Luxury jewellers, many of which sell their products in the main shopping malls in Argentina, kept their doors closed for several months in 2020 as a result of the pandemic, which strongly affected the luxury jewellery sector. According to the Argentine Confederation of Medium Enterprises (CAME), retail sales fell by almost 28% in July 2020, with an even stronger contraction in Greater Buenos Aires.
The noted international luxury jewellery brand Pandora entered Argentina in 2018 with the opening of its first mono-brand retail outlets. The company quickly found success in the country and it has expanded very rapidly, with seven Pandora stores operating in major shopping centres throughout the country by the end of 2019, helping it to overtake Swarovski as the leading brand of luxury jewellery by value share.
The adverse economic climate in Argentina, which had already taken the country into recession prior to COVID-19, has led to low demand for luxury jewellery. However, the high volume growth recorded in the category during 2018 and 2019 represented a major improvement from the very strong double-digit sales declines recorded earlier in the review period.
Volume sales are expected to post growth again in 2021, with a return to pre-pandemic levels predicted in 2023. Sales performance will benefit from key store channels remaining open consistently again, although social distancing is likely to stay in place for some time, limiting footfall.
All of the main luxury jewellery brands with a strong presence in Argentina distribute their merchandise through partnerships with official local distributors, rather than directly through their own mono-brand retail outlets. Among the main reasons for this situation are the very strong reputations of the leading chained jewellery and watch specialist retailers, which means that local consumers are more than happy to shop for luxury jewellery in these stores.
Bvlgari is one of the many major international luxury jewellery brands present in Argentina that has chosen to distribute its products via third party retailers. This represents a departure from Bvlgari’s preferred international policy, which is to maintain complete control over the retail distribution of its products via a network of high-end mono-brand retail outlets located in prestigious shopping districts and upmarket shopping centres.
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Understand the latest market trends and future growth opportunities for the Luxury Jewellery industry in Argentina with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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This report originates from Passport, our Luxury Jewellery research and analysis database.
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