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Personal Luxury in Latin America

August 2018

Luxury goods in Latin America is driven by high penetration, growing demand, the relaxation of import regulations and continuous investment in innovation. The region is slowly recovering from the import regulations imposed in Argentina during 2010-2015 and the economic crisis in Brazil, and is set to record positive performance in the coming years.

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Significant potential for luxury goods in Mexico, while Argentina and Brazil need time to catch up

Latin America is one of the smaller regional markets for luxury goods, owing to economic crisis in Brazil and low supply of international luxury brands in Argentina, as a result of import restrictions. Mexico is the largest market in the region, aided by the presence of premium brands that have strong domestic demand.

Super-premium beauty and personal care grows across markets

Super-premium beauty and personal care witnessed positive growth across markets despite unfavourable economic conditions in a few. There were several different reasons for this growth in the various markets. In Mexico, growth was driven by demand from millennials. In Argentina, it was driven by greater availability, owing to the elimination of barriers to imports, while in Brazil growth was supported by continuous investment by brands in innovation.

Consumers remain brand conscious when it comes to luxury goods

Consumer attitudes regarding luxury goods in Latin America largely favour the leading international brands. Across markets, consumers associate the top brands with high quality and unique designs, which they believe offer better value for the money spent. As a result, the market has witnessed a high degree of concentration.

Leading brands focus on increasing consumer reach

The leading brands in Mexico and Brazil have increased consumer reach as a way of increasing market share. Some of the popular strategies employed by players include targeting different income levels through different product ranges, the expansion of distribution networks by targeting mid-sized cities, and increasing presence through third-party vendors and internet retailing. 


Key findings

Regional Overview

Economic crisis dampens growth of luxury goods in the region
Market likely to witness strong growth as economic crisis recedes
Designer apparel and footwear accounts for the bulk of sales
Mexico witnesses strong growth in most categories
Super-premium beauty and personal care witnesses growth
Market remains stable in Mexico; Brazil and Argentina face challenges
Luxury goods generally purchased from non-grocery specialists
Internet retailing witnesses growth

Leading Companies and Brands

High degree of concentration in luxury jewellery
Designer apparel is fragmented
Brand consciousness in luxury eyewear leads to concentration
Mexico is the most concentrated market in luxury leather goods
Landscape for luxury timepieces dependent on consumer outlook
Consumers opt for top brands as they are a status symbol
Slight growth in smaller brands as consumers purchase locally
Luxottica Group leads through its range of luxury eyewear brands
Strong presence of international brands in Mexico and Brazil
Greater consumer reach through distribution and pricing
Brands from Luxottica Group SpA dominate luxury eyewear
Mexican and Argentinian markets fruitful for luxury jewellery brands
Louis Vuitton remains the first preference for luxury leather goods
Brands in luxury portable consumer electronics limited to Mexico
Rolex ranks first, through high brand equity and advertising spend
Mont Blanc retains its top rank owing to it s rich heritage
Fragrance brands lead super-premium beauty and personal care

Forecast Projections

Mexico forecast the strongest growth in luxury goods
Positive growth expected due to innovation and easier importing

Country Snapshots

Mexico: market context
Mexico: competitive and retail landscape
Brazil: market context
Brazil: competitive and retail landscape
Argentina: market context
Argentina: competitive and retail landscape


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