Luxury in Brazil

luxo-brasil

The luxury market in Brazil increases significantly each year

 

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From car to purse; from jewel to fragrance; from suit to hosting, access to luxury passes by a matter of price. Refinement, uniqueness, quality, pleasure and satisfaction have its cost. What is questioned today, is the “empty” luxury, based only on ostentation and on the simple fact of paying high prices – and nothing else.

This way, to the brands, “it is necessary to deliver content beyond the product. The service to this consumer should be differentiated, as he seeks special treatment and recognition”, says the “Research: the luxury market in Brazil “, available By Catarina magazine.

The grown of this consumer class is at the heart of the luxury brands interests around Brazil. According to Euromonitor International, it is estimated that by the year of 2020, the population segment with annual incomes above $ 150,000 will grow 46.3% to 1.4 million people, fact that will lead the luxury market, currently estimated in £ 22 billion, to a significant growth: between 16-22%, according to consultants.

The focus is between Rio and São Paulo. The data, updated through 2012, indicates the existence of 2.2 million of families with monthly income of $ 25 thousand, and the Southeast concentrates 140 000 of them having monthly income above R $ 150 thousand. However, there is also an expanding into the Northeast and Manaus, and specially Brasilia emerges as another important market.

However, the Brazilian history with the luxury market, is not new: it dates back to at least the late 50s, evolving from the boutiques concept for a selected public to the multi-brand department stores. Above all of this, now comes the trend of brands taking charge of its own operations. So it was what happened in 2008, while the global financial crisis, when 20 luxury brands have opened operations in Brazil. The trend continued with a “boom” of foreign labels in 2010. Names like Prada, Dior, Cartier, Hublot, Lacoste, Richemont, Gucci, Hermès and Audi gained or strengthened domestic subsidiaries.

In 2013, came a slowdown time, reflecting the low Brazilian economic performance. Still, the luxury market has performed above the general, with a high estimated between 10 and 12%.