Luxury Goods online pricing

See Appendix (on p91) for Analyst Certifi cation, Important Disclosures and Non-US Research Analyst disclosures.

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NEW YORKExane Inc.640 Fifth Avenue15th FloorNew York, NY 10019 USATel: (+1) 212 634 4990Fax: (+1) 212 634 5171 WHY YOU SHOULD READ THIS REPORT

Pricing is a fundamental area of analysis in luxury goods. Higher prices correlate with superior margin performance and faster growth. A correlation with “Made in” highlights a “cost plus” pricing approach by most brands.

We ascertain here the hard facts on online pricing for the same 30 luxury brands we track in the USA in the Online Offer Dive, covering a total of 39,395 models.

Handbags act as a price differentiator, while entry price categories (eyewear, fragrances, cosmetics, and small leather goods) have fl atter price structures.

We vividly demonstrate “category segregation” at Hermès, and confi rm mega-brand price leadership by LV and Cartier. Only a handful of brands exclude the very high-end from their online offer.

8 OCTOBER 2015

Luca SolcaHui Fan ContactLabMarco PozziAlexandra BertasioDavide Sarra

Luxury Goods

Digital Luxury: Online Pricing Landscape SS15

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Exane BNP ParibasLuca Solca(+44) 203 430 [email protected]

Hui Fan(+44) 203 430 [email protected]

ContactLabMarco Pozzi(+39) 02 28 31 [email protected]

Alexandra Bertasio(+39) 02 28 31 [email protected]

Davide Sarra(+39) 02 28 31 [email protected]

LUXURY GOODS

Digital Luxury:

Online Pricing Landscape SS15

8 OCTOBER 2015 We continue our partnership with ContactLab to ascertain quantitative hard facts on the pricing

of the luxury brands’ online product offerings. We have analysed the 30 brands in the USA that

we track in Online Offer Dive - SS 2015, covering a total of 39,395 models.

Pricing is a fundamental area of analysis in luxury goods Higher prices correlate with superior profit performance (especially for premium and mega-

brands), although other factors are at play, including off-price involvement and retail/wholesale

balance. Higher priced brands seem to have shown higher growth. The close correlation of

"Made in" heritage countries and price position suggests a "cost plus" strategy by most brands.

Luxury goods products available for purchase online span a very significant price rangeThis seems to disprove the perception that luxury players may be using the internet and e-

commerce to promote their entry price point products only. In fact, prices extend well beyond

USD100k in Jewellery and in RTW. Even in accessible product categories such as Eyewear

maximum prices exceed EUR2k. Price depth, calculated as the range of MAX price / MIN price,

varies from a minimum of c.34x in Eyewear to a maximum of c.6,000x in Jewellery.

Online pricing of our 30 benchmark brands is consistent with physical price positioning Five of the 10 most expensive brands (by median price of the products online) are ‘high end’:

Loro Piana, SL, BV, Hermès, Cucinelli. Surprisingly, runner-up Givenchy and D&G make

systematically part of the top 10 in most categories. Among jewellers, Cartier is more expensive

than Bulgari, which is more expensive than Tiffany. LV is the most expensive of the leather

goods mega-brands, followed by Prada and Gucci. The six least expensive brands are all

“premium” brands.

Several brands exclude the very top of their offer from online purchase For LV, products not available for purchase online are on average 70% more expensive.

Hermès aggressively pursues a ‘category segregation’ strategy with compelling entry price

points in Soft Accessories and Home Accessories — using bags as the category for taking the

high ground.

Luca Solca (+44) 203 430 8503 [email protected]

Hui Fan (+44) 203 430 8507 [email protected]

ContactLab

Marco Pozzi (+39) 02 28 31 181 [email protected]

Alexandra Bertasio (+39) 02 28 31 181 [email protected]

Davide Sarra (+39) 02 28 31 181 [email protected]

https://www.exane.com/Link!docExternal.action?cmd=69723332263d6c3d646130396c316f356f3d393467266734�

mailto:[email protected]�

Exane BNP Paribas Research & ContactLab Luxury Goods 8 October 2015 page 2

We continue our partnership with ContactLab, the leading e-mail and CRM provider to the luxury industry, to ascertain quantitative hard facts on the pricing of the luxury brands’ online product offerings. We have analysed the 30 brands in the USA that we track in LUXURY GOODS: Online Offer Dive - SS 2015, covering a total of 39,395 Models.

Pricing is a fundamental area of analysis in luxury goods

Even a first level analysis shows that higher prices correlate with superior profit performance, especially for premium and mega-brands, although other important factors are at play, including off-price involvement and retail/wholesale balance. Higher priced brands seem to have shown higher growth. The close correlation of "Made in" heritage countries and price position suggests a ‘cost-plus’ strategy by most brands. But this is only part of the story. We will get back to pricing with more research in due course.

Luxury goods products available for purchase online span a very significant price range

This seems to disprove the perception that luxury players may be using the internet and e-commerce to promote their entry price point products only. In fact, prices extend well beyond USD100k in, for example, Jewellery and in RTW. Even in accessible product categories such as Eyewear maximum prices exceed EUR2k. Price depth, calculated as the range of MAX price / MIN price, varies from a minimum of c.34x in Eyewear to a maximum of c.6,000x in Jewellery.

Online pricing among our 30 benchmark brands is consistent with physical price positioning

Unsurprisingly, ‘high-end’ brands top our league. Five out of the 10 most expensive brands (in terms of median price of the products they sell online) are ‘high end’: Loro Piana, Saint Laurent, Bottega Veneta, Hermès, Brunello Cucinelli. Among the jewellery brands, Cartier is more expensive than Bulgari, which is in turn more expensive than Tiffany. Louis Vuitton is the most expensive of the leather goods mega-brands, followed by Prada, and Gucci. Again expectedly, the six least expensive brands are all ‘premium’ brands.

Several brands exclude the very top of their offer from online purchase

In the case of Louis Vuitton, for example, products not available for online purchase are on average 70% more expensive. Hermès does not offer the Birkin or Kelly for online purchase.

