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Brazil's booming luxury market

Brazil's booming luxury market - Luxe Barcelona
Sao Paolo, Brazil's leading business and financial hub, is currently concentrating most of the country's luxury market.

Chanel, Hermes, Burberry, Carolina Herrera, Marc Jacobs, Goyard, Celine and Jimmy Choo are just some of the major international luxury brands which have opened mono-brand stores in Sao Paolo over the past 2 years, most of them operated in franchising.

Brazil currently accounts for just USD 7,59 billion in luxury revenues, or about 1% of the global market. But its rate growth is 22% a year, far outpacing several more established markets and even Brazil's general retail sales, which rose an estimated 11% in 2010. And the country's luxury sales are now almost twice the value of 2006. As a result of the economic stability brought on by eight years of President Luiz Inacio Lula da Silva's Government, which is expected to continue under the new President Dilma Rousseff, who took over on Saturday.

This new ''bourgeoisie'' according to a report by Goldman Sachs, can drive luxury goods sales in the next decade. According to the report, luxury sales in Brazil could represent 6% of the global market by 2025, or USD 63,5 billion.

Although Sao Paolo concentrates more than 70% of Brazil's luxury market, there is potential in other cities too. Iguatemi already has a mall in Brasilia, where Burberry opened its first directly operated store in May 2010, which was followed by a second opening of a Burberry store within the Iguatemi Mall in Sao Paolo in December 2010.

A site being eyes by luxury brands in Rio de Janeiro is the Village Mall, which is being planned in the city's Barra da Tijuca neighbourhood. Nicole Kidman has been hired to promote the new project which is due 2012.