Montagne, the leading Argentinian producer and retailer of outdoor products, says that it is developing a licensing and franchising program because it has reached the limits of its production capacity at its own facilities in Argentina and in order to be more competitive in foreign markets.
The company, which exhibited for the first time at the Ispo Munich show earlier this month, is about to sign an agreement with the Rostaing Group in Vietnam for the production of its backpacks. The licensing deal involves the production and distribution of Montagne branded backpacks for sale in Europe, Russia and Japan. The production would take place in Vietnam.
Other planned license agreements, which are about to be finalized, would be with a Chinese company that would produce shirts and T-shirts under the Montagne brand. The products would be sold in China by the licensee and in South America by Montagne itself, which has customers in Panama, Ecuador, Chile, Columbia, Paraguay and Uruguay. A similar agreement with a Vietnamese company for the license of Montagne jackets, to be produced in Vietnam and sold in Europe, Russia and Vietnam by the licensee and in South America by Montagne, is also about to be signed.
Montagne recorded total sales of US$43 million in 2012, up by $3 million as compared with the previous year. Sales in the domestic market still account for 90 percent of the turnover, but the company wants to play a stronger role abroad. Montagne sells its products in 52 mono-brand stores in Argentina, 27 of which are owned by the company and 15 are managed on a franchise basis. Additionally, Montagne sells them to about 300 independent retailers in Argentina. The brand is in the process of opening a new franchised store in Buenos Aires. Montagne opened its first store in Uruguay in December 2012. It is located in Montevideo and managed on a franchise basis.