For most people living in Spain times are still tough, but there are quite a few rich people with residences in Marbella for example who keep on spending. Most popular luxury items are still fashion and accessories, including leather goods and jewellery, which were once again flying off the shelves this Christmas. Perhaps not surprisingly, Marbella is in second place in terms of such expenditure, after Barcelona, but ahead of Madrid, according to the "Luxury Spain" Association. Their own research shows just how much the country's wealthy spent on what and where.
According to the "Report on the Luxury Sector in Spain", Marbella is the only one of these three cities where sales have risen, although by just half a percentage point, bringing the total to 27.5%, compared to the previous year's 27%. Barcelona accounted for 32 % of turnover, while Madrid dropped by two percentage points to just 16% of turnover on luxury goods.
In Marbella the famous Golden Mile is largely responsible for taking the city to second place in terms of luxury item expenditure. Since 2013 Marbella has overtaken the Spanish capital Madrid and this year-end report also revealed that Marbella took Spain to fifth position within the EU with regard to luxury sales, after France, Italy, Germany and Switzerland.
Whereas most sectors, including the holiday homes market, have experienced drops in sales and production, in Spain the luxury goods sector has continued to flourish in the last four years,
Of the total volume of sales in the luxury goods sector, Marbella accounted for 1.56 billion euros, compared to 1.82 billion euros spent in Barcelona and 909 million euros in Madrid. Ibiza's wealthy spent 483 million euros on luxury goods and Mallorca accounted for 341 million euros of expenditure in this sector.
While in 2011 the turnover of Spain's luxury goods and services producers was 4.5 billion euros, by the end of 2015 this had risen to 5.69 billion euros, a respectable 4.8% rise on 2014. The sector largely owes its changed fortunes to the type of tourists now welcomed in Spain throughout the year, not just in summer, and to exports.
What are the most popular luxury products?
Thanks to Spain's famous food festivals and markets, it is not surprising that gourmet products as well as beauty sector items are top of the list, accounting in combination for 55% of the total luxury goods business (3.63 billion euros a year). Tourism related products and services are in second place, followed by fashion and accessories.
Increasing a Foothold in the international advertising Market
Spain is increasingly chosen as a backdrop by filmmakers, whether they are shooting a feature film or commercials. For example, a Swiss car manufacturer for a futuristic self-driving car chose the historic town of Ronda in Andalucía for its latest commercial, showcasing the merits of the Etos EV. It shows the car, which boasts a fold-away steering wheel, as well as drone and landing pad, crossing the famous Puente Nuevo bridge in Ronda. The historic hilltop town was previously chosen as filming location for the Playstation game Gran Turismo.
The luxury housing sector has also helped Marbella to leap ahead of competing cities. Seafront and golf properties generally and the luxury apartments and town houses of the Golden Mile in particular are of interest to wealthy foreign buyers. But especially the gated and exclusive communities of places like El Madronal and La Zagaleta high above the city are in demand. Here the rich and famous and all those who seek privacy above all else have their large villas and extensive grounds.
Another growing trend, that of digital nomads relocating to Malaga Province, has also been responsible for the better than expected result of Marbella's luxury goods sector. An influx of new residents who have more disposable income and arguably more discerning tastes than conventional package holidaymakers is responsible for change in consumer goods expenditure . An influx of technology company start-ups in Malaga and along the Costa del Sol is shifting the balance in favour of quality over quantity with respect to housing, leisure and business products and services.