Perspectives - U.S. luxury brands pole position

  Most men are reluctant to $ 600 (£ 396.83) on a pair of sneakers Dior but for U.S. buyers as Ephraim, to spend an optimistic 30 years, these indulgences are becoming more common.

Ephraim is the kind of man, the maker of luxury gives hope that the U.S. market can future growth, such as China and slowing demand in Europe breaks go together.

"There is a cultural change," says Ephraim during navigation flagship New York City Saks Inc. "Men are always fashion forward."

The use of more luxury goods for men and greater trust between the rich spend the U.S. economy recover and asset prices boosted sales and luxury brands encouraged to increase their investment in the United States.

More foreign buyers are also crowded stores as the U.S. government facilitated visa restrictions to attract more tourists.

Luxury spending in the United States collapsed after the 2008 financial crisis, but is made to pre-crisis levels in 2012. Last year, No. 1 and No. 3 luxury LVMH and PPR groups around the world have experienced higher growth rates in the U.S. and in China for the first time in years.

Sales in the Americas are expected to grow 5-7 percent this year, compared to 6-8 percent in the People's Republic of China and 0-2 percent in Europe, according to consultancy Bain & Co.

The proof is already visible. Ralph Lauren U.S. this week forecast revenue growth of 4-7 percent, while high-end department store Saks reported quarterly revenue growth of 5.9 percent, nearly twice as much as analysts expected.

"(It is) a renewed confidence, a true recovery in fashion and luxury consumption," said Sidney Toledano, head of the French fashion house Christian Dior, part of LVMH.

spurt

Open big brands such as Prada, Hermes, Burberry and Hugo Boss stores or existing in the United States, and strengthen their advertising investment.

In July, Alexander McQueen is a 3,900 foot store opens on Madison Avenue in New York. The next year, Burberry is planning to launch a new flagship on Rodeo Drive in Beverly Hills.

LVMH and PPR, soon renamed Kering, will also grow in the United States for curbing China, which had been the main driver of sales of luxury until last year.

"I think the U.S. has much more potential than people believe in the development has been very of the BRIC countries (Brazil, Russia, India, China)," said Robert Chavez, head of U.S. operations Hermes.

The French group has its own exclusively men was opened on Madison Avenue store in 2010, is now about 15 percent of its sales in the United States, up from 10 percent five years ago. China, Hong Kong, Macao and Taiwan account for 20 percent.

"We have noticed an increase in purchases of men, especially in the last two years," Chavez said. Ties, shoes, and $ 8,000 individual cashmere three-piece suits are all the same.

212.000.000.000 € in luxury as a whole, the United States outguns China, before the new growth. Bain & Co. The market value of U.S. $ 59000000000 € 74.2 billion for Europe and China and Hong Kong about 22 billion dollars.

Tourists

PPR CEO Francois-Henri Pinault believes that the increasing number of tourists to the United States will allow him to close the gap with Europe, where visitors make up about half of the sales of luxury. This is in contrast to 15-20 percent in the United States.

"We will never have as many tourists as in Europe, but I think that this ratio could reach 30 percent in the coming years," said Milton Predaza, CEO of the Luxury Institute, a consulting firm United States.

In 2010, 6 million tourists flew from Brazil, India and China compared to Western Europe, with 2.6 million in the United States. Travel agents say U.S. visa approvals require further proof of employment history and finances of France and Italy.

United States earn $ 20000000000 more from the sale of luxury when they had so many tourists from emerging markets such as Europe, estimates New York-based brokerage International Strategy & Investment Group (ISI).

The U.S. State Department says it has reduced the waiting time for a visa interview in relation to Brazil, where most of the U.S. luxury shopping tourists arrive in two days. Clerks at Saks said they had noticed an increase in the number of Brazilian tourists.

The Foreign Ministry also wants to give interviews for some applicants, building or the construction of new consulates in China and Brazil.

Tourism in China is expected to more than triple to 3.9 million, from 2017 to 2011. Tourism in Brazil is expected to increase by 83 percent to 2.8 million, according to the U.S. Department of Commerce.

"We have not had a major breakthrough. However it is in the right direction," said Omar Saad, Senior Managing Director and Team Leader luxury ISI.

Calling America in Brazil is two-fold - it is closer to Europe and the prices are much lower than at home. The coat of a man Burberry costs $ 3100 to $ 995 São Paulo against the New York flagship on 57th Street.

Rise of "Henry"

Pam Danziger, president of marketing consulting firm Unity Marketing and author of studies on American luxury industry, believes that growth is driven by what she calls Henry - "High-gain, not rich, but" Americans have the $ 100,000 - . $ 249,000 per year is estimated that about 24.2 million households Henry.

To capture these customers, brands are now expanding to New York, which represents a third of luxury sales in the United States, and in the next two major cities of Los Angeles and Miami.

Hermes opened last month in Greenwich, Connecticut - a popular area with financial professionals and their families - and plans to expand in cities like Los Angeles, Miami, Houston, Dallas and Boston in the next two years.

PPR brands, Balenciaga, Gucci and Stella McCartney are seeking to Dallas, Atlanta, Chicago, Miami, Orlando and Philadelphia.

"The United States is an emerging country when it comes to luxury," said Boston Consulting Group senior partner Jean-Marc Bellaiche.
(Additional reporting by Pascale Denis in Paris and Dhanya Skariachan in New York, edited by Sophie Walker)