Homewares in Argentina

2020 IMPACT

Home seclusion turned consumers attention to stocking up their kitchens in 2020

Homewares registered slightly faster current value growth in 2020 than in the review period. Homewares benefitted from the longer periods of time consumers spent in their homes as a result of COVID-19 lockdown.

Social media was a crucial marketing tool, especially influencers

Through social media, influencers continued to be one of the main means of communication and promotion for homewares brands. In 2020, the kitchen gained an important role in peoples’ lives as a lot of consumers began to cook more at home due to the mandatory confinement.

Mandated store closures provided an opportunity for the development of e-commerce

Homewares’ online sales grew in 2020, driven by the closure of store-based retailers for several months. In this way, websites became the only ‘open’ stores in 2020.

RECOVERY AND OPPORTUNITIES

Recovery may be hindered by unfavourable economic conditions in the forecast period

Homewares is expected to enjoy stronger current value growth in 2021, before normalising and gradually slowing over the forecast period. The local economic situation may inhibit performance in the forecast period, as a drop in purchasing power is likely.

More affordable and private label brands likely to benefit from the economic situation

The anticipated lacklustre economic situation will provide opportunities for cheaper or private label brands in the forecast period. It is expected that consumers will continue to prioritise prices over quality and seek opportunities such as offers or promotions offered by retailers.

E-commerce sales will be driven by social media marketing

Online channels will continue to strengthen during the forecast period. Companies will continue to adapt to new consumer realities through their own e-commerce platforms or through third party sites, such as MercadoLibre.