Luxury Consumption In Columbia Is Expected To Surpass Brazil

and Luxury industry The fine and delicate construction is compared to the Latin American countries. Columbia The international image is somewhat crude. Guerrilla warfare, drug traffickers and jungle hostages are the first impressions of many fascinating and complex countries. But in fact, it is becoming a new important place for luxury goods in the Latin American market. In July this year, the twenty-fifth Columbia fashion trade exhibition was held in Medellin. Recently, according to its closed behind the scenes statistics, the exhibition has set a new high of $three hundred and eight million, which has aroused strong repercussions from overseas media and fashion retailers. People began to link the country with fashion consumption and luxury goods.

Different from the view of ordinary consumers, Columbia, who is familiar with Latin American market's fashion brands and practitioners, is already in their plan and is a market that must be taken. According to CPP, a fashion industry consulting firm, Columbia's luxury consumption is expected to exceed Brazil, one of the BRICs, this year, thanks to its huge market potential in consumption categories such as holidays, fashion, accessories and watches.

The virgin land that has never been reclaimed to the market facing deep ploughing

"Four or five years ago, Luxury goods The brand's vision for the Columbia market is beginning to bud. The increasingly stable and secure situation has made the country get rid of the image of barbarians. For most luxury brands, this is the virgin land that has not yet been reclaimed. Huge business opportunities. " Kelly Talamas, editor in chief of the Mexico and Latin American versions of Vogue magazine recalls. Since 2009, international luxury brands, led by Louis Vuitton, Max Mara and Hugo Boss, have been stationed in Columbia. In recent two years, brands such as Dolce&Babbana, Burberry and Tiffany have also opened stores to Bogota, capital of Columbia.

As local people, Laura Laurens, a local boutique shopkeeper, said, "since then, explosions and hijacking incidents have been gradually decreasing, and people are no longer so scared and begin to enjoy life." Today, her store sells many local brands in Columbia, as well as some brands that are synchronized with Opening Ceremony and other famous boutiques.

The consumer base of fifty million guarantees the status of the second largest Latin American markets in Columbia, with assets in the millions of US dollars accounting for about 47000 people, which provides a huge growth space for luxury consumption. In the past 3 years, Columbia's GDP has maintained a growth rate of around 4.8%, of which the fashion industry has done a great job. Euromonitor International, a market maker, pointed out that the annual sales volume of Columbia's clothing retail industry reached eight hundred and seventy million dollars between 2013 and 2018. At the same time, the compound annual growth of Columbia's fashion industry has been maintained at about 9.4% in the past 10 years, and is second only to Brazil in Latin America. In 2013, the total exports of clothing to Columbia increased to US $two hundred million and nine hundred thousand.

Alex Zielcke, founder of S.A.S group, is the winner of the huge benefits from the development of Columbia's fashion industry. The company has Columbia's landmark multi brand integration store Le Collezioni, which has won the franchise of Columbia Ermenegildo Zegna, Salvatore Ferragamo, Hackett and Michael Michael. "I started to get involved in Luxury Retailing 20 years ago when it was very difficult to do business, and consumers were not used to buying and using luxury goods. But now, they will. " Alex Zielcke recalls.

The three major luxury goods in Columbia are Bogota, Medellin, and Kali. S.A.S has recently extended its tentacles to places outside three cities - they have set up boutiques in two small cities in the Caribbean. "The maturity of the Columbia market and the maturity of our group allow us to do so. In Columbia, the custom market is growing, and for brands like Zegna and Santoni, they need to go deep across the country to spread personalized products and services. Zielcke said, "a few years ago, such a move is unthinkable."

Foreign brands and local brands

In the past, because of the hidden danger of safety, the affluent group in Columbia was rather low-key. They used to consume luxury goods abroad. Now, when they start to consume at home, their strength has surprised the luxury brands and retailers. Abundant oil resources have created Columbia's richest class. "Credit Suisse 2013 Global Wealth Report" points out that the number of millionaires in Columbia even surpassed Saudi Arabia and the United Arab Emirates.

In Bogota Centro Andino shopping center, Louis Vuitton, Bulgari stores and Bettina Spitz, Ricardo Pi, eres, Mercedes and other native high fashion designer brand neighbors. Columbia's leading local designers have developed into brand names in Latin America. "To a certain extent, the unstable political situation has delayed the arrival of the international fashion brand, but also created a breathing and growth opportunity for the local brand." Harperchr (34) s Bazaar magazine editor in chief of Mexico and Latin America Brenda Diaz de la Vega talks about the establishment of the local fashion industry. Medellin is a huge and comprehensive textile industry base in Columbia, while Bogota is the center of the local fashion and design industry. "If the international brand entered Columbia in ten years ago, these native designers may not be able to grow up."

"Every month, the fashion scene in Columbia is changing rapidly," said Nicolas Rico, co-founder of 3cero2, a fashion event planning company in Columbia. I can feel that a dynamic, positive, and benign brand war broke out between foreign brands, the time-honored brand of Columbia and Columbia's cutting-edge local brands. Apart from the competition among brands, the competition for international brand agents is also fierce. Executive S.A.S, Grupo Sterling, Grupo Uribe Medellin, Marcas Europeas are all very competitive seed players.

Although the abundant oil resources and the wave of infrastructural development have greatly increased the consumption power of Columbia people, this does not mean that the development of fashion brands in the country is bound to go forward. Fluctuating exchange rates, heavy taxes, high housing prices, bloated administrative and legal systems can shake consumer confidence. The biggest uncertainty is still politics. Political factors can change the business environment of the country overnight. This year's presidential election is a good example of Columbia's cautious watching. Laura Laurens, a local designer, said: "we can not talk about the completely stable political situation at present. Our society still has huge faults and injustice. People still have a tight string in their minds. However, the situation is gradually improving.