Brazil Luxury Goods Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 4.32 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Brazil Luxury Goods Market Analysis
The Brazil luxury goods market is forecasted to witness a CAGR of 4.32 % during the forecast period (2022 - 2027).
Despite recent economic difficulties and the impact of the Covid-19 outbreak, Brazil's luxury goods sector has survived the storm and recovered faster than other countries. The jewelry and apparel segment has shown nominal growth during the pandemic. However, high-net-worth individuals (HNWIs) continued to purchase luxury goods despite the health crisis and local restrictions, prompting companies to accelerate their digital strategies to reach them in the new digital channels and regional locations of their choice. For instance, Dolce & Gabbana, a luxury fashion retailer expanded its e-commerce operations in the financial year 2020-2021 and created a program called 'Stay beautiful at home' for in-person and virtual appointments with its regular and prospective customers during the pandemic.
Over the long term, the Brazil market offers significant opportunities for luxury goods companies across e-retailing, as the health crisis has influenced Brazilians to online purchase their preferred luxury goods. For instance, the survey conducted by UNCTAD (United Nations Conference on Trade and Development) in association with the NIC.br (Brazilian Network Information Center) in October 2020 revealed that onine purchase had increased by 6-10% across different products categories including personal care, cosmetics, and fashion accessories.
Moreover, brands are transforming their entire value chain to be more environmentally and morally conscious. Addressing consumer concerns about sustainability has become standard practice in the luxury goods industry. Organic cotton, and recycled plastic mesh, are among the popular sustainable materials used by luxury brands. With the motive of an innovative approach, the brands are making several changes, including sourcing more materials locally, reducing their carbon footprint, and supporting animal welfare. For instance, in June 2022, Brazilian brand "Malwee" launched sweatwears designed from recycled clothes. Malwee transforms used clothes into a new textile via circular fashion and upcycling.
Brazil Luxury Goods Market Trends
This section covers the major market trends shaping the Brazil Luxury Goods Market according to our research experts:
Expansion of Online Retailing
During the lockdowns, there was a spike in online shopping, with even the most affluent customers willing to buy luxury products online. Millennial and young shoppers spend half of their spare time on digital platforms looking for inspiration or trying to influence others. As a result, luxury firms are increasingly partnering with online marketplaces to promote and market their labels. Moreover, e-commerce platforms also allow modern affluent consumers to shop in multi-brand environments by showcasing a diverse collection from both global and regional luxury brands. Further, leading luxury goods brands are heavily investing in e-commerce retailing alongside the strong network of brick & mortar stores to retain their market position in Brazil. For instance, In April 2021, Balenciaga, a luxury fashion brand of Kering Group entered the South America market by launching its products through the Iguatemi 365, an online platform of Brazilian mall conglomerate, Iguatemi Group.
Demand for Sustainable Products
Millennial consumers are looking for eco-friendly "quality labels" that go beyond modern design and new runway trends. In response to evolving consumer perception, some Brazilian manufacturers have begun to invest in collections that are less detrimental to the environment in the last few years. And what draws customers and sellers of eco-friendly goods together is the fact that "conscious" fashion has increasingly evolved beyond an artisanal, rustic appearance to become appealing pieces that inspire desire without harming the environment. For instance, In April 2022, Costa Brazil, a chief brand of Amyris adopted ethical ingredient sourcing for sustainable beauty. The company also partnered with Conservation International, an environmental conservation nonprofit organization, demonstrating a dedication to the inspiration and initiative required to safeguard the environment.
Brazil Luxury Goods Industry Overview
The Brazil luxury goods market is considered to be a fragmented one, as many international companies like Prada holdings, Hermes S.A, Chanel, and LVMH among others are competing for the market share along with several regional and domestic luxury brands. The key players aim to increase their customer base by investing in an extensive distribution network. In a move to increase revenue, major players are expanding their trade opportunities through strategic acquisitions and partnerships with e-commerce giants. For instance, LVMH has acquired a 70% stake in Sack's, a major online retailer of fragrances, cosmetics, and toiletries, and a beauty distributor in Brazil.
Brazil Luxury Goods Market Leaders
Hermès International S.A.
Grupo LVMH
Kering Group
Prada Holding S.P.A.
Chanel limited
*Disclaimer: Major Players sorted in no particular order
Brazil Luxury Goods Market News
- In October 2021, Grupo Axo and thredUP announced Strategic Investment in Vopero to capture emerging opportunities in Latin America's Sustainable Fashion Resale Marketplace. The collaboration is expanding to Brazil.
- In April 2021, Balenciaga, a major luxury brand from the Kering Group, made its debut in South America by opening its first store in the region located at the opulent JK Iguatemi mall in So Paulo.
- In July 2020, Prada launched its revamped online store which includes the Prada Timecapsule section and the limited edition section of Prada and Miu Miu.
- In October 2019, Osklen, a luxury brand launched its Black Edition Collection with Polygiene Stays Fresh Technology. The brand promotes conscious fashion and sustainable luxury via its collection.
Brazil Luxury Goods Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Porter's Five Force Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 By Type
5.1.1 Clothing and Apparel
5.1.2 Footwear
5.1.3 Jewelry
5.1.4 Watches
5.1.5 Bags
5.1.6 Other Types
5.2 By Distribution Channel
5.2.1 Single-brand stores
5.2.2 Multi-brand stores
5.2.3 Online Stores
5.2.4 Other Distribution Channels
6. COMPETITIVE LANDSCAPE
6.1 Most Adopted Strategies
6.2 Market Positioning of Key Players
6.3 Company Profiles
6.3.1 Prada Holding S.P.A.
6.3.2 Hermès International S.A.
6.3.3 Chanel limited
6.3.4 Kering Group
6.3.5 Rolex SA
6.3.6 Grupo LVMH
6.3.7 Audemars Piguet Holding SA
6.3.8 Patek Philippe
6.3.9 PUIG
6.3.10 Giorgio Armani
- *List Not Exhaustive
7. MARKET OPPURTUNITIES AND FUTURE TRENDS
8. IMPACT OF COVID 19 ON THE MARKET
9. DISCLAIMER
Brazil Luxury Goods Industry Segmentation
Luxury goods refer to the premium or elite quality products which are expensive as compared to conventional goods. The Brazil luxury goods market is segmented by type and distribution channel. By type, the market is segmented into clothing and apparel, footwear, bags, jewelry, watches, and other luxury goods. By distribution channel, the market is segmented into single-brand stores, multi-brand stores, online stores, and other distribution channels. The report offers market size and forecasts in value terms (USD million) for all the above segments.
| By Type | |
| Clothing and Apparel | |
| Footwear | |
| Jewelry | |
| Watches | |
| Bags | |
| Other Types |
| By Distribution Channel | |
| Single-brand stores | |
| Multi-brand stores | |
| Online Stores | |
| Other Distribution Channels |
Brazil Luxury Goods Market Research FAQs
What is the current Brazil Luxury Goods Market size?
The Brazil Luxury Goods Market is projected to register a CAGR of 4.32% during the forecast period (2024-2029)
Who are the key players in Brazil Luxury Goods Market?
Hermès International S.A., Grupo LVMH, Kering Group, Prada Holding S.P.A. and Chanel limited are the major companies operating in the Brazil Luxury Goods Market.
What years does this Brazil Luxury Goods Market cover?
The report covers the Brazil Luxury Goods Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Brazil Luxury Goods Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Brazil Luxury Goods Industry Report
Statistics for the 2024 Brazil Luxury Goods market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Brazil Luxury Goods analysis includes a market forecast outlook 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
