Abstract
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive
environment
Product coverage
DIY; Gardening
Executive summary
Another Year of Growth Following the Crisis
DIY and gardening registered as a year of consecutive growth in 2006,
following the economic crisis that affected Argentina between 1999 and 2002.
Almost all sectors of the market expanded considerably, encouraged by the
extension of credit to consumers and a growth in the sale of used and new
houses. An increase in the average wage and a reduction in poverty were others
factors that promoted sales. The rates of growth of the economy will slow down
in the medium term, although it is anticipated that the benefits from economic
growth will remain at least until 2011.
Large National Companies Grow and Multinationals Arrive
National companies were able to maintain growth by exporting their products at
competitive prices, due to the devaluation of the local currency. The
situation was enjoyed by companies both large and small, although first of all
they had greater access to credit and were able to extend and modernise their
production plants. In 2003 the Argentine company leaders headed huge publicity
campaigns and established contracts with large retail chains, which were very
successful.
The expansion of the market and the Argentine economy attracted a new wave of
large investments on the part of multinational companies, either through
direct investments, buying companies that had gone bankrupt during the
economic crisis, or through representatives.
Increase in Property Construction Encourages Sales
Since 2003, an economic growth in property investments in Argentina, of more
than 20% annually, was registered, and this had a positive impact on DIY and
gardening sales. By the same token, this situation caused inflation to rise
and a shortage of products, and consequently the reopening of factories and an
increase in imports.
Large Retail Stores Conquer in the Market
In recent years public preference has leaned towards large retail stores, and
this led to expansion and an increase in the arrival of new competitors.
Department stores, shopping centres and supermarkets grew with the opening of
new premises in the large towns and cities, and this benefited the market as
it increased the availability of products. The expansion in DIY retailers
modified the structure of the business in Argentina and encouraged consumer
spending. The small specialised commercial outlets, which had been the
favourites for decades, have lost a great deal of business.
Do It Yourself Concept Grows
With expansion in the economy and the improvement in wages, the DIY mentality
grew, also thanks to televising programmes, magazines, books and pamphlets
that advertised and encouraged the concept. The role of the retail channel was
fundamental and will continue to be so in the medium term, through the
availability of courses and services on offer. In the next few years it is
expected that there will be a modification in the way products are promoted,
and also in distribution and packaging.
View Cart
