Apparel and Footwear Specialist Retailers in Argentina

PROSPECTS

Despite strong promotions, apparel and footwear specialist retailers contract

Argentinian consumers are already used to taking advantage of the strong promotions that exist in this category. In 2018, with the strong consumption contraction, these promotions increased even more and almost every day of the week there was some promotion in the main malls and commercial streets of Argentina.

Apparel and footwear continues strong development in e-commerce channel

In a context where sales via traditional channels contract, 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 at physical stores, which drives them to complete their apparel and footwear purchases.

Large quantities of imported products in 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. In this way, 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

Apparel and footwear, a very fragmented market

Although apparel and footwear has important brands with a large number of outlets which have 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 the high fixed costs and have moved to the most important commercial streets and avenues where fixed costs are lower.

Most brands with big expansion plans look to franchise model

An important trend in the Argentinian market is the growth of big brands through the franchise model. The most important brands make the largest investments in marketing and advertising and in the opening of stores that require large investments, and once they are established in consumers’ minds, begin their expansion plans by selling franchises, which creates high visibility with low risk.

Buying and selling used clothes online

Due to the growth of the internet retailing channel in this category, new options also arise, such as sites that connect consumers to buy or sell their used clothing online, which can be either branded or not. In this context, the site www.

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