Discusses the distribution network within the country from how products enter to final destination, including reliability and condition of distribution mechanisms, major distribution centers, ports, etc.
Last Published: 1/27/2020
Sale channel selection should be based on the nature of the product and the company's knowledge of the Argentine market. Generally, firms new to this market find it more effective to sell through a distributor. Large firms generally buy directly from overseas suppliers, while smaller firms prefer to buy through intermediaries. Industrial equipment is sold by sales agents or through trade fairs, while consumer goods are increasingly sold through large outlets such as supermarkets and hypermarkets. Argentine distribution channels have increased efficiency through merging and streamlining, due to increased competition and changes in overall consumption.

Warehouse and distribution
Distribution in Argentina tends to be radial, with all roads converging in the Port of Buenos Aires. This dates back to the early 20th century, when Argentina's rail and road systems were developed by the British in order to bring products to the Port of Buenos Aires and satisfy foreign demand for commodities. The hub-oriented distribution system used in the United States does not exist in Argentina.

Land Transportation
Argentina stretches 4,000 km (2,500 mi.) from north to south, an expanse of land crossed by only a few major highways. Argentina's 208,350 km (129,462 mi.) road network carries 85% of domestic freight traffic. Argentina has over 35,000 km (21,000 mi.) of railroads, but quality and speed vary widely. In general, the rail network requires significant investment to bring it up to international standards of speed and reliability.
 
River and Maritime Transportation
Almost 70% of Argentina’s foreign trade is carried by ship, and about 80% of the import and export transactions are carried out through the ports of Buenos Aires and La Plata. The Parana and Uruguay rivers are well-dredged and maintained. These rivers link the Port of Buenos Aires to internal Argentine ports, as well as to Paraguay, Uruguay, and Brazil.

Air Cargo
Terminal de Cargas Argentina (TCA) was created as a concessionary partnership established by the Government of Argentina for the operation of airfreight terminals at international airports. TCA is the logistics division of Aeropuertos Argentina 2000, and provides full logistics and storage services to all foreign cargo agents. TCA's primary business is bonded warehouse management at major Argentine international airports, where the company stores imported and exported cargo while their consignees perform relevant formalities with the General Customs Administration or Dirección General de Aduanas (DGA).  TCA's headquarters are located at Ezeiza Airport, Argentina’s main international airport just outside the city of Buenos Aires. The company also has branches in Córdoba, Mendoza, Mar del Plata, and Jorge Newbery Airport (Autonomous City of Buenos Aires). 

The Retail Network
There are two types of traditional sales channels in Argentina. One is through large-scale retailers with a defined, but limited, share of the market.  The other is through the many specialized retailers that seek to protect their niches.
The food retail market is loosely separated into three categories: traditional "mom and pop" stores (locally called “chinos” no matter who owns them) scattered throughout local neighborhoods, self-service mini-markets and drugstores, and the supermarkets and hypermarkets.  Consumers generally prefer hypermarkets and supermarkets for lower prices on weekly and monthly purchases.
 
Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.


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Argentina Marketing