Ralph Lauren to exit Argentina
Import barriers and bureaucracy have been severely affecting the fashion groups operating in Argentina. According to Clarín daily , Ralph Lauren is planning to leave the country.The Ralph Lauren, who entered Argentina in 1999, has a flagship store on Avenida Alvear and two other shops. Initially, the company is considering to stop operating the flagship of Alvear.
In addition to the import barriers, international groups operating in the country facing a decline in sales driven by the difference in prices of products and by reducing the flow of tourists.
The first foreign company out of Argentina is the Yves Saint Laurent who left the country late last year, after thirty years in Argentina. Escada, which operated in Argentina through a representative, recently closed its activity in Alvear Street. In 2009, Argentina launched a protectionist policy to reduce imports of 600 products, including textiles and footwear, which affects both China and the United States to Europe, and Brazil, its largest trading partner.
According to the newspaper “Clarin” luxury consumption in Latin America had an annual advance of 15% over the last ten years. The region’s leaders in this segment are Mexico and Brazil. Argentina, despite the potential for consumer spending, has stalled economic growth figures and is well below the ranking.