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We often talk about european luxury, quoting France or Italy, but where is Spain in all that, which wants its share in this growing sector?
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The report “Spanish Excellence: Today and tomorrow” from Bain & Company, commissioned by Circulo Fortuny (Spanish association of high-end companies) informs us that the premium sector market in Spain reached 9200 million euros in 2017, an increase of 9% compared to 2016. The luxury sector could be divided into 4 important segments in Spain: Personal items, but also Hotels and restaurants, Gastronomy and wines and finally design products.
“The country is well positioned to raise its profile as a destination of excellence and producer of high quality goods. To do so, our country will have to take advantage of its assets, such as a differentiated hotel offer and a thriving ecosystem of gourmet products, in order to strengthen further its brand among local and international consumers,” explains Claudia D’Arpizio, partner of Bain & Company and main author of the study.
The high-end market is mainly represented in Madrid and Barcelona, which are representing together 80% of the purchases in the countries. In addition, personal items account for more than half of the sector’s revenues. But despite a 12% increase compared to 2016, the €5.1 billion (almost 2% of the global turnover that reached €262 billion in 2017) collected by the sector does not allow Spain to compete with the main European countries in this field. However, the customers are there, locals, but also tourists (85% of sales) including the Chinese, in the lead (35% of purchases in the sector)
Spain could differentiate itself thanks to the high-end hotel business. Indeed, $1.8 billion in revenues were recorded in 2017, an increase of 7% compared to 2016. Local haute cuisine represents 149 million euros in 2017, supported by 187 starred restaurants.
The report states that “the high-end market in Spain could grow by 9 to 10% per year (between €7,000 and €8,000 million per year), driven by the key segments of the mass retail, hotel and catering sectors“.
Carlos Falcó, President of the Fortuny Circle’s president and of the Alliance of European Cultural and Creative Industries (ECCIA), added: “We are in the middle of a revolution equal or superior to the industrial revolution, and each revolution brings crises and opportunities. The capitalist world is destruction and creation, and it must be constantly renewed to meet consumer demands. Today more than ever.” A wise advice to stay in business and have a place for yourself in the luxury sector.
