BARCELONA, Spain, March 15 (Xinhua) -- It is wrong to think that all emerging markets are the same, said on Friday the Managing Director for Asia-Pacific and Middle East of Pike Preston Partners, Rahul Prasad.
Prasad made this statement at a conference about luxury market in emerging countries, which was held within the 15th Luxury Goods Industry Meeting, opened on Thursday at the IESE business school in Barcelona.
Prasad explained all emerging countries (Brazil, Russia, India and China among others) have their own history, culture and therefore, consumption patterns. Identifying different characteristics in these countries can help the luxury market to reach success. "Every market is different and a deep research is needed before a business expansion" said Prasad.
Prasad was accompanied by two other speakers, the Director of Corporate Relations at the Spanish jewelry Tous, Rosa Tous, and the Managing Director of Brazil Business Consulting, Sergio Costa.
Brazil "should be understood as a continent," said Costa, because there are big differences between regions. "If you want to do business in Brazil, you have to go to the south" which is where the wealth is, said Costa, while pointing out that 75.2 percent of the country's GDP is produced in seven states, of a total of 26.
Costa also spoke about the political and economic challenges facing the luxury sector in Brazil, as the country's tax policy is very complicated: there are more than 33 different taxes that change almost every day, increasing the price of goods inside the country compared to other countries prices.
Brazilians buy more luxury goods abroad than inside their own country, only two out of 10 luxury items are purchased inside Brazil.
Meanwhile, Tous presented the case of Tous expansion in Mexico as an example of success in an emerging market, because "the country was an emerging market ten years ago." Cultural proximity between Mexico and Spain was crucial for this expansion, she said.
The 15th Luxury Goods Industry Meeting is a two-day event where representatives from the sector discussed about the state of the luxury market. Experts said that emerging countries are a glimmer of hope for luxury sales due to the economic crisis happening in Europe.