Top designer labels abandon Argentina

Global luxury brands designer Argentina abandon. Instead of the severe restrictions on the government business news, leaving empty shelves and showcases elegant look along Capital Avenue Alvear, where tourists flock to a According to the latest fashion Kenzo is the last to leave. The owner of the Japanese label, Louis Vuitton Moet Hennessy, issued a statement on Tuesday Argentina guilt "complex economic context" in his store on 10th To close October. Kenzo government trade restrictions, the spring and summer clothing lines kept import, store employees Christianopol Stella said. Louis Vuitton Outlet Store He joins a long list of luxury brands pulling out of Argentina: Emporio Armani, Yves Saint Laurent, Escada, Calvin Klein Jeans, Polo Ralph Lauren, Louis Vuitton and Cartier. Labels have become collateral damage that the government draws its grip on the Argentine economy with measures to promote domestic production and to acquire more wealth to help the poor. For millions of Argentinians, it can make a big difference: the Louis Vuitton handbags President Cristina Fernandez does like to wear a month's salary for a typical factory worker. But it leaves hundreds of labor and critics say it is a symptom of bigger problems that are stalling the economy. "It's a shame, because Alvear betting like 5th Avenue in New York or the Champs Elysées in Paris," said Constanza Sierra, a consultant with 20 years of brand marketing experience top names in Argentina. "So it hurts the country's image. This is what strikes me most sad," she said. Populist government of Argentina is not the loss of sweat. Answer Tourism Minister Enrique Meyer, there was a "Let Them Eat empanadas" strike against the nation's elite. He suggested that the labels are overrated, and their departure would have minimal impact on the economy in Argentina. "Louis Vuitton is everywhere," said Meyer Radio Mitre last week. "On the other hand, we have brands that increase have," and he cites Argentina labels Cardon (leather jackets, handbags and other clothing), Pampero (Gaucho-style khaki pants and other garments robust), El Noble Repulgue (pies) and Freddo (ice). Most of these brands have little in common with high-end labels escape Argentina exposed imposed by their nature, primarily due to a combination of ever tighter restrictions on the import and currency protect domestic producers. Sierra agrees that purchased products from the brand of a small elite in the country of 40 million, it said. "There are a ton of people who are losing their jobs, not only in stores, but in the advertising and events before satellite which surround the subject. " The fundamental problem is that the currency is overvalued Argentina, Ramiro said Castineira, an economist at Econometrica consultancy in Buenos Aires. At 4.7 pesos per dollar, find it profitable to import goods than to produce domestically, he said. But rather than address them directly to Fernandez bureaucrats work increase import licenses to businesses the value of the cargo movement matches an equal amount of production or investment in Argentina promise. The import controls deliveries to Argentine consumers who spend much or exchange pesos before they lose their value, creating a spiraling inflation and currency trading illegal Castineira said reduced. The black market peso devalued the dollar effective informally in now to 6.2 or more for the dollar - to a drastic reduction in the official rate, but still better than watching the inflation of 25 percent or more per year, destroying savings. In response to the madness of the dollar, the government has created more controls, forcing businesses and individuals to obtain the approval of the tax authorities before buying foreign currency, to transfer money from Argentina. Many companies have managed ways to find to survive in this climate: Christian Lacroix and Izod Lacoste have opened factories in Argentina at the end of goods with imported fabrics and Research in Motion a factory where BlackBerry smartphones are mounted. Other companies found Argentine exports, which have nothing to do with the heart of their business, but also meets the demand fueling domestic production. Designer brands, but stayed because they have to import all their products: Escada fashion are to be expected from its headquarters in Luxembourg, after all, to know and buy Louis Vuitton, that sewn in the province of Argentina, instead of some corner of France Glamour? "Companies that import finished products directly still struggling to put these products to the market," warned Castineira. Argentina should be able to maintain a positive trade balance of $ 10 billion next year because of the high price of soy, but the government should not relax the control of goods which are in the money and the land. Survive, the rich, Sierra said: can afford the decline of Argentina with the means to spend their money on high-end fashion to do what the president has done: travel to New York or Paris to buy latest models. But a sense of gloom has Buenos Aires, Recoleta, where haute couture and luxury hotels have long been Alvear and Callao descended through a European idea. The situation is so dire that even historic, made-in-Argentina resignation institutions. "I must go. We have the point where commercially this company has nothing more to give to reach," said Alberto Vannucci. In December, he wants the business in Callao, where his family has sold hand-sewn leather goods close to the world's best polo players in 127 years. "The economic situation in this country is for tourism good is gone -. Tourists who now come to lunch and dinner, nothing more And that tourism withdraws, they you to discover all food is incredibly expensive, . "Vannucci said.