The value of the luxury market in Mexico amounted to 14 billion dollars

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, with 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, as they add some additional costs to production, such as advertising and marketingwith characteristics that separate them from other categories.

The analysis of the luxury market, carried out in the second half of 2024 by Equativ, which uses data from LuxuryLab Global, revealed that the 12 percent growth for the luxury market in the country was driven by the advance of electronic commerce and tourism from citizens of Canada and the United States who come 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 reach a value of 50.3 billion dollars in 2032.

Who buys?

In general, luxury buyers are represented by the male sex, with 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 the arts.

The ‘luxury’ audience has a higher daily media consumption than the average population of Mexico. They spend approximately 4.5 hours a day on mobile devices and 3.22 hours a day on desktop computers. They also consume more services streaming, but its consumption in tablet, is lower than that of the rest of the other devices. The audience has a preference for the content of blogshealth and fitness, and lifestyle, as well as the sites of reviews.

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 employ 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 hypersegmentation and inventory curation, allow maximizing results in advertising strategies.assured Equativ.

Aspiration and need

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 consumption in smart tv. 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 and automobiles, among others. Brands that belong to this industry must have a strong international presence, as well as a prestigious and recognized image.assured Ana Jiménez, co-managing director of Equativ Mexico.

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 that tools such as hypersegmentation, personalization and contextual analysis, play a determining role in the success of campaigns.