In Argentina, there is still no consulting firm that undertakes a study on the turnover of the sexual consumption market, but there are various graduate theses that analyze the changes in sexuality in recent years. Without intending to enter that universe, this note has the objective of telling from an economic perspective what the few companies in the country that grow thanks to the pursuit of pleasure.
In our country, there are two companies that homogenize the condom market. Is about Prime and Tulip. Meanwhile, in the sex toysthe leader is Buttman Sexshop. It is important to recognize that although they are not the only ones in the industry, they are the ones that generate the greatest volume of products and distribute throughout the country. In this framework, two market leaders were encouraged to “come out of the closet” with Ambit and revealed how this world of these companies. Prices, imports, production and more.
Tulipán: the second brand that grows in the midst of the economic crisis
Felipe Kopelowicksis the Director of Kopelco SA, an Argentine company that has been in the market for more than 60 years and manufactures, exports, imports, markets and distributes products of various brands, including Tulip condoms.
Tulipán manufactures more than 200 million condoms per year and the brand is responsible for selling to wholesalers and points of sale. Prices vary according to the neighborhood and area, reflecting the price distortion that there is in the economy and to which this industry, of course, is not foreign.
For Kopelowicks, the industry in general has recently been declining due to the lack of care among people, especially among young people and the economic situation. “Within this market decline, our share is rising because we are the second brand,” he says. In this sense, he highlights that prices in Argentina, despite the increases that consumers suffered as a result of inflation itself, are “very economical.”
In a comparison made Ambit between two of the most used e-commerce pages, such as Amazon and Ebay, what Kopelowicks comments could be easily verified.
There it could be observed that The cheapest condoms range from US$5 to US$20, the most expensive.. Sometimes, without a box, you can find around $1. Meanwhile in Argentina, the cheapest ones range from $749 for the cheapest to $1550, on average, for the most expensive. The local survey was carried out in the leader of the pharmacy sector.
Comparing it in dollar value, the official price ranges between US$2 and US$4. At the current blue ($990), the cheapest one does not reach US$1 and the most expensive barely reaches US$1.5. This explains why The leading companies in the condom sector seek to increase their export capacity: the domestic market alone is not enough.
The components are absolutely all imported. “The cardboard, latex, silicone and aluminum in the packaging are in dollars. “What is in pesos is labor,” Kopelowicks develops in dialogue with this medium. He also points out the difficulties they have with the SIRAs due to delays while waiting for the situation to stabilize.
For Kopelowicks, there are chances for the industry to carry out import substitution, but it has a cost. He explains that if they want to replace it locally with another material, “the quality of the product would be lowering. It can be replaced, but at the sacrifice of functionality.”
Tulip imports products from major factories condoms of the world. Meanwhile, they export to countries such as Libya, Uruguay, Paraguay and are seeking to enter the markets of Brazil and Bolivia.
Sex toys: the Buttman world
In search of another market leader in sex toys, we came across Buttman Sexshop. This is how you talk with Miguel Ángel HuarteCEO of Buttman Argentina SA, the first sexual well-being brand, number 1 importer and wholesaler in Argentina in this area.
Buttman, like Tulip, struggles with difficulty in setting prices in Argentina due to the inflation and seeks to be in line with the payment possibilities of its consumers. “Adjusting prices so frequently creates an undesirable climate and seeing that economic products are no longer economical. Luckily we always implement discounts and promotions so that they are not inaccessible and continue promoting the sexual well-being”, he comments.
Buttman has a very small percentage of national products. And he clarifies: “It is not because we are not in favor of the national market, but because its technology, characteristics, design, functionality and materials remained in time. “They continue to circulate and market the same products as 30 years ago.” That is why Buttman handles 20% national products and 80% imported.
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Like Tulipán and all companies in the country, they deal with the stock management of products and suppliers in relation to the approval of imports. “We see it as a matter of luck,” he says.
“It is very difficult for us to comply with what was agreed and the commitment we made. Additionally, we deal with some of our wholesale clients who find it very difficult to understand the price updates that there was in this last period and also the absence of some products,” highlights Huarte.
“We must adapt to the rules of the game, we are constantly working to satisfy and fulfill the commitments of both our suppliers and customers,” he concludes.
Buttman has more than 10 thousand products on the market, three physical stores and supplies 90% of the businesses in the sector.
In the sex industry Less than five companies participate. They are few, they know each other a lot and they are in charge of the sexual well-being of Argentines.
Source: Ambito
