A recent report from Brand Finance revealed that Mercado Libre leads the multi-sector ranking of the brands most valuable in Argentina with a value of US$3.7 billion. Globant, second in the ranking, it is the brand that grows the most (51%) up to US$1.2 billion, while the 10 most valuable brands in Argentina add up to US$7.3 billion, 19% higher than the value of the ranking in 2022.
The brand value of Free market, which this year is 1.1% lower than in 2022, is even higher than the sum of the brand value of the other 9 brands that complete the ranking. The regional leadership, the brand strengthconstant innovation and effective execution continue to be highlights that sustain the success of Free market.
Brand Finance annually analyzes more than 5,000 of the brands most important in the world and publishes more than 100 reports in which it classifies brands from all sectors and countries. The 100 most important insurance brands strong and valuable in the world are included in the annual Brand Finance Argentina 2023 ranking.
Companies: what challenges do they face?
The Argentine brands They face an Argentina that is going through a complex panorama of inflation, external restrictions and practically zero growth.
The high inflation decreases the purchasing power of consumers, negatively impacting the demand for goods and services of companies, which hinders its growth. The restrictions for import inputs and capital goods limit production. The scarcity of Dollars It also restricts access to external financing to invest and expand productive capacity.
In this scenario of inflation high and restricted imports, sharply increase costs for companies, reducing their margins. Likewise, uncertainty discourages long-term investments, which are key to growth. The recession of Brazil, the main trading partner, hits Argentine exports.
Pilar Alonso Ulloa, Managing Director Iberia (Spain, Portugal) and South America: “Inflation, external obstacles, uncertainty and the Internal market stagnant generate a very adverse context for the growth of companies locals, where the majority focuses on survival.”
In 2022 and 2023, some of the Argentine companies that have managed to prosper despite the complex economic context are fundamentally exporting companies. This is because the favorable exchange rate allows them to obtain good dollar margins on their exports.
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Other companies that have done well are knowledge economy, since they export services based on local talent in high demand abroad, accessing foreign currency. Globant (brand value that increases 51% to US$1.2 billion) is one of them.
Global software development company, based in Argentina, employs more than 25,000 people and has clients such as Google, Electronic Arts and Santander. It is the second most valuable brand in Argentina and is also the brand that grows the most in the ranking in 2023. Other examples, outside the top 10 could be SatellogicArgentine space technology startup, which focuses on Earth observation from space or Etermax, developer and editor of mobile games such as Triviadores, Apalabrados and Triviador for Latin America.
Five brands have joined this yearl ranking of the most valuable brands from Argentina: Personal, La Paulina, Quilmes, Coche Naranja and Aerolíneas Argentinas. With them, the ranking increases by 50% in terms of size and 19% in terms of brand value.
Source: Ambito
