For a thousand reasons and a series of policies to stimulate and support consumption, the USA has once again become the market from which to restart. To the point that Bloomberg believes that, for the brands, the (new) American dream is worth, today and in perspective, more than the Chinese promise
Do you remember Boss Hogg, the character from the American television series The Dukes of Hazzard? Beyond his parodistic despicability, this character embodied one of the stereotypes of the rich man in the stars and stripes: “armed” with the ever-present cigar and with a handful of dollars always ready in his hands. Well: today, instead of a cigar, he could handle an expensive work of art or a Birkin by Hermès. All of this candidating the United States to be, for luxury, once again the market from which to restart, compensating for the difficulties of others.
The market from which to restart
The U.S. economy has recovered from the pandemic much faster than expected. In 2021, U.S. consumers increased their art purchases, according to Art Basel and the UBS Global Art Market Report, leading the sector to exceed pre-pandemic levels. The same thing happened to luxury fashion accessories. Government checks to stimulate consumption, soaring stock markets, and cryptocurrencies have boosted Americans’ cash holdings. So much so that, for the first time, many of them were able to access higher-end purchases.
What Bloomberg tells us
Sensations, you could argue. But no, these are objective findings, certified by Bloomberg, which claims that in 2021 the growth of luxury was led by the United States, not China. And if a few years ago the country of the Great Wall was considered the market of the future, the one with the most significant growth potential, the brands have rediscovered the American dream. Not that they had abandoned it, but in this phase of new normality (on which the consequences of the war in Ukraine weigh heavily), they have once again opened their wallets to finance new and substantial investments. In marketing, organizing fashion shows and renovating or opening stores even in second-tier cities. This is because, during the pandemic, many Americans moved: New Yorkers to Florida and Californians to Arizona and Texas. And in their suitcases, they also brought a desire to spend.
But in 2022, uncertainty is at its highest
Too bad, though, that then 2022 began. In fact, the “everything perfect” scenario of 2021 has changed. The consumer stimulus checks are no longer coming. Inflation is at highs, and the first quarter of the year has penalized stock market transactions of U.S. brands. Moral: The super-rich have no problem, but given the war in Ukraine, the casual or aspirational consumer may be focusing on buying essentials, going back to neglecting luxury goods. However, all of this is less drastic than in the rest of the world. For example, in Europe, which has the war on its borders. Or in China, where the pandemic has re-emerged, and Beijing’s “zero Covid” policy draws a lower growth outlook than in recent years. Also, for this reason, and despite everything, for luxury, the United States is once again the market from which to restart. (mas.vi)