Luxury Jewellery in Argentina

PROSPECTS

Unfavourable economic situation remains a major drag on sales of luxury jewellery

The adverse economic situation which currently prevails in Argentina has led to low demand for luxury jewellery. However, the very moderate volume growth recorded in the category during 2018 and 2019 represent a major improvement from the very strong double-digit sales declines recorded earlier in the review period.

Luxury jewellery distributed mainly via local third-party retailers and distributors

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.

Currency depreciation results in unit price inflation, compromising demand

Much of the luxury jewellery sold in Argentina is imported and with prices calculated in US dollars. With the exchange value of the Argentinian peso having depreciated substantially over the course of 2019, the cost of luxury jewellery has skyrocketed.

COMPETITIVE LANDSCAPE

H Stern maintains leadership via its chain of exclusive retail outlets

2018 saw H Stern remain the leading player in luxury jewellery in Argentina. The company distributes its products through its four retail outlets, three of which are located at the Ezeiza and Aeroparque international airports, with the fourth located in the southern city of Ushuaia in Tierra del Fuego.

Pandora expands rapidly after its recent entry into Argentina

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.

Bvlgari continues to pursue its third-party retail distribution policy

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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