Brazil’s luxury market grows by 20% in 2011

According to recent data released by Altagamma, the Italian Association of Luxury Brands, Brazil’s luxury market has registered a record 45% average growth rate year on year, between 2003 and 2011. Brazil’s luxury market in 2011 registered a 20% increase in comparison with 2010, reaching a total of 2,3 billion euros.

Thanks to the two major sporting events which Brazil will host, the World Football Cup in 2014 and the Summer Olympics in 2016, the country has attracted massive investments, its GDP growing by an average 12% in the past 6 years.

According to Altagamma, Brazil currently counts 155.000 consumers with liquid assets of over 30 million euros and an increasing upper class segment, currently made up of 10 million consumers, of which 75% are women.

Presently, Brazil’s luxury market is currently focused in the city of Sao Paolo (over 70%), most international luxury brands already being represented. One of the major challenges to the growth of Brazil’s luxury market is represented by the heavy import taxes and duties. To address this issue, Altagamma has been lobbying with European Union authorities to put in place a special customs treaty between the E.U. and Brazil, the first phase of which will be enforced starting February 2011.