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LUXURY GOODS 2017: NEW INSIGHTS AND SYSTEM
REFRESHER
December 2016
INDUSTRY OVERVIEW
LUXURY GOODS MARKET OVERVIEW
DEMOGRAPHIC SHIFTS
INNOVATION
ABOUT OUR RESEARCH
Luxury goods industry overviewINDUSTRY OVERVIEW
Luxury goods forecast growthINDUSTRY OVERVIEW
-30 -20 -10 0 10
LVMH
Richemont SA
Kering SA
Swatch Group Ltd
Prada SpA
2014-15 2013-14
-20 0 20 40
LVMH
Luxottica GroupSpA
Michael Kors
Ralph Lauren Corp
Coach Inc
2014-15 2013-14
-20 0 20
LVMH
Luxottica Group SpA
Richemont SA
Kering SA
Hugo Boss
2014-15 2013-14
Top global players ranking by value sales (rsp) in 2015INDUSTRY OVERVIEW
Value Sales Global Top 10 Companies
1.LVMH Moët Hennessy Louis Vuitton SA
6.Ralph Lauren Corp
2.Luxottica Group SpA 7.Chanel SA
3.Richemont SA, Cie Financière 8.Michael Kors Holdings Ltd
4.Kering SA 9.Prada SpA
5.Swatch Group Ltd, The 10.Rolex SA
Western Europe Top Five
Companies: Sales Growth 2013-14
vs. 2014-15
North America Top Five
Companies: Sales Growth
2013-14 vs. 2014-15
Asia Pacific Top Five
Companies: Sales Growth
2013-14 vs. 2014-15
INDUSTRY OVERVIEW
LUXURY GOODS MARKET OVERVIEW
DEMOGRAPHIC SHIFTS
INNOVATION
ABOUT OUR RESEARCH
Sales in excess of US$388 billion and growingLUXURY GOODS MARKET OVERVIEW
5 6 7 7 8 9 9 10 10 11 11
2%
8%
Store-based
-1
0
1
2
3
4
5
6
7
8
0
50
100
150
200
250
300
350
400
450
500
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
‘% y
-o-y
co
nsta
nt va
lue
gro
wth
% share of digital sales
US
$ b
illio
n, fixe
d e
xch
an
ge
ra
tes
Global Luxury Goods Constant Value Sales and Y-o-Y Growth 2011-2021
US$ billion, Fixed Exchange Rates % Y-o-Y Constant Value Growth
Digital
Global CAGR
2016-2021
Swings and roundabouts for key regional performanceLUXURY GOODS MARKET OVERVIEW
0
5
10
15
20
25
30
35
0
50
100
150
200
‘% V
alu
e G
row
th 2
01
6-2
02
1
US
$ b
illio
n
Luxury Goods Value Sales 2016/2021 and % Growth 2016-2021 by Region
2016 2021 % Value Growth 2016-2021
Asia Pacific Appears strong with 5% growth in 2016 and 21% growth by 2021
2016 shows marked difference on 2015 numbers, reflecting the significant improved economic conditions in China and a return to “normal” growth on the back of personal consumption
Western Europe Appears significantly weaker
Weak Eurozone continues to stall performance and concerns over terrorist attacks and the UK Brexitvote have dampened sales and cloud the horizon
The Americas Outlook is mixed with sales remaining positive, but slowdown on travel and tourist spend is a concern for future
A notable rise in Latin America is expected despite Brazil’s economic slowdown. However, uncertainly now prevails in Mexico following Trump win
Luxury wine fastest growing alternative asset class for investors LUXURY GOODS MARKET OVERVIEW
0
30
60
90
120
150
Other
US
$ b
illio
n (
co
nsta
nt va
lue
te
rms)
Global Luxury Goods: Top Five Categories Value Sales and Constant Value Growth 2015/2016
2015 2016
31% 22% 13% 11%
Share of
Total 2016
13%10%
+2%
+8%
+2%+0%
+5%
+2%
INDUSTRY OVERVIEW
LUXURY GOODS MARKET OVERVIEW
DEMOGRAPHIC SHIFTS
INNOVATION
ABOUT OUR RESEARCH
Household wealth changes attitudes and purchasing habits DEMOGRAPHIC SHIFTS
0
3
6
9
NorthAmerica
Asia Pacific WesternEurope
LatinAmerica
EasternEurope
Australasia
Mill
ion
ho
use
ho
lds
Households with Annual Disposable Income Over US$300,000 2015/2030
2015 2030
Household Wealth: Disposable Income Over US$300,000
2015/2030
US China Japan Germany
UK France India Italy
Brazil Canada Rest of World
77%global wealth in
top 10 markets
2015
2030
Global financial muscle underwrites luxury lifestyle trendsDEMOGRAPHIC SHIFTS
WorldLuxury Car Sales
WorldLuxury Hotel Sales
WorldSpa Sales
20152010 2020
+ 44%
+ 17%
+ 14%
+ 15%
+ 9% + 13%
US$145 billion US$191 billionUS$166 billion
US$52 billion US$65 billionUS$57 billion
4 million 7 million6 million
INDUSTRY OVERVIEW
LUXURY GOODS MARKET OVERVIEW
DEMOGRAPHIC SHIFTS
INNOVATION