Chanel and Dior limit their online ‘Shoppable’ offer to Fragrances and Cosmetics. Hermès aggressively pursues a ‘category segregation’ strategy with compelling entry price points in Soft Accessories and Home Accessories, in some cases lower than many competitors’, using bags as the category with which to take the high ground.

https://www.exane.com/Link!docExternal.action?cmd=69723332263d6c3d646130396c316f356f3d393467266734�


Pricing is a fundamental area of analysis in luxury goods. Even a first level analysis shows that higher prices correlate with superior profit performance, especially for premium and mega-brands, although other important factors are at play, including off-price involvement and retail/wholesale balance. Higher priced brands seem to have shown higher growth. The close correlation of "Made in" heritage countries and price position suggests a ‘cost-plus’ strategy by most brands. But this is only part of the story. We will get back to pricing with more research in due course.

Figure 1: Higher prices correlate with superior profit performance (especially for premium and mega-brands) - although other factors such as off-price involvement and retail/wholesale balance are at play Average EBITDA margin 2012-14 vs overall product range median price (%, USD, US, SS15)

Source: ContactLab Analysis

Figure 2: Higher priced brands seem to have benefited from higher growth recently (1/2) Revenue CAGR 2011–14 (%) vs. Overall product range median price (%, USD, US, SS15)


Armani

Bottega Veneta

Brunello Cucinelli

Burberry

Coach

Ferragamo

Gucci

Hermès

Hugo Boss

Michael Kors

Prada

Ralph Lauren

Saint Laurent

TiffanyTod's

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Overall Product Range Median Price (USD)

Armani

Bottega Veneta

Brunello Cucinelli

Burberry

Coach

Ferragamo

Gucci

Hermès

Hugo Boss

Prada

Ralph Lauren

Saint Laurent

TiffanyTod's

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Figure 3: Higher priced brands seem to have benefited from higher growth recently (2/2) Revenue CAGR 2011–14 (%) vs overall product range entry price (%, USD, US, SS15)


Figure 4: High correlation of ‘Made in’ heritage countries and price position suggests a ‘cost-plus’ strategy by most competitors Correlation of prices and % of production in Heritage countries (R2)


Armani

Bottega Veneta

Brunello Cucinelli

Burberry

Coach

Ferragamo

Gucci

Hermès

Hugo Boss

Prada

Ralph Lauren

Saint Laurent

Tiffany

Tod's

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Overall Product Range Entry Price (Bottom Quintile Average Prices, USD)

MEDIAN PRICES ENTRY PRICES

OVERALL PRODUCT RANGE 0.58 0.64

BAGS 0.72 0.71

SHOES 0.60 0.80

SOFT ACCESSORIES 0.57 0.66

SLG 0.66 0.64


Luxury goods products available for purchase online span a very significant price range

This seems to disprove the perception that luxury players may be using the internet and e-commerce to promote their entry price point products only. In fact, prices extend well beyond USD100k in, for example, Jewellery and in RTW. Even in accessible product categories such as Eyewear maximum prices exceed EUR2k. Price depth, calculated as the range of MAX price / MIN price, varies from a minimum of c.34x in Eyewear to a maximum of c.6,000x in Jewellery.

Figure 5: Luxury products available for purchase online span a very significant price range. This seems to disprove the perception that luxury players use the internet and e-commerce to promote their entry price point products only Price range by category (Shoppable models, USD, US, SS15)


Max Min Ratio (x)

Eyewear $2,220 $65 34

Beauty & Fragrances $4,200 $18 233

Watches $42,200 $88 480

Small Leather Goods $22,625 $38 595

Shoes $19,594 $25 784

Soft Accessories $27,664 $30 922

Bags $49,300 $30 1,643

Home Accessories $65,000 $14 4,643

Jewellery $147,800 $24 6,158

Children’s Wear & Accessories $28,000 $5 5,600

RTW $120,000 $8 15,000

Significantly impacted by sub-category mix


Figure 6: Max prices even in Accessible product categories like Eyewear extend to over EUR 2k Eyewear mix by brand (Shoppable models, USD, US, SS15) – Ranked by median price


BrandRanking

Median PriceMedian Price

Ranking Avge Bottom Quintile

Avge Bottom Quintile

Delta%Median-ABQ

Max Price Avge Price Min Price Models (#)

Loro Piana 1 $1,042 1 $1,042 0% $1,590 $1,155 $1,042 8

Cartier 2 $890 2 $575 -35% $2,220 $1,027 $500 53

Louis Vuitton 3 $635 3 $570 -10% $825 $643 $515 98

Balenciaga 4 $515 6 $338 -34% $675 $493 $330 7

Bottega Veneta 5 $465 4 $398 -14% $1,155 $607 $375 13

Bulgari 6 $400 5 $349 -13% $590 $413 $330 45

Tod's 7 $395 8 $303 -23% $455 $384 $275 7

Zegna 8 $380 13 $247 -35% $1,260 $484 $230 11

Saint Laurent 9 $345 7 $320 -7% $395 $352 $310 45

Ferragamo 10 $325 12 $259 -20% $495 $315 $235 70

Gucci 10 $325 10 $274 -16% $1,195 $339 $195 201

Moncler 10 $325 9 $278 -14% $510 $349 $270 16

Tiffany 13 $300 11 $273 -9% $480 $329 $260 80

Prada 13 $300 14 $245 -18% $625 $303 $220 165

Burberry 15 $230 15 $213 -8% $300 $234 $200 94

Ralph Lauren 16 $215 18 $145 -33% $425 $221 $140 94

Armani 17 $190 21 $97 -49% $500 $220 $65 108

Michael Kors 18 $185 20 $117 -37% $245 $184 $99 37

Coach 19 $184 16 $158 -14% $248 $186 $158 22

Hugo Boss 20 $180 19 $134 -25% $325 $188 $115 82

Tory Burch 21 $175 17 $157 -10% $250 $183 $145 39

AVERAGE $329 $265 -19% $2,220 $347 $65 1,304

EYEWEAR


Figure 7: Beauty & Fragrances, the most accessible product category, with median prices between USD55 and USD110, is heavily exploited by high-end brands in a classic "category segregation" approach Beauty & Fragrance mix by brand (Shoppable models, USD, US, SS15) – Ranked by median price


