The USA Designs a New Geography of Luxury
The phenomenon of "staycation" is growing and luxury is moving towards those places where residents are willing to pay a higher price compared to the big city, in order not to move
How is the purchasing map in the American market changing? Are New York and Los Angeles still the luxury shopping destinations?
According to recent research, the latest retail openings of big jewelry brands in “smaller” cities show just how much luxury is increasingly seeking out new locations, places where residents are willing to pay a higher price compared to the big city in order not to move. And this is happening as a response to the growing phenomenon of “staycation”, in other words, the desire to make only short trips away from home and staying within range of local borders. According to the Altagamma Consensus 2023, in the United States, where new suburban areas are being developed and domestic demand is stronger than in Europe, the luxury market is expected to grow by +5%. In Latin America, however, where real estate development is driving the high growth potential of large cities outside the provincial capitals with a clientele in search of emotional products, this figure stands at +6%. For the Italian gold and jewelry industry, the United States is the leading destination market with a 14.7% share of total sector exports and the most significant expansion in absolute terms in the last three years. In fact, current exports are almost 600 million euros higher than in January-November 2019 (+81.8%, source: Confindustria Federorafi data). In general, the new El Dorado for luxury consumption, which also includes Mexico and Brazil, will generate Euro 113 billion in high-end goods purchases compared to 94% in Europe. A 35% increase between 2019 and 2022 confirming that America is the most welcoming market for luxury goods with an increasingly promising and growing Gen Z consumer. But which cities should be kept an eye on? According to the Financial Times, as well as an article reported later in Sole24ore, the geography of new openings sees a preference for cities previously considered secondary such as Miami, Atlanta and Phoenix, which are now the object of great interest in terms of direct sales and multi-brand presences. Then there is Austin, Charleston, New Orleans, Philadelphia, Atlanta... one only has to think that Cartier is focusing on Fort Worth in Texas and Seattle. There is no shortage of new developments, such as Augusta, considered the new Napa Valley of Missouri. A final thought on the consumption of +5% of high-spending Americans, again according to Altagamma, who, thanks to the favorable dollar-euro exchange rate, will travel and buy more in Europe and be less affected by cost increases due to a stronger labor market.
According to recent research, the latest retail openings of big jewelry brands in “smaller” cities show just how much luxury is increasingly seeking out new locations, places where residents are willing to pay a higher price compared to the big city in order not to move. And this is happening as a response to the growing phenomenon of “staycation”, in other words, the desire to make only short trips away from home and staying within range of local borders. According to the Altagamma Consensus 2023, in the United States, where new suburban areas are being developed and domestic demand is stronger than in Europe, the luxury market is expected to grow by +5%. In Latin America, however, where real estate development is driving the high growth potential of large cities outside the provincial capitals with a clientele in search of emotional products, this figure stands at +6%. For the Italian gold and jewelry industry, the United States is the leading destination market with a 14.7% share of total sector exports and the most significant expansion in absolute terms in the last three years. In fact, current exports are almost 600 million euros higher than in January-November 2019 (+81.8%, source: Confindustria Federorafi data). In general, the new El Dorado for luxury consumption, which also includes Mexico and Brazil, will generate Euro 113 billion in high-end goods purchases compared to 94% in Europe. A 35% increase between 2019 and 2022 confirming that America is the most welcoming market for luxury goods with an increasingly promising and growing Gen Z consumer. But which cities should be kept an eye on? According to the Financial Times, as well as an article reported later in Sole24ore, the geography of new openings sees a preference for cities previously considered secondary such as Miami, Atlanta and Phoenix, which are now the object of great interest in terms of direct sales and multi-brand presences. Then there is Austin, Charleston, New Orleans, Philadelphia, Atlanta... one only has to think that Cartier is focusing on Fort Worth in Texas and Seattle. There is no shortage of new developments, such as Augusta, considered the new Napa Valley of Missouri. A final thought on the consumption of +5% of high-spending Americans, again according to Altagamma, who, thanks to the favorable dollar-euro exchange rate, will travel and buy more in Europe and be less affected by cost increases due to a stronger labor market.
