Brazilian Luxury Eyewear: A gloomy market showing some signs of recovery with more accessible online retailing: Ken Research
Posted on 31 October 2017 by KenResearch Consumer Products and Retail,
The Brazilian luxury eyewear market is composed to two different segments, luxury spectacle frames and luxury sunglasses. The presence of these products is wide spread and they are available in almost all the high-end Brazilian stores. There are over 35,000 optical stores in Brazil and most of them offer luxury spectacles and high-end sunglasses. This makes the Brazilian luxury spectacles and sunglasses distribution system unique in the world.
According to the market research report "Luxury Eyewear in Brazil", negative GDP growth rate, sky-high inflation, high tax rates and rising unemployment has severely impacted the luxury goods market, including the luxury eye-wear market. With no hopes of a quick economic recovery, even the most pliant consumers have reduced their purchase of luxury goods. But this slowdown in economy has a positive impact too. Because of reducing incomes, most of the high-income customers have reduced their foreign trips and they are doing their luxury shopping domestically. This means that the import of luxury goods in Brazil has taken a more sever hit of this economic slowdown and the domestic luxury goods have become a substitute of those imported products. In addition, in order to reduce their inventory, retailers are giving heavy discounts on domestic luxury goods. Therefore, the domestic luxury goods market has seen some recovery.
When it comes to luxury eyewear, because of this slowdown, traditional and innovative players are flourishing. They have expanded their market presence by using new e-retailing and personalised experience shops. Since, Brazil has a strong gift giving culture; most of these new players has set up multiple gift shops and hence experienced a rise in their sales. However, because of such an unstable market, new players are not entering into the Brazilian luxury eyewear market.
Sao Paulo and Rio de Janeiro are the hub for these luxury products, but now the market players have started expanding their operations to other regions as well. The number of online stores is growing as well, but since the people are still sceptical about the safety of online payment gateways, eRetailing is still a niche market with only a few players. As the economy is expected to start recovering in 2017, this market is expected to regain its status and the sale might increase in coming years. With the revival of economy, the Brazilian luxury eyewear market is expected to show some significant growth and returns for the companies working in this segment will increase.
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