BrandRanking




Delta%Median-ABQ


Balenciaga 1 $110 3 $75 -32% $145 $106 $70 17

Ferragamo 1 $110 4 $71 -35% $250 $138 $60 21

Hermès 1 $110 8 $52 -53% $405 $127 $31 169

Cartier 4 $105 9 $51 -51% $375 $125 $31 74

Tiffany 5 $100 5 $67 -33% $170 $110 $60 13

Bottega Veneta 6 $95 10 $47 -50% $475 $109 $42 29

Coach 6 $95 1 $95 0% $95 $95 $95 3

Valentino 8 $88 2 $75 -15% $117 $93 $75 3

Zegna 9 $78 11 $37 -53% $285 $109 $20 23

Chanel 10 $77 15 $31 -59% $4,200 $141 $20 348

Prada 10 $77 7 $57 -26% $114 $79 $54 14

Hugo Boss 12 $75 6 $65 -13% $140 $87 $60 23

Ralph Lauren 13 $71 17 $30 -58% $105 $65 $19 28

Bulgari 14 $65 13 $33 -49% $148 $66 $27 90

Gucci 14 $65 12 $35 -46% $200 $69 $27 121

Armani 16 $62 16 $30 -51% $410 $83 $20 206

Michael Kors 17 $60 19 $28 -54% $108 $64 $18 38

Tory Burch 17 $60 14 $32 -47% $140 $69 $25 15

Burberry 19 $57 20 $28 -52% $2,700 $102 $20 103

Dior 20 $55 18 $28 -49% $2,000 $89 $20 281

AVERAGE $74 $36 -51% $4,200 $103 $18 1,619

BEAUTY & FRAGRANCES


Figure 8: Small Leather Goods is among the categories with the most similar entry prices Small leather goods mix by brand (Shoppable models, USD, US, SS15) – Ranked by median price


BrandRanking




Delta%Median-ABQ


Hermès 1 $880 2 $490 -44% $22,625 $1,869 $225 95

Givenchy 2 $795 1 $495 -38% $2,550 $937 $445 10

Loro Piana 3 $728 7 $339 -53% $4,077 $1,230 $224 33

Brunello Cucinelli 4 $660 3 $440 -33% $1,470 $713 $375 13

Bottega Veneta 5 $650 5 $381 -41% $14,500 $823 $230 189

Louis Vuitton 6 $633 6 $364 -42% $3,500 $685 $205 256

Cartier 7 $590 4 $384 -35% $1,550 $618 $150 83

Bulgari 8 $530 8 $327 -38% $1,100 $613 $220 44

Balenciaga 9 $525 17 $230 -56% $835 $467 $155 31

Dolce&Gabbana 10 $495 9 $289 -42% $2,995 $631 $175 43

Valentino 11 $485 12 $277 -43% $825 $515 $195 12

Saint Laurent 12 $470 10 $284 -40% $1,490 $560 $175 102

Burberry 13 $465 14 $273 -41% $11,000 $660 $150 193

Prada 14 $440 13 $273 -38% $1,550 $481 $180 151

Gucci 15 $420 15 $267 -36% $4,600 $567 $140 359

Ferragamo 16 $380 11 $281 -26% $1,350 $428 $195 192

Tod's 17 $375 16 $244 -35% $850 $416 $195 57

Tiffany 18 $350 19 $118 -66% $2,500 $423 $65 33

Zegna 19 $295 18 $169 -43% $540 $285 $140 25

Armani 20 $275 23 $82 -70% $2,125 $281 $40 255

Tory Burch 21 $185 22 $85 -54% $295 $174 $55 64

Ralph Lauren 22 $165 25 $59 -64% $2,500 $319 $38 260

Coach 23 $160 20 $96 -40% $798 $179 $50 95

Michael Kors 24 $138 24 $80 -42% $750 $200 $45 83

Hugo Boss 25 $118 21 $89 -24% $425 $137 $65 94

AVERAGE $417 $239 -43% $22,625 $539 $38 2,772

SMALL LEATHER GOODS


Figure 9: Soft Accessories are used by most brands as an entry point, with broadly similar entry prices. This is the same approach as in Small Leather Good Soft accessories mix by brand (Shoppable models, USD, US, SS15) – Ranked by median price


