Words by Fiona Jenvey CEO, Mudpie
For retailers struggling in Europe and the USA, China is not the only growth story. With the World Cup in Brazil in 2014 and the Olympics in 2016 all eyes are on Latin America.
The fast fashion retailer H&M is an example of mid-range apparel brand that has successfully weathered the current economic gloom. Later this year the brand plans to open its first Latin American store in Mexico City’s Santa Fe Mall, the largest in the country with 300 stores including up-scale department stores such as Palacio de Hierro and Saks Fifth Avenue.
Latin America is a region many retailers plan to expand into. Brazil is already a booming luxury market which is expected to grow to about USD$3 billion and investment is expected to rise 25% from 2011’s USD$2.6 billion. This is not all about luxury, the entry of H&M into the Latin American market shows the intentions of the fast fashion retail market who see very clearly the opportunities in the region.
Other brands to recognise the potential of this highly lucrative area include San Francisco based apparel retailer Gap Inc, which early this year announced its further expansion into Latin America. Through leveraging its franchise model, the brand has opened its first stores in Panama, and according to a company statement has plans to move into three additional Latin American countries including Colombia, Uruguay and Peru.
For more on the development of this region MPDClick subscribers can click here to read our market insight report; One to Watch – Latin America on the Rise.