ABOUT OUR RESEARCH
Market drivers in global digital luxury sales INNOVATION
Co
nsu
me
r-le
d • Search for value and convenience
• Increased global connectivity
• Good deals on luxury
• Trends towards showrooming and sofa shopping
Ret
aile
r-le
d • Improved website design
• Free shipping and returns
• Development of shopping apps and location-based offers
Go
vern
me
nt-
led • Investment in
broadband and mobile infrastructure
• Tighter online selling regulations and data protection policies
Tech
no
logy
-le
d • Faster broadband
• Growing use of mobile devices and expansion of 4G and Wi-Fi networks
• More secure payment methods
Booming US$34 billion digital sales - luxury goods’ silver lining?INNOVATION
0 2 4 6 8 10 12
France
UK
Japan
China
US
Digital value sales (US$ billion)
Luxury Goods Internet Retailing Value Sales
in Top Five Markets 2016
Luxury Goods Internet Retailing Market Share 2016
US China
Japan UK
France Rest of World
INDUSTRY OVERVIEW
LUXURY GOODS MARKET OVERVIEW
DEMOGRAPHIC SHIFTS
INNOVATION
ABOUT OUR RESEARCH
Euromonitor International is a global market research company, providing strategic intelligence on
industries, companies, economies and consumers around the world.
Comprehensive international coverage and insight across consumer and B2B markets makes our research an
essential resource.
Clients in more than 106 countries rely on Euromonitor for actionable, unbiased insight supporting
decisions on how, where and when to grow your business.
Our independent view of the business environment, competitive landscape and drivers of industry growth
help validate strategic priorities, redirect assumptions and uncover new opportunities.
About Euromonitor International (1)ABOUT OUR RESEARCH
Our Services
Syndicated market research
Consulting
Expansive Network
800+ on-the-ground researchers in 80 countries
Complete view of the global marketplace
Cross-comparable data across every market
Our Expertise
Consumer trends and lifestyles
Companies and brands
Product categories and distribution channels
Production and supply chains
Economics and forecasting
About Euromonitor International (2)ABOUT OUR RESEARCH
12 office locations: London, Chicago, Singapore, Shanghai, Vilnius, Santiago, Dubai, Cape Town,
Tokyo, Sydney, Bangalore and São Paulo.
Local insight: 1,000+ in-country analysts in developed, emerging and frontier markets offer local
insight.
Global perspective: Understand the business landscape in more than 200 countries.
Our global research networkABOUT OUR RESEARCH
Our research expertiseABOUT OUR RESEARCH
Alcoholic Drinks
Apparel
Automotive
Beauty and Personal Care
Consumer Appliances
Consumer Electronics
Eyewear
Fresh Food
Health and Wellness
Home and Garden
Home Care
Hot Drinks
Consumer Health
Luxury Goods
Nutrition
Packaged Food
Personal Accessories
Pet Care
Soft Drinks
Tobacco
Toys and Games
Tissue and Hygiene
Consumer Products
Services
Consumer Foodservice
Institutional Channels
Consumer Finance
Retailing
Travel
Supply
Ingredients
Packaging
Economies
Business Dynamics
Cities
Economy, Finance and Trade
Industrial
Consumers
Lifestyles
Income and Expenditure
Households
PopulationEthical Labels
Digital Consumer
Natural Resources
Our luxury goods geographic coverageABOUT OUR RESEARCH
Our luxury goods category coverageABOUT OUR RESEARCH
Luxury Goods
Designer Apparel and Footwear (Ready-to-Wear)
Fine Wines/Champagne and Spirits
Luxury Eyewear
Luxury Jewellery
Luxury Leather Goods
Luxury Portable Consumer Electronics
Luxury Timepieces
Luxury Writing Instruments and Stationery
Super Premium Beauty and Personal Care
Luxury goods product hierarchyABOUT OUR RESEARCH
Country coverage: 32 markets ABOUT OUR RESEARCH
FR, DE, NL,CH, ES, SE,IT, TR, GB
PL, RO,RU, UK
IN, CN, ID, HK,MY, PH, SG,
KR, TW, TH, JP
AU
ZA, UAE
MX, AR, BR
CA, US
Euromonitor International covers 32 countries across all regions, while also providing top-level global and
regional figures.
