Whilst the Brazilian luxury market is at the centre of all the attention due to the World Cup, Mexico also reveals a strong potential for growth in this sector. According to different studies, this trend should increase in the next few years.
Luxury in Mexico, a growing market
The research agency, Ledbury Research, specialised in the luxury sector recently had a look at Mexico’s current growth in this sector. Currently, the number of people with a capital of 1 million dollars or more is estimate at 178 000 in the country, representing 1% of the millionaire population of the planet.
According to the agency, this percentage could have increased exponentially by 2017. The number of people residing in Mexico with one million dollars would then amount to 265 000.
Nowadays, the sales in the luxury sector in Mexico represent 2 billion dollars per year. The taxes for the importation of luxury products inside the country remain very high, pushing consumers to buy brand products out of the country.
Luxury brands settling in Mexico
Despite the expensive importation taxes which are dissuasive to some companies, renowned luxury brands are particularly present on Mexican territory. The number of their boutiques has multiplied over the years; today, they represent 2% of luxury stores across the world, in other words, as much as in the United Arab Emirates or in Spain.
The brands present in the country mostly come from the United-States, illustrating the American’s propensity to travel to the neighbouring country and buy their luxury products there.
Geographically far from Europe, European brands remain less present. Nonetheless, the Mexican luxury market’s important growth could encourage European brands to export themselves to Mexico.