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BizReport : Ecommerce archives : September 18, 2013

Where the next luxury-minded wave will hit

There is a new trend in the luxury products area: consumers buying from so-called underdeveloped countries. According to new data out from Ceros, wealthy shoppers in Latin America, China and India are pushing the luxury envelope.

by Kristina Knight

According to the Ceros data the surge in luxury buying coincides with a surge in wealthier consumers from those regions.

"The rise of wealthy indivisuals across the world has created countless new markets for luxury goods," was written in the report. "Where there is wealth, there is demand for luxury goods. Given the high return on those goods, and slowing sales due to weakened growth, it's easy to see why so many savvy businesses have an eye on Asia, India and Latin America to grow their brands."

They point out that there were no Chinese billionaires in 2003 but in 2013 there are 122 and that there has been a 50% growth rate for Latin American millionaires during the same time period.

"As wealth rises, so does demand for things to spend that wealth on," writes the company. "In countries with rising luxury markets, it's almost impossible to overlook the growing trend towards extravagance. They're taking a bigger market share of luxury goods, spending more on big ticket events like weddings and seeing more niche sales even in a weakened global economy."

Just what are the newly rich spending on?

• In India the wealthy are spending on weddings - $38 billion annually
• In Mexico, wealthy consumers are spending on designer duds - $3.88 billion (2012)
• In China, spending on premium cars (BMW, Mercedes) increased 32% and premium watches (Rolex, Piaget, Cartier) 43% in 2012
• Both Latin Americans and Chinese are shelling out dough for top-shelf liquor

Image via Shutterstock

Tags: Ceros, ecommerce trends, luxury brands, luxury consumers, luxury shopping

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