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The new American dream for luxury brands

The luxury sector is focusing its hopes on the US market’s rebound in order to continue its upward trend and hopes to counter the economic slowdown linked to energy shortages.

Sandra Krim

By Sandra Krim21 juillet 2022

The health crisis, which forced luxury brands to adapt their relocation strategy, was the starting point for the rebound of the US market (Shutterstock)

The rebound of the American luxury market is explained by the combination of relocation strategies implemented by luxury houses in response to the health crisis, the economic stimulus policy of the American federal government and the integration by brands of the socio-cultural diversity of the American market and its growth potential. This recognition of the subcultures that is embodied by contemporary American culture is also reflected across the recognition of American cultural influence by luxury brands, whether through various collaborations or through locations chosen for fashion shows in major luxury groups.

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As further proof of its resilience, the personal luxury market has returned to a higher level in 2021 than in 2019, despite the global pandemic. According to Bain & Co and Altagamma's Luxury Market Monitor, published in November 2021, and its Luxury Spring Update, published in June 2022, it has reached €288 billion and is expected to exceed €300 billion by the end of 2022. Between January and March 2021, Kering's sales increased by 46% on a comparable basis, while those of LVMH and Hermès rose by 23%. This recovery in growth, confirmed for the first quarter of 2022, is driven by the European and American markets, with the United States becoming the leading luxury market for 2021 with growth of 41% over the year.

A strong rise in Florida and Texas

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