Countries in Latin America are becoming increasingly popular with overseas investors and businesses wanting to expand their audiences – and one of those countries is Argentine. With more than 43,000,000 citizens and a GDP of 959.528 billion, the country is an attractive choice for businesses who want to capture the attention of a new customer base and increase profits.
In this article, we delve deeper into incorporating and growing a business in Argentine, whether you are from the territory or you’re a business owner ready to take on a new challenge.
Understanding the local market
Before you dive headfirst into the country and attempt to conquer the world, it’s important that you take the time to understand the local market. The country has attracted a great deal of media attention in recent months, after a rescue package was used to shore up the currency. In short, the country is not in a financial crisis, but its long-term stability is currently in question.
The good news for businesses, however, is that an uncertain market makes investing all the more attractive. Indeed, you can take advantage of cheaper labour (the average monthly salary in Buenos Aires is just over $800 US dollars) and unemployment is high at 9.6%, which gives you access to a whole pool of talent that’s ready and willing to work. For businesses looking to outsource or expand their manufacturing processes, for example, Argentine could be a sensible choice, especially as the US dollar continues to perform well against some other currencies.
However, before you make the jump, you should truly understand the market and your place. By visiting the country and checking out local competition, and by working with a Latin American business expert, you’ll be able to weigh up the pros and cons of an Argentine expansion and be sure that you’re making the right decision. After all, expanding into a new territory can be risky and time-consuming, so by taking your time, you’ll be able to iron out any potential issues.
Once you’ve decided that Argentine is the right country for your expansion, your next step is to begin your expansion. You’ll need to invest in company incorporation Argentina-based, and you will also need to think about hiring a local employee who will be able to assist in recruitment, marketing and business development. Of course, you could go it alone and do your own work to find employees and new customers, but the language and cultural barriers may get in the way.
Something else to consider when expanding is the right location. According to a report from the Debate Report, Argentina’s capital city Buenos Aires is one of the best cities in Latin America for startup businesses, offering easy access to skilled tech workers as well as services such as banking, recruitment, marketing and more. Other cities to consider as an Argentine hub include Mendoza, in the heart of Argentina’s wine country, Córdoba, which has a population of 1.4 million, and Rosario, Santa Fe, which is home to almost a million Argentinians. Explore each of these cities, as they all offer something unique, whether it’s easy to access to public transport and airports, highly-skilled workers, or affluent citizens more likely to buy your products.
Marketing your products
Now that you have established a base within Argentine and you’ve built a team of professionals, the next step is to market your products and services to the masses. Remember that the official language of the country is Spanish, so be sure to have all of your marketing materials translated for maximum impact, and work with a local specialist who can produce marketing content that will really speak to your audience. You may want to consider running an influencer marketing campaign, for example, working with well-known social influencers in Argentine to promote your products, or you could choose more traditional methods like newspaper and billboard adverts.
When you’re putting together a campaign, be mindful of your target audience, and understand that you may have an entirely different audience in Argentine to your audience at home in the United States. Indeed, cultural differences will affect your choice of words and photography, so get to grips with who you want to target. Italian, German, English and French are all also spoken as languages with the country, so depending on your product, you may run simultaneous ads to find as many potential customers as possible.
Something else that separates Argentines from other Latin Americans is that they are primarily of European descent. Because of this, they are culturally and emotionally different from the rest of Latin America, although similarly to countries like Mexico, family and respect are considered of the utmost importance. Citizens are also known to be open, blunt, and direct, so this may be something you want to feed into an advertising campaign to play on emotions through humour.
Growing your Argentine business
The hard work really only begins once you’ve established your business. The next question you are likely to ask is how you will grow your brand. There are lots of ways to take a business to the next level, whether that involves acquiring local competitors to add to your customer base and increase your market share, running more advertising campaigns and sponsorship deals, or diversifying your products and services to add new lines and increase your profit margins.
Once you’ve expanded into Argentine and have an established brand, you may even want to look further afield. Indeed, the country borders Chile, Bolivia, Paraguay and Uruguay, meaning a physical expansion through opening new stores and delivering products to other countries isn’t impossible. What’s more, as the countries are similar in terms of culture and attitudes, the rollout should be more manageable than your initial expansion into Argentina from the United States.
In short, the opportunities for businesses that are looking to expand into Argentine or to other Latin American countries are immense. Combined, Latin America is home to more than 640 million citizens and a combined GDP of 5,573,397 million USD. So, if you’re still on the face, don’t be: huge opportunities are out there waiting for businesses just like yours, and if you don’t grab them with both hands, the chances are that one of your competitors’ will. Best of luck!