When in 2022 the Panamanian capital firm Southbay took over Nike’s operation in Argentina, the pipe brand had been around for a long time. looking for the right moment to leave the country. By then, had been relegated to third place in the local market, behind Adidas and Puma.
As soon as Southbay bought the license from the American multinational for Argentina and Uruguay, the task of reposition the brand and decided to achieve it by opening stores in strategic locations.
The great showcase for sportswear that is professional football in Argentina was reduced to providing clothing to the San Lorenzo clubwhich has not been going through a good time for several seasons either.
In this context, During 2024, it launched a plan to open seven Nike stores, with an average investment of US$2 million per store..
Besides, The perspective of the sporting universe was reconsidered that at a global level always linked this brand with elite activities. With little presence in that segment locally (especially compared to its great competitor Adidas, which monopolizes Boca and River clothing), Nike Now it has set the goal of expanding its market through agreements with amateur sports entities and more presence in the interior of the country.
“We want return to positions where we believe we have to be with respect to consumers. And for that we signed very interesting contracts to return to what I call the origins of the sport, What is amateur sport?. We sign with Park Club to develop concrete actions for 2025 and the future. And we signed with the amateur league Passion to hold tournaments,” explained Federico Tórtora, General Manager of Southbay, the official Nike distributor in Argentina and Uruguay, during a virtual meeting with journalists.
-To what do you attribute this change in strategy with a shift towards amateur sports?– asked Scope.
And Federico Tórtora responded: “It is not a change in strategy. It is simply covering the different aspects of approaching consumers. It is something that is worked together. Elite athletes must be covered to inspire people to play sports and follow their idols. But at the same time, it must also be complemented with a strategy of being present and supporting the amateur athlete in the place where he begins to take his first steps.. It is something complementary, it is not that we are going to go to amateur sports and forget about the elite athlete. In recent years we were not very present there. That’s why the idea is reconquer that space which we knew how to have in previous years.”
In line with this objective of returning to the origin and maintaining closer contact with consumers, Tórtora also explained that one of the brand’s priorities for 2025 is expansion within the countrywhere it maintains three franchised locations (Tucumán, Mendoza and Córdoba) and this year it opened its own in Rosario.
How Nike distributes its sales between CABA and the interior
Regarding the geographical distribution of its sales, he specified that “historically the proportion was 60% of sales concentrated in Buenos Aires and 40% in the interior. but today we are very far from that”, he admitted.
“We believe in one-to-one relationships as a way to improve the consumer experience. And the only way to achieve that is be present in every part of the country with its own premises. That is why we promote this expansion strategy,” he added.
This year it opened seven locations and except for the one in Rosario, all were in the AMBA region. The most recent opening to crown 2024 was this Tuesday in Pacific Gallerieswith a 1,200 square meter branch that demanded an investment of US$2 million.
Regarding the operation in Argentina, the manager explained that 60% of the clothing that Nike sells in its stores is imported and 40% is manufactured in the country.
“Us We maintain our strategic decision to continue with local production. The pandemic has already demonstrated the advantages of having production in the country. Although we know that competitiveness must be improvedgiven that imported products they are cheaper than those manufactured locally. And that is something that is seen in different industries, not just ours. Therefore, we see that there is a way to go not only by the industry but also by the Government to make local costs better,” Tórtora said.
Likewise, he did not hide his praise for the policies that the Government is applying in terms of foreign trade. “It is difficult to ask that everything change overnight, since only a year has passed. The elimination of the Country tax is a clear demonstration of what he wants to do.”
For example, regarding the flexibility of the foreign purchasing regime through courier, it admitted that it is more competition for its operations. But he clarified: “All competition It is very good, since it gives power to the consumer. This increases the service and quality of the product. But there is a duty from the Government in the tax issue, to balance the loads a little and level the playing fieldas they say.”
“Price is multi-causal, you cannot compare price if you do not compare everything behind it. And I believe that the Government von that path with deregulation that will end in a very large profit for the consumer,” he concluded.
Southbay is the official distributor of the Nike brand in Argentina and Uruguay. The company is a subsidiary of the Panamanian Regency Groupdistributor of the Nike brand in Central America, and also owner of Zara stores in Argentinaanother clothing brand that gave it direct operation of its businesses when it left the country in 2023.
Source: Ambito
I am Pierce Boyd, a driven and ambitious professional working in the news industry. I have been writing for 24 Hours Worlds for over five years, specializing in sports section coverage. During my tenure at the publication, I have built an impressive portfolio of articles that has earned me a reputation as an experienced journalist and content creator.
