Apparel and Footwear Specialist Retailers in Argentina

PROSPECTS

Extensive promotional activity fails to reverse declining sales

Argentinian consumers are already used to taking advantage of strong promotions in this category. With consumption declining strongly, promotions have increased even more, with there being some kind of promotion almost every day of the week in large malls and commercial streets of Argentina.

Growing focus on e-commerce channel to attract consumers

In a context where sales via traditional channels are contracting, internet sales continue growing well above inflation. A category that began to develop strongly in recent years and maintains a very positive evolution is apparel and footwear, mainly driven by young women who find prices in this channel lower than in physical stores.

Local brands struggle to compete with imported apparel and footwear

One of the main characteristics of Argentinian economic policy is that it can change dramatically with the arrival of each new government, no matter what the conditions were in the past. For example, until Mauricio Macri assumed power in 2015, Argentina was largely closed to imported products in order to avoid outflows of foreign currency and to protect local industries.

COMPETITIVE LANDSCAPE

Sales remain highly fragmented

Although apparel and footwear has important brands with a large number of outlets and presence in the main malls of the country, it is a fragmented market with a large number of brands having just one or very few outlets. Given the current difficult economic situation, a number of brands have chosen not to renew their spaces in the main malls of the country due to high fixed costs and have moved to the most important commercial streets and avenues where fixed costs are lower.

Leading brands look to leverage franchise model to expand

An important trend in the Argentinian market is the growth of big brands through the franchise model. Leading brands are making strong investments in marketing and advertising and in opening stores that require large investments.

Convenience trend fuels interest in buying and selling used clothes online

Due to the growth of e-commerce, new options are also arising such as sites that connect consumers to buy or sell their used clothing online, which can be either branded or not. In this context, www.

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