Brazil’s Burgeoning Luxury Market Lures Big European Brands – Forbes
As predictions for 2012 litter the media, here’s one trend that’s been building steam for the past 12 months: the rise of Brazilian luxury retail.
In the coming year, no fewer than 30 venerable brands think Prada, Luxottica and Fendi will be staking their claim in Brazil’s affluent shopping districts. Investment is expected to be up 25% from 2011’s $2.6 billion according to Carlos Ferreirinha, president of retail and luxury consulting company MCF Consultoria & Conhecimento, in São Paulo.
As the debt crisis continues to rock the European home of many of these luxe labels, Brazil’s luxury market will grow by 20% this year to about $3 billion, even though its overall economic growth got sluggish in the third quarter.
Brazil’s got several factors to recommend it to the likes of American luxury brands such as Ralph Lauren and Calvin Klein, too. A Knight Frank wealth report found that Brazil was home to more high net worth individuals than Russia and India, and more billionaires than Saudi Arabia, France and Italy in 2010.
Filled with fashionistas not faltering in their quest for designer looks, São Paulo’s been the hotbed for haute retail, in spite of steep import taxes that considerably boost the American or European purchase prices. But there’s room to grow, said Ferreirinha. “Brazil is the only country in Latin America that has shown that it will be able to have larger distribution in multiple cities,” such as Rio de Janeiro and the capital city of Brasilia.
Strange Random Luxury Quote:
“Living in the lap of luxury isn’t bad, except that you never know when luxury is going to stand up” – Orson Welles (American motion-picture actor, director, producer, and writer, 1915-1985)
- Top 10 luxury branded mobile campaigns of 2011 – Luxury Daily (nfcdata.com)
- IHT Luxury Conference: Online Shopping Grows Slowly in Brazil (nytimes.com)
- Brazil’s Growing Economy Brings a Taste for Luxury (portugueseblog.org)
- Selling Luxury Goods In Brazil: Lessons From An Insider (forbes.com)
- Why Brazil Is Booming (borderbuster.blogspot.com)
- The Online Video Explosion In Brazil Has Advertisers Paying Attention (reelseo.com)
- Survey shows Brazil on the up | British Airways – Travel Industry News (travelnews.britishairways.com)
- imabonehead: Brazil’s Unstoppable Job Market – Forbes (forbes.com)
- Miami Courts Free-Spending Brazilians (nytimes.com)