Chile: Brand Profiles
Parent company: S.A.C.I. Falabella
Year of foundation: 1889
Brand Value: US$5,373 million
Falabella is the leading department store retailer in Chile. It operates more than 40 large department stores throughout Chile and is the leading brand in the retail channel. The brand appeals to Chile’s more affluent shoppers, with a consistently executed fashion-forward merchandising strategy. The brand’s first store opened in 1958, and following several decades of expansion throughout Chile, its presence was extended regionally in the 1990s. Falaballa now has a strong presence in other Latin American markets such as Peru, Argentina and Colombia.
The origins of the brand date back to 1889, when Italian immigrant Salvatore Falabella opened a tailor’s shop. Today, the brand he created is synonymous with department store retailing and also serves as the corporate identity of parent company SACI Falabella. This major conglomerate has extensive interests across the retail industry, including the Mall Plaza shopping center brand, the Sodimac home improvement brand, the Tottus supermarket brand as well as financial services offered under the Banco de Falabella and CMR brands.
Parent company: Sodimac SA
Year of foundation: 1988
Brand Value: US$3,176 million
Homecenter Sodimac is Chile's leading home improvement brand, with more than 70 stores throughout Chile. The Homecenter brand is the most prevalent of the three formats its parent company Sodimac uses to serve the home improvement, building and construction materials market, which it has segmented into homeowners, contractors and medium-to-large construction companies. The origins of the Homecenter brand date back to the 1940s, when a small company known as Sogeco began providing construction companies in Valparaíso with building materials. In 1952, the company became known as Sodimac. It entered the home-improvement retail space in 1988, with the introduction of the Homecenter brand. In 2003, Sodimac became part of the Falabella retail conglomerate, which just two years earlier had bought out Home Depot’s ownership interest in a joint venture established in 1997. The Homecenter brand now enjoys a regional presence beyond Chile, with stores located in Argentina, Colombia and Peru.
Parent company: Compañía de Petróleos de Chile Copec SA
Year of foundation: 1934
Brand Value: US$3,059 million
Copec is Chile's leading fuel brand, with a history dating back more than 80 years. The company leveraged its petrochemical expertise to enter the market for lubricants in 1996, and has successfully captured market share in this sector. Copec aims to differentiate itself through the service it offers, putting the customer experience at the center of its marketing strategy. To enhance the experience offered at each of its fuel stations, the company has created a complementary brand called Pronto. Pronto comprises three convenience store formats offering expanded assortments of general merchandise and food at Copec-branded service stations, under the banners of Ciudado, Pronto or Barra. Copec also operates a chain of about 200 small-format, non-fuel convenience stores under the Punto Copec brand.
4. Banco de Chile
Parent company: Banco de Chile SA
Industry: Financial Institutions
Year of foundation: 1893
Brand Value: US$2,937 million
Banco de Chile is one of the nation's largest full-service financial institutions. It is a commercial bank focused on serving individuals and corporations with traditional banking products and services; it ranks among Chile’s leading consumer lenders and mortgage providers, and operates around 440 branches.
Founded in 1893, through the merger of Banco Nacional de Chile, Banco Agricola and Banco de Valpariso, Banco de Chile has become the nation’s largest privately held bank. The bank remained privately controlled through the 1970s, when the Chilean government asserted ownership of other Chilean financial institutions. The bank’s long history and record of independence have enabled the brand to associate itself with stability and reliability, attributes that were reinforced in 2002 with the merger of Banco de A. Edwards and again in 2008 with the Banco de Chile and Citibank Chile merger.
Parent company: Walmart Chile SA
Year of foundation: 1976
Brand Value: US$2,646 million
The Lider supermarket chain operates around 70 supermarkets, as well as some 60 smaller-format Lider Express stores. In early 2009, Wal-Mart Stores, Inc. acquired a controlling interest in the Lider brand’s parent company, Distribución y Servicios D&S S.A. The following year D&S changed its name to Walmart Chile SA. Under Walmart’s ownership the Lider brand has placed an increased emphasis on everyday low prices, in keeping with the long-standing strategy of its parent company.
Parent company: Latam Airlines Group SA
Year of foundation: 1929
Brand Value: US$2,444 million
LATAM airlines was born out of the joint operations of Chile’s LAN and Brazil’s TAM and is now Latin America’s top airline. The airline provides passenger services to 15 cities in Chile as well as to hundreds of destinations throughout the Americas and beyond. It does so with direct services and through code share agreements with other carriers, and its participation in the Oneworld Alliance. It also operates a cargo business. The Chilean government established the LAN airline in 1929 as LAN Chile SA. In 2012, LAN merged with top Brazilian airline TAM S.A. to create LATAM Airlines Group S.A. With a combined fleet of more than 300 aircraft, the company’s aspiration is to become the third-largest carrier in the world.
Parent company: S.A.C.I. Falabella
Year of foundation: 2002
Brand Value: US$1,058 million
Tottus, a network of supermarkets and hypermarkets, was established in Peru in 2002. In 2004, retail giant Falabella Group acquired a local supermarket chain in Chile called San Francisco, which it renamed Tottus, bringing the brand to Chile. With more than 40 sites in Chile and more than 30 in Peru, the Tottus chain includes a range of different formats, including supermarkets, which sell traditional categories of food and personal care products, and hypermarkets, which also offer durable goods, appliances, electronics and homeware.
