Brazilian Luxury Market Overview:

Brazil is a nation whose largest city has more billionaires than Paris, Los Angeles and Geneva and 78% of them live in São Paulo and Rio de Janeiro. Its economy saw its luxury segment to grow 5% in the last 12 months. The luxury market in Brazil is becoming one valuable business which appeal to luxury prestigious French houses such as: LVMH, Chanel or Cartier.

Automobiles represent 50% of the Brazilian Luxury market while watches represents 7%, hospitality 11%, beauty 18%, fashion 13% and jewellery 2% of the Brazilian Luxury market. In deed, Luxury car sales rose 45% per year from 2005 to 2010.

Insight Brazilian Luxury Market

Who are Brazil’s Luxury Clients?

•58% are women
•53% live in Sao Paolo
•47% have post-graduate degrees
•33% are age 26 to 35
•4,700 reals ($2,545) – average ticket price of a luxury purchase

Moreover, we can indentified that Brazilians have a different “top of mind” (brands which are quote at the first place at unaided awareness) than Europeans. In deed as you can observe on the graphic, Lacoste and Calvin Klein are mentionned before Chanel as Luxury fashion brand.
We think that it is important to considered these features and luxury brands have to addapt their marketing strategies.

Insight Brazilian Luxury Market

Challenges of Brazilian Luxury Market:
Luxury houses have to deal with several obstacles. First of all, import tariffs need to come down otherwise labels are forced to position themselves at a much higher level in Brazil than in Western markets. For example, according to Stéphane Theodorides who is a retailer in Brazil of Bonpoint and Repetto: « we sale our products 20% to 30% more expensive».
Moreover Brands such as Topshop and Forever 21, which are considered as “high street” in the UK or in Europe, have to be positioned as affordable luxury in Brazil. So brands sould have to addapt their brand image and price strategy to brazil.
One of the most important obstacle is after all the taxes are added on, a luxury product costing $1,000 at the port of entry could wind up with a price tag of $2,300 for a shopper in São Paulo. Ultra-high import tariffs mean that luxury brands are typically positioned much higher than in Western markets nevertheless around 80% of luxury good are bought abroad by Brazilians.
To finish with, Brazilians from the social class A prefer to downplay the luxury purchases because of fears over security.


Despite everything, Brands remain positive about the opportunities in Brazil and invest nowaday millions to implant point of sales in Brazil, although the Brazilian’s Economic forecasts are very pessimists.

France Monde Express
La tribune

Chloé Gosselinportrait chloé

e about Brazilian Luxury Market during a trip in Brazil