Understanding the Brazilian Luxury Consumer

Economic prosperity in Brazil, as is evident in other emerging markets, has created new high-end consumer markets. According to Euromonitor International (2012), Brazil’s luxury goods market has grown rapidly in the last decade and was valued at over US$ 7 billion in 2011. Other market estimates indicate that the Brazilian luxury market is close to US$ 12 billion (MCF Consultoria and GfK 2011). The high potential of the seventh largest national economy continues to attract ever increasing attention of international luxury brands. For example, the JK Iguatemi mall in Sao Paulo, which opened in June 2012, has given luxury brands such as Burberry, Gucci, and Prada, an increasingly prominent footprint. Difficulties encountered by international luxury brands, such as high taxes, red tape, and lack of infrastructure, continue to hinder market entry and expansion plans. However, the failure to gain a deep understanding of the Brazilian luxury consumer should not be overlooked. This chapter sets out to decode the luxury consumer. Indicated actions stemming from our analysis will give international luxury brands the necessary knowhow to capture a greater share of the bourgeoning luxury market in Brazil.