Luxury Goods in Brazil

LUXURY GOODS IN BRAZIL

Euromonitor International

February 2019

LIST OF CONTENTS AND TABLES

Executive Summary

Luxury Areas Resume Growth, But at Lower Pace Than Expected

Political Uncertainty Impacting Company Strategies

Growing Concentration Due To Falling Demand

Store-based Retailing Leads Distribution, But Growing Focus on New Channels

Slow Recovery Requires Long-term Goals and More Efforts To Boost Awareness

Market Indicators

Table 1 Number of High Net Worth Individuals (HNWI): 2013-2018

Market Data

Table 2 Sales of Luxury Goods by Category: Value 2013-2018

Table 3 Sales of Luxury Goods by Category: % Value Growth 2013-2018

Table 4 Inbound Receipts for Luxury Goods by Country of Origin: Value 2013-2018

Table 5 NBO Company Shares of Luxury Goods: % Value 2013-2017

Table 6 LBN Brand Shares of Luxury Goods: % Value 2014-2017

Table 7 Distribution of Luxury Goods by Format and Category: % Value 2018

Table 8 Forecast Sales of Luxury Goods by Category: Value 2018-2023

Table 9 Forecast Sales of Luxury Goods by Category: % Value Growth 2018-2023

Sources

Summary 1 Research Sources

Headlines

Prospects

Occupancy Rates Improve in 2018

Luxury Hotels To Continue Performing Well

Location To Remain Key for New Ventures To Succeed in Brazil

Competitive Landscape

New Luxury Hotels Unlikely

Lack of Profitability Hampering Development

Economic Uncertainty Limiting Investment

Category Data

Table 10 Sales in Luxury Hotels: Value 2013-2018

Table 11 Sales in Luxury Hotels: % Value Growth 2013-2018

Table 12 Sales in Luxury Hotels by Country of Origin: % Value 2013-2017

Table 13 NBO Company Shares in Luxury Hotels: % Value 2013-2017

Table 14 LBN Brand Shares in Luxury Hotels: % Value 2014-2017

Table 15 Forecast Sales in Luxury Hotels: Value 2018-2023

Table 16 Forecast Sales in Luxury Hotels: % Value Growth 2018-2023

Headlines

Prospects

Trading Down Continues To Impact Sales of More Expensive Products

Growing Competition From Imported Alternatives

Internet Retailing Increasing Presence

Competitive Landscape

Pernod Remains the Leader, But Is Losing Sales Share

Aggressive Pricing Boosts Sales at the Expense of Image

Pernod Set To Lose Leading Position

Category Data

Table 17 Sales of Fine Wines/Champagne and Spirits by Category: Value 2013-2018

Table 18 Sales of Fine Wines/Champagne and Spirits by Category: % Value Growth 2013-2018

Table 19 NBO Company Shares of Fine Wines/Champagne and Spirits: % Value 2013-2017

Table 20 LBN Brand Shares of Fine Wines/Champagne and Spirits: % Value 2014-2017

Table 21 Distribution of Fine Wines/Champagne and Spirits by Format: % Value 2013-2018

Table 22 Forecast Sales of Fine Wines/Champagne and Spirits by Category: Value 2018-2023

Table 23 Forecast Sales of Fine Wines/Champagne and Spirits by Category: % Value Growth 2018-2023

Headlines

Prospects

Niche Areas Performing Better

Company Confidence Remains Weak Due To Ongoing Uncertainty

Brazil Losing Luxury Opportunities To Mexico

Competitive Landscape

Luxottica Continues Leading Personal Luxury, Despite Two Years of Decline

Calvin Klein Posts Two Consecutive Years of Growth

L'oréal Leads Super Premium Beauty and Personal Care

Category Data

Table 24 Sales of Personal Luxury by Category: Value 2013-2018

Table 25 Sales of Personal Luxury by Category: % Value Growth 2013-2018

Table 26 NBO Company Shares of Personal Luxury: % Value 2013-2017

Table 27 LBN Brand Shares of Personal Luxury: % Value 2014-2017

Table 28 Forecast Sales of Personal Luxury by Category: Value 2018-2023

Table 29 Forecast Sales of Personal Luxury by Category: % Value Growth 2018-2023

Headlines

Prospects

Recovery Driven by New Price Points, But Impacting Margins

Brazilians Continue To Prefer To Buy Locally

Brands Varying From Proactive To Reactive Approaches

Competitive Landscape

Rational Sales Approach During Challenging Times

Luxury Consumers Highly Impacted by International Trends

Strong Knowledge of Luxury Consumers' Needs

Category Data

Table 30 Sales of Designer Apparel and Footwear (Ready-to-Wear) by Category: Value 2013-2018

Table 31 Sales of Designer Apparel and Footwear (Ready-to-Wear) by Category: % Value Growth 2013-2018

Table 32 NBO Company Shares of Designer Apparel and Footwear (Ready-to-Wear): % Value 2013-2017

Table 33 LBN Brand Shares of Designer Apparel and Footwear (Ready-to-Wear): % Value 2014-2017

Table 34 Distribution of Designer Apparel and Footwear (Ready-to-Wear) by Format: % Value 2013-2018

Table 35 Forecast Sales of Designer Apparel and Footwear (Ready-to-Wear) by Category: Value 2018-2023

Table 36 Forecast Sales of Designer Apparel and Footwear (Ready-to-Wear) by Category: % Value Growth 2018-2023