BrandRanking




Delta%Median-ABQ


Loro Piana 1 $1,176 4 $379 -68% $27,664 $2,700 $112 166

Givenchy 2 $643 1 $568 -12% $765 $644 $545 8

Saint Laurent 3 $475 8 $238 -50% $2,390 $612 $145 53

Louis Vuitton 4 $473 11 $202 -57% $3,750 $604 $150 104

Balenciaga 5 $465 3 $385 -17% $695 $495 $385 5

Prada 6 $460 2 $460 0% $460 $460 $460 7

Hermès 7 $450 13 $194 -57% $9,350 $519 $135 381

Gucci 8 $443 6 $243 -45% $2,850 $549 $145 138

Cartier 9 $435 5 $330 -24% $910 $451 $330 10

Dolce&Gabbana 10 $425 7 $239 -44% $1,375 $491 $185 50

Tiffany 11 $395 20 $100 -75% $595 $398 $100 5

Bottega Veneta 12 $390 12 $200 -49% $1,380 $434 $200 59

Burberry 13 $375 15 $160 -57% $4,895 $470 $85 149

Brunello Cucinell 14 $295 16 $158 -47% $1,805 $613 $130 29

Valentino 14 $295 10 $209 -29% $1,445 $434 $150 23

Bulgari 16 $265 9 $215 -19% $850 $302 $215 28

Zegna 17 $205 17 $143 -30% $675 $216 $100 29

Armani 18 $195 22 $84 -57% $1,325 $253 $39 219

Coach 18 $195 19 $106 -46% $295 $190 $95 15

Ferragamo 20 $190 14 $190 0% $690 $264 $190 93

Tory Burch 21 $175 18 $133 -24% $385 $185 $95 31

Ralph Lauren 22 $120 24 $45 -62% $1,950 $144 $30 423

Michael Kors 23 $98 21 $87 -11% $1,695 $272 $48 29

Hugo Boss 24 $95 23 $50 -47% $295 $104 $30 177

AVERAGE $353 $160 -55% $27,664 $526 $30 2,231

SOFT ACCESSORIES


Figure 10: Ralph Lauren surprisingly leads the watches category in both median and max price — followed by jewellers Cartier, Bulgari and Tiffany Watches mix by brand (Shoppable models, USD, US, SS15) – Ranked by median price


BrandRanking




Delta%Median-ABQ


Ralph Lauren 1 $11,500 4 $2,870 -75% $42,200 $12,296 $2,300 47

Cartier 2 $9,100 2 $4,075 -55% $41,600 $11,507 $2,590 139

Bulgari 3 $7,025 1 $4,693 -33% $9,950 $7,145 $3,200 32

Tiffany 4 $5,000 6 $2,283 -54% $12,600 $5,247 $1,950 44

Louis Vuitton 5 $4,650 3 $3,200 -31% $9,000 $4,842 $3,200 13

Hermès 6 $4,100 5 $2,588 -37% $21,750 $5,766 $2,425 38

Dolce&Gabbana 7 $2,450 7 $1,750 -29% $5,950 $3,450 $1,750 11

Ferragamo 8 $1,495 9 $1,170 -22% $3,295 $1,705 $995 31

Givenchy 9 $1,390 8 $1,390 0% $1,390 $1,390 $1,390 1

Burberry 10 $1,245 10 $705 -43% $18,500 $2,181 $395 62

Gucci 11 $1,020 11 $551 -46% $12,600 $1,490 $195 113

Tory Burch 12 $595 12 $384 -36% $895 $618 $350 37

Armani 13 $345 16 $162 -53% $1,595 $607 $120 91

Michael Kors 14 $263 13 $209 -20% $550 $266 $180 212

Coach 15 $250 14 $175 -30% $498 $257 $88 40

Hugo Boss 16 $243 15 $166 -32% $495 $269 $125 60

AVERAGE $2,953 $1,385 -53% $42,200 $3,579 $88 971

WATCHES


Figure 11: Shoes stand in the middle ground in terms of price depth (calculated as the ratio of MAX / MIN price). Half of the brands have an entry price between USD550 and USD660 Shoes mix by brand (Shoppable models, USD, US, SS15) – Ranked by median price


BrandRanking




Delta%Median-ABQ


Brunello Cucinelli 1 $1,248 1 $887 -29% $1,725 $1,244 $855 24

Givenchy 2 $1,095 3 $642 -41% $3,625 $1,196 $240 61

Valentino 3 $995 6 $618 -38% $5,995 $1,031 $295 129

Loro Piana 4 $946 4 $636 -33% $19,594 $2,172 $549 52

Saint Laurent 5 $925 9 $568 -39% $2,495 $980 $475 145

Hermès 6 $920 2 $684 -26% $3,400 $1,072 $405 133

Louis Vuitton 7 $903 5 $625 -31% $2,130 $943 $425 136

Dolce&Gabbana 8 $895 7 $616 -31% $3,395 $955 $395 121

Prada 9 $750 8 $582 -22% $2,900 $840 $395 115

Bottega Veneta 10 $720 10 $563 -22% $1,750 $773 $390 72

Balenciaga 11 $695 11 $552 -21% $1,565 $748 $515 61

Ferragamo 11 $695 12 $491 -29% $2,700 $770 $195 217

Gucci 13 $660 14 $451 -32% $3,500 $818 $160 396

Burberry 14 $595 16 $349 -41% $1,395 $620 $250 204

Tod's 15 $565 13 $470 -17% $945 $570 $275 135

Zegna 16 $550 15 $382 -31% $795 $547 $350 20

Moncler 17 $490 17 $330 -33% $645 $476 $230 7

Armani 18 $475 21 $115 -76% $1,150 $460 $25 269

Ralph Lauren 19 $450 23 $63 -86% $12,000 $527 $25 337

Hugo Boss 20 $325 18 $195 -40% $1,045 $351 $105 113

Tory Burch 21 $250 20 $119 -52% $525 $248 $50 155

Coach 22 $225 19 $153 -32% $395 $232 $95 61

Michael Kors 23 $198 22 $101 -49% $8,000 $333 $39 263

AVERAGE $616 $374 -39% $19,594 $702 $25 3,226

SHOES


Figure 12: High-end brands Hermes, Loro Piana and Cucinelli lead the Bags category with higher median price, while mega-brands LV, Gucci and Prada have more models available online Bag mix by brand (Shoppable models, USD, US, SS15) – Ranked by median price


