While luxury sector shrinks in the country, international brands grow in outlets

In a time when luxury apparel sales fell 13 percent in the last two years, two major Italian brands – the Salvatore Ferragamo and Gucci – are inaugurating its first units off in South America. The expansion of Catherine Fashion Outlet, JHSF, owner of the Garden City, lured the two giants, which will sell in the enterprise products with 30% reduction and 70% in price. "Brands have today need to dispose of goods," says Robert Bruce Harley, President of JHSF Malls. The expansion of Catherine Fashion Outlet, located in São Roque, about 40 kilometers from the State capital, will include the opening of new stores, totaling 29 5500 square meters of area. The Salvatore Ferragamo was opened two weeks ago, while Gucci will be inaugurated in the coming days. Among the brands that reach the enterprise are Tommy Hilfiger, Pampili, Superga and Off Premium (including Animal and Farm). Unlike other outlets, the Catarina should not build new units, at least for now. The goal, says the Executive, is to continue the expansion of the existing unit, since the company believes that the public with income to spend on class marks the focus still in São Paulo. "Although we have a varied mix, 40% of our sales come from luxury brands. And 55% of our audience comes from Sao Paulo, "he explains. To convince potential customers to take the road to San Roque, Harley says the venture invests in unique for outlets, like Montblanc, Rimowa, Michael Kors and Dolce Gabbana. In General shielded the crises, the luxury market in Brazil, however, does not have passed unscathed to economic hardship. According to Euromonitor consulting, selling clothes and shoes of famous brands was R $4.1 billion last year, after reaching the peak of R $4.7 billion in 2015. In the same period, the luxury market as a whole suffered even more: after the thread moving R $28.8 billion in 2015. Last year, fell to $22.5 billion. The difficulties of recent years have made some marks quit the country – including the Kate Spade, the Ladurée and Longchamp. Others, however, decided to go back to betting on the market. The Iguatemi network, for example, has scheduled openings for the coming months of units of Tiffany's, the Montecristo/Rolex and Villebrequin, who will return to the country after two years of absence. New challenges in the sector according to Jean Rebetez, fashion consultant and Managing Director of GS & Consult, the industry has new challenges. "Today, style is not defined only by the clothes, but by other factors, such as use of technology and travel. So, the dispute goes beyond direct competition. " For Rebetez, is not a contradiction to have luxury brands at outlets. That's because, depending on the brand, besides selling leftover collection, there is also an exclusive production for the discount. "These companies have a phenomenal margin. So even selling for less, they still make a lot. And, in outlets, can reach an audience that couldn't afford the full price. " Iguatemi will have two new outlets in SC and MG Other luxury giant, Iguatemi, group has invested heavily in the outlets. Unlike the Catarina, betting on international brands, the development of the company – I Fashion Outlet – mainly compound mix traditional Brazilian retail brands. There is already one unit in Novo Hamburgo (RS). For December, the Group provides an outlet with 82 stores to Tijucas (SC), near Florianopolis. The company also has a project for the city of Nova Lima, Minas Gerais.