CONSUMERS

Understanding Brazil’s Next Generation of Wealth

by

Sophie Doran

|

This is the featured image caption
Credit: This is the featured image credit

As Brazil enters the global spotlight with the World Cup and Olympics on the horizon, an increasing number of luxury brands are looking at opportunities within the market

Over the last decade, collaborations between luxury brands and contemporary artists have gone beyond mere artistic partnerships towards a new kind of luxury branding.

PARIS – Art and fashion have always developed side by side, for fashion, like art, often gives visual expression to the cultural zeitgeist. During the 1920s, Salvador Dalí created dresses for Coco Chanel and Elsa Schiapparelli. In the 1930s, Ferragamo’s shoes commissioned designs for advertisements from Futurist painter Lucio Venna, while Gianni Versace commissioned works from artists such as Alighiero Boetti and Roy Lichtenstein for the launch of his collections. Yves Saint Laurent’s vast art collection, recently auctioned at Christie’s in Paris, testified to his great love of art and revealed the influence of a variety of artists on his own designs.

In the 1980s, relationships between luxury brands and artists were advanced when Alain Dominique Perrin created the Fondation Cartier. In the Fondation Cartier pour l’Art Contemporain, a book marking the foundation’s 20th anniversary, Perrin says he makes “a connection between all the different sorts of arts, and luxury goods are a kind of art. Luxury goods are handicrafts of art, applied art.”

The Fondation Cartier pour l’Art Contemparain building in Paris

As Brazil enters the global spotlight with the World Cup and Olympics on the horizon, an increasing number of luxury brands are looking at opportunities within the market

Brazil is the largest economy in South America and the eighth biggest economy globally. Following the 2009 recession, consumer and investor confidence revived and GDP growth reached 7.5% in 2010 – the highest growth rate in the past 25 years.

The country has a tightly regulated, domestically focused, cash-rich economy, and is continuing to stick to orthodox macro-economic policies. In addition, Brazil’s banks are profitable and well capitalised. Large capital inflows over the past year have contributed to the rapid appreciation of its currency and led the government to raise taxes on some foreign investments.

Brazil’s richest 165,000 individuals increased their total wealth by 3.7% to just over $4 trillion last year. This ranks it third in the world by value and 12th by number of individuals. Only the US and Japan outranked it on high net worth value.

“ Brazil’s richest 165,000 individuals increased their total wealth by 3.7% to just over $4 trillion in 2012 ”

Louis Vuitton has built its portfolio to five points of sale in Brazil (São Paulo, Rio and Brasilia), as Ferrari has established a dealership in São Paulo. Each year, since 2009, Ledbury Research has tracked the retail movements of Cartier, Tiffany, Bulgari, LV, Burberry, Gucci, Ralph Lauren, Armani and Chanel. In 2009 they had a total of 13 stores within the country, which has increased to 21 stores in 2012.

A new generation of young entrepreneurs are leading Brazil’s wealth revolution. In the latest release of its Wealth Segment report series, Ledbury identifies these Independent Leaders as just one of three of the latest groups of wealthy individuals to be watched in the emerging Brazilian marketplace, alongside Discerning Dynasts and Boom Benefactors.

Each Wealth Segment report is based on Ledbury Research’s considerable experience interviewing the wealthy population in Brazil, alongside in-depth interviews with Wealth Experts.

These Experts are individuals whose professional lives involve interacting with high net worth individuals on a daily basis. Their backgrounds are deliberately various, spanning the worlds of luxury goods, wealth management, high-end property, hotels and restaurants, premium autos, and others.

“ Despite their level of wealth, they are incredibly low-key in displaying it ”

Discerning Dynasts

Discerning Dynasts are blue-blooded individuals who have grown up with and around wealth. Despite their level of wealth, they are incredibly low-key in displaying it. Accordingly, they prefer to shop abroad because it is less expensive.

They also prefer to be at places that have a private environment and they go to these places with a small, select group of friends, or entertain them at home. Their social circle is very tight-knit and difficult to penetrate.

Boom Benefactors

Boom Benefactors are men who have made their fortunes on the back of Brazil’s rapid economic growth over the past 5-8 years. They are successful because they were in the right place at the right time, but also because they work hard.

Money and luxury is a relatively new phenomenon for them and they focus on using it for indulgence, and to feel a sense of belonging. As they want to be known by society, they show off with branded clothing and loud pieces of jewellery.

Independent Leaders

Independent Leaders are the youngest wealth segment in Brazil. They are well educated and have international mindsets. Their careers started when they were 21 years old, straight after university.

They are very hardworking, and view money as a symbol of independence, as well as a gateway to material indulgence. They are mostly single however, some will be recently married with no children.

Each segment analysis is available to Luxury Society members at the exclusive price of £320 (discounted from £400) for a single user license, or £640 (discounted from £800) for a multi user license.

For further information please visit the following link. To order a copy at the preferential rate, please download the order form and return to [email protected].

Sophie Doran
Sophie Doran

Creative Strategist, Digital

Sophie Doran is currently Senior Creative Strategist, Digital at Karla Otto. Prior to this role, she was the Paris-based editor-in-chief of Luxury Society. Prior to joining Luxury Society, Sophie completed her MBA in Melbourne, Australia, with a focus on luxury brand dynamics and leadership, whilst simultaneously working in management roles for several luxury retailers.