BrandRanking




Delta%Median-ABQ


Hermès 1 $5,700 5 $1,704 -70% $30,400 $5,697 $1,000 65

Loro Piana 2 $4,368 3 $1,880 -57% $34,586 $7,910 $1,176 51

Brunello Cucinelli 3 $3,370 1 $2,613 -22% $6,395 $3,592 $2,370 11

Bulgari 4 $3,075 2 $1,996 -35% $28,000 $4,386 $1,550 66

Bottega Veneta 5 $2,805 7 $1,375 -51% $29,600 $3,286 $490 136

Cartier 6 $2,460 4 $1,858 -24% $14,100 $3,464 $1,480 19

Valentino 7 $2,295 6 $1,481 -35% $3,995 $2,356 $1,125 77

Louis Vuitton 8 $2,110 12 $1,041 -51% $5,750 $2,297 $310 367

Givenchy 9 $2,018 9 $1,167 -42% $4,650 $2,056 $1,045 58

Saint Laurent 10 $1,990 10 $1,130 -43% $5,950 $2,038 $650 137

Prada 11 $1,950 13 $1,016 -48% $10,300 $1,981 $750 201

Tiffany 11 $1,950 8 $1,179 -40% $18,000 $2,685 $650 27

Tod's 13 $1,765 11 $1,096 -38% $3,995 $1,831 $425 52

Dolce&Gabbana 14 $1,695 15 $899 -47% $8,895 $1,904 $595 72

Balenciaga 15 $1,685 14 $1,014 -40% $4,650 $1,675 $695 82

Ferragamo 16 $1,650 17 $769 -53% $5,400 $1,785 $520 154

Burberry 17 $1,595 18 $755 -53% $38,000 $3,457 $395 178

Gucci 18 $1,590 16 $811 -49% $49,300 $2,742 $440 327

Ralph Lauren 19 $1,100 24 $213 -81% $21,500 $2,036 $45 293

Zegna 20 $985 19 $535 -46% $2,075 $1,116 $395 9

Moncler 21 $775 20 $508 -35% $2,220 $1,178 $505 7

Hugo Boss 22 $645 21 $377 -42% $2,495 $748 $255 41

Armani 23 $575 26 $129 -77% $5,275 $760 $30 228

Coach 24 $425 23 $234 -45% $1,095 $459 $135 152

Tory Burch 24 $425 22 $251 -41% $1,200 $416 $175 157

Michael Kors 26 $298 25 $172 -42% $20,000 $751 $88 344

AVERAGE $1,566 $760 -51% $49,300 $2,077 $30 3,311

BAGS


Figure 13: Luxury products available for purchase online span a very significant price range, i.e. Home Accessories, varying from a minimum of USD14 to a maximum of USD65,000 (1/2) Home accessories mix by brand (Shoppable models, USD, US, SS15) – Ranked by median price


Figure 14: Luxury products available for purchase online span a very significant price range, i.e. Children’s Wear & Accessories, varying from a minimum of USD5 to a maximum of USD28,000, (2/2) Children’s Wear & Accessories mix by brand (Shoppable models, USD, US, SS15) – Ranked by median price


BrandRanking




Delta%Median-ABQ


Loro Piana 1 $2,800 3 $473 -83% $32,256 $4,326 $56 62

Cartier 2 $1,625 2 $1,030 -37% $3,250 $1,757 $1,030 6

Dolce&Gabbana 3 $1,195 1 $1,195 0% $1,195 $1,195 $1,195 1

Gucci 4 $1,085 4 $430 -60% $5,050 $1,638 $190 6

Louis Vuitton 5 $590 10 $125 -79% $1,420 $712 $125 3

Burberry 6 $575 5 $268 -53% $3,995 $1,174 $65 23

Hermès 7 $520 9 $127 -76% $62,700 $1,852 $15 617

Bottega Veneta 8 $400 7 $255 -36% $3,500 $686 $180 17

Brunello Cucinelli 8 $400 6 $265 -34% $640 $435 $265 3

Moncler 10 $225 8 $225 0% $225 $225 $225 1

Tiffany 11 $215 11 $83 -61% $65,000 $814 $25 868

Ralph Lauren 12 $185 13 $69 -63% $13,000 $626 $14 1,990

Tory Burch 13 $147 12 $78 -47% $395 $147 $54 56

Armani 14 $95 14 $63 -34% $145 $98 $45 6

Hugo Boss 15 $89 15 $59 -34% $126 $91 $59 3

AVERAGE $300 $94 -69% $65,000 $938 $14 3,662

HOME ACCESSORIES

BrandRanking




Delta%Median-ABQ


Cartier 1 $2,290 1 $2,150 -6% $2,430 $2,290 $2,150 2

Loro Piana 2 $560 3 $250 -55% $4,872 $862 $179 42

Moncler 3 $340 4 $168 -51% $575 $342 $75 51

Ferragamo 4 $325 2 $325 0% $325 $325 $325 4

Hermès 5 $315 6 $146 -54% $4,125 $489 $55 39

Gucci 6 $260 5 $151 -42% $4,900 $381 $85 493

Tiffany 7 $180 7 $123 -32% $28,000 $1,113 $90 65

Burberry 8 $175 9 $75 -57% $1,695 $229 $50 387

Armani 9 $165 8 $86 -48% $950 $183 $50 277

Hugo Boss 10 $72 10 $45 -37% $286 $94 $25 55

Ralph Lauren 11 $42 11 $14 -67% $495 $51 $5 751

AVERAGE $161 $83 -49% $28,000 $241 $5 2,166

CHILDREN


Figure 15: Luxury players are not using the internet and e-commerce to promote their entry price point products only. In fact, max prices reach well above USD100k in Jewellery and in RTW (1/2) Jewellery mix by brand (Shoppable models, USD, US, SS15) – Ranked by median price


