Argentina flag Argentina: Buying and Selling

Advertising and marketing in Argentina

Marketing opportunities

Consumer Profile

 In 2022, the population of Argentina is estimated at 46.2 million inhabitants, with 49.1% of males and 50.9% females (INDEC). The median age in Argentina is 32, with 21% aged between 0 and 12, 18.5% between 13 and 24 years, 49% between 25 and 64, and 11.6% 65 or older (Data Reportal). Most households consist of two or three people, with one-person households representing 18% of all households, while two or three people households account for 42% of them, 29% of them have four or five people, and 11% have six or more inhabitants (INDEC, latest census data). With a literacy rate of 99%, the same rate of children enrolled in primary education, Argentina has high education levels. Additionally, 90% of those with primary education degrees go on to enroll in secondary education. However, only about 36% of Argentines aged 25-64 years old completed a tertiary degree in 2020 (OECD). More women (45%) than men (34%) attain a tertiary degree in the country (OECD, 2020). More than a fifth of women earned a bachelor’s degree, while only 15% of men did so. Argentina's population is mainly urban, as 92.3% of Argentines live in cities, with the 10 largest metropolitan areas accounting for nearly half of the population (Data Reportal, 2022). One-third of the population lives in Buenos Aires alone, and pockets of agglomeration occur mainly throughout the northern and central parts of the country.

Purchasing Power

GDP per capita has been fluctuating for years and has been declining since 2017. In 2020, it amounted to USD 20,770 PPP (World Bank), and the average yearly salary was estimated at ARS 158,000 in 2022 (INDEC). The concentration of wealth is very high in Argentina, as the country’s richest 10% control more wealth than the poorest 60% of the population. Furthermore, Gini index coefficient in Argentina was reported at 42.3 in 2020 (World Bank, latest data available). Additionally, the wage gap between men and women reached 25% in 2021 (Statista). However, it is possible that the wage gap is much larger than that, given that salaries for domestic work are not taken into account, and 14.2% of women in the country work in domestic services (Argentina Ministry of Labor, 2021). Out of all registered workers in the country, 43.9% are women and 56.1% are men (Argentina Ministry of Labor, 2021). Additionally, 78% of the population works in the services sector, 22% in industry, and 0.1% in agriculture (World Bank, latest data avalable). The highest wages in the country are in Buenos Aires, followed by Córdoba, then Corrientes.

Consumer Behaviour

Consumption preferences in Argentina tend to be closer to those of European countries than those of its Latin American neighbours. Given that the country went through a few crises over the past two decades, Argentine consumers have become quite frugal and consumption shifted towards value for money. Argentinian consumers tend to be rational and conservative with their money, buying only what is strictly necessary, prioritising price, not wasting, walking instead of driving, and acquiring new brands when cheaper. As a result, purchasing tends to orient itself around sub-brands and special offers, and household spending has decreased. Consumers have also become more selective and more reticent with regard to new products. Moreover, Argentine consumers tend to favour national rather than imported products, especially as the latter can be up to three times more expensive. According to Nielsen, since the pandemic consumers have changed their spending habits to save on household expenses, have cut down on takeaway meals and alcohol, and have switched to cheaper brands when shopping for groceries. In the food sector in particular, consumers tend to buy whatever is cheapest and are not loyal to brands. They also search for the best prices and special deals before buying a product, even if that means going to several different shops in one day. However, they tend to choose healthy but flavoursome products that are practical and easy to prepare, while looking for a bargain at the same time. They are also not loyal to specific retail chains, and are constantly looking for better service, less time waiting at the till and an overall better shopping experience, wherever that may be. Therefore, shops are constantly battling each other to attract consumers, which forces retail chains to invest in mass media advertisement, announcing discounts, great deals and special offers. On the other hand, wealthier consumers accept the higher prices of major brand names, because they perceive these brands to guarantee safer products and higher quality. Furthermore, younger consumers are more brand conscious than older consumers, and, even though price is still a concern, they usually do not mind paying more for a brand-name product. Even though on-line shopping has been growing in the country - especially among the younger generations - consumers still prefer to do their shopping in person. When shopping on-line, after sales service and delivery play a considerable role in purchasing decisions among the majority of Argentines. The household appliances sector is particularly interesting, as there is an overall preference to repair, rather than replace, older goods, so there is a flourishing market for household appliance spare parts in the country. Consumers are highly attracted to collaborative platforms such as Uber in Argentina. Nevertheless, except Mendoza province, use of such platforms are considered illegal, pushing consumers to use public transportation or licensed taxis.

Consumers Associations
Consumidores Argentinos
Main Advertising Agencies
Saatchi & Saatchi
Havas Worldwide
Havas Media
Argentine Association of Advertising Agencies (AAAP)

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Latest Update: July 2024