From Samba Surge to Aztec Tiger

Introduction

Scope

Key findings

The New Latin America

US$1 trillion retail market attracts new luxury goods investment

Power shift from traditional to modern retail will spur luxury demand

The emerging middle class is a sweet spot for luxury goods

Social media is an opportunity in the making for luxury brands

Latin America’s spending power catching up on developed markets

Burgeoning credit card culture will diversify luxury penetration

The challenge of an ageing demographic

The Middle Class Revolution

Latin America’s luxury opportunity pivots around the MBA axis

The region’s HNWIs are now shopping at home rather than abroad

An emerging middle class hungry for prestige brands

Pockets of luxury opportunity in Latin America’s smaller economies

Social media is a chance for brands to get closer to consumers

The MBA Axis of Growth

The MBA triumvirate fuels a US$9 billion luxury goods market

Luxury goods growth in MBA is outperforming developed markets

Luxury spending in Mexico is set for strong growth

International designer labels drive Mexico’s luxury goods demand

Aspiration is at the heart of the brand battleground in Mexico

Brazil’s import tariffs are a bigger barrier than a weaker economy

Niche segments present attractive Brazilian growth prospects

Brazil’s new shopping malls are beacons of luxury opportunity

Brazil’s key regional battlegrounds

International luxury goods retailers shut up shop in Argentina

Designer clothes and fine wine shore up luxury spending

Buenos Aires loses its swagger but not its luxury heritage

Off the Beaten Path

Venezuela presents risk for new luxury goods investment

Strong iPad demand is a positive sign for luxury goods in Colombia

Chilean consumers are the most discerning in Latin America

Peru’s AB class is growing faster than any other income group

Luxury goods opportunity in Ecuador will remain weak

Per capita income in Uruguay is the highest in Latin America

International tourism drives niche luxury demand in Costa Rica

Opportunities Going Forward

Modern retail is fuelling a revolution in regional consumer culture

Brazilian shopping malls will push into small and mid-sized cities

Mexico will be a new regional darling of luxury goods opportunity

The digital revolution will inspire innovation in luxury branding

Contraband will continue to impact luxury goods development

The aspiration factor is critical to brand strategy in Latin America

Summary 1 the main strategic opportunities in Latin America

Summary 2 key recommendations for luxury brand development

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