Topitop – the “Andean Zara” in Peru ?

A Wall Street Journal article (nov 14, 2011) describes the growth in the middle class from 41% to 51% of the population in the last decade in Latin America.  Defined as people earning 45 % to 70% of the per capita, the middle class grew even as per capita incomes grew from $7000 to $11,000. Tipitop sells to one out of three Peruvians, has a design to retail cycle time of 45 days, produces in small lots, is fashionable and low priced.  Targeting locations that are accessible to the new middle class has been key to their success.  Should strategies to tap into this owing Latin American middle class be different than other regions? Will exports by these fast response manufacturers provide a competitive alternative as costs rise in China ? Given different income levels across Latin American countries, how will transport links impact emerging supply chains in the region ? Do you see currency union in the region as a reasonable next step to enable trade?

About aviyer2010

Professor
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