2015 is almost finished and we can already say it was a great year for American luxury brands. With 4% of growth, while economic crisis is high, the sector has deployed a tremendous amount of inventiveness and kept its investments towards innovation, design and appropriate messages. Concerning the US, American luxury brands have regained popularity and here is a top 3 of the best American luxury brands to watch out in 2016.
USA, the absolute giant in the luxury industry
The US is the biggest market in luxury goods in the world. With $77Billion sales in 2014, it ranks 2.6 times higher than the second luxury market in the world which is Japan (with $30Billion). 2015 turns to be one of the best performing years to the US with an expected GDP of +3.3%. Inflation remains at 1.9%, this means consumption power has increased in the national market. Tourism has also evolved, several wealthy tourists contributed to the growth. Last year Chinese made more than 2 million visits to the US, many of these visits included shopping trips.
As well as being the world biggest luxury goods market, the USA boasts the largest high-income population in the world with 21.3 million people with an annual gross income over US$150,000 in 2014. This is significantly ahead of other top 5 countries with the largest high-income populations (China with 2.9 million; Japan and Germany with 2.5 million each; and France and the United Kingdom with 1.9 million each).
With such a strong market, many American luxury brands have found the strength to conquer the world and to expand. Here are our top 3 brands to watch in 2016.
#1- Coach, leather bags are for ever a woman’s best friend
Coach, Inc. is a luxury fashion company based in New York City. The company is known for accessories and gifts for women and men, including handbags, men’s bags, women’s and men’s small leather goods, footwear, outerwear, ready-to-wear, watches, travel accessories, scarves, sunwear, fragrance, jewelry, and other accessories. Coach was founded in 1941, as a family-run workshop in a loft on 34th Street in Manhattan, with six leatherworkers who made wallets and billfolds by hand. There are more than 1,000 Coach stores in North America, with more expected to open. In addition, Coach has built a strong presence in the U.S. through Coach boutiques located within select department stores and specialty retailer locations.
#2- Lincoln, American luxury heritage to conquer China
In the last motorshow in New York, we could see the revival of Lincoln automobile and the strong sales the American brand is reaching thanks to Asian countries where the American luxury style never went out of fashion. The Lincoln Motor Company is a division of the U.S.-based Ford Motor Company that sells luxury vehicles under the Lincoln brand. While currently sold primarily in North America and the Middle East, Ford has introduced the Lincoln brand to China in April 2014 and had their first dealerships in November. Lincoln vehicles are also officially sold in South Korea and Japan. Founded in 1917 by Henry M. Leland, Lincoln has been a subsidiary of Ford since 1922.
China is the biggest automobile market in the world. Last year, Chinese people bought 19.71 million cars. Sales increased by 221% since 2005. Lincoln will definitely be a strong player in the luxury automobile sector in Asia.
#3- Shinola, watchmaking is not only Swissmade
watches are Swiss. Fine, especially if they are luxury watches. But there is something specifically genuine about Shinola that makes it a very interesting brand to take care. Shinola is an American luxury lifestyle brand which specializes in watches, bicycles, and leather goods among items. Founded in 2011, its name is a nod to the former Shinola shoe polish company that was manufactured in the early- and mid-20th century. The current company is owned and operated by Bedrock Brands, a privately owned Texas investment group, and was launched by Tom Kartsotis, one of the founders of the Fossil Group retail conglomerate.
The US luxury market has great years in front of it. With China recession and Europe still living thanks to tourism, the US represents a tremendous market for luxury brands and luxury know how. From fashion to jewelery, leather goods or cars, there are many luxury American brands that new generations of entrepreneurs can take exemple. From Michael Kors, Tiffanies, Coach or Calvin Klein, there are a lot of brands that can be inspirations for the future. Check here our review of American fashion brands.