Foreign Direct Investment in Chile Surpasses Historical Averages
According to Marca Chile, between January and September 2024, foreign direct investment (FDI) accumulated to US $11.76 billion, surpassing the average of the last 20 years by 5%. This sustained growth highlights the country’s strong economic fundamentals and attractiveness to global investors. Chile is a key investment destination due to its political stability, transparent regulatory environment, and strategic access to Latin American markets. The current market demands are increasingly stringent, pushing companies to evolve and adapt to meet customer needs. As a result, many brands are choosing to enter the Chilean market to strengthen their operations, a trend that has already become evident.
International Companies Drive Growth and Investment
In addition to Marca Chile’s report, a study by the Corporación de Bienes de Capital (CBC) projects that by 2028, 77% of private investment in Chile will be attributed to international companies. This reflects Chile’s growing attractiveness for foreign businesses, thanks to its stable economy, business-friendly regulations, and strategic geographic position as a gateway to Latin America. The influx of foreign capital and expertise fosters economic expansion and job creation, solidifying Chile’s position as a premier location for multinational corporations.
Chile is a key investment destination for companies looking to establish a foothold in South America. Its well-developed infrastructure, access to global markets, and consistent economic policies make it an ideal environment for business growth. By 2028, foreign firms will be responsible for most private investments in the country, demonstrating the confidence that global enterprises have in Chile’s long-term potential.
The “Glocal” Strategy: A Key Approach for Market Success
Understanding that combining global innovation and local adaptation can drive growth, many companies are implementing a “glocal” strategy that blends international expertise with local market needs. This method has proven fundamental in helping businesses connect with consumers across different markets and cultures.
One example of this strategy in action is Tork®, a Swedish brand and global leader in professional hygiene solutions, which is part of Essity. The company has successfully adopted this philosophy in Chile, demonstrating how a balance between global innovation and local adaptation can drive the growth of large corporations. By tailoring its products and services to meet the unique demands of the Chilean market, Tork® has strengthened its customer relationships and increased its competitive edge.
Tork® Expands Its Presence in Chile and Latin America
“We are a global leader and are present in over 130 countries, including Chile. This reflects our company’s commitment to the local market’s development. We are constantly looking for new opportunities, and establishing a strong presence in a key market like Chile is one of our priorities,” said Francisco Salamé, Commercial Director for the Southern Cone at Tork®.
Committed to providing optimal solutions to improve individual and collective health, the brand considers Latin America a key market, accounting for 8% of its total sales. Chile is a key investment destination for multinational corporations looking to expand in the region, and companies like Tork® recognize the country’s significant potential. In line with its goal of growing in emerging markets like Chile, the company is working to deepen its understanding of local customers and strategic geographic areas.
As part of this effort, Tork® collaborates closely with local distributors, representing approximately 70% of the company’s internal business model sales. Additionally, more than 80% of these distributors sell products through digital channels, reflecting the brand’s commitment to modernizing its supply chain and ensuring efficiency in product distribution.
Sustainable Innovation: Addressing Chile’s Water Scarcity
Furthermore, Tork® has invested in technology to address Chile’s growing water scarcity problem. The company has begun implementing a water filtration system to improve water quality and increase reuse, reinforcing its commitment to environmental sustainability. With Chile prioritizing sustainable economic growth, companies investing in green initiatives increasingly align with national policies and consumer expectations. This commitment to sustainability further strengthens the argument that Chile is a key investment destination for environmentally conscious corporations.
Regional Expansion: Strengthening Latin American Markets
These localized efforts are also being replicated in other Latin American countries where the brand has a presence. For example, in Argentina, Tork® recently installed a new production machine to meet local demand for high-capacity paper towels and hygiene products. This marks the first time Tork® products will be manufactured in Argentina, representing a significant milestone in the company’s regional expansion.
“We seek to expand our logistical presence to solidify our position in the most relevant markets, which is a significant step in that direction. Expanding our infrastructure allows us to make a greater impact, bringing us closer to our customers and improving service quality. For us, the customer is always the priority, and being close to them is essential to fulfilling that commitment,” Salamé emphasized.
With its robust economic framework and emphasis on sustainable development, Chile is a key investment destination for foreign companies aiming to establish long-term operations in Latin America. Its proactive business environment, strong legal system, and commitment to digital transformation make it an attractive choice for international investors.
Conclusion: Chile’s Strategic Role in Global Investment
As Chile continues solidifying its position as a top destination for foreign investment, businesses across various industries recognize the country’s potential. The increasing presence of international brands underscores Chile’s economic stability, market opportunities, and strategic importance in Latin America.
By leveraging glocal strategies, companies can thrive in this competitive and rapidly evolving business environment. Chile’s commitment to fostering a business-friendly climate and ongoing investments in infrastructure and sustainability will further reinforce its appeal as a premier hub for global enterprises. Given these factors, it is evident that Chile is a key investment destination, offering unparalleled advantages to companies seeking growth, innovation, and long-term success.