Parent company: Cencosud SA
Year of foundation: 1900
Brand Value: US$915 million
Paris is the second-largest department store brand in Chile, operating around 35 stores in leading shopping centers around the country. Paris appeals to shoppers through its differentiated product assortment, which includes brands from well-known designers, complemented by a range of well-established proprietary brands in key categories, such as apparel, homeware and electronics.
Spanish entrepreneur José María Couso established the Paris brand in 1900 with the opening of the Paris Furniture store. In 1950, the name changed to Almacenes Paris and in 2005 the company’s name was shortened to Paris following an acquisition by retail conglomerate Cencosud. To enhance its competitive positioning in recent years, Paris has sought to project a more modern and stylish image that appeals to younger shoppers. The brand expanded its presence to Peru in 2015 with the opening of its first store outside of Chile.
9. Parque Arauco
Parent company: Parque Arauco
Industry: Shopping Centers
Year of foundation: 1982
Brand Value: US$848 million
Founded more than 30 years ago, Parque Arauco is a business devoted to the development and operation of multi-format shopping malls in Chile, Peru and Colombia, aiming to serve differentiated socio-economic sectors in these markets. They operate four shopping center formats and have as tenants a range of different retailers, including department stores, supermarkets, restaurants, cinemas and even health centers. Their tenants include key brands for each of the markets they serve – many of which also feature in Chile’s Top 15 Most Valuable Brands Ranking.
Parent company: Entel Chile S.A
Industry: Communication Providers
Year of foundation: 1964
Brand Value: US$777 million
Entel is one the biggest providers of telecommunications in Chile, with a history going back more than 50 years. Entel offers mobile services and outsourcing of IT and call centers, serving individual consumers, businesses and corporations. In 1964, Empresa Nacional de Telecomunicaciones S.A was created to provide telephone and telegraph services. In 1993 it broadened its scope with the creation of Americatel Corp to provide services abroad. In 2000 the company created Entel call centers, expanding services to Peru, and later formed an alliance with Vodafone. The business has since expanded into internet and cable TV services.
Parent company: Compañía de Cervecerías Unidas
Year of foundation: 1902
Brand Value: US$670 million
Cristal is the leading brand from Chile’s largest brewer. The Cristal brand has been a market leader in Chile for the past 20 years thanks to heavy and consistent advertising support that positions Cristal as a local Chilean brand. It is regarded as the flagship brand of Compañía de Cervecerías Unidas (CCU).
The origins of Cristal date back to 1850, when Chile’s first brewery was opened in Valparaíso by don Joaquín Plagemann. It later merged with other brewers and in 1902 became Compañía Cervecerías Unidas SA. In 1992, the company’s shares began trading on the New York Stock Exchange under the symbol CCU.
Parent company: Ripley Corp SA Y Subsidiarias
Year of foundation: 1956
Brand Value: US$626 million
Ripley operates more than 40 department stores in Chile and is one of the country’s best-known names in retail. Stores sell apparel and household products. The business also operates a financial services arm that offers credit cards. Brothers Lazaro and Marcelo Calderón founded Ripley, opening their first department store in Santiago in 1956. The brand began expanding outside the capital in 1986. Originally focused on serving low-to-middle-income customers, Ripley has broadened its appeal to more affluent shoppers during the past 15 years. In 1997, Ripley expanded to Peru, where it now operates more than 20 stores, and in 2013 launched in Colombia, though withdrew from the market after three years.
Parent company: Cencosud SA
Year of foundation: 1976
Brand Value: US$604 million
Jumbo was the first hypermarket in Santiago when it launched in 1976, and when it launched a second branch three years later, it became the country’s first chain of hypermarkets. The chain was founded by German Horst Paulmann, for whom Jumbo served as a stepping stone in building the parent company Cencosud. Today, this is one of Latin America’s dominant retail holding companies.
There are now more than 30 stores operating under the Jumbo brand in Chile. The company uses large-format stores that average around 8,250 square meters. Cencosud uses the Jumbo brand for some of its hypermarkets outside of Chile, particularly in Argentina and Colombia.
Parent company: Banco de Crédito e Inversiones
Industry: Financial Institutions
Year of foundation: 1937
Brand Value: US$471 million
Banco de Credito e Inversiones offers a full range of financial services and is one of the few financial institutions that remained private during Chile’s period of nationalization. Since 1984, BCI has promoted itself with the promise: “We are different”, reinforcing its identity with a distinctive and colorful logo. The bank was founded in 1937 in Santiago and in 1956, BCI opened its first branch in Valparaíso. In 1987 the bank created its first subsidiary, Bancrédito Securities S.A Agent, and two years later opened its first international branch, in Miami. BCI’s range of services, and presence throughout Chile with around 300 branches, have helped it retain its position as one of the nation’s most important banks.
15. Super Pollo
Parent company: Agrosuper SA
Year of foundation: 1974
Brand Value: US$439 million
The Super Pollo brand was born in the 1970s, when parent company Agrosuper expanded its operations to cover the production and commercialization of processed chicken. The Super Pollo brand quickly become a household name in Chile and it utterly dominates its competitors in terms of market share. The role of chicken in the Chilean diet, as well as the brand’s strong distribution strategy, continuous product innovation as well as its aggressive communication strategy, has positioned Super Pollo as an iconic brand for most Chilean households. Parent Company Agrosuper is the country’s largest producer of animal protein products in Chile.