Tourist, economic and technological phenomena push the luxury market

Mexico City, It’s hard not to turn your head at the roar of a Lamborghini on the street or not to admire the creations of great designers. The return of these jewels to the hands of Mexicans has allowed Mexico to lead the luxury market in Latin America, driven by electronic commerce and tourism.

According to Equativ, a leading company in digital advertising placement, the value of the luxury market in Mexico amounted to 14 billion dollars in 2022 and a growth rate of 12 percent projected for 2023.

The luxury and fashion segments have certain differentiators such as design, quality and other aspirational aspects. Their prices are high because they add some additional costs to production, such as advertising and marketing, with characteristics that separate them from other categories.

The analysis of the luxury market, carried out in the second half of 2024 by Equativ, a leading company in the placement of digital advertisements, which uses data from LuxuryLab Global, revealed that the 12 percent growth for the luxury market in the country highlights that it was driven by the advancement of electronic commerce and tourism of North American citizens coming to Mexico.

In Latin America, the luxury goods market reached an approximate value of 31.6 billion dollars in 2023 and the market was projected to grow at a compound annual rate of 5.3 percent between 2024 and 2032, which is expected to It will reach a value of 50.3 billion dollars in 2032.

Who buys?

In general, luxury buyers are represented by the male sex, 64 percent; They are 36 years old on average and have a high socioeconomic level (75 percent). His personal interests are business, the automotive industry and entrepreneurship topics. Additionally, they prefer to spend their money on experiences rather than products, and the topics they talk about most online are travel, financial products, and fine arts.

The ‘luxury’ audience has a higher daily media consumption than the average population of Mexico. They spend approximately 4.50 hours a day on mobile devices and 3.22 hours a day on desktop computers. They also consume more streaming services but their consumption on tablets is less than

from the rest of the other devices. The audience has a preference for blog, health and fitness, and lifestyle content, as well as review sites.

Due to different tourist, economic and technological phenomena, the luxury market in Mexico is on the rise. For brands to get the most out of it, they need to identify consumer behavior in this market and use advertising strategies with specialists who have experience in using the appropriate tools to meet their objectives.

“The incorporation of artificial intelligence in digital campaigns, along with other innovative tools such as audience hyper-segmentation and inventory curation, allow maximizing results in advertising strategies,” said Equativ.

Luxury meets needs

The firm predicts that luxury e-commerce will grow slightly more than the general one, with a share of 23 percent by 2027. However, this growth is slowing, because consumers are returning to purchasing luxury products in physical stores and they prioritize experiences like travel and entertainment.

The smartphone is the device in which luxury buyers invest the most. For this reason, mobile applications are the main channels used, but there is also a significant preference in smart TV consumption. Likewise, art/entertainment, news, and gaming sites are luxury buyers’ favorite inventory categories.

“The luxury and fashion segments are aimed at satisfying the needs of consumers who have superior purchasing power and who seek high levels of design, quality and exclusivity in the products offered, which can be of various types such as jewelry, clothing, accessories, perfumes, cosmetics, automobiles, among others. Brands that belong to this industry must have a strong international presence, as well as a prestigious and recognized image,” said Ana Jiménez, co-managing director of Equativ México.

The digital advertising specialist adds that “despite their high status, it is also necessary for luxury brands to have defined advertising strategies to reach the segments of the population that have a greater possibility of purchasing their products, and it is in this area. in which tools such as hypersegmentation, personalization and contextual analysis play a determining role in the success of the campaigns.”