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April 1, 2009

All across Santiago are billboards on bus stops and other random places plastered with the slogan “Chic and Cheap.” They feature very non-Chilean looking women in polyester plaid shirts for Almacenes Paris. On each ad, the price is posted as well.

A lot of the price points are 20,000 +. Now, I’m not going to lie. I love plaid. And it’s very trendy right now. I’ve been searching for the perfect, long cozy lumberjack inspired shirt to wear over leggings. But there is no way in hell you’re going to catch me paying 20,000 pesos for that shit at Almacenes Paris or Falabella!

At the current exchange rate 20,000 is about $35 USD. And then you have to factor in the fact that salaries here are comparatively much lower, which means the actual cost to the average Chilean is higher. Needless to say, I take issues with the use of the words “Chic and Cheap.” Paris and I clearly have differing opinions on what cheap means.

To me, spoiled American girl that I am, used to having consumer rights, cheap means Target — where I can buy a (designer, nonetheless!) dress for $20 bucks and it won’t fall apart after the second wash. Oh, and if it does, I can go back to the store and bitch and moan and they’ll let me return it. At Falabella or Paris, to return even a completely new item with the tags on and all receipts present, they pretty much require you to get Michelle Bachelet’s seal of approval before they’ll take it back.

Consumer rights in Chile are sorely lacking. And yes, sometimes this isn’t a big deal. It just results in minor inconveniences and whining when I have to waste time standing in lines — which is just part of life here, like it or not. But other times, like when the 3 majors pharmacies in Chile all get together and decide they’re going to raise their prices on medicines in order to further continue their work of effing the consumer up the pooper (yes, yes, I’m trying to be a lady and watch my language), it’s a serious abuse of power.

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14 Comments

  1. I think Paris is doing a knock off of Moschino's Cheap & Chic … but a very bad job.

    Agreed on the over-priced… we joke that it's more like expensive and cheap (quality!) Oh for a Nordstrom!

    Comment by Rachel — April 1, 2009 @ 9:00 am

  2. I completely agree with you! Every once in a while I go out shopping but come away with nothing because I never find anything that would be good quality for the price. Also, I really don’t even care for much of fashion that is popular here. I would love a Target here. *snif*

    Comment by Emily — April 1, 2009 @ 1:51 pm

  3. Plus I HATE the photos. I know, not the point, but I just think they took a pretty woman (Tonka Tomicic) and made her look old and tired…seriously there are bags under her eyes in some of the photos.

    Hopefully this whole mess with the pharmacies helps people wake up and demand consumer rights here, although I’m not expecting an overnight change.

    Comment by Emily — April 1, 2009 @ 7:58 pm

  4. While I agree with you in some of your opinions about quality and customer service in Chilean retail relative to the US, it has always been a mistery to me why American retailers have failed miserably in Chile, when their superior customer service should give them an enormous competitive edge.Sears, JC Penney and Home Depot retreated in shame, unable to compete with the despised Falabella, Almacenes Paris and Sodimac.
    As for the pharmacies, it is funny that they fix prices, but still, every time I have run out of a drug while in Chile, I go to the pharmacy and get it (without a prescription, and that’s another story) for less than I pay for the same thing at CVS. On the other hand, out of curiosity when I saw the news I looked at Farmacias Ahumada’s financials and they barely make money in their operation in Chile, their profits come mostly from Mexico. You’d think that if they are going to stick it to the consumer they would be smart enough to make money in the process and have higher prices than other countries. I also found statistics that Chile has the lowest prices for pharmaceuticals in Latin America. How is this possible if they are fixing prices? Beats me!
    Another mistery is that the geniuses at Walmart chose to pay a premium and buy out Lider, of all retail chains, rather than starting a fresh operation with their superior business model and wiping out the Chilean retailers like they have done with most of their competition in the US.
    Maybe there is something we are not seeing here, just like we didn’t see the how flawed the superiority of the US financial system was?

