In the past year, and even before that, the world’s rich have been getting richer. This is especially true in places such as China and Brazil, along with other countries in Latin America and Asia.
This has led to blockbuster results for certain luxury brands in the U.S. and Europe, as consumers are snapping up multi-thousand-dollar watches, designer clothing and handbags faster than they can be manufactured.
At the same time, these same thriving countries are developing a taste for the little luxuries of the West. For example, ketchup. H.J. Heinz beat Wall Street’s forecasts, mostly because of strong sales of ketchup and other sauces in China, Latin America, Russia and India.
The growth trend in these markets shows no end in sight, which bodes well for global expansion of American products, regardless of price. There’s good reason to believe that American luxury brands will continue to enjoy strong results if they are working to gain traction in these markets.