In recent years, the Argentine economy It was marked by a logic of supply, where the scarcity of products and limited competition allowed companies to operate with high margins and little need to innovate. However, we are witnessing a paradigm shift: the market begins to be demand ledwith the consumer taking a leading role and transforming the rules of the game.
E-commerce as a thermometer of change
He e-commerce is one of the main indicators of this change. According to data from the Argentine Chamber of Electronic Commerce (CACE), the e-commerce in Argentina grew in turnover 248% in the first half of 2024, compared to the same period in 2023.
During this period, the billing reached $8,555,918and the online channel represented 18% of the total sales of the companies surveyed, three percentage points more than in 2023. The interesting thing about this evolution is that it occurred in a context where general sales fell vs 2023.
The growth was category driven such as Food and Beverages, Appliances, and Tools and Construction, reflecting how the consumer preferences They are shaping the market. Digital platforms not only allow greater comparison of prices and services, but also force companies to offer best value propositions to capture the attention of the consumer.
With the increase that e-commerce experienced, the Argentine consumer It has many more tools to compare, choose and demand better conditions. This forces companies to rethink your strategies.
Economic openness: catalyst for competition
An eventual major opening of imports It would be a key element to accelerate this transition towards a demand-led economy. More players in the market mean greater competitionboth in price and quality, giving the consumer a decision power unprecedented.
According to recent estimates, a trade opening could generate a reduction of up to 15% in the prices of imported goods, directly benefiting Argentine households. However, this scenario also poses significant challenges for the local producerespecially in sectors where Argentina’s high tax pressure plays a key role.
With a tax burden that far exceeds that of many competing countries, the production costs in the domestic market they are considerably higher. Faced with an opening of imports, many producers will be forced to adjust prices of their final products to be competitivewhich could directly impact their profitability margins or the viability of their business models.
The tax pressure in Argentina Not only does it affect the competitiveness of the local producer, but it also conditions their strategic decisions in a scenario of greater market opening. The great unknown lies in how local businesses will respond if there is a reduction in tax pressure.
Will they choose to transfer this drop to prices, to gain competitiveness against imported products, or will they take advantage of the tax relief to increase their profitability? This dilemma will be fundamental to define how the pricing structure and the competition dynamics in a more open market. For the local businessesthe change will represent a challenge, since they will have to compete on a more balanced field, where the consumer will have more options and will be less willing to pay premiums.
Consumption in 2024: challenges and opportunities
Consumption in Argentina registered a significant drop this year, with a decrease in 6% year-on-yearaccording to INDEC data. However, if there is a rebound in domestic consumption in 2025, driven by a greater economic openness and the sustained growth of digital sales channels, the prominence of demand could be further consolidated.
One of the key factors that explains the growth of electronic commerce in a context of generalized decline in consumption is data provided by Mercado Libre: this year, the 47% of sales generated in Argentina corresponded to discounted products.
This shows that, given the loss of purchasing power, consumers have migrated towards the online channelwhere they have the possibility of compare prices and benefits in a simpler way, in addition to accessing more attractive offers. This behavior reinforces the idea of demand empowerment and its growing prominence in the market.
We are at a point of inflection. This new landscape not only challenges companies to be more efficient, but also invites many to completely rethink their business model and having to bet on winning by volume and not by profitability.
How companies should adapt
The transition from an economy led by supply to one where demand predominates implies a profound change in the business strategies. Many companies will have to abandon old formulas and adopt more flexible and customer-focused models. consumer. Among the main adaptations are:
- Bet on digitalization: Digital tools not only facilitate market access, but also allow personalization of the customer experience.
- Invest in the value proposition: quality, service and customer service will be key differentials in a more competitive market.
- Optimize operating costs: Efficiency will be essential to compete on price without sacrificing quality.
Furthermore, the change not only affects traditional companies, but also opens space for new startups and local and international players, enter the market by expanding the offer available to the consumer.
Conclusion: the future of the Argentine market
The shift towards an economy demand led marks a turning point for the Argentine market. This new scenario, although challenging, opens the door to great opportunities for those companies capable of adapting to the new demands of consumers.
The growth of e-commerce has significantly empowered Argentine consumers, allowing them to compare, choose and demand better conditions. This change, combined with a possible economic rebound in 2025 and a greater market openingwill force many companies to rethink their business models and profitability strategies.
The projections indicate a GDP rebound close to 5%, which will boost both the economic activity such as the purchasing power of consumers. In this context, companies that opt for volume-based strategies, leaving behind high-margin models, will be better positioned to compete.
The global dynamics of e-commerce post-pandemic reinforces this trend, where success lies in capturing greater market share through a solid value proposition and customer focused. Argentina is in a stage of economic transformation. The rules of the game have changed, and companies that know how to anticipate, prioritize innovation and put to consumer at the center of their strategies, will be those that lead this new chapter of the market.
Director GT Solutions, specialist in e-commerce strategies and digital consultant with more than 12 years of experience in the online market.
Source: Ambito
I am an author and journalist who has worked in the entertainment industry for over a decade. I currently work as a news editor at a major news website, and my focus is on covering the latest trends in entertainment. I also write occasional pieces for other outlets, and have authored two books about the entertainment industry.
