013, the estimated real growth rate was 4.3 percent, then decreased to 1.9 percent in 2014, and has now increased to 2.3 percent in 2015. In the agricultural sector, some of the products include pears, apples, grapes, what, onions, peaches, oats, asparagus, garlic, beans, poultry, beef, fish, wool, and timber. The common industries include lithium, copper, foodstuffs, iron and steel, fish processing, transport equipment, wood and wood products, textile, and cement. The country has an unemployment rate of 6.4 percent in 2015, which has increased slightly from 6.3 percent in 2014.
Introducing new product
The new product to be introduced in the Chile market is EKoWash detergent. EkoWash is a washing powder that aims to utilize packaging materials. Most of the detergent powder in the market are packed with non-degradable products, and hence contributing to environmental pollution. The products focus on the packaging concept that contains products that are biodegradable as a way of enhancing sustainability. The packaging concept embraces the ongoing concept of using renewable natural resources such as crops to produce biodegradable packaging materials. If the products are well managed, they are anticipated to reduce the environmental impact upon their disposal. According to the consumer trends in Chile, consumers are becoming aware of the environmental and health issues, and hence affecting their purchasing habits. Therefore, this product aims to fill the gap created by the oil-based polymers used in the packaging materials.
The analysis of the consumer lifestyle and segmentation has indicated that online shopping has emerged as one of the powerful trends in the country. Therefore, it is important to introduce a product that can be purchased online Chile. From this perspective, the EkoWash will be sold through the online market in Chile. In addition, the product will be sold at a relatively lower price to make it affordable to the entire population including the youths who have highest dependency ratio. Therefore, the product will be not only environmentally friendly but also affordable. In addition, the product will be available online to match the emerging trend of online shopping in the country.
Works Cited
CIA. "The World Factbook." Welcome to the CIA Web Site — Central Intelligence Agency. Central Intelligence Agency, 26 Apr. 2016. Web. 5 May 2016. <https://www.cia.gov/library/publications/the-world-factbook/geos/ci.html>.
EMarket Services. "In Chile, over 3.5 Million Users Shop Online -." EMarket Services. EMarket, 23 Sept. 2013. Web. 5 May 2016. <http://www.emarketservices.com/start/News/International/news/In-Chile-over-35-million-users-shop-online__5683.html?xz=0&cc=1&sd=1&ci=5683>.
Euromonitor. "Consumer Lifestyles in Chile." Global Consumer Market Research Products. Euromonitor, June 2014. Web. 5 May 2016. <http://www.euromonitor.com/consumer-lifestyles-in-chile/report>.
Global Property Guide. "Property in Chile | Chilean Real Estate Investment." Global Property Guide. Global Property Guide, 14 Mar. 2013. Web. 5 May 2016. <http://www.globalpropertyguide.com/Latin-America/Chile>.
