During 2016 and 2017, a large number of Argentinians travelled to Santiago de Chile and to Miami, tempted by an exchange rate that favoured foreign purchases. The Argentinians not only took advantage of the low prices but also liked the possibility of buying brands that are not in the country like Forever 21, Carter's or Osh Kosh.
The year 2018 was marked by a deep economic crisis and a strong contraction of volume sales of which childrenswear was no exception. Despite the fact that childrenswear has a high emotional component and because of the falling purchasing power, before buying clothes for their children, consumers prefer to cut spending on other products.
Internet retailing does not reflect the complicated economic context in Argentina; on the contrary, sales through this channel experienced a strong expansion in 2018. Most of the important brands such as Mimo or Baby Cotton have a specialised website to sell online.
Despite different announcements about their interest in establishing in Argentina, multinational childcare companies have delayed their entry into the country. According to industry sources, even brands that are in neighbouring countries such as Paraguay, Uruguay or Chile expect and are waiting for a better investment context in which to open stores in the country.
Childrenswear in Argentina is very fragmented, with a large number of companies and brands. Despite this, the brands Cheeky, Mimo & Co (Vestiditos) and Grisino (Cresko) lead sales and together concentrated a significant value share in 2018.
A joint venture formed by Grupo de Narváez and L Catterton acquired the prestigious Baby Cottons brand in 2018. In Argentina Baby Cottons has 16 stores located mainly in Buenos Aires and, to a lesser extent, in the provinces of Santa Fe and Córdoba.
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This industry report originates from Passport, our Apparel and Footwear market research database.