luxury brands mass from Argentina

   A number of retailers of luxury goods leave Argentina in response to trade barriers, exchange controls and inflation.

American designer Ralph Lauren was the most recent outing when he announced last month that it close to three of its branches in Buenos Aires, including the flagship in the upscale Recoleta, drastic measures on imports almost all would not let him lie on the shelves.

Ermenegildo Zegna, Escada, Calvin Klein Underwear and had already closed or greatly reduced operations in response to the growing challenges of doing business in the country. Local media said the French jeweler Cartier intends next month.

President Cristina Fernández end of last year to protect tightened controls on imports to a trade surplus drops. His government has also improved access to foreign exchange to the ranks of the Argentine peso against with regard to their dollars, prevent their savings from one of the highest inflation in the world to protect limited.

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Tourism, which has exploded in the last decade has slowed since Argentina was expensive and limited Europeans traveling through tougher economic climate at home.

Movements emphasize the increasing difficulties of foreign companies in Argentina, where the government has resorted to protectionism to address challenges such as rising domestic prices faced, reduced confidence in the currency and a trade surplus of erosion.

"This is a complicated scenario," says economist Miguel Kiguel, Executive and Secretary EconViews former Argentine Finance. "Companies can not the products that they need in order to function normally. Moreover, reduced tourism, while the country has become more expensive."

To the city of Buenos Aires, sometimes called the "Paris of Latin America" ​​losing blue chip international brands is a blow to the international reputation of the city.

"These stores are so elegant and glamorous," said Cristina Shopper Beltrame, below Alvear Avenue, the most Parisian streets in the Argentine neighborhood of Recoleta, this past weekend. "It's sad to see them go."

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Ralph Lauren said in a statement that the closure was only temporary, but does not specify whether and when they want to open their shops.

Argentina won last year, according to central bank control the foreign exchange reserves fell by more than 10% as Argentines lined up outside the offices of exchange buying dollars. The country is not in a position to international debt markets since its default $ 95000000000 in 2001, requires reserves to repay debt.

The government has banned all international companies, but to make profits abroad in order to reduce the demand for international currency. Argentines are also prevented from buying foreign currency, so that many of their foreign travel plans in advance of the summer season, give up.

Exchange controls and a growing sense of unease, as the economy slows and inflation continue to erode the purchasing power, cut deeply into the popularity of President Fernandez. Local management and research firm said Fit 72% of Argentines now how the government manages the economy decline.

In response to financial control, perceived by many as a limitation of their freedom, hundreds of thousands of Argentines did in the streets last week beat pots and chanted against rising prices and increasing crime in the biggest challenge to President Fernandez in more than four years.

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While the president tried to minimize the significance of the event, local analysts see as a turning point in his presidency.

"The middle class, shown last week, is an important segment in the political social composition," says political analyst Rosendo Fraga. "And this event shows that voters are now distancing themselves from the government."

Argentina's economy is still in the process of expansion of 2.2% this year, according to the World Bank, nearly 9% in 2011.

Some companies, such as the French company Lacoste and Research in Motion (RIMM), maker of the BlackBerry smartphones have to establish local factories and adjusted to fit some of their products in the country.

But for the vast majority of the international brands, the size of the Argentine market is not justify such an approach, especially as the wages of native workers are the highest in the region.

One of the most controversial government imposed last year was to require companies that import products with exports to offset their own, whereupon the unusual partnerships as luxury carmakers., A team with a local wine merchant exporters or luxury brand partnership with a wool exporter

The automakers Fiat and Renault this year had both the production slow down due to lack of imported parts.

Inspections leave little choice for many international companies - a choice of the Fernandez administration would be likely to happen, it needs to know. So far, however, neither the departure of global brands, or the dissatisfaction of the Argentine people is very serious.