Luxury goods system coverage ABOUT OUR RESEARCH
Countries and categories
• 32 researched countries
• 174 modelled
• 9 product categories
• 200+ subcategories
Data coverage
Market sizes:
• 11-year historic, 5-year forecast
• Retail value (rsp)
• Volume
Market shares:
• 9-year historic, retail value
• Company data
• Brand data (local, global brand name)
• Umbrella brands
Channel analysis:
• 11-year historic, retail value
• % breakdown and actuals
• 100% retail universe including non-store channels
• Pricing data: Latest three years
Additional data
• Domestic vs international spend
• Leading luxury shopping malls
• Leading luxury department stores
Insight and analysis
• Qualitative insights across 32 markets
• Global industry and category briefings
• 6+ global company profiles
• Weekly topical opinion pieces
Luxury brand designations are
derived through a combination of three
key criteria: price; distribution; and
industry perception of brand
itself.
In addition to the criteria used locally,
centrally we assign a luxury
platform to a number of brands which
should be exclusively premium
globally. This is based on the global
company positioning.
Secondary/diffusion luxury brands
(such as DKNY, Marc by Marc Jacobs,
See by Chloe) are also included in our
data.
While price is a key determining
criteria we include sales of all product
categories of luxury fashion houses
(ie Gucci, Calvin Klein, Ralph Lauren)
if it has been defined as luxury. This
may mean that certain products will fall
below the average entry level price.
Brand and industry
perception
Distribution
Price
Luxury brands classification criteria ABOUT OUR RESEARCH
Key Factors Considered
Distribution channels included in luxury goodsABOUT OUR RESEARCH
Notes: Duty-free sales are excluded from all our data.
Luxury department stores sales included under mixed retailers.
Black market
• Sales generated within informal retailing, ie those that are untaxed
Counterfeit
• Products that bear without authorisation a trade mark that is identical or cannot be distinguished in its essential aspects from validly registered trade marks for the same type of goods
Travel retail
• Beauty products sold at airports
• Sales through duty-free stores
B2B
• Sales to restaurants, hotels, cafés/bars, etc
Sales and channels excluded from luxury goods coverage ABOUT OUR RESEARCH
Salons/spas*
• Products used and sold in salons, spas, beauty treatment facilities, dental practices, doctors’ surgeries, etc
• Beauty services
Prescription
• Prescription products
Nutricosmetics
• Ingestible beauty products in the form of supplements, foods and drinks
Corporate
• Sales to corporate companies
Note: *Products sold to customers at hair salons at rsp are included (products used by salons at the “back bar” are excluded).
Domestic vs international spend
• This new name for our data measure captures the % split in value spend by domestic consumers versus international tourists shopping for luxury in the in-bound/source market
New product hierarchy and category split
• New product hierarchy for luxury eyewear, luxury timepieces and luxury jewellery
• Addition of luxury wearables as new subcategory under luxury portable consumer electronics
Increase in brand coverage
• For LUX2017, we have expanded our brand coverage to capture more local luxury brands
• Passport Luxury Goods now captures over 750 luxury brands
More time allocated to TDA research
• For LUX2017, we have not only carried out TDA research on the top 10 luxury companies but also carried out further TDA research on the top 20 global brands
What’s new in LUX2017?ABOUT OUR RESEARCH
Luxury goods synergies with other Passport industriesABOUT OUR RESEARCH
Luxury Goods
Beauty and
Personal Care
Alcoholic Drinks
Tobacco
Apparel and
Footwear
Personal Accessories
Eyewear
Consumer Electronics
Fflur Roberts, Head of Luxury Goods Research
Fflur Roberts manages the research programme for the global luxury goods
industry at Euromonitor International, which she joined in June 2000.
In her current post, Fflur Roberts has direct responsibility for the content and
quality of Euromonitor’s luxury goods research, which provides strategic
analysis of the global market and in-depth coverage of the industry in 32
countries worldwide. Before heading up the luxury goods industry in September
2008, Fflur also managed the research programmes for consumer appliances
and consumer finance for seven years, with regular contributions to leading
international industry events and publications.
Fflur is often referenced in the international press on the luxury business and
has addressed luxury leaders at many leading global luxury conferences around
the world.
Contact her at: [email protected]
The luxury goods teamABOUT OUR RESEARCH
This research from Euromonitor International is part of a global strategic intelligence
system that offers a complete picture of the commercial environment. Also available
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Executive debate on the global trends changing the consumer markets of the future.
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