Country Overview
Argentina is a huge country. In fact, it is the seventh largest country in the world with an area of 3,761,274 km² and a total population of 47 million inhabitants.
Argentina is located in the south of the American continent and in its extensive territory, we find plains, mountains, lakes and a huge maritime coast.
The distance from the northernmost point to the southernmost point is about 3,700 km. This allows its inhabitants to experience almost all climates, enjoying beautiful nature with incredible variety of flora and fauna.
There are several points of tourist interest such as the Iguazu Falls, Patagonia, the Andes Mountains range with its glaciers and snow-capped peaks for skiing and around 6,000 km of coastline to enjoy all kinds of sports.
Argentina is divided into 24 provinces, and its population is concentrated in large cities. The capital is the City of Buenos Aires. The three powers of the National State work and 3 million people live in Buenos Aires.
The food industry is the strongest in the country with an important production of cereals and livestock, taking advantage of the extensive plains that the land offers.
In Argentina the official language is Spanish and its currency is Peso.
Education at all levels is free for all inhabitants, which allows to find professionals in any discipline.
Tango is a cultural landmark of our country that can be enjoyed when visiting Argentina, as well as football, dulce de leche and asado.
Argentine culture is a culture marked by European immigration both in its customs and in its idiosyncrasies. The inhabitant of this country is a friendly, enterprising person and open to socialize with people who come to discover our land.
Direct Selling in Argentina
The country has a long tradition in direct selling. This is clearly reflected in the 49 years of the life of
CAVEDI – “Cámara Argentina de Venta Directa” (the DSA of Argentina).
With an annual sales of $1,468 million in 2020 and almost 1 million independent resellers, it is positioned as a very solid market in the global industry.
Most of the companies are located in the City of Buenos Aires and its surroundings. They make their shipment from there, reaching all parts of the country.
There is a large number of international companies in the country, including the most important direct selling companies in the world.
Regarding the product categories, Argentines continue to choose buying cosmetics and makeup products through the direct selling channel over other products.
There is a local regulation for products for human consumption.These products must have the authorization of the corresponding state agencies in order to be marketed.
There is a wide range of local suppliers to meet the different needs of companies wishing to invest in the country. Within this, we find companies that are dedicated to logistics, IT, packaging, elaboration of finished goods for third parties, collection systems and an extensive list of products and services that enable the realization of business.
Given the restrictions that exist to import products, it is advisable that companies that wish to set up their operations in the country develop local production. This production could be through its own infrastructure or through contracting the services of a third party.
There are no licensing requirements in Argentina to market products through the direct selling channel. So, any legally established company could carry out this business.
In the Province of Santa Fe, though, there is a provincial direct selling law that requires companies doing business in this territory to be registered with a registry administered by the provincial authorities.
We have companies using single and multilevel plans, as well as party plan and door-to-door systems. All these businesses are allowed in our country, including the option of going omnichannel that is increasingly gaining momentum.
Argentina is no stranger to the global problem of pyramid scams. Recently, the government has disrupted several gangs that were engaged in Ponzi schemes and the like.
CAVEDI – Argentina Direct Selling Association
CAVEDI provides guidance to compaines that wish to enter the country in compliance with local regulations. That said, it is always advisable to get help from a legal and a tax advisor in establishing a business in Argentina.
The Argentine Direct Selling Association is the custodian of the WFDSA Code of Ethics and all companies that are associated with CAVEDI comply with the necessary requirements.
At CAVEDI, we work with different committees in dealing with the issues that are relevant to the industry. The best professionals in our sector participate in these committees. We organize meetings to discuss topics such as logistics, law, collection systems, e-commerce, human resources and all other the topics that improve our businesses.
April 16 is the “Direct Selling Day” in Argentina. On this day, we honor nearly one million women and men who dedicate their time and passion to start their independent businesses in our beloved industry.
The companies associated with CAVEDI share a common purpose for the entire Industry: “To Generate Opportunities and Value in Argentina”.
We invite all companies that want to do business in Argentina to join our purpose.
…..
Written by Gonzalo Falcon, Executive Director of CAVEDI, DSA of Argentina. Gonzalo is passionate about the direct selling industry. He has been working in various companies in the sector for 25 years and since 2019, he has been leading CAVEDI. With a Bachelor’s Degree in Business Administration and a Master’s Degree in Marketing and Communication, he is the visible face of the association in matters related to public and institutional relations, as well as contacts with media and other stakeholders. Gonzalo serves as Advisory Counselor for the Latin America region at the WFDSA (World Federation of Direct Selling Associations).
Click to read the other Country Spotlights on The World of Direct Selling.
SHARE THIS:
Leave a Reply