Argentina’s Position in the Latin American and Global Apparel Market

Topics: Retailing, Argentina, Shopping mall Pages: 5 (683 words) Published: May 19, 2014
Argentina’s Position in the Latin American and Global Apparel Market The recent global recession affected many regions including the Latin American region very negatively. However, the region has shown resilience due to its better performance after the recession than other global regions (n.a., 2014). Global Retail Development Index (GRDI) for the year 2011 ranks the region as amongst the top best retail economies in terms of performance, country risk and potential (ATKearney, 2014). This is as shown in figure 1 below with the quantity of sales given by the bubble sizes as adopted from ATKearney (2012). In the year 2007 the apparel market in the region was valued at more than 90 billion United States (US) dollars. Due to improvements in incomes, fashion awareness, credit access and retail networks the regions apparel industry in the year 2012 was rated at more than 150 billion US dollars (ATKearney, 2012). Figure 1 - Latin America Market Potential, Sales and Country Risk Analysis

Source: (ATKearney, 2012)
Argentina is one of the best poised apparel markets in the region boasting of a significant share in apparels such as foot wear, children’s wear and menswear amongst others. This is as indicated in figure 3 below. An AT KEARNEY analysis places Argentina amongst the top twenty countries to watch in the region. Its apparels growth in the year 2006-2010 as reported ATKearney (2012) is show in figure 2 below. Its market potential is positively placed at a ranking of approximately 50 while the country’s risk is favourably placed at around 30 as shown in figure 1 above. The apparels market for the Argentinean economy is valued at approximately 7.1 billion US dollars which is around 4.6% of the region’s apparels market (ATKearney, 2012). Figure 2 - Apparels Sales Growth in Argentina

Source: (ATKearney, 2012)
Additionally, the country’s consumer spending is expected to grow to 32% by the year 2017. This shows a positive correlation given the regions expected consumer spending growth of 32%. Argentina’s is thus the home to many key players in this industry such as Levi, Zara, Kevingston, Legacy and Cheeky amongst others (ATKearney, 2012). Due to its significant position in the region the country boasts of high apparels exports and collaboration with key apparel nations such as Brazil, China, Chile and US. The country has over 18 clothing industries and 19 leather industries (ATKearney, 2014). Figure 3 - Apparels Markets in Latin America by Categories

Source: (ATKearney, 2012)
Supply and Distribution Network of the Argentinean Apparel Market and Industry The apparel supply and distribution network in Argentina is robust, efficient and very reliable due to many factors. However, the main distribution channel is through the shopping malls which are regarded as the main retail outlets. These shopping malls comprise of shop outlets that are owned by many different individuals and entities. Their dominance is fostered by their strategic locations and the frequency of shoppers who are out to for apparels varieties they offer (n.a., 2014). The second favoured forms of apparel outlets are the street outlets which are preferential to consumers for their price offerings. This is because they offer discounted prices in their well placed shopping regions or districts. The third common form of apparel outlets are the conventional retail shops that are owned by individuals. Their preference is supported by their sound customer relationships that are based on personal relations and word of mouth. The fourth preferred apparel outlets are supermarkets which are frequented by the modern middle to upper income consumers (n.a., 2014). Other types of shopping outlets include large Stores such as Ex-Jumbo and Balbi amongst others, whose consumers prefer a one stand shopping experience. Recent entrants into the apparel outlets are online platforms such as the internet, social media and mobile marketing. In the year 2011...

References: ATKearney., 2014. Global Retailers: Cautiously Aggressive or Aggressively Cautious? atkearney.com [Online]. Retrieved March 23, 2014, from:
ATKearney., 2012. Latin America Apparel Retail. Chicago: A.T. Kearney.
Euromonitor., 2014. Apparel in Argentina. euromonitor.com [Online]. Retrieved March 23, 2014, from:
n.a., 2014. Research on Distribution Channels. latinamerican-markets.com [Online]. Retrieved March 23, 2014, from:
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