Editor’s note: This article was first published in December 2011. All figures refer to 2011, including 5 million unemployed in Spain, luxury sales growth by category and Porsche’s 1.4% rise in Spain. The statement that 2011 was the worst year of the crisis “so far” reflects the time of writing.
The worst year of the crisis so far has been 2011, although it could easily be surpassed once we enter 2012. With 5 million unemployed, companies closing every day and consumer spending stagnant, today we learn from a study by the consultancy Bain & Company that the luxury market has had its best year ever worldwide, and Spain is no exception.
The rich don’t cry in a crisis, that much has been proven. While even basic necessities have been hit by the crisis, luxury consumption has grown by around 25%, according to “Luxury Spain”.
Sales of designer shoes and fur coats have risen by around 13%. Watches and jewellery by 18%, and top-brand clothing by 9%. High-end cosmetics and perfumes by around 4%.
Meanwhile, while the car industry complains of stagnant sales after the withdrawal of government subsidies, the truth is that although sales of luxury vehicles have not increased, they have held steady. Mercedes, BMW and Jaguar have held their ground, while Porsche has seen its sales in Spain rise by 1.4%.
The explanation for the state of the luxury market seems to lie in the kind of tourist Spain receives and, above all, in the new Chinese consumer. Even so, luxury has its own type of customer, and as it happens, it is a type of customer that has not been affected by the crisis; quite the opposite.
Likewise, while a high percentage of restaurants have been forced to lower the price of their set menus, luxury restaurants have carried on without needing to cut prices.
That is why a crisis offers some business opportunities: either you develop a business idea that helps consumers save, or you focus on luxury, because as we can see, while some shops close, luxury goods are still profitable businesses for the entrepreneurs who run them.
Further reading
- Risk tourism for thrill-seekers and the morbidly curious
- Hybrid stores: business ideas
- 10 original products to sell in Spain
Featured image: FDV, CC BY-SA 3.0, via Wikimedia Commons.
