Tvilum enjoying a prime market position in Chile
Tvilum is a household name in Chile, together with its good partners Sodimac and Falabella Chile, having enjoyed a prime market position for over 20 years. The relationship has been mutually supportive, benefitting all partners, which has helped Tvilum reach a volume that justified building our own distribution center in Santiago de Chile.
We have now, over March and April, launched the distribution of almost 30 products to the Chilean market, with our Naia range being a top seller. We expect to grow our assortment as the distribution starts to reach normal operations.
We are also in the process of finalizing all our IT connections towards customers, logistic providers, and tax authorities in Chile. The entire process (Receiving, confirming, preparing, and delivering orders) will, as the result of this, run on an automated basis through our IT system called EDI.
The overwhelming majority of the furniture in Chile is sold via Sodimac – the local go-to furniture seller with a dominating market share, so growth is expected to accelerate once we are ready to scale our distribution center to its full capacity. And we have participated in every campaign of theirs so far. We keep updating our assortment at their stores on an annual basis to keep offering our clients various novelties. Also, this year we will have an exclusive showroom in Santiago to show our new models to Sodimac and this way - together define the winning products for the years to come.
Out of warehouse in Chile, Naia is top seller, but we also supply Sodimac directly from Denmark with our Oslo and Paris ranges that are also showing impressive performance. This is supported by their brand strategy called “Sodimac Deco Lovers,” in which Oslo and Paris have been frequently featured in.
We estimate to ship out 60 000 boxes of furniture from our Santiago de Chile distribution center in the first year alone. This is supported by the exponential growth of our e-commerce segment where the growth rate is expected to continue accelerating for the years to come.
The distribution center employs 8 people with an additional number of externally employed people working for us at our logistics partner's warehouse.
Where the future takes us in Chile – remains to be seen. We can already today say that the stage is set for the continuation of our success!