    Comment by Ni tan huaso — April 2, 2009 @ 5:59 am

  5. Ni tan huaso. I have no idea why other retailers have failed here, but I think the failers before them is what is leading Walmart to keep the Lider name. They’ve seen that American companies don’t do well and prefer to keep the name Lider on things so that Chileans will continue to trust in the brand. Maybe Walmart also knows that they have a HORRIBLE reputation abroad? I really don’t know. But, from what I’ve heard, most foreign businesses that have come in haven’t done well in Chile, like the French Carrefour supermarkets for example. My mother in law said she loved those supermarkets and thought the customer service was great and couldn’t understand why nobody shopped there. Is it a trust thing? Maybe Chileans are just wary of foreign businesses.

    With pharmaceuticals, I know nothing about the U.S.’s problems, although I’m well aware that there are HUGE flaws in the system. However, I don’t even want to comment as I’ve never bought a pharmaceutical for myself in the U.S. (When I was a kid my mom paid for it, in college, lucky for me, I never had the need for any meds and ever since then I’ve been in Chile). So my experience with the U.S. system is pretty limited. I do know though, that costs are out of control.

    That being said, no matter what the problems are elsewhere, I still think it’s a serious consumer abuse that the pharmaceutical companies here got together to raise their prices in such a shady manner.

    Comment by Mamacita Chilena — April 2, 2009 @ 7:41 am

  6. I probably could live out of Target.

    Vera Wang designed a line for Kohl’s, a US retailer. I bought a dress (for a very good price, less than $40) just to say I had a Vera Wang. I don’t like it on me as much as I thought I would, but the quality is definitely above par. The dress feels rich.

    Most of the time labels don’t mean much to me. It’s more about fit and quality.

    Comment by Ordinary Girl — April 2, 2009 @ 7:46 am

  7. O.G., me too, I LOVE Target.

    As for designer stuff I can’t say I’m a huge label whore, but I will definitely admit that the few designer clothes that I’ve bought fit better and do look nicer/higher quality. However, that doesn’t mean I’m willing to shell out a couple hundred dollars for one item every time I go to the store!

    Comment by Mamacita Chilena — April 2, 2009 @ 8:15 am

  8. I think is very difficult that american girls can share fashion style of chilean girls, foreigners have a totally opposite taste. i don’t like dresses that american girls are wearing currently (I think “please, turn off your dress, it is burning my eyes!”) and I’m pretty sure gringas hate how chileans girls are dressing right now (dark colours the most)

    Comment by Psicometodos — April 5, 2009 @ 6:40 pm

  9. Haha, Psicometodos, I don’t even think that just right now, I think those opposite fashion tastes have been going on for a long time…have bright clothes really ever been in style for Chilean women? When I walk through the metro it’s like a sea of black and grey. Kind of depressing to me.

    Bright clothes are definitely in style in the U.S. right now, and I love it! :)

    Comment by Mamacita Chilena — April 5, 2009 @ 6:42 pm

  10. On the other hand, I’m agree with you about our despised retail system. Sincerely I don’t know how we got to this point, our incomes are very low compared with developed countries, but we are paying much more! I can’t understand. However, you will see, Walmart will proceed exactly like national retailers, because if you give the opportunity they are going to take it. US firms are very respectful of social and work laws.. in US, but they are not so respectful abroad

    Comment by Psicometodos — April 5, 2009 @ 6:53 pm

  11. And this stuff is caused because we are confronting big cold firms, i cannot blame to cultural differences

    Comment by Psicometodos — April 5, 2009 @ 6:57 pm

  12. And… i like some brands here. I like Zara for Men, and Basement by Falabella

    Comment by Psicometodos — April 5, 2009 @ 6:59 pm

  13. But I must warn you: I only use black clothes… so chilean? no, so psicometodos!

    Comment by Psicometodos — April 5, 2009 @ 7:01 pm

  14. I definitely think you’re right, Walmart will probably take advantage just as much as the Chilean companies do. I mean, even in the U.S. Walmart is definitely not known for being a shining beacon of goodness!

    And you’re right, I fail to see how things cost so much here. It’s ridiculous how expensive clothes/technology is, when people make so much less money!

    Comment by Mamacita Chilena — April 5, 2009 @ 7:24 pm

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