Nike Joins Argentina Brand In Price Cuts

The US brand Nike said, "cost adjustment is aimed at maintaining price competitiveness in the market and assisting the government in ensuring the reasonable selling price of consumer products".

"Nike continues to strive to provide innovative products to Argentina consumers by using imported goods and products manufactured by the company's ten sub contracted factories in Argentina. The factory can provide 5500 jobs."

Nike said.

The decision to reduce prices

The price cut reached through consensus is also a means of price control, resulting in a significant impact because other brands and manufacturers have to lower prices to remain competitive.

In a few days after the first deal with the government, Vesubius Textile Group decided to "take the initiative" to cut its price by 10%.

Lacoste, Penguin, Cacharel and Paula Cahen D 'Anvers were granted the permission of Vesubius.

Vesubius has increased production, reduced unit costs and prices, but is also trying to increase exports to make up for losses.

Similarly, the Spanish brand Zara, which opened 10 stores in Argentina, has followed suit to reduce prices, as all the major businesses are aware of the need to curb Argentina's inflation. This is the most pressing task since the 2001 / 2002 financial crisis.

Despite the remarkable economic growth in Argentina, domestic inflation is still a unique threat to the economy and people's consumption power. There has been hyperinflation since the 80s of last century.

Constant price increases will only lead to less and less consumption. Sales will decline and production will be affected, which will eventually lead to an increase in unemployment.