CONSUMERS

Understanding Brazil’s Next Generation of Wealth

by

Sophie Doran

|

This is the featured image caption
Credit : This is the featured image credit

As Brazil enters the global spotlight with the World Cup and Olympics on the horizon, an increasing number of luxury brands are looking at opportunities within the market

Over the last decade, collaborations between luxury brands and contemporary artists have gone beyond mere artistic partnerships towards a new kind of luxury branding.

PARIS – Art and fashion have always developed side by side, for fashion, like art, often gives visual expression to the cultural zeitgeist. During the 1920s, Salvador Dalí created dresses for Coco Chanel and Elsa Schiapparelli. In the 1930s, Ferragamo’s shoes commissioned designs for advertisements from Futurist painter Lucio Venna, while Gianni Versace commissioned works from artists such as Alighiero Boetti and Roy Lichtenstein for the launch of his collections. Yves Saint Laurent’s vast art collection, recently auctioned at Christie’s in Paris, testified to his great love of art and revealed the influence of a variety of artists on his own designs.

In the 1980s, relationships between luxury brands and artists were advanced when Alain Dominique Perrin created the Fondation Cartier. In the Fondation Cartier pour l’Art Contemporain, a book marking the foundation’s 20th anniversary, Perrin says he makes “a connection between all the different sorts of arts, and luxury goods are a kind of art. Luxury goods are handicrafts of art, applied art.”

The Fondation Cartier pour l’Art Contemparain building in Paris

As Brazil enters the global spotlight with the World Cup and Olympics on the horizon, an increasing number of luxury brands are looking at opportunities within the market

Brazil is the largest economy in South America and the eighth biggest economy globally. Following the 2009 recession, consumer and investor confidence revived and GDP growth reached 7.5% in 2010 – the highest growth rate in the past 25 years.

The country has a tightly regulated, domestically focused, cash-rich economy, and is continuing to stick to orthodox macro-economic policies. In addition, Brazil’s banks are profitable and well capitalised. Large capital inflows over the past year have contributed to the rapid appreciation of its currency and led the government to raise taxes on some foreign investments.

Brazil’s richest 165,000 individuals increased their total wealth by 3.7% to just over $4 trillion last year. This ranks it third in the world by value and 12th by number of individuals. Only the US and Japan outranked it on high net worth value.

“ Brazil’s richest 165,000 individuals increased their total wealth by 3.7% to just over $4 trillion in 2012 ”

Louis Vuitton has built its portfolio to five points of sale in Brazil (São Paulo, Rio and Brasilia), as Ferrari has established a dealership in São Paulo. Each year, since 2009, Ledbury Research has tracked the retail movements of Cartier, Tiffany, Bulgari, LV, Burberry, Gucci, Ralph Lauren, Armani and Chanel. In 2009 they had a total of 13 stores within the country, which has increased to 21 stores in 2012.

A new generation of young entrepreneurs are leading Brazil’s wealth revolution. In the latest release of its Wealth Segment report series, Ledbury identifies these Independent Leaders as just one of three of the latest groups of wealthy individuals to be watched in the emerging Brazilian marketplace, alongside Discerning Dynasts and Boom Benefactors.

Each Wealth Segment report is based on Ledbury Research’s considerable experience interviewing the wealthy population in Brazil, alongside in-depth interviews with Wealth Experts.

These Experts are individuals whose professional lives involve interacting with high net worth individuals on a daily basis. Their backgrounds are deliberately various, spanning the worlds of luxury goods, wealth management, high-end property, hotels and restaurants, premium autos, and others.

“ Despite their level of wealth, they are incredibly low-key in displaying it ”

Discerning Dynasts

Discerning Dynasts are blue-blooded individuals who have grown up with and around wealth. Despite their level of wealth, they are incredibly low-key in displaying it. Accordingly, they prefer to shop abroad because it is less expensive.

They also prefer to be at places that have a private environment and they go to these places with a small, select group of friends, or entertain them at home. Their social circle is very tight-knit and difficult to penetrate.

Boom Benefactors

Boom Benefactors are men who have made their fortunes on the back of Brazil’s rapid economic growth over the past 5-8 years. They are successful because they were in the right place at the right time, but also because they work hard.

Money and luxury is a relatively new phenomenon for them and they focus on using it for indulgence, and to feel a sense of belonging. As they want to be known by society, they show off with branded clothing and loud pieces of jewellery.

Independent Leaders

Independent Leaders are the youngest wealth segment in Brazil. They are well educated and have international mindsets. Their careers started when they were 21 years old, straight after university.

They are very hardworking, and view money as a symbol of independence, as well as a gateway to material indulgence. They are mostly single however, some will be recently married with no children.

Each segment analysis is available to Luxury Society members at the exclusive price of £320 (discounted from £400) for a single user license, or £640 (discounted from £800) for a multi user license.

For further information please visit the following link. To order a copy at the preferential rate, please download the order form and return to [email protected].

Sophie Doran
Sophie Doran

Creative Strategist, Digital

Sophie Doran is currently Senior Creative Strategist, Digital at Karla Otto. Prior to this role, she was the Paris-based editor-in-chief of Luxury Society. Prior to joining Luxury Society, Sophie completed her MBA in Melbourne, Australia, with a focus on luxury brand dynamics and leadership, whilst simultaneously working in management roles for several luxury retailers.

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