BrandRanking




Delta%Median-ABQ


Bulgari 1 $4,600 3 $720 -84% $69,000 $10,093 $140 179

Cartier 2 $3,425 1 $1,031 -70% $59,500 $5,544 $400 372

Dolce&Gabbana 3 $1,475 2 $738 -50% $1,775 $1,294 $385 17

Tiffany 4 $1,400 11 $258 -82% $120,000 $4,268 $50 2,505


Givenchy 6 $765 4 $459 -40% $3,345 $867 $360 59

Hermès 7 $725 5 $408 -44% $147,800 $3,570 $240 540

Gucci 8 $698 10 $260 -63% $17,500 $1,797 $170 194

Prada 9 $680 6 $382 -44% $1,990 $779 $340 28

Louis Vuitton 10 $660 7 $354 -46% $13,400 $1,714 $220 156

Saint Laurent 11 $595 8 $307 -48% $5,795 $786 $165 85

Ferragamo 12 $485 14 $227 -53% $21,000 $1,563 $140 92

Bottega Veneta 13 $430 12 $239 -44% $2,900 $525 $180 85

Valentino 14 $360 19 $106 -70% $795 $338 $40 26

Balenciaga 15 $355 16 $209 -41% $815 $407 $185 41

Zegna 16 $280 13 $229 -18% $560 $300 $190 21

Burberry 17 $275 17 $188 -32% $1,250 $370 $155 31

Tod's 18 $225 15 $225 0% $265 $238 $225 3

Armani 19 $160 18 $117 -27% $1,125 $223 $95 50

Tory Burch 20 $125 21 $77 -39% $1,300 $153 $38 107

Michael Kors 21 $115 22 $65 -43% $425 $113 $45 190

Hugo Boss 21 $115 20 $92 -20% $245 $121 $85 36

Coach 23 $95 23 $59 -38% $795 $111 $38 59

Ralph Lauren 24 $63 24 $29 -55% $1,895 $200 $24 94

AVERAGE $1,318 $334 -75% $147,800 $3,532 $24 4,980

JEWELLERY


Figure 16: Luxury players are not using the internet and e-commerce to promote their entry price point products only. In fact, max prices reach well above USD100k in Jewellery and in RTW (2/2) RTW mix by brand (Shoppable models, USD, US, SS15) – Ranked by median price


BrandRanking




Delta%Median-ABQ


Loro Piana 1 $2,352 4 $516 -78% $44,240 $5,641 $168 380

Givenchy 2 $1,625 2 $595 -63% $65,650 $2,837 $395 154

Valentino 3 $1,440 5 $507 -65% $10,500 $2,208 $90 138

Saint Laurent 4 $1,320 7 $472 -64% $7,590 $1,915 $290 276

Balenciaga 5 $1,285 6 $496 -61% $16,500 $1,633 $305 119


Bottega Veneta 7 $1,100 9 $455 -59% $6,900 $1,655 $310 111

Hermès 8 $1,075 11 $260 -76% $9,250 $1,425 $55 123

Moncler 8 $1,075 1 $639 -41% $3,975 $1,213 $360 89

Dolce&Gabbana 10 $995 8 $458 -54% $12,500 $1,546 $65 708

Burberry 10 $995 12 $247 -75% $120,000 $1,618 $30 894

Gucci 12 $990 10 $380 -62% $16,500 $1,730 $110 419

Coach 13 $625 13 $202 -68% $1,895 $730 $95 73

Michael Kors 14 $395 15 $96 -76% $9,995 $949 $20 757

Zegna 15 $360 17 $69 -81% $3,095 $503 $25 156

Tory Burch 16 $275 14 $130 -53% $1,995 $327 $85 309

Armani 17 $210 19 $54 -74% $4,475 $375 $22 2,129

Hugo Boss 18 $205 16 $82 -60% $2,395 $348 $10 1,448

Ralph Lauren 19 $140 18 $56 -60% $8,500 $388 $8 4,736

AVERAGE $476 $159 -66% $120,000 $884 $8 13,153

RTW


Online pricing among our 30 benchmark brands is consistent with physical price positioning

Unsurprisingly, ‘high-end’ brands top our league. Five out of the 10 most expensive brands (in terms of median price of the products they sell online) are ‘high end’: Loro Piana, Saint Laurent, Bottega Veneta, Hermès, Brunello Cucinelli. Among the jewellery brands, Cartier is more expensive than Bulgari, which is in turn more expensive than Tiffany. Louis Vuitton is the most expensive of the leather goods mega-brands, followed by Prada, and Gucci. Again expectedly, the six least expensive brands are all ‘premium’ brands.

Figure 17: Price depth varies among Luxury goods brands - from a minimum of 20x at Tod’s to a maximum of c.9800x at Hermes Price range by brand (Shoppable models, USD, US, SS15)


Max Min Ratio (x)

Runner-Up Tod's $3,995 $195 20

Premium Coach $1,895 $38 50

High-End Saint Laurent $7,590 $145 52

Premium Moncler $3,975 $75 53

High-End Brunello Cucinelli $7,795 $130 60

Premium Tory Burch $1,995 $25 80

High-End Dior $2,000 $20 100

Mega-Brand Louis Vuitton $13,400 $125 107

Mega-Brand Zegna $3,095 $20 155

Mega-Brand Prada $10,300 $54 191

Runner-Up Dolce&Gabbana $12,500 $65 192

High-End Chanel $4,200 $20 210

Runner-Up Balenciaga $16,500 $70 236

Premium Hugo Boss $2,495 $10 250

High-End Valentino $10,500 $40 263

Premium Armani $5,275 $20 264

Runner-Up Givenchy $65,650 $240 274

Runner-Up Ferragamo $21,000 $60 350

High-End Bottega Veneta $29,600 $42 705

High-End Loro Piana $44,240 $56 790

Premium Michael Kors $20,000 $18 1,111

Mega-Brand Gucci $49,300 $27 1,826

Jeweller Cartier $59,500 $31 1,919

Jeweller Bulgari $69,000 $27 2,556

Jeweller Tiffany $100,000 $25 4,000

Mega-Brand Burberry $120,000 $20 6,000

Premium Ralph Lauren $42,200 $5 8,440

High-End Hermès $147,800 $15 9,853

Exane BNP Paribas Research & ContactLab Luxury Goods

Figure 18: The online pricing approach by the 30 brands we have benchmarked is consistent with their position in the physical world — Unsurprisingly, ‘high-end’ brands top our league. Five of the 10 most expensive brands (in terms of median price of the products they sell online) are ‘high end’ (1/4) Median price, Shoppable models (1 = highest median price)

Source: ContactLab Analysis Note: As of June 2015 (period of data collection) Fendi and Celine did not have e-commerce in the USA

