With more than 35 luxury brands competing for business from Peru’s elite, Lima has established itself as fertile ground for the premium retail market.
Brands like Versace, Louis Vuitton, Hermes and Valentino will soon be joining the well-established group of high-end stores that have already found success in Lima, such Chanel, Dolce & Gabbana and Armani, according to El Comercio.
These brands are riding on the back of a major wave of popularity for the country’s fashion industry, which has, over the last five years, found its way into the hearts and closets of Lima’s 8,000 luxury shoppers, according to Sandra Pizarro, a representative of the Center of High Fashion Studies (CEAM), as cited by El Comercio.
Growth in the luxury fashion industry in Peru’s capital is expected to reach 10 percent by the end of 2013, according to Gestión.
But it isn’t only the foreign brands that are cashing in on fashion’s newfound demand. It is estimated that within the country, there are 25 high-end Peruvian designers that are also competing for business, including Claudia Jiménez and Sergio Dávila. Many enter the market through boutiques and studios in Miraflores and San Isidro, Pizarro told El Comercio.
But to enter this market, a brand needs a big investment, Pizarro said. Just to open a design house and keep it running for six months, one needs a minimum of $50,000. To create a high-end collection, that number jumps to $150,000 or $250,000. But the payoff is big; a designer boutique could move more than S/.2 million annually.
Pizarro also mentioned that, contrary to popular belief, it is actually men who spend more in luxury stores than women, with an average bill running $900 for men and $500 for women, in part because women make more purchases monthly than men.