H & M. Why not open your own store in Argentina

A few weeks ago and almost without advertising, they started to sell in the Argentine market the clothes of the clothing brand H & M. The landing of the brand which did not materialize directly but by the The intermediary of a local group that buys surplus stocks in Europe has aroused an unprecedented wait in a market marked by the recession of local clothing. People make more than an hour to enter the premises, overflow parking lots and
Sales records raise the question of timing: why H & M does not open its own store in Argentina, following the steps of what it has already done
Chile and Uruguay?

To understand what is happening, the first thing to consider is the tax issue. Taking into account all taxes, fees and tariffs, importing a garment in Argentina entails an additional cost of 50%. That is to say a blouse whose FOB price (without freight or tariffs) is 4 US dollars. When it came out of the customs of Buenos Aires, it already has a floor of US $ 6, to which must be added the personal operating costs) and the profits for the company that brings the goods (in this case the signature of businessman Arturo Alacahan, who also holds licenses for the local market of New Balance and Speedo brands).

The second factor hindering the arrival of the Swedish brand is the memory of what happened with the 2011 import inventories. H & M, like all fashionable clothing brands, manufactures all its production in Asia. and its activity depends on fast imports. no problem, because it works with four or five collections a year. This industrial and commercial scheme is perfectly compatible with a clear and stable import policy, such as was historically lacking in Argentina.

These factors also add that H & M is growing worldwide (in the last quarter, its global sales exceeded 6 billion US dollars, with growth of 11% year-on-year = relatively small market like Argentina.

"The danger of settling here is that your action outside is punished by the Argentinian risk of a sales volume never very important, even if the results are good," they explain in another brand, which left the country with stocks to imports

H & M opened ten days ago in the luxury store, in the Luján Walk shopping mall. The clothes that are sold in the country are surpluses of the Swedish brand that come from Europe and for a logistics issue never entered the stores. "We buy this merchandise from wholesalers and the important thing is to point out that it is not second-hand clothing, but clothing that has not been delivered to H & M's stores because of a miscalculation. or overstock, with what is called in the industry "keep the curve", that is to say having all sizes and sizes, "said Alacahan La Nación.

The projects of Luxury Outlet include an extension of their proposal, including the opening of new stores in Tigre, Pilar and in the federal capital. In all cases, openings will include H & M clothing.