the main points
- According to Bain Altagamma, this year the Americas will generate 113 billion euros in purchases of luxury goods.
- More than half of global wealth growth was generated in North America, according to Credit Suisse Global Wealth Report 2022
- Luxury is looking for new capitals in the United States: from Texas to Louisiana
A century later, i Roaring twenties They’re back: the decade that marked the beginning of the 20th century represented a golden moment for the United States seems to be repeating itself in the country also in this new millennium. At least, in luxury consumption: according to a recent global luxury market monitor by Bain-Altagamma, the Americas (which also includes growth markets in Mexico and Brazil) will generate €113 billion in luxury purchases this year in the high range, compared to 94 in Europe and 48 in Europe. In Asia (excluding China), an increase of 25% in the past year and 35% between 2019 and 2022, the highest percentage on the planet.
Stock index record, generous money helicopter, That is, direct subsidies, from Washington, fruitful investments in cryptocurrencies that enrich Generation Z that inhabits the United States by almost 21% and which by 2030 will perform 30% of shopping, are all factors that explain how today the United States has become the most promising market for luxury goods. Added to this is data from the Credit Suisse Global Wealth Report 2022, which indicates that more than half of the world’s wealth growth ($463 trillion) was created in North America, +15.5% compared to 2021, the highest value (China stop at 15%).
Second priority for years, confirmed as a prime square
«I think that in the last 20 years there was a problem with priorities – notes Luca Solka, managing director and head of the luxury sector at Bernstein -: luxury companies focused too much on China, given that this market was in explosive growth. Other large markets, such as the United States, remained in second place. The opportunity for more growth in the United States is there and can be seen: the ratio between luxury sales and GDP is lower than in Japan or China, and it does not have to be like this. A growth that will not only pass through traditional industrial destinations, concentrated on both coasts, but will increasingly spread to cities and regions that we can define as second and third tiers, as a direct result of the pandemic: telecommuting and staycation Travel restrictions have brought purchases not only within country borders, but also within their city limits.
Changing the geography of purchases
“In the US, the mobility phenomenon has been much more important than in Europe, so remote work has had huge ramifications in terms of availability of time and attractiveness for people – Emmanuele Pedrotti, partner at McKinsey – confirms. People buy locally and are willing to pay a premium to buy products. While rents on Fifth Avenue in New York are down about 20% compared to where they were before the pandemic, cities once considered secondary to big brands, such as Phoenix, Atlanta and Miami, are now subject to significant attention from labels. commercial, both in terms of direct sales and presence in multi-brand stores ».
From Austin to New Orleans: The New Capitals
The geography of new openings confirms this, affecting Austin, Texas and other Southern cities such as Charleston and Atlanta but also St. Louis and New Orleans. Givenchy (which has only 8 stores in the US) is about to open in Philadelphia, Breitling has opened a store in Detroit, and Cartier, as the Financial Times noted, hasn’t doubled its US store space. state in the past five years, but is eyeing new locations in Fort Worth, Texas, and Seattle with interest. Places that are experiencing rapid development should also be noted, such as Augusta in Missouri, which is considered the new Napa Valley in the Midwest; Nashville, Tennessee, where Oracle is building a campus attracting young tech talent, and even Fargo, North Dakota, made famous by the Coen brothers movie and now a favorite destination for the more sophisticated Generation Z. “Christian Louboutin and Dolce & Gabbana are just a few examples of the brands we found in previously unexplored cities, or at Louis Vuitton in Phoenix. Besides these brands, retailers such as Now or Never, also in Phoenix, as well as well-known brands such as Comme des Garçons and Maison Margiela, offer niche brands that also attract new consumers – continues Pedrotti -. In this context, the combination of “shopping local” and affordability affected purchases in more accessible luxury categories, including hats, T-shirts, and slippers ».
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