Colombia's Luxury Fashion and Accessories Market
I. Market opportunities in Colombia for the luxury fashion and accessories
For a business in a Latin American country, I have chosen to export a fashion & Accessories luxury brand in Columbia.
1. The fashion luxury market in Colombia
According to CPP’s latest market research (2011), Colombia is set to overtake Brazil by 2014 in terms of growth rate of its luxury market, the sectors with the highest potential for growth being: hospitality, SPA, fashion & accessories, watches, fine foods / gourmet and home furnishings & decorations.
The luxury fashion and accessories sector in Colombia has increased by 20% in 2012, compared to 2011, with several notable market entries in 2012 (mono-brand stores):
Salvatore Ferragamo (directly operated),
Longchamp(franchised),
Vilebrequin (franchised),
Armani Exchange (franchised).
HugoBoss(franchised),
Montblanc (franchised) have doubled their retail presence in Colombia in 2012, compared to 2011.
Louis Vuitton and Loewe (Directly operated mono-brand stores) in Bogota.
Development of the luxury fashion and accessories sector in Colombia is highly dependent on availability of commercial real estate. That is why, the development of shopping galleries or smaller scale premium malls with a clear concept could bring high returns on investment for developers. But only fiew luxury brands are presents for the moment -> Low competition.
CPP estimates that over 4% of Colombia’s population has an annual income of over US$ 250.000, this upper middle class segment representing a solid base of growth of luxury, most of these consumers being more likely to buy locally.
The increasing number of new millionaires which represent 1.8 million Colombians, are now newly rich and would be proud to have luxury brands in their countries, where they could shop without leaving their Country for Miami or New York, their two favorite destinations for shopping this is why a luxury mono-brand stores in
For a business in a Latin American country, I have chosen to export a fashion & Accessories luxury brand in Columbia.
1. The fashion luxury market in Colombia
According to CPP’s latest market research (2011), Colombia is set to overtake Brazil by 2014 in terms of growth rate of its luxury market, the sectors with the highest potential for growth being: hospitality, SPA, fashion & accessories, watches, fine foods / gourmet and home furnishings & decorations.
The luxury fashion and accessories sector in Colombia has increased by 20% in 2012, compared to 2011, with several notable market entries in 2012 (mono-brand stores):
Salvatore Ferragamo (directly operated),
Longchamp(franchised),
Vilebrequin (franchised),
Armani Exchange (franchised).
HugoBoss(franchised),
Montblanc (franchised) have doubled their retail presence in Colombia in 2012, compared to 2011.
Louis Vuitton and Loewe (Directly operated mono-brand stores) in Bogota.
Development of the luxury fashion and accessories sector in Colombia is highly dependent on availability of commercial real estate. That is why, the development of shopping galleries or smaller scale premium malls with a clear concept could bring high returns on investment for developers. But only fiew luxury brands are presents for the moment -> Low competition.
CPP estimates that over 4% of Colombia’s population has an annual income of over US$ 250.000, this upper middle class segment representing a solid base of growth of luxury, most of these consumers being more likely to buy locally.
The increasing number of new millionaires which represent 1.8 million Colombians, are now newly rich and would be proud to have luxury brands in their countries, where they could shop without leaving their Country for Miami or New York, their two favorite destinations for shopping this is why a luxury mono-brand stores in
References: http://www.economylatinamerica.com/ http://en.wikipedia.org/wiki/Colombia http://www.cpp-luxury.com/colombia-the-fastest-growing-luxury-market-in-south-america/ http://www.cesla.com/