Mexico Among the 10 Most Attractive Cities for Luxury
The city is becoming very attractive for brands and consumers thanks to its rapid and strong growth.
Mexico City continues living a golden moment in luxury since it’s considered by WealthInsight among the «most promising cities» for luxury brands to expand its brand in the coming years, as has unveiled the research firm in their latest study «Insight Report: The Rise of Luxury Goods in Emerging Cities 2019«.
Since the world economy is shifting towards emerging markets, the report explores the potential for market growth that luxury brands could see in 10 emerging cities with solid growth: Shanghai, Mumbai, Mexico City, Istanbul, Bangkok, Tel Aviv, Jakarta, Kuala Lumpur, Ho Chi Minh and Lagos.
To reach their conclusions, WealthInsight uses latest forecasts and interviews with luxury consultants (including Francisco Trigueros, CEO of Magnates World), suppliers and rich consumers living in the chosen cities.
The main recommendation experts make to WealthInsight so that luxury brands can actually thrive in these emerging locations, it is that companies should not focus on tourists, but rather on the demographic spectrum of people living in these regions. The strategy should focus on capturing the growing audience of middle and upper classes, rather than tourists that will most likely not visit a city specifically for its luxury goods or unlikely to return in a while.
«Emerging cities have a growing potential of luxury consumers and are a cost effective alternative for market expansion. With the significant increase of the middle class, urbanization, women at work and passion for luxury, emerging cities have become a key target for luxury brands. Driven by a strong desire on the part of the cities to show financial stability and success, luxury and wealth in emerging markets have become inseparable.» said Roselyn Lekdee, WealthInsight economist and author of the study.
Overall, the company expects the overall market size of luxury set for these 10 emerging cities to reach $ 62.6 billion in 2019, more than double than the 2014 estimate of $ 29.4 billion. «This is a strong message to luxury brands saying that they must carefully formulate their expansion strategy, customer management and the right branding to capture local demand, in order to remain competitive.» Lekdee concluded.
Disclosure: The author is not responsible for the views expressed in the article. The text was 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.