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E-commerce Defies Argentina's Consumption Slump with Soaring Online Sales
🇦🇷 Argentina /Economy & Trade

E-commerce Defies Argentina's Consumption Slump with Soaring Online Sales

From La Nación · () Spanish

Translated from Spanish, summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • E-commerce is the only channel defying a decline in mass consumption in Argentina, with online sales of food, beverages, cosmetics, and cleaning products surging 41.9%.
  • Despite this growth, online sales still represent a smaller portion of the overall market and cannot fully offset the 3.6% drop in physical store sales.
  • Experts attribute the e-commerce boom to accelerated changes in consumer habits post-pandemic, with convenience and ease being key drivers for shoppers.

While Argentina's mass consumption market struggles to find solid ground, e-commerce is emerging as a surprising growth engine. Online sales for essential goods like food, beverages, cosmetics, and cleaning supplies have skyrocketed by 41.9%, according to Scentia data. This surge stands in stark contrast to the 3.6% decline seen in traditional in-person sales so far this year.

E-commerce is the only channel that defies the fall in mass consumption.

— NarratorHeadline summary of the article's main point.

This dramatic growth in online purchasing highlights a significant structural shift in consumer behavior, accelerated by the pandemic and now firmly established as a habit for many Argentines. While the percentage increases are impressive, e-commerce still holds a smaller share of the total market, capturing 9.7% of mass consumption sales and continuing to gain ground annually. It has not yet compensated for the downturn in physical retail.

For more and more Argentines, e-commerce has ceased to be an alternative to become an installed habit.

— NarratorDescribing the shift in consumer behavior towards online shopping.

Osvaldo Del Río, director at Scentia, notes that this e-commerce boom in mass consumption is primarily concentrated among middle and upper-income sectors and in major cities. He explains that the growth, while substantial, began from a lower base and continues to show double-digit increases year-over-year.

There is no single reason that explains it: you have a change in habit or behavior, you have more facilities.

— Andrés ZaiedPresident of the Argentine Chamber of Electronic Commerce (CACE) explaining the growth of e-commerce.

Andrés Zaied, president of the Argentine Chamber of Electronic Commerce (CACE), points to convenience and ease as primary motivators, with 79% of users citing these factors. Walter Vargas of NielsenIQ places this trend within a global evolution, where e-commerce has moved from discretionary items like travel and clothing to everyday necessities. Argentina is now firmly in this third stage, and Vargas predicts continued growth for the channel, irrespective of economic conditions.

Argentina has entered this third stage in the last three years. Beyond any situation, the channel will grow.

— Walter VargasRetail Commercial Director of NielsenIQ on the future of e-commerce in Argentina.
DistantNews Editorial

Originally published by La Nación in Spanish. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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