RTW Bags ShoesSoft

accessoriesSLG Children Jewellery Watches Eyewear

Home accessories

Beauty & Fragrances

High-End Loro Piana 1 2 4 1 3 2 - - 1 1 -

Jeweller Cartier - 6 - 9 7 1 2 2 2 2 4

Runner-Up Givenchy 2 9 2 2 2 - 6 9 - - -

High-End Saint Laurent 4 10 5 3 12 - 11 - 9 - -

High-End Bottega Veneta 7 5 10 12 5 - 13 - 5 8 6

High-End Hermès 8 1 6 7 1 5 7 6 - 7 1

Mega-Brand Louis Vuitton - 8 7 4 6 - 10 5 3 5 -

Runner-Up Dolce&Gabbana 10 14 8 10 10 - 3 7 - 3 -

High-End Brunello Cucinelli 6 3 1 14 4 - 5 - - 8 -

Jeweller Bulgari - 4 - 16 8 - 1 3 6 - 14

High-End Valentino 3 7 3 14 11 - 14 - - - 8

Runner-Up Balenciaga 5 15 11 5 9 - 15 - 4 - 1

Mega-Brand Prada - 11 9 6 14 - 9 - 13 - 10

Jeweller Tiffany - 11 - 11 18 7 4 4 13 11 5

Runner-Up Ferragamo - 16 11 20 16 4 12 8 10 - 1

Mega-Brand Gucci 12 18 13 8 15 6 8 11 10 4 14

Premium Moncler 8 21 17 - - 3 - - 10 10 -

Runner-Up Tod's - 13 15 - 17 - 18 - 7 - -

Mega-Brand Zegna 15 20 16 17 19 - 16 - 8 - 9

Mega-Brand Burberry 10 17 14 13 13 8 17 10 15 6 19

Premium Ralph Lauren 19 19 19 22 22 11 24 1 16 12 13

Premium Coach 13 24 22 18 23 - 23 15 19 - 6

Premium Hugo Boss 18 22 20 24 25 10 21 16 20 15 12

Premium Armani 17 23 18 18 20 9 19 13 17 14 16

Premium Tory Burch 16 24 21 21 21 - 20 12 21 13 17

Premium Michael Kors 14 26 23 23 24 - 21 14 18 - 17

High-End Chanel - - - - - - - - - - 10

High-End Dior - - - - - - - - - - 20

Brands


Figure 19: The online pricing approach by the 30 brands we have benchmarked is consistent with their position in the physical world — Unsurprisingly, ‘high-end’ brands top our league. Five of the 10 most expensive brands (in terms of median price of the products they sell online) are ‘high end’ (2/4) Median price by sub-category, Shoppable models (1 = highest median price)


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High-End Loro Piana 2 - 1 5 7 4 - 9 4 1 4 2 1 - - - - - - 8 6 - 9 10 3 4 1 1 6 1 - 5

Jeweller Cartier 1 - 8 2 - - - - - 13 - 7 5 1 1 2 2 3 2 - - - - - - - - - - - - -

Runner-Up Givenchy 17 - 7 - 2 2 1 1 - 5 - 11 - 5 9 10 8 9 - 1 1 3 1 6 2 1 5 9 3 7 3 6

High-End Saint Laurent 6 3 13 11 6 6 6 11 6 6 3 8 8 4 11 12 11 - - 4 - 6 7 8 5 6 3 2 8 6 6 2

High-End Bottega Veneta 3 4 5 4 12 10 9 7 7 14 9 6 6 9 10 14 10 - - 6 9 7 8 9 - 7 4 3 4 3 5 7

High-End Hermès 11 1 - 1 8 8 5 2 2 12 9 1 2 7 6 11 6 2 - 6 3 1 5 7 6 10 10 7 2 2 2 8

Mega-Brand Louis Vuitton 15 11 9 3 4 5 2 8 5 4 5 5 4 12 6 4 7 6 4 - - - - - - - - - - - - -

Runner-Up Dolce&Gabbana 10 6 2 9 5 7 3 4 3 3 2 10 11 3 8 7 5 7 6 3 7 8 6 2 4 3 8 4 7 4 4 3

High-End Brunello Cucinelli 5 - 4 - 1 1 - 2 1 2 1 3 3 16 - 5 - - - 9 4 5 4 3 7 8 6 5 1 5 1 4

Jeweller Bulgari 4 - 3 8 - - - - - 8 5 4 7 11 3 1 1 4 3 - - - - - - - - - - - - -

High-End Valentino 8 2 11 - 3 3 4 4 - 14 13 9 16 14 - 12 13 - - 2 2 2 2 1 1 2 2 10 5 9 - 1

Runner-Up Balenciaga 13 6 15 14 9 11 7 12 - 9 - 13 19 15 12 15 - - - 10 5 9 3 3 10 5 7 6 10 8 8 10

Mega-Brand Prada 7 10 10 6 11 12 10 10 10 10 - 12 10 8 - 6 9 - - - - - - - - - - - - - - -

Jeweller Tiffany - - 12 - - - - - - 16 - 15 - 2 2 9 3 5 5 - - - - - - - - - - - - -

Runner-Up Ferragamo 12 12 16 12 10 9 11 6 11 17 11 15 13 13 4 3 4 8 8 - - - - - - - - - - - - -

Mega-Brand Gucci 16 8 14 10 13 13 8 13 12 11 - 14 13 6 5 8 12 11 9 5 8 11 10 5 9 8 9 8 9 10 7 9

Premium Moncler 20 15 - - - 17 - 16 - - - - - - - - - - - 15 - - - - 8 - 12 12 - - - -

Runner-Up Tod's 14 - 20 13 13 14 11 14 13 - - 15 15 - - - - - - - - - - - - - - - - - - -

Mega-Brand Zegna - - - 15 - - - 17 8 - 8 - 17 - - - - - - - - - - 11 - 12 - 13 - 11 11 11

Mega-Brand Burberry 18 5 18 7 16 15 14 15 8 7 12 18 9 10 - - - 10 7 11 11 10 13 12 13 11 11 11 12 12 9 12

Premium Ralph Lauren 9 9 6 16 17 16 15 22 15 23 14 22 20 21 - 20 18 1 1 18 10 16 17 14 17 17 17 16 17 15 12 15

