Colombia: this is how the luxury market in the country moves

About the news event in the luxury market of the week, as well as the purchase by the American Michael Kors of Gianni Versace Spa, one of the leading international fashion companies and a symbol of Italian luxury around the world. world. The Versace Group distributes its products through a global network of directly managed stores, including more than 200 boutiques in major cities and more than 1,500 wholesalers around the world.

Mall & Retail, continuing with the analysis of the retail card in Colombia, wanted to analyze the behavior of luxury fashion in this country in this edition.

A market with frank development

The luxury market consists of two major segments from the point of view of price: affordable luxury and absolute luxury; a valid mechanism to attract new consumers. This differentiation of products has brought many benefits that have influenced the development of the category, both in developed and in emerging countries. As a result, more brands offer a more affordable price, as well as a higher price level for high-end products.

Fashion Network figures confirm that the luxury market reaches $ 24 billion a year, and that it is one of the fastest growing with a percentage of more than 5% that has been sustained over the past decade.

The increase in specialized stores, both in perfumery and make-up as well as luxury clothing, accessories and shoes, has stimulated the growth of the sector because it has expanded the basis for consumption, giving the population more access to its products. Montblanc, Carolina Herrera, Cartier and Omega are the luxury brands with the strongest brand and the greatest preference in the country, while Cartier, Chanel and Hermés lead the beauty and perfume market.

According to the same portal, men in the country account for 70% of total purchases, while women respond for the remaining 30%. Most purchases are concentrated in the four main cities, Bogotá, Medellín, Cali and Barranquilla, and are paid for 80% via credit cards.

Adolfo Domínguez, Ermenegildo Zegna, BCBG Max Aza, Max Mara, Façonnable, Hugo Boss, Rockport, Nautica, Tommy Hilfiger, Coach, Longchamp, Guess and Rhapsody are among the premium fashion brands with presence in the country. Such as luxury empires such as Louis Vuitton, Versace, Dolce & Gabbana, Carolina Herrera, Garcia Purification, Salvatore Ferragamo and Giorgio Armani. The haute watchmaking and jewelery are not far behind and so we find Cartier, Tiffany & Co., Frey Wille, Montblanc, Swarovski, Tous, Pandora, Omega, TAG Heuer and Tissot in the lead.

For some analysts, the introduction of international brands has strengthened the national fashion industry. This is not only because Colombian companies have excellent projection in the sector given the quality and innovation in their designs, but also because they compete in more comfortable prices than foreign brands.

The "local luxury" is preferred for 75% of the upper class, while the remaining 25% prefers to buy abroad in the light of the need to find certain brands on the local market.

The crown jewels of the national market

The line of jewelry and watches is perhaps the most important in this category. According to Euromonitor on a market that costs almost $ 2.1 billion. This market is very fragmented and most of the turnover (92.5%) is in the hands of small jewelers. Jewelry is one of the most important sources of income for about 100,000 Colombian families spread across the national territory. The sector generated approximately 45,000 jobs, of which 39% corresponded to commercialization and 61% to production. In general, the tradition of goldsmiths passes from generation to generation, so a large part of the sector is concentrated in small family workshops with decades of experience

The Sterling Group, consisting of Krono Time and Sterling jewelers with more than 38 years of manufacturing and marketing of luxury jewelery, is the main player in the Colombian market, with sales reaching $ 65,907 million last year with a growth of 26%. This group represents the brands Bulgari, Cartier, Tous, Coach, Invicta, Swarovski and Purificación García among many others.

The Glauser Group, jewelers and watchmakers since 1914 with its companies TSQ S.A and Disuiza is the second most important conglomerate with a turnover of $ 65.907 million, with 8.2% growth. Represent the brands Omega, Rolex, Breguet, Hublot, Tag-Heuer; Tissot, Rado and many others.

Kevin's Jewelers, founded in 1980, is the third-largest player whose sales in 2017 reached $ 47,948 million in its 23 outlets in nine cities.

Jewelry Bauer, founded in 1993, is the fourth largest company with a turnover of $ 22.729 million with a growth of 7.3%.

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