Headlines

Prospects

Most Popular Luxury Area Shows Lack of Resilience

Informal Sales Challenge Recovery

Consumers Prioritising Other Luxury Areas

Competitive Landscape

Fragmented Channels Selling Expensive Items Without Luxury Experience

Opportunity To Direct Customers To Offerings in Other Areas

Luxottica Continues To Lead Luxury Eyewear Following Recent Acquisitions

Category Data

Table 37 Sales of Luxury Eyewear by Category: Value 2013-2018

Table 38 Sales of Luxury Eyewear by Category: % Value Growth 2013-2018

Table 39 NBO Company Shares of Luxury Eyewear: % Value 2013-2017

Table 40 LBN Brand Shares of Luxury Eyewear: % Value 2014-2017

Table 41 Distribution of Luxury Eyewear by Format: % Value 2013-2018

Table 42 Forecast Sales of Luxury Eyewear by Category: Value 2018-2023

Table 43 Forecast Sales of Luxury Eyewear by Category: % Value Growth 2018-2023

Headlines

Prospects

Luxury Jewellery Players Adapting Offers To Brazilian Consumers

Growing Competition From Non-luxury Players

Trend Towards Less Conspicuous Consumption

Competitive Landscape

Competition With Non-luxury Brands Intensifying

Growing Demand Among Mass Consumers

Luxury Jewellery Players Reducing Operations

Category Data

Table 44 Sales of Luxury Jewellery by Category: Value 2013-2018

Table 45 Sales of Luxury Jewellery by Category: % Value Growth 2013-2018

Table 46 NBO Company Shares of Luxury Jewellery: % Value 2013-2017

Table 47 LBN Brand Shares of Luxury Jewellery: % Value 2014-2017

Table 48 Distribution of Luxury Jewellery by Format: % Value 2013-2018

Table 49 Forecast Sales of Luxury Jewellery by Category: Value 2018-2023

Table 50 Forecast Sales of Luxury Jewellery by Category: % Value Growth 2018-2023

Headlines

Prospects

Women's Luxury Bags Continues To Lead Leather Goods

Logomania Attracting Consumers

Brazilian Luxury Consumers Still Not Focusing on Sustainability

Competitive Landscape

Gucci Benefiting From Popularity Among Millennials

Brands Exploring New Cities and Brazilian Countryside

Shift Towards Multi-brand Stores

Category Data

Table 51 Sales of Luxury Leather Goods: Value 2013-2018

Table 52 Sales of Luxury Leather Goods: % Value Growth 2013-2018

Table 53 NBO Company Shares of Luxury Leather Goods: % Value 2013-2017

Table 54 LBN Brand Shares of Luxury Leather Goods: % Value 2014-2017

Table 55 Distribution of Luxury Leather Goods by Format: % Value 2013-2018

Table 56 Forecast Sales of Luxury Leather Goods: Value 2018-2023

Table 57 Forecast Sales of Luxury Leather Goods: % Value Growth 2018-2023

Prospects

Headlines

Prospects

Limited Sales Growth in 2018 Following Challenging 2017

Store Closures in Response To Falling Sales

Potential for New Business Formats To Boost Sales

Competitive Landscape

Cartier Explores Potential of Using Image of Local Hero

Category Data

Table 58 Sales of Luxury Timepieces by Category: Value 2013-2018

Table 59 Sales of Luxury Timepieces by Category: % Value Growth 2013-2018

Table 60 NBO Company Shares of Luxury Timepieces: % Value 2013-2017

Table 61 LBN Brand Shares of Luxury Timepieces: % Value 2014-2017

Table 62 Distribution of Luxury Timepieces by Format: % Value 2013-2018

Table 63 Forecast Sales of Luxury Timepieces by Category: Value 2018-2023

Table 64 Forecast Sales of Luxury Timepieces by Category: % Value Growth 2018-2023

Headlines

Prospects

Modest Value Growth Due To Slow Recovery of Brazilian Economy

Trend Towards Less Conspicuous Consumption

Luxury Writing Instruments Seen As Status Symbol for Older Generations

Competitive Landscape

Challenge of Selling Writing Instruments in Digital Era

Traditional Brands Closing Stores and Diversifying

Focus on New Areas To Boost Sales

Category Data

Table 65 Sales of Luxury Writing Instruments and Stationery: Value 2013-2018

Table 66 Sales of Luxury Writing Instruments and Stationery: % Value Growth 2013-2018

Table 67 NBO Company Shares of Luxury Writing Instruments and Stationery: % Value 2013-2017

Table 68 LBN Brand Shares of Luxury Writing Instruments and Stationery: % Value 2014-2017

Table 69 Distribution of Luxury Writing Instruments and Stationery by Format: % Value 2013-2018

Table 70 Forecast Sales of Luxury Writing Instruments and Stationery: Value 2018-2023

Table 71 Forecast Sales of Luxury Writing Instruments and Stationery: % Value Growth 2018-2023

Headlines

Prospects

Fragrances Sales Pressured by Fluctuating Exchange Rate

Same Challenges As Other Luxury Areas

Recovering Economy To Boost Sales

Competitive Landscape

Belocap Produtos Capilares Continues To Reign Thanks To Its Hair Care Division

Innovation Key To Attracting Consumers

Category Data

Table 72 Sales of Super Premium Beauty and Personal Care by Category: Value 2013-2018

Table 73 Sales of Super Premium Beauty and Personal Care by Category: % Value Growth 2013-2018

Table 74 NBO Company Shares of Super Premium Beauty and Personal Care: % Value 2013-2017

Table 75 LBN Brand Shares of Super Premium Beauty and Personal Care: % Value 2014-2017

Table 76 Distribution of Super Premium Beauty and Personal Care by Format: % Value 2013-2018

Table 77 Forecast Sales of Super Premium Beauty and Personal Care by Category: Value 2018-2023

Table 78 Forecast Sales of Super Premium Beauty and Personal Care by Category: % Value Growth 2018-2023