Wednesday, June 20, 2012

So Paulo Fashion Week: Luxury Report


I hardly slept a wink in São Paulo, but not, sadly, because the lure of caipirinhas was keeping me out partying. Rather, the ceaseless hum of rotating blades put an end to my slumbers; Brazil's largest city is also the helicopter capital of the world. There are 600 odd in the São Paulo state, which is peopled by a super-rich elite reminiscent of The Jetsons who hail choppers like the rest of us would a cab.

IN PICTURES: Street style from São Paulo's most stylish residents

I was surprised to find that those Jetsons are remarkably well-dressed. Any romantic preconceptions that Brazilians wear little other than neon bikinis were dispelled on day one of São Paolo Fashion Week, held at the Biennial pavilion in the lush surroundings of Ibirapuera park. 70% of the luxury market in Brazil is based in São Paulo, and it shows: as Rosie Huntington-Whiteley opened the proceedings for high end brand Animale, the expectant front row was uniformly shod in Alaïa heels, Hermès Birkin bags on laps.

Brazil's luxury market grew by 20% to a total of nearly $3 billion in 2011, and the number of millionaire households in São Paulo is set to triple by 2020. Prada, Coach and Bottega Veneta have all opened stores here in the past year, with Balmain and Fendi set to follow in 2012. What makes this all the more remarkable is Brazil's self-imposed obstacle to the luxury juggernaut: import tax.

An antiquated system of import tariffs means that Brazilians are paying on average two or three times more for that coveted handbag than their European counterparts. Inside Cidade Jardim, the mall that introduced Hermès to Brazil, the prices are astounding. A pair of Jimmy Choo ponyskin sandals are priced at 3380 reais, which converts to £1059. In the UK they retail for £695.

Why are chopper-primed residents forking out for items they could source in New York at half the price? "It is a status thing, absolutely," says Rosanne Behar, of JHSF, the real estate company which owns Cidade Jardim, "but you also have to remember that for generations we have been deprived of European things. Brazilian women now shop as if their lives depended on it."

Payment plans are the crucial trick luxury brands have up their immaculately tailored sleeves when it comes to watering down the eye-watering price tags. Customers can pay individual stores in instalments - a handbag can be purchased in four tranches, for instance - with no interest accumulated. An estimated 90% of shoppers choose this method, as Helena Bordon, society girl and owner of the fashion brand 284, attests: "If I really want something, I'll pay monthly, so I don't have the guilt of putting down thousands of reais on the table at once."


Via: So Paulo Fashion Week: Luxury Report

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