The United States is the overwhelming market leader in the luxury industry when it comes to the size of the personal luxury goods market. The United States is a former colony of the British Empire and therefore her luxury culture has some touchpoints to royal houses. As a fairly new country, the United States does not have any old castles, courts, palaces, and mansions, which were the main hubs in Europe's luxury industries. Actually, the only royal house in the USA is located in Hawaii because the island state is a former kingdom.
The United States has an overwhelming market size in the global luxury goods market. In 2015, the U.S. was the number one with 78.6 billion euros, when China was in the second place with 20.1 billion euros. Americans are in the second place with 22 percent market share when we research consumer groups by nationality. Chinese are in the first place with 32 percent. This means that foreigners are also major spenders in the US market. Foreigners are not only spending the US but they are also buying real estates.
However, quite quickly the United States became the largest economy in the world, which created enormous amounts of wealth. Business tycoons constructed their mansions and city penthouses. This meant that luxury industry was growing annually, which meant that domestic luxury brands were created and European luxury brands discovered a lucrative marketplace.
Estee Lauder, Ralph Lauren, PVH Group, Tapestry, Tiffany & Co, Fossil Group, Coty, Tory Burch, Elizabeth Arden, and Movado are the major companies, which are behind of most American fashion houses. But the public knows Tom Ford, Carolina Herrera, Ralph Lauren, Calvin Klein, Michael Kors, Kate Spade, Club Monaco, Diane von Furstenberg, Coach, Marc Jacobs, and many others. But the United States has everything to offer from superyachts to private planes, from mansions to luxury penthouses. The country has basically everything, which makes it unique.
In the United States, New York is the fashion capital, Los Angeles is the media production capital, Las Vegas is the entertainment capital, Miami is the yachting capital. Las Vegas, almost fully dominated by casinos, which are operated by Sands Corporation and Wynn Resorts. The current President of the United States is heavily involved in the luxury industry by the real-estate business.
The United States is the home of most ultra-high-net-worth individuals (UHNWI) because New York has the largest amount of rich people in the whole world. Los Angeles, Chicago, San Francisco, Washington, and Dallas are included in the top ten cities of the world, which has the most amount of rich people. Other cities are Tokyo, Hong Kong, London, and Paris, hence, the United States has six cities when other countries have only four cities.
Of course, the United States is the home American millionaires and billionaires but America is also a safe haven for many foreigners. This might be the reason why the United States has so many rich people. But the United States is also a synonym for rich people in other parts of the world. The land of opportunities.
The United States is also a land of museum and art galleries, which are extremely important actors in the luxury industry. The Metropolitan Museum of Art, The Museum of Modern Art, Whitney Museum of American Art, Solomon R Guggenheim Museum and many others only in New York are must see places.
We can not forget the American media business when it comes to the global luxury industry. Condé Nast publishes GQ, Vogue, Vanity Fair, and many other magazines. Not to forget the American global media empire with television channels, television series, documentaries, movies, and music videos, and of course, the glamour of Hollywood. Singers and movie stars are great brand ambassadors. Madonna endorsing Louis Vuitton, Selena Gomez endorsing Coach, Lady Gaga endorsing Versace. This list can be continued almost forever.
This is the official blog of The Luxury Sales Academy. Articles have been written by Founder, Master of Arts Jukka Aminoff FRSA.