Since arrival at presidency of Javier Mileimuch is said – and written – about interest of multinational companies along with renowned and/or luxury brands to return or disembark in Argentina. The truth is that, specifically, reality shows that until now everything remains speculation and very few actions.
Perhaps the most emblematic case of fake news surrounding the landing of luxury brands was Gucci. More specifically, At the beginning of this year, the registration of the Gucci brand in the Argentine Intellectual Property Registry generated expectations about the opening of a store by the prestigious Italian brand in the country. However, sector specialists pointed out that, for the moment, it is unlikely that Gucci will open a store in Argentina in the short term.
The reality is that Argentina is not a market of interest for luxury brands. The factors are many, but in general terms the most obvious is that the purchasing power of Argentines is very far from this type of items.. For example, mass consumption plummeted 18% in December and 2024 was the worst year in two decades. Very far from any luxury.
Meanwhile, Back in May of last year, Alfonso Dolce, CEO of Dolce & Gabbana, announced the Italian fashion house’s intention to open its first store in Argentina by spring 2025, considering it was “the right time” to enter the market. local. However, to date, no significant progress has been made on this project, and the company did not provide updates on its landing in the country.
Quite far from the glamor of a luxury brand, it was also mentioned Pizza Hut as a renowned brand with intentions, in this case, of returning to the country, this time under the form of franchises, something that could be more consistent with the type of market that Argentina presents. Strictly speaking, it would be a risky bet because The same brand landed in the country twice, in 1983 and 1997, and both times it withdrew because the competition with the traditional Buenos Aires pizzerias left it out of the game.. For now, there was no news either.
For its part, Decathlon is another brand that is mentioned as possibly interested in landing in the country. In this case, a plus point is that it has Grupo One behind it, a company that includes Manuel Antelo, an Argentine businessman based in Uruguay, along with Sabine Mulliez and Pedro Aguirre Saravia, who also have close ties with the Mulliez family, owner of Decathlon and other brands such as Leroy Merlin and Auchan.
The truth is that the project is still under evaluation and still depends on key factors such as the closing of commercial agreements and the evaluation of the local economic environment.
Meanwhile, The renowned lingerie and beauty products brand, Victoria’s Secret, promised and delivered. In the coming weeks it will open its first official store in Argentina, located in the Unicenter shopping center and in May it plans to open another store in Galerías Pacífico.
The arrival of this brand had been announced since 2019, but was then paralyzed by the pandemic, followed by Argentina’s economic ups and downs. In this framework, the firm already has its website online where it sells beauty and perfumery products.
Argentine prices
The fundamental issue is that, Despite the possible interest of some international brands in entering the Argentine market, a key factor that works against their expansion is the high cost of products in the country. Compared to other countries in the region, Prices in Argentina are among the highest, especially in categories such as clothing, accessories and appliances. This is largely due to the combination of high inflation, high tax rates and a complicated distribution chain.. As a result, Argentine consumers are forced to pay much higher prices than in other nearby markets, which limits the purchasing power of the population and discourages consumption.
The imbalance in prices is also generating a phenomenon where many Argentines choose to travel to neighboring countries such as Chile to make purchases, since they find much cheaper products, even when travel expenses are considered.and. Currently, Chile has established itself as a key destination for Argentines looking for everything from household appliances to clothing from international brands. This behavior reflects a complex economic reality, where the lack of purchasing power of a large part of the population and high prices complicate access to foreign brand products in the local market.
In general terms, for these brands to finally materialize in the country, it is essential that there is a recovery in the purchasing power of Argentines. International companies, despite their interest, are unlikely to make the decision to invest on a large scale in Argentina if the economic situation does not improve, since their profit margins would be quite far from ideal.
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.
