International Brands Return too Argentina as Economic winds Shift
BUENOS AIRES – A wave of international brands is once again setting itS sights on Argentina, marking a significant shift in the nation’s economic landscape.Driven by factors such as commercial opening, relaxed exchange controls, and increased macroeconomic stability, thes companies are either entering the Argentine market for the first time or re-establishing their presence after previous departures.
From luxury goods to sportswear, gastronomy to beauty products, the resurgence spans diverse sectors. This renewed interest signals a potential turnaround for Argentina’s economy, which has faced challenges in recent years.
One notable example is the iconic footwear brand Dr. Martens, which recently announced its return to Argentina. After leaving the country in 2022, citing import restrictions and a broader retreat from Latin America, the company is set to open a store in the trendy Palermo neighborhood in July, with further expansion planned for next year.
“The brand announced yesterday that it will open a place in Palermo in July, with expansion plans next year,” the company said in a statement. “The firm had abandoned the country in 2022, within the framework of its departure from Latin America and import restriction during the previous management.”
Swiss running shoe brand On is also planning its entry into Argentina, with the BISA group slated to open two stores in 2026, one on the street and another in a shopping center. Founded in Zurich in 2010 by former athlete Olivier Bernhard, David Allemann, and Caspar Coppetti, On gained further prominence when tennis legend Roger Federer joined as an investor and product development collaborator in 2019.
French sporting goods giant Decathlon is also strategizing a return to Argentina after an earlier, brief foray between 2000 and 2002 was cut short by economic crisis. “Plan to return to Argentina,” the company stated, outlining plans to open an initial store in Buenos Aires and than progressively expand into other regions.
Victoria’s Secret has also recently established a presence in Argentina, under the management of the David Group. The lingerie and beauty brand opened a store in the Unicenter shopping mall, with plans to add locations in the Pacific and Alto Palermo galleries. “Victoria’s Secret will open another place at Alto Palermo at the end of the year,” a spokesperson for the brand confirmed.
The brand’s initial plans for a launch in 2019 were derailed by the pandemic and unfavorable macroeconomic conditions. Prior to these openings, Victoria’s Secret products were only available at duty-free shops at Ezeiza and Aeroparque airports.
JBL, a leader in electronics and audio equipment, is aiming to consolidate its market position with five new physical stores slated to open across Argentina by 2025. “The strategy is to strengthen their presence and offer personalized experiences to local consumers,” the company explained.
Bath & Body Works further expanded its reach by opening its third location in Argentina in 2024, in Pacific Galleries, following the opening of its first store in Unicenter the previous year.
Luxury brands are also eyeing the Argentine market. Gucci has registered its brand with the National Institute of Intellectual Property (INPI), a crucial step toward establishing operations in the country.”Gucci,recognized for its line of clothing,accessories and perfumes,registered its brand at the National Institute of Intellectual Property (INPI),” the company stated. This registration, initiated in 2022, lays the groundwork for a commercial strategy that could encompass both product sales and a flagship store in Buenos Aires.
Dolce & Gabbana is also seeking a prime location on Alvear Avenue or in the Patio Bullrich, two of Buenos Aires’ most prestigious luxury shopping destinations. The Italian fashion house plans to launch an exclusive store in the spring of 2025, part of a global expansion strategy involving 15 new stores across various countries.
liu Jo, specializing in clothing and accessories, and Furla, known for its designer handbags, both opened stores in Pacific galleries in 2024. Private Edition, a fragrance project by Beauty Group, also debuted its offerings on Alvear Avenue with a focus on niche, artisanal perfumes.
The automotive sector is also experiencing new activity. Chinese electric and hybrid vehicle manufacturer BYD is poised to enter the Argentine market through a government incentive program that allows the import of 50,000 electric and hybrid vehicles without tariffs.
Counterargument and Considerations
While the influx of international brands signals renewed confidence in Argentina’s economy, some analysts caution that the long-term sustainability of this trend depends on the government’s ability to maintain macroeconomic stability and address persistent challenges such as inflation and currency fluctuations. Moreover, the impact on local businesses remains a concern, as they may struggle to compete with the resources and brand recognition of multinational corporations. Though, proponents argue that increased competition can also stimulate innovation and productivity improvements among domestic firms.
FAQ
What factors are driving the return of international brands to Argentina?
The return is driven by a combination of factors, including commercial opening, the versatility of exchange restrictions, and greater macroeconomic stability.
Which sectors are seeing the most activity from international brands?
Activity is high across diverse sectors, including luxury goods, sportswear, gastronomy, beauty products, and even the automotive industry.
When is Dr. Martens planning to reopen its store in Argentina?
Dr. Martens is scheduled to open a store in Palermo in July, with further expansion planned for next year.
How will the arrival of BYD affect Argentina’s automotive market?
BYD’s entry into the Argentine market, facilitated by a government program, will introduce new electric and hybrid vehicle options and perhaps accelerate the adoption of these technologies in the country.* what challenges might these international brands face in Argentina?
Potential challenges include navigating Argentina’s complex regulatory environment, managing inflation, and adapting to local consumer preferences.
