Not in the Lap of Luxury Yet

8/11/2019 Not in the Lap of Luxury Yet

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PRESENTATION NAME

Company Name

(Pakistan is) Not in the lap of LUXURY ….yet

By: Marylou Andrew

Presented By:

Syed Mubashir Ali



Agenda

• Objectives

• Luxury int’l Facts

• The Next-11 group• Luxury & Pakistan . . . HOW??

• (Re)defining luxury

• Worldwide Trends in luxury

• Luxury brands in Pakistan

• The luxury brand challenges

• Giving luxury a chance



Objectives:

Who’s leading luxury goods market in terms of sale

Emergence of BRIC as future leaders of luxury goodsmarket

The NEXT – 11 Group (N-11)

Standing of Pakistan in terms of luxury goods market

Challenges & Recommendations



Luxury International Facts

US is largest luxury goods market in terms of sale

China’s share of the global luxury goods market will

increase to 44% by the year 2020

An estimated 10% growth in 2011 in luxury goods willcome from the BRIC countries

But Europe’s luxury markets will still lead the way

the Next 11 will contribute signif icantly to luxury

consumer spending in the coming years



The NEXT 11 Group (N-11)

In 2005, Goldman Sachs identified the N-11 whichcombined with economic and political conditions couldgreatly impact the global economy.

Pakistan Bangladesh Égypt. Indonésie

Iran Korea

Mexico Nigeria

Philippines Turkey

Vietnam

Most important reason is a large, young population and anincreasing level of affluence (particularly among young women)



Luxury & Pakistan. . . .

HOW??

Luxury goods section accounted for 11% total retailvalue showing CAGR of above 7% since 2003 even ineconomic depression year(2008)

10% of the wealthy account for 27.6% of total spendingin Pakistan (Nations of the World Encyclopedia)

Inequitable distribution of wealth

Urban Pakistan is a high potential market for luxuryitems



(Re)defining luxury

In pure economic terms, a luxury is any item for which demand

increases more than proportionally when income increases

Luxury Brand’s definition is subjective in Pakistan because currentdefinitions come from “societies and economies vastly different fromours.”



Worldwide Trends, redefining LUXURY

Democratization

A trend whereby high-end luxury brands are making their productsaccessible to a wider range of income groups to expand their marketshare

Masstige (mass premium)

Brands which offer premium quality at low prices; this concept is particularly prevalent in the skincare category where traditional drugstore brands such as Ponds have launched premium quality

specialized skincare products.



Luxury brands in Pakistan

Based on discussions with marketing experts, there are two tiers ofluxury brands in Pakistan;

Premium

Global Brands like, Charles & Keith, Mango, Next and Vincci

Local Brands like designer lawn to high-end cosmetics and skincare products

Super Premium (luxury brands in the truest sense)

Luxury cars (BMW, Jaguar, Mercedes, Porsche)

Fashion Brands (Louis Vuitton, Armani, Versace)



“International luxury brands are reluctant to

invest in Pakistan, partly because of our

image problem and partly due to the lack of

data to base predictions and returns on. ”



Role of Private Entrepreneurs

True luxury brands are imported by Entrepreneurswhich impacts the luxury market in a number ways;

These brands are not widely available or widely known

Because they are privately imported, the selection of products and designs is usually limited

The business is almost totally undocumented, making itimpossible to estimate the real market of luxury goodsin Pakistan



The luxury brand challenges

Following are the four main challenges whichinternational luxury brands have to face in Pakistan

Taxation

Location

Quality of Service

Marketing



Giving luxury a chance

Go from Premium to Super Premium

Premium category should be expanded to include more FMCG andhospitality

Greater awareness about availability of luxury brands should bemade

Luxury marketers should capitalize on tremendous inspirationalvalue of luxury

Most importantly, we should develop local luxury brands



Presentation Source:

June, 2011 issue of Aurora magazine

Documents

Not in the Lap of Luxury Yet