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LUXURY MARKET IN MEXICO IS EVOLVING. CUSTOMERS NO LONGER LOOK FOR THE MOST EXPENSIVE OR SHOWY ITEM (NEW MONEY) NOW THEY LOOK FOR A MORE SOPHISTICATED DESIGN AND QUALITIY MATERIALS AS WELL AS THE SHOPPING EPERIENCE AT STORE (OLD MONEY)

Even though Mexico´s population is over 19 million people, economical activity is mainly concentrated in 5 locations: México City, Huixquilucan (Estado de México), Zapopan & Guadalara (Jalisco Estate), San Nicolás de los Garza & San Pedro Garza García (Nuevo León Estate). These Cities represent 39% of National Gross Domestic Product. Also, locations that show the highest wealth rate per person are San Nicolás de los Garza (Nuevo Leon), Gómez Palacio (Torreon), Huixquilucan (Estado de México) and Miguel Hidalgo county in Mexico City.

Based on this, luxury brands have stablished as a primary target group those customers who live in México (Ciudad de México & Huixquilucan), Jalisco (Zapopan & Guadalajara) and Nuevo León (San Nicolás de los Garza & San Pedro Garza García). A secondary target group includes Tijuana, Hermosillo, Chihuahua, Morelia, León, Puebla, Veracruz, Mérida and recently Querétaro.

But luxury market is not just expanding, is also evolving. Now a day, luxuryy does not refer to something expensive, luxury is something sophisticated, exclusive and with high quality. It is remarkable that those striking designs have been left behind and now you may see cleaner and more easygoing designs. We may see this trend not just in “hard luxury” goods, we can see it also with cars, clothing, accesories or even the places we use to go, such as restaurants, boutiques, offices, appartaments, etc.

The average mexican customer of luxury goods is now going beyond the “new money customer” level, this means that ostentation is no longer the motivation when buying a luxurious ítem. Mexican luxurye customers may be compared to Asian ones, since they prefere design and experience. This is something that is already happening in China, where luxury brands such as Louis Vuitton or Gucci have come to the conclussion that the customer does not care about the logo as much he does about the aspect or design.

México is in the transition from new money customer to a “old money” customer; this means: from customers who recently have got their wealth to customers whose weath come from two or more prior generations;  status is still important, but ostentation  is not necessarily fundamental. The most Mature luxury customers are European ones, they may be considered as part of a “beyond money” category, where Brand is not the priority, the aspiration is focused on personal wealth and quality of life, such as luxury travels, spas, boats, private jets, etc.

Mexican buyer is willing to pay more for a quality product and the shopping experience that surrounds the ítem he is acquiring.

The arriving of premium designer boutiques such as Prada, Burberry or Michael Kors among others, confirms that luxury customers are not just looking forward to get their products at departamental stores, they look forward to live an experience.  This is also changing the paradign of the mexican luxury customer, who used to go tu USA in order to do shopping, because today mexican customers go to local boutiques located right at thier own cities, and this can be seen on the premium mall increasement.

¿HOW CAN YOU REACH THIS PREMIUM MARKET CUSTOMERS?

You can get to this customers by designing an Advertising campaign using those media means with high affinity level to your target market ( Media means are Paid TV, Movie theaters, Radio, OOH, Internet, etc) in other words: you need to determinate the most suitable media means for people from Upper (AB) and upper Medium (C+) level. A very efficient media mix that does not require of high Budget or advertisng spend is the combination of Paid TV, magazines and On Line advertising. 

PAID TV AS AN EXPAMPLE: Only a few people know that local paid TV in Mexico is really afordable. For example: You may get one 20” spot at CNN during morning time in Mexico City for less than $9 USD, or at Discovery Home&Health also during morning time for less than $20 USD. So you may have may have an advertising campaign at  America´s Top Model (Sony), The Voice (Sony) if you are to reach women or Walking Dead (Fox) or The Bg Ban Theory (Warner) if your looking forward to reach men.

Now you know that there is a great business opportunity waiting for your Brand or product down in Mexico. You just need to decide and get the right consultant partner to sucesfully get into this attractive market. You can do it today!

 

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