BlackBerry v. iPhone Argentina

Forget football and politics...BlackBerry vs. iPhone has become the new national debate.

Back in the days before smartphones or even cell phones for that matter, Argentina was a nation divided 50/50. When state-owned ENTel was sold in 1991, a duopoly emerged with Telecom and Telefonica drawing a line on the map and splitting control of the country’s phone services in half. Twenty years later, the nation’s fiercest phone rivalry is less about providers and more about devices: BlackBerry versus iPhone to be exact.

Cronista’s Walter Duer says the debate has become “the new national passion” which is saying something considering the full range of emotions Argentina football and political allegiances arouse. And just like diehards of certain clubs and parties, Duer says Argentina BlackBerry and iPhone users are loyal hasta la muerte. “With intensity, they boast about the product they hold in their hands, they shout out the advantages (The keyboard, better design, more apps), and they explain why they would never use the competitor.”

Duer interviews representatives of both companies in Argentina: RIM which will begin assembling the BlackBerry in Tierra del Fuego this year and Apple which has no retail presence in-country and relies on local distributors. While the RIM rep touts the keyboard, connectivity and affordability, the Apple distributor offers a back-handed compliment (“the BlackBerry is an excellent product…for e-mail”) and a compelling superlative (“the iPhone is the product with the highest level of customer satisfaction in history.”)

And if BlackBerry and iPhone are competing in the Primera Division, Duer’s article doesn’t even mention the B League where the likes of Samsung, Nokia and Motorola are slugging in out for market share. So the national rivalry rages on and, if this year has taught us anything, you never know who will rise from the B League to the top of the heap. (Full Story in Spanish)

Competir Paad

Argentina's Competir partnered with a Mexican company in order to tap the booming U.S. Hispanic population.

Argentina’s ongoing transformation to a net exporter of IT, audiovisual and other design services is poised to take another major step when modifications to the Software Promotion Law takes effect. The new measures will offer tax incentives for over 250 Argentine software companies reducing their taxes on revenue made from U.S. sales by 60% and facilitating the entry of more Argentine PyMEs (small-and-medium-size businesses) to quality certification.

Aurelia Rego gives Cronista readers a sweeping overview of the new legislation and interviews several Argentine companies that began to realize the American Software Dream over the past decade. The first step, emerging from the 2001 financial crisis, was followed by an impressive 222% increase in software sales to the United States from 2003 to 2009.

One of Rego’s takeaways is there is no one-size-fits-all approach for succeeding in the world’s most competitive technology market. Softek moved executives to the U.S. to look for clients, Core Security Technologies attended software conferences in the States, G&L Group found a U.S.-based partner, while Competir joined forces with a Mexican company to tap the booming U.S. Hispanic population.

To a man, the Argentine tech executives she interviews extol the virtues of the U.S. market and the keys to success. “You have to be consistent, serious and above all else, ethical. If you do those things, U.S. companies will continue to work with you,” she writes adding, “The most important thing is to be meticulous, to deliver what was promised on-time and to be consistent with pricing.” Good advice. Just imagine the positive impact on DFI, if more Argentine companies would play by the same rules. (Full Story in Spanish)

Natura Brasil

Natura shares have risen over 500% since the BOVESPA debut in 2004; they trade as SAO:NATU3

What do you get when you combine top quality health and beauty products, competitive pricing, a direct sales model, a commitment to sustainability, a broad social media presence and robust sales channels in some of Latin America’s youngest and fastest-growing markets? You get the stock chart to the left. Sao Paulo-based Natura originally listed on the BOVESPA in 2004, and the shares have risen over 500% compared to a 250% gain for the BOVESPA.

Cronista’s Gabriela Helman says Natura is cleaning up in Argentina’s perfume, cosmetics and personal care sector where the company’s main competitors are L’Oreal, Unilever, P&G and Avon. Natura is now the number three preferred cosmetics brand in Argentina where sales rose 27% last year compared to 8.8% back home in Brazil.

