Latin America is fast becoming one of the engines of global luxury goods growth according to a new Euromonitor report.
The survey shows that 2018 should see a 5% global growth. Taking into account the period between 2015 and 2019 that represents a 34& growth rate with the uptick in luxury leather goods, like handbags, (15%), and shoes (21%) especially marked.
But while some more developed markets like the US remain reasonably flat, Evelyn Rodríguez, research analyst at Euromonitor International, said that Latin America is taking up the slack: “Mexico is already considered, along with Brazil, the main markets for luxury goods’ sales in Latin America. Most of the sales volume comes from international brands, so most of the goods are imported, and only a small percentage are locally produced.”
One example of a Mexican brand growing outside the country’s borders is Jamie Ibiza, apremium leather goods producer, which has recently opened stores in El Salvador, Costa Rica, Nicaragua, and Chile. ““We have been able to cross different borders. However, the most important achievement has been to be head to head with all luxury brands. For example, by being in Liverpool you share the space with all the global brands and get to compete in an international level,” he stated.
Abelardo Marcondes, CEO of Latin America’s prominent luxury brand summit, Luxury Lab, confirmed that because Mexico has seen the foundation of several luxury brands, production and demand continue to grow. “Mexico is expected to continue growth and become a leading market, surpassing Brazil, which is finally getting out of the recession that hit the country a few years ago,” he said.
However, Marcondes says there are still some perception challenges facing Mexican brands. “We are on the right path, but there’s still a need to change the local market’s perception regarding quality of the national industry, as well as a need to have a bigger supply that reaches and overcomes the standards international brands have,” he said.