The sale of energy-efficient refrigerators in Chile is an excellent opportunity for US manufacturers. Sales of refrigerators are booming and Chile's higher-income consumers prefer US technology.
FIGURE 11:
GROWTH IN CHILE'S REFRIGERATOR POPULATION
Chile's demand for refrigerators has been growing by 40
percent per year since 1985. In that year, there were about
300,000 refrigerators in Chile. By 1992, an estimated 2 million
households had a refrigerator. Demand over the last three years
has leveled off at an annual growth of between 12 and 15 percent.
Chile's two local refrigerator manufacturers, are Sindelen and
Compania Tecnologico Industrial S.A. (CTI) (which manufacturers
Fensa and Mademsa brand names). They compete with foreign
manufacturers such as Siemens, Philips, General Electric,
Westinghouse, Whirlpool, Goldstar, Daewoo, and Samsung.
The majority of refrigerators sold in Chile are
domestically-manufactured, manual-defrost models. Chilean
consumers base their purchase on size, defrost capability and
retail price. Automatic defrost refrigerators cost double, and
sometimes triple, the manual defrost models. Approximately half
of the refrigerators sold in Chile are small (192 liter or 6.7
cubic feet), single-door, manual-defrost units. About 10 percent
of refrigerators sold are imports.
All US refrigerators sold in Chile are imported. US
refrigerators have a strong hold on the small upscale market made
up of higher-income Chileans and foreigners living in Chile.
These consumers prefer larger refrigerators, favoring US models
over their European competitors.
Fifty-five percent of Chilean households have a refrigerator.
This level of market saturation is second only to radios.
Refrigerators are more prevalent in urban households (61 percent)
than rural households (29 percent).
Figure 12: Appliance Saturation in Chile
One obstacle to the purchase of larger, US refrigerators is
the standard construction of small kitchens in upscale Chilean
apartment buildings.
Refrigerators consume an average of 25 percent of residential
electricity, second only to lighting (30 percent).51 This is significant given the high
cost of residential electricity in Chile (11 cents per kWh in
Santiago).
Domestic refrigerators are less energy-efficient than imported
models. Seven of the ten least energy-efficient refrigerators
sold in Chile are manufactured locally. Electricity consumption
by these least energy-efficient models varies between 0.53
watts/liter (15W/ft3) and 0.86 watts/liter (24W/ft3).
Large imported refrigerators consume the least electricity per
liter.52
Chile has committed to the phase-out of CFCs under the
Montreal Protocol. The country will soon release an "Ozone
Label" to encourage consumers to purchase ozone-friendly
products.
The National Energy Commission considers development of appliance energy performance standards to be a priority in the next few years. Appliances sold in Chile must already comply with safety standards. The Commission is investigating how to change the testing protocol so as to include energy performance tests. Other options for improving energy efficiency include development of a consumer label and promotion of a plug-in device (like the U.S. "Green Plug") that would automatically defrost refrigerators and cycle compressor activity to off-peak hours. The Commission plans to investigate these policy options over the next two to three years.
52. Valdes-Arrieta, p. 15.
53. Personal communication, Roberto Gonzalez, January
1995.
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