Fanbag puts its foot on the accelerator to expand in Latin America

Fanbag the company specialized in experience giftsa pioneer in its business segment, has a history of 15 years in Argentina and has been in Paraguay for five years. In this context, Just weeks ago it landed in the Colombian market and is betting on covering two new countries in the next two years.. Next, in dialogue with Ámbito, Ricardo Sarni, CEO of the company, tells the firm’s projections, how it closes 2024 in Argentina and evaluates the environment for doing business.

Journalist (P.): Why did you choose the Colombian market to continue expanding and what are the projections you have?

Ricardo Sarni (RS): The company’s plan was always associated with expanding regionallyafter landing in Paraguay we took some time to adapt to the context, analyze business opportunities and that is why we paused that expansion plan a little. Then, A year or so ago we put our foot on the accelerator To return to it, in October we arrived in Colombia and the objective, in addition to consolidating ourselves in this new market, is to continue growing at the rate of one new market per year, so by 2026 we want to be in five markets in Latin America. Besides, Regarding the choice of Colombia, we analyzed different places, we even went very deep into one that we later ended up discarding and we stayed with Colombia because it has an acceptable macroeconomic context, friendly for our businesses, with a population of more than 50 million people, it is a country in which we expect a lot of growthalso a lot of development of startups that give it life and to generate business possibilities. We are just starting to We have already developed more than 80 experiences, launched more than 10 products within the areas we handle, which are gastronomy, well-being, getaways and entertainment.

Q: And what are the specific projections for this market?

RS: For the remainder of this year we hope to consolidate and position the brand, we have been doing a lot of communication about it. In 2025, the first year of operations, we aim to sell at least 15,000 units and invoice about US$600,000, then in 2026 reach 50,000 units sold and a total turnover of US$3 million.also taking into account our b2b points and rewards platform, Happier, to which we seek to incorporate at least 20 clients. Another key issue that we identified in Colombia is that there is no direct competitor, Yes, there are substitute products, but for us, our concept of giving experiences was not there until now.

Q.: Within this expansion plan towards other markets in the region, what options are you exploring?

RS: If I have to set priorities, Brazil and Mexico are perhaps today two of the most interesting markets in which we hope to disembark.. Mexico is a place that we take into account due to the level of companies that there are that perhaps have a regional presence and of course their business volume. In the case of Brazil, due to its proximity and its volume of business it is very attractive, but there we also have the language barrier and the great expansion of the territory as a disadvantage. In any case, we come with the clean and jerk after Colombia, even with established networks of contacts and perhaps we can arrive sooner than expected to either of these two markets or new ones.

Q: How are you seeing the Argentine market? You came with very good growth and last year with the elections and this year with the drop in consumption, I estimate that it must have impacted you.

RS: Yes, that’s how you mention it. We and the gift business segment had been growing 40% year-on-year, from 2022 back. 2023 was a difficult year, with a very strong drop in consumption in the second half of the year that continued during the first half of this year.. This 2024, in the particular segmentalthough there is still a strong stage for us, which is Christmas, We project to end with a year-on-year drop of 30%. It is also true that in the first semester we had a drop of more than 40% and in the second semester something was reactivated, Mother’s Day went better and that is why we hope that if there is a reactivation we could have a better 2025. We also understand these numbers because we offer a product that is not essential.. Besides, in corporate business, Traditionally, in the first quarter there is not as much need for gifts and the strongest part comes in the second semester and we believe that We are going to end the same as last year, without a drop, because many companies decided to give gifts for Children’s Day and now we are closing gifts for Christmas and the end of the year.

Q.: The cost issue with suppliers must also have been very difficult with the peak of inflation in December and later in the year in the gastronomy sector, which even shows more increases than the general price index.

Q: Yes, it was complex, but we believe the worst is over. With that heavy inflation peak in December, before, in September – October, we had already established certain decisions regarding costs and prices and overall we were able to get through the moment and it did not impact us so much on profitability. Also due to the variation in prices, for example, we work with shorter terms, our gifts had a validity of nine months and we shortened it to six to not take as much risk. But it was a year in which we worked very closely with our network of providers, with negotiations and agreements that were up to fortnightly.

Q: How do you see the business in Argentina next year?

RS: As I told you, In the second half we saw some more positive signs and as consumption recovers our business will also grow.. We are optimistic. Also from our place of business, the key is to continue following trends, being one step ahead and identifying what the consumer wants for the experiences we offer. Regarding projections, In Argentina this year we are going to end up with 75,000 / 80,000 gifts sold across all channels and although it is still a little premature, we hope next year to return to the barrier of 100,000 gifts, with a growth of around 30% which was the traditional increase we came with.