According to Ferreirinha, interest at a low level encourages the consumption of high income, especially items with potential for appreciation, such as jewelry and works of art.
At LVMH, owner of brands such as Louis Vuitton and TAG Heuer, the drop in clothing and leather items was 37% in the second quarter of 2020. The end of the year in the category, on the other hand, registered an increase of 18% compared to the quarter end of 2019.
A similar performance was registered by Kering, owner of Gucci, which saw its sales plummet 30% in the first half, but reduced the drop to 3% in the last six months of the year. Online sales advanced 67% in 2020 at the company.
Bvlgari, of the LVMH group, says that its results are 12% above that registered in 2020 for the month of March in Brazil. Christian Konrad, director for Latin America and the Caribbean, attributes the performance to the fact that high-income Brazilians are traveling less and buying more in the local market.
The watch brand Panerai, from the Swiss group Richemont, also attributes the recent warming to the concentration of consumption in Brazil. The company says that sales of its ecommerce in the country, launched in 2019, are above expectations.
At a conference for analysts last month, Prada celebrated the 52% increase in sales to the Chinese market in the recovery of the end of 2020, but it also listed Brazil among the markets with good performance. Salvatore Ferragamo says it achieved positive results in all markets in Central and South America at the end of 2020, except Mexico.
Thiago Alonso, president of JHSF, owner of the Cidade Jardim shopping mall, which houses luxury brands in São Paulo, says that, despite suffering from opening restrictions, part of the stores managed to grow in 2020, especially jewelry stores.
According to Guilherme Machado, an analyst at Euromonitor International, the luxury industry should show growth of more than 34% by 2025. Among the five largest markets in the sector in 2020 (China, United States, Germany, United Kingdom and Japan), Brazil should just behind China for years to come.
“Consumers who previously made several international trips each year, diverted these expenses to make purchases at local luxury stores, mitigating the impact of the crisis period on sales of luxury products,” says the analyst.
For Machado, the possibility of spending more on self-indulgence was accompanied by a more conservative aesthetic, with timeless classic pieces being the main choices. Total industry sales, however, are expected to return to 2019 levels only after 2023.
With Filipe Oliveira, Andressa Motter e Paula Soprana
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