Luxury brands are more consumed in Mexico than in Latin America.
It is estimated that this 2023 their sales will increase by up to 12 percent.
The luxury brand market was worth $14 billion in 2022.
Sales of luxury brands in Mexico have not decreased despite inflation, on the contrary, it is estimated that they will have an increase for the remainder of 2023. According to the France-Mexico Chamber of Commerce and Industry will increase by up to 12 percent.
Within the framework of the event “Luxury Market. The new rules of the game” it was announced that the country, since 2014, It is the main consumer of high-end brands in Latin America, while globally it ranks fourth. Abelardo Marcondes, CEO of Luxury Lab Global and representative of the Luxury Committee of the CCI France-Mexico pointed out that last year there was a growth of 18 percent “It is a gateway to Latin America,” he said.
He luxury brand market was worth $14 billion in 2022In this regard, the Regional Director of Dior Mexico, Camilo Daza, reported that the Mexican Republic concentrates the largest supply of luxury products in Latin America. “It is a market that all brands really want to enter” and he added that it can be accessed easily and at low costs.
Furthermore, he added that French luxury brands have always been linked to Mexico; Dior It was created at the end of the 40s and by the beginning of the 50s there was already a fashion exhibition in the country by the hand of iron palaceexplained the collaborator of Dior. In this sense, the country is attractive to firms because it has a robust economy, stable currency, young human capital, and a resilient market.
For his part, Marcondes pointed out that the sectors that will have the most increases will be related to fashion and beautyas well as jewelry, industrial and hoteliers.
At par, Millionaires in Mexico have been increasingin fact, it has the highest growth rate worldwide with 126 percent in 2022: “This makes Mexico surpass Brazil in numbers of individuals with high purchasing power, so in Latin America it is the country with the highest purchasing power,” he said. Abelardo.
2022 was a year that served as a recovery from the pandemic, surpassing itself, since previously the growth was around 6 and 8 percent. Therefore, the business model of luxury brands has changed and now they will use Artificial Intelligence more to better understand and approach their target audience more effectively.
Finally, Marcondes indicated that the Z and Alfa generations are now the target of luxury brands, while the generation X joins the public is more interested in electronic commerce and digital campaigns.
The luxury of being able to share with our speakers and guests.
Press conference with Hajer Najjar, our director, Camilo Daza from LVMH and Abelardo Marcondes from Luxury Lab Global. pic.twitter.com/HfKXi7YkZv
— Chamber of Commerce and Industry France Mexico (@CCIFranMex) May 4, 2023
Some data
In Mexico there are 60 points of sale of the Dior brand, some of them are inside Palacio de Hierro. With the lifting of the restrictions due to the pandemic and the return to the new normality in 2021, the company not only grew, but also reached an all-time high: around 64,220 million euros.
On Instagram, Dior and Prada were in second and third position respectively, with more than 62 million “likes” each, as the most followed brands on this social networkaccording to Statista.