Brands offering a deeper and more emotional added value, delivering to their customers with immediacy and executing business strategies from a more local perspective are the most likely to succeed in this new commercial reality.
The outbreak of covid-19 and the mobility restrictions imposed by this pandemic significantly changed consumer behavior and perceptions of brands.
High quality and well priced food and spirits are on the list of products for which demand has increased from Indian consumers with higher purchasing power.
From a statement issued by the Costa Rica Foreign Trade Promotion Office (PROCOMER):
The luxury market in India is growing, and it is estimated that by 2017 it will reach a value of $1.8 billion, showing a growth relative to the current level of $1.4 billion, with the categories of fashion, cars and food being the most dynamic. It follows a study by the Associated Chambers of Commerce and Industry of India, Assocham and Yes Bank.
4.7% of cars sold between January and November 2014 corresponded to the segment of luxury cars in Panama, where the italian company Ferrari expects to set up in March.
Among the brands sold in Panama are Jaguar, Cadillac, Lincoln and Volvo, other brands in the luxury range but with less demand in this market are Maserati and Lamborghini. Between January and November 2014 alone about 2,602 luxury cars were sold, according to the National Institute of Statistics and Census.
Between January and October this year more than 1,300 high-end vehicles were sold, equivalent to 5% of new car sales in the same period.
According to the Association of Importers and Distributors of Motor Vehicles, the bestselling luxury car brands up until October of this year were: Audi, with 382 units, BMW, with 340 units sold, Land Rover with 127 units and finally Porsche with 104 cars.
Economic growth and the presence of foreigners with high purchasing power is driving the opening of shops selling luxury cars and premium residences.
A study by the firm Lends entitled 'Worldwide Luxury Consumer' shows that the number of consumers of luxury goods in the world has increased over the past 20 years. In late 1995, 90 million were reported and it is now expected that in 2014 there will be over 340 million such consumers.
Greater purchasing power and a growing middle class have led to an increase in the purchase of goods in the premium brand range to the detriment of basic commodities.
Liqueurs and alcoholic beverages is one of the sectors which best exemplifies the boom in goods and services which are considered luxury items in the country, to the detriment of traditional goods or commodities.
In 2013 there was a reduction in the collection of the selective consumption tax on "luxury" or non essential goods such as vehicles and alcoholic drinks.
For the first time since the 2008-2009 period the collection of the tax levied on imported goods such as vehicles, liquor and cigarettes fell by 11% compared to 2012, primarily in the area of vehicles.
An announcement has been made for the opening in 2016 of a luxury hotel with 450 rooms, of the Dreams brand, in the coastal town Buenaventura.
The firm is continuing its expansion in Panama with a luxury hotel under the brand name "Dreams Resorts & Spas" construction in the hotel zone of Buenaventura.
"The hotel will be located in a community of luxury villas and high-level resorts located just minutes from Rio Hato International Airport.
The sustained growth of the Panamanian economy is boosting luxury car consumption, championed by high-end cars.
The increase in sales of vehicles in 2013 in the luxury segment is expected to be repeated in 2014, according to representatives of the brands. The union of distributors also expects an increase, although it is more cautious.
Roberto Duran, CEO of Consúltenos, an Audi car dealership said: "We think that this year growth in our segment should be above 10%."
The growth of the high-income segment in the country is an opportunity for companies focused on providing high quality products and services.
Elfinancierocr.com reports: "A study by the firm Wealth- X, originally from Singapore, found that the number of individuals locally who registered at least $30 million in assets went from 85 to 100 in the last 12 months."
In order to align with the regulations to which they are committed in the Partnership Agreement with the European Union a draft amendment will be presented to the Legislative Assembly.
The main changes to the current legislation provides for the inclusion of specific procedures for registering things such as geographical information for domestic products, which refer to a "geographical name, description, image or sign that designates or evokes a product’s origin such as its country, region or locality ", as established by the current legislation, in force since 2002.
The government’s Strategic Plan 2010-2014 aims to turn the country into a “world-class center for value-added logistic services, luxury tourism and high value agriculture”.
These are very ambitious goals, especially when analyzing the country’s current situation, with 33% of its inhabitants living below the poverty line and serious deficiencies in infrastructure.
Not everyone agrees anymore that ‘low cost’ services or products are geared to middle income markets.
This concept was born in the air travel industry, and is quickly expanding to other industries, even to companies associated with high income sectors. They are implementing “low cost” strategies, with clearly defined branding strategies, to protect the premium brand. For obvious reasons, the economic crisis has boosted the concept.
One of the best-known academic minds in marketing talks to BNET about the two types of luxury consumers, and how to hang onto them in a recession.
John Quelch was one of ten marketing experts profiled in the 2007 book, Conversations with Marketing Masters, authored by Laura Mazur and Louella Miles. A professor at Harvard Business School since 1979, he is known worldwide for his research on global marketing, global branding and marketing communications.
Real Estate Development & Adventure Park Jacó, Costa Rica. Multiple Investment Opportunities Available. The Ocean Ranch eco-residential development is located...