[/caption]C + DQ > I + PU. That?s the formula for?franchise growth in Argentina for 2011. Consumption + Demand for Quality will trump Inflation + Political Uncertainty. That?s the tone of today?s iEco analysis of the local outlook for franchises in Argentina.?Andr?s Mazzeo says thatfood and clothing franchises will continue to be the Top 2 sectors with the greatest potential, while more Argentine brands will?pursue an export model, a trend?InvestBA identified last year (Can It Go Both Ways?).
?The?franchise sector grew 16% in Argentina in 2010 which exceeded the sector?s historical rate of 14%,? says Lucas Secades, Executive Director of the Argentina Association of Brands & Franchises.?Food franchises account for 38% of the total pie, clothing franchises account for 17%, and nearly 500 franchises operate?25,000 locations throughout Argentina.
While food and clothing still dominate, the experts Mazzeo consulted said there is?a large void for service franchises in Argentina. Financial, computer training, real estate, home and commercial cleaning, health & beauty, recycling and tech advisory are just some of the service franchises which either don?t exist in Argentina or have ample room for new entrants with good business models.
And the number of?Argentine franchises seeking to export their concept will continue to grow in 2011 following the lead of clothiers like?Cheeky, Mimo, Ricky Sarkany and Caro Cuore. Food franchises are the second-most exported including popular brands like?Havanna, Freddo, Cafe Martin?z and Bonafide.
The last major franchising trends involves powerhouse foreign brands and their?continued consolidation (Starbucks now has 26 caf?s in less than two years, Subway plans to double its locations in 2011) or?long-awaited return: Yum Brands??KFC and Pizza Hut are coming back andAtlanta-based Wendy?s will apparently do the same. (Full Story in Spanish)
For more information about Argentina franchise opportunities,?visit our archives and?download the latest issue of InvestBA Privada.
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