CEO Alessandro Carlucci tells Cronista that Natura plans to start production in Mexico and Colombia this year and replicate the local production model they have carefully crafted in Brazil. Natura outsourced some production in 2010 to Argentina where the company already has a Distribution Center and dedicated business units based in Buenos Aires.

One of Natura’s greatest qualities for the uninitiated is the breadth, depth and transparency of their online presence: the Natural Ingredients site, the Twitter page with 27,000 followers, their Investor Relations site, their YouTube channel, the Natura blog, the list goes on. Obviously this is a great company with a great story, and that is reflected in market share gains in countries like Argentina, Brazil, Chile, Mexico and Peru.

For more information on Natura, check out this Company Presentation PDF from the Credit Suisse 2011 Brazil Equity Ideas Conference.

Nuevo Golf La Angostura

Seeing Green: More developers are proposing mega-projects like Nuevo Golf de la Angostura.

Bariloche is the most expensive real estate market in Argentina according to a new study of average prices for an existing 2 or 3-room apartment. Cronista’s Matías Bonelli says the average price for such a property in Bariloche is US$150/SF with high-end properties reaching US$222/SF. Buenos Aires ranks second in terms of average prices trailing Bariloche by a mere 2.3%, although the gap has narrowed from 8.3% last year. (Full Story in Spanish)

The allure of Patagonia prices and the region’s natural beauty is beginning to attract more Argentine and international developer groups. A story in El Diario de Madryn (EDM) focuses on Villa La Angostura and Península Valdes where several residential projects have been proposed or commenced construction in recent months. One group is proposing a 29-acre urbanization project with an 18-hole golf course and 300 units on a separate 864-acre parcel.

In order to move forward with any of these projects, developers must anticipate a lengthy approval process in provinces like Rio Negro or Chubut; yet, sources interviewed by EDM say local officials are too lenient in allowing private developers to acquire environmentally-sensitive lands which have sometimes been set aside for municipal purposes. The recent sale of such land in Península Valdes drew headlines and criticism from local groups who favor tourism promotion but oppose urbanization and real estate development.

Government representative Carlos Lorenzo who views recent land sales as a national security threat says, “It’s remarkable the number of private companies that have been formed in recent years and are now controlling large tracts of land in Chubut. For that reason we need to pass legislation that will control the unlimited sale of land to foreigners.” (Full Story in Spanish)

Argentina tourism statistics

Aeroparque posted the largest percentage gain in 2010 traffic, the best year on record in Argentina.

Argentina’s soaring popularity as a destination of choice for world travelers is reflected in the 2010 passenger data just released by Aeropuertos Argentina 2000, the consortium that manages the 33 busiest airports in the country. “From January through December of last year, 22.8 million passengers passed through those terminals,” writes Cronista’s Nuria Rebon, “which is a 12.4% increase over 2009 passenger levels.”

And while domestic passenger numbers posted a solid 12% gain, it’s the 21% growth in international arrivals that merits the most attention for a country that began to prioritize international tourism and promote the Argentina brand in 2010.

The number of international passengers arriving in Argentina airports topped 10.3 million in 2010, a 21% increase over 2009. The creation of new international routes direct to cities like Cordoba, Mendoza and Bariloche meant more flights, more international passengers and fewer onerous connections through Ezeiza.

Aeroparque Jorge Newberry was the airport posting the strongest percentage gain in 2010 passenger arrivals (17.2%) thanks to the addition of international flights and new routes from the likes of Buquebus and Pluna, followed by Mendoza (13.7%), Ezeiza and Bariloche (11.1% each), Cordoba (10.7%), Iguazu (9,1%) and Salta (10.2%). According to Cronista, Argentina air cargo shipments also rose 31% in 2010 to 248,692 tons.

Aeropuertos Argentina says the only year that comes close to 2010 in terms of passenger levels was 1999 when 20.3 million passengers arrived or departed. After Argentina’s 2001 financial crisis, annual arrivals and departures fell to the 15-16 million level through 2007 when the negative trend finally reversed and 18 million passengers passed through the country’s airports. (Full Story in Spanish)

For more information about travel and investment opportunities in Buenos Aires, download the new issue of InvestBA Privada.

 

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