Colombia Stands Out in the Latam Luxury Market
The great economic and social development that Colombia is experiencing in recent years, mainly due to its well-developed policies and its participation in the Pacific Alliance, the country is becoming a benchmark for the luxury market in LATAM being first, an attractive country for luxury brands, and second a great exporter of premium brands.
Given the growth of the middle and upper class thanks to the solid expansion of its industry, it is estimated that around 4% of the population have an annual income over US $ 250,000. Although there isn’t the same proportion of potential consumers as the most developed countries, the success of brands like Cartier and Bulgari in the country have facilitated the entry for other brands such as Burberry, Tiffany’s and Louis Vuitton.
The Wealth-X and UBS consulting firms estimated at 635 the UHNWI’s that there are in Colombia –people whose personal fortune is equal to or greater than 30 million dollars– a figure that has been steadily increasing thanks to Colombia going from an annual GDP (Gross Domestic Product ) of 100 billion dollars in 2000 to exceed 380 billion dollars today, which translates into an increase of GDP per capita from $2,000 to $8,000 a year.
Large cuts in customs tariffs and bilateral agreements with Europe, and particularly with Spain, have brought to Colombia a privileged position in the investment options for luxury brands, as explained in an interview the director of marketing and public relationships for Ferrari in Colombia, Steven Goldstein.
On the opposite direction the fashion market in Colombia has exported great brands such as Nancy Gonzalez, whom with the help of her son Santiago Gonzalez, has successfully conquered the New York market with her crocodile handbags.
This is also the case of Silvia Tcherassi, fashion designer of prêt à porter and wedding, who just recently has moved to Madrid in the street Lagasca, 88, right next to Chanel and in front of Balenciaga among other illustrious neighbors. Silvia already has a strong presence not only in Colombia but also in Mexico and the US.
Camilo Guerrero Villegas, expert Colombian fashion consultant based in Madrid, whom we consulted, tells us: «The luxury consumer today in Colombia is demanding, keeps constantly informed about the luxury market in Europe and worldwide, and has the power to travel and enjoy the luxury tourism that international markets offer».
All these data not only confirms the excellent health that the Colombian luxury market shows but also the growth trend it will experience in the coming years.
Disclosure: The author is not responsible for the views expressed in the article. The text has been written freely expressing ideas, without receiving any compensation. The author has no business relationship with any of the companies whose shares are listed in this article