THE MARKET

Facts about the potential of the Central American premium market



"THE BEAUTY MARKET IN LATIN AMERICA IS BIGGER THAN THE MIDDLE EAST AND GROWING AS FAST AS ASIA."

Euromonitor International

LUXURY YOU LIVE

Experiential luxury, focusing on unique and personalized experiences, is gaining traction in the Central American luxury market which is gaining popularity among high net worth consumers. This trend is driven by a shift in preferences towards experiential luxury, where the focus is on unique and memorable experiences rather than just material possessions. According to a report by CXG, there is a clear preference for experiential luxury among Ultra-High Net Worth (UHNW) shoppers in the luxury market. The number of ultra-high-net-worth individuals globally is expected to increase, further fueling the demand for experiential luxury.

RIPE MARKETS

The luxury goods market in Central America is experiencing a significant boom and is expected to continue growing in the coming years. This growth can be attributed to several factors, including an increasing number of highnet- worth individuals in the region, a growing middle class with disposable income, and a strong demand for luxury products and experiences. According to a report by Euromonitor International, the luxury goods market in Central America has been expanding rapidly, with countries like Panama, Costa Rica, and Belize leading the way. The report also highlights that the region’s luxury market is expected to grow at a compound annual growth rate of 7% over the next five years. One of the key drivers of this growth is the rise of luxury tourism in Central America. The region’s stunning natural beauty, rich cultural heritage, and growing reputation as a luxury travel destination have attracted affluent travelers from around the world. As a result, luxury hotels, resorts, and experiential travel services are in high demand, contributing to the overall growth of the luxury market. Furthermore, the increasing presence of luxury brands and retailers in major cities across Central America is also fueling the market’s expansion. Highend fashion houses, jewelry brands, and premium car manufacturers are establishing a strong foothold in the region, catering to the rising demand for luxury products among affluent consumers. In addition, the growing influence of social media and digital marketing has played a significant role in driving the sales of luxury goods in Central America. With an increasing number of consumers turning to online platforms for their shopping needs, luxury brands have been able to reach a wider audience and capitalize on the region’s growing appetite for luxury products. Overall, the luxury goods market in Central America is thriving, and all signs point to continued growth in the years to come. With an expanding affluent population, a flourishing luxury tourism industry, and a growing appetite for high-end products and experiences, Central America is poised to become a key player in the global luxury market.

THE

CONSUMER PROFILE

The HENRY, DINK, & YUUMY

The college graduate with MNC income; the DINK (double-income, no kids); the HENRY (high-income, not rich yet); and the YUUMY (young urban, upwardly mobile) shop luxury like there is no tomorrow. They need to dress well, drink well, eat out frequently, socialize, entertain, and relax– essentially living well and living for today. They place importance on looking their best, mobile phones, and seasonal wardrobe changes and are considered the next big spenders on all things luxury

AGE RANGE: 18-50

SEX:

FEMALE 80% 80%
MALE 20% 20%

SALARY: $120,000 USD ANNUAL AVERAGE

EDUCATION: University-educated, generally with at least a Master’s Degree or equivalent, oftentimes from a North American or European university.

FAMILY STATUS

AGE: 15-29 MARRIED 30.95% 30.95%
AGE: 30-59 MARRIED 75.70% 75.70%

LIFESTYLE: Well-traveled, engages in a good deal of shopping

GOALS: Much of their buying habits are based on a desire to build and preserve “face” which acts as a sort of social currency amongst their peers.

woman in black dress and red bag standing on the street corner

CONSUMER

PURCHASING HISTORY

HERITAGE FASHION

Louis Vuitton, Mont Blanc, Cartier, Dolce & Gabbana, etc.

SKINCARE

Givaudan, Deciem, Shiseido, Vintner’s Daughter, Dr Dennis Gross, Augustinus Bader, IS Clinical, Dr Barbara Sturm, U Beauty, etc.

COSMETICS

Charlotte Tilbury, Chanel, Victoria Beckham Beauty, Tom Ford, etc.

HAIRCARE

R+Co, Olaplex, Oribe, Virtue, Shu Uemura, etc.

FRAGRANCE

Tom Ford, Byredo, Acqua di Parma, Diptyque, Chanel, Le Labo, Annick Goutal, Cire Trudon, Creed, Frederic Malle, etc.

PRODUCT USAGE

Consumers can generally be placed within the “prestige” category, meaning they want to see the efficacy of a product before purchasing. Excluding brands that create social cache amongst their peers, their buying habits are most often results-driven and therefore product usage is confined to the brand’s instructions for usage.

SATISFACTION

Brands that can show an appreciable improvement or the maintenance of a desired condition (e.g. smooth, luxurious hair, a clear complexion, discernable quality in terms of craftsmanship, etc.) can generally expect an enthusiastic customer response. Customer satisfaction is often predicated upon modest but discernible improvements.