“The crisis that hit several sectors of the domestic economy didn’t affect the market for high-priced consumer goods in the country, which grew 15% last year. Considered the luxury capital of the Northeast, Recife became the target of large international clothing, accessory, cosmetic, food and real estate brands. Diario today brings us an “x-ray” of the sector.”
Below, I summed up some of the main points.
Consumers of luxury items do exist but they make up a small percent. With luxury brands installing themselves in the capital, shopping mall relationships with smaller vendors have soured. In an attempt to increase sales, the malls give all sorts of benefits and incentives to the large brands, while the local vendor who wants to invest is left with smaller spaces and high rents. Even with the entrance of premium brands into the Recife market, the mall sales only grew 2% in 2014.
Here’s a list of the main brands that came to Pernambuco over the last 2-3 years:
2014 – Valentino, Gucci, Versace Collection, Emporio Armani, Dolce & Gabbana, MAC, Track & Field, Outer Shoes, GAP, Ricardo Almeida, and Kate Spade.
2013/2012 – Prada, Coach, Burberry, Hugo Boss, Brooksfield, Calvin Klein Jeans, Jolie B, and Cantão.
Places like Boa Viagem, Jaqueira, Casa Forte, Madalena, Torre and Ilha do Retiro are where real estate companies that deal in high-end housing are looking to continue building, but there’s not a lot of land available for building upon due to these areas already being saturated. This is the only area of the housing market in Recife where demand remains high as these companies aren’t able to sufficiently supply the market.