North American clothing brand Forever 21 finally makes its foray into the local market: will open a store in Palermo next Monday, November 21st. The news of the arrival of the brand in Argentina is not new: the last time it was raised was during the government of Mauricio Macri in 2016. However, that ultimately did not happen. until now.
On this occasion, the store arrives under the aegis of JMC Group, the company that already imports international brands such as New Balance, Speedo and Joma. She was also in charge of carrying past seasons’ collections from H&M department stores.
The new headquarters of Forever 21 will have 180 square meters and will be located a few meters from Plaza Armeniaalthough the garments will also be sold via e-commerce from the same date with free shipping starting at $8,000 Argentine pesos.
Investors’ ambition is to be able to bring Forever 21 to several multi-brand stores across the country, which could become possible from 2023.
With an initial investment of $5 million, the group will try to cover various segments of the local market. The goods that will be made available to customers will include both women’s and children’s and men’s clothing. The company’s growth projections are optimistic and for next year they plan to quadruple the bet and invest $20 million to add accessories, underwear, leather goods, eyewear and perfumes.
The brand’s strategy will also materialize in other markets, the possibility of offering clothing “at affordable prices”, according to investors this is a strength that the brand does not intend to give up and they anticipate that they plan to open two to three stores a year.
The arrival of the brand was preceded by various negotiations that began in August last year. This eventually materialised, but plans to open the premises were delayed due to existing product procurement difficulties.
“Basically there were supply problems, and we had to standardize the laboratories and develop the garments,” explained Jorge Coral, general manager of the JMC Group, in statements to the El Cronista newspaper.
“In the world there are no import limits: they buy and deliver from their origin. Here it had to be 70% national and 30% imported, but with the problems that arose, we had to change. We need a work of approving fabrics, moldings and others that made the launch longer than expected,” the businessman added.
The arrival of the brand comes at a less than ideal time due to the barriers to imports that most sectors face. This is why business in Argentina will be successful manufacture all products in the countrywhile in the other countries where Forever21 operates, local production is combined with imports.
For this, the Argentine company chooses from the collections offered by Forever 21 and should look for similar fabrics in the country which are then approved together with the molds to start being produced locally. However, If imports become more flexible, they will also try to bring in foreign-made clothing.
Source: Clarin