Premium Coach 21 16 23 - 20 20 18 21 17 20 - 23 21 19 15 19 17 16 10 13 14 13 12 - 14 14 12 13 13 13 - -

Premium Hugo Boss 19 14 17 18 18 18 16 20 16 22 15 19 22 - - - - 13 13 14 15 15 14 16 11 16 16 17 16 17 13 14

Premium Armani 24 13 19 17 15 19 13 18 14 19 7 20 18 17 13 16 14 15 11 17 12 12 15 12 15 15 14 15 15 14 10 13

Premium Tory Burch 23 17 21 - 19 21 17 - - 21 - 21 - 20 16 16 15 12 - 16 13 14 16 - 11 - 18 - 14 - - -

Premium Michael Kors 22 18 22 19 20 22 19 19 - 18 16 24 12 18 14 18 16 14 12 12 16 4 11 15 15 13 15 18 11 15 14 15

Brands

Watc.sBags Shoes S.Acc SLG Jewellery RTW


Figure 20: The online pricing approach by the 30 brands we have benchmarked is consistent with their position in the physical world — Unsurprisingly, ‘high-end’ brands top our league. Five of the 10 most expensive brands (in terms of median price of the products they sell online) are ‘high end’ (3/4) Bottom quintile average price, Shoppable models (1 = highest entry price defined as bottom quintile average price)

Source: ContactLab Analysis Note: As of June 2015 (period of data collection) Fendi and Celine did not have e-commerce in the USA

RTW Bags ShoesSoft

accessoriesSLG Children Jewellery Watches Eyewear

Home accessories

Beauty & Fragrances

High-End Loro Piana 4 3 4 4 7 3 - - 1 3 -

Jeweller Cartier - 4 - 5 4 1 1 2 2 2 9

Runner-Up Givenchy 2 9 3 1 1 - 4 8 - - -

High-End Saint Laurent 7 10 9 8 10 - 8 - 7 - -

High-End Bottega Veneta 9 7 10 12 5 - 12 - 4 7 10

High-End Hermès 11 5 2 13 2 6 5 5 - 9 8

Mega-Brand Louis Vuitton - 12 5 11 6 - 7 3 3 10 -

Runner-Up Dolce&Gabbana 8 15 7 7 9 - 2 7 - 1 -

High-End Brunello Cucinelli 3 1 1 16 3 - 9 - - 6 -

Jeweller Bulgari - 2 - 9 8 - 3 1 5 - 13

High-End Valentino 5 6 6 10 12 - 19 - - - 2

Runner-Up Balenciaga 6 14 11 3 17 - 16 - 6 - 2

Mega-Brand Prada - 13 8 2 13 - 6 - 14 - 7

Jeweller Tiffany - 8 - 20 19 7 11 6 11 11 5

Runner-Up Ferragamo - 17 12 14 11 2 14 9 12 - 4

Mega-Brand Gucci 10 16 14 6 15 5 10 11 10 4 12

Premium Moncler 1 20 17 - - 4 - - 9 8 -

Runner-Up Tod's - 11 13 - 16 - 15 - 8 - -

Mega-Brand Zegna 17 19 15 17 18 - 13 - 13 - 11

Mega-Brand Burberry 12 18 16 15 13 9 17 10 15 5 18

Premium Ralph Lauren 18 24 23 24 25 11 24 4 18 13 16

Premium Coach 13 23 19 19 20 - 23 14 16 - 1

Premium Hugo Boss 16 21 18 23 21 10 20 15 19 15 6

Premium Armani 19 26 21 22 23 8 18 16 21 14 16

Premium Tory Burch 14 22 20 18 22 - 21 12 17 12 14

Premium Michael Kors 15 25 22 21 24 - 22 13 20 - 18

High-End Chanel - - - - - - - - - - 15

High-End Dior - - - - - - - - - - 18

Brands


Figure 21: The online pricing approach by the 30 brands we have benchmarked is consistent with their position in the physical world — Unsurprisingly, ‘high-end’ brands top our league. Five of the 10 most expensive brands (in terms of median price of the products they sell online) are ‘high end’ (4/4) Bottom quintile average price by sub-category, Shoppable models (1 = highest entry price defined as bottom quintile average price)


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High-End Loro Piana 5 - 8 10 4 3 - 5 9 2 9 1 3 - - - - - - 6 7 - 7 10 2 2 3 2 7 2 - 8

Jeweller Cartier 1 - 7 2 - - - - - 11 - 8 5 1 2 3 2 2 2 - - - - - - - - - - - - -

Runner-Up Givenchy 14 - 4 - 5 9 1 1 - 3 - 9 - 3 6 8 6 8 - 2 1 3 1 5 1 1 4 6 4 6 6 4

High-End Saint Laurent 3 5 10 7 8 11 9 11 4 10 1 6 13 9 11 9 7 - - 4 - 5 8 9 7 6 7 5 8 7 2 2

High-End Bottega Veneta 18 3 5 3 9 7 6 7 8 6 6 7 6 13 9 14 12 - - 5 8 7 6 8 - 7 1 7 3 5 9 7

High-End Hermès 13 1 - 1 7 5 4 3 2 13 6 3 1 5 5 12 8 4 - 9 3 1 2 4 8 9 10 10 6 1 1 6

Mega-Brand Louis Vuitton 11 13 15 6 3 4 3 6 6 14 4 10 4 7 7 10 9 3 3 - - - - - - - - - - - - -

Runner-Up Dolce&Gabbana 8 9 2 8 6 8 2 14 3 5 3 11 15 2 4 4 4 7 6 3 5 7 5 3 5 5 8 1 5 4 4 5

High-End Brunello Cucinelli 4 - 1 - 1 1 - 2 1 1 2 2 2 8 - 6 - - - 10 4 4 3 2 4 4 2 4 1 9 3 3

Jeweller Bulgari 2 - 3 4 - - - - - 7 4 4 7 4 3 1 1 1 1 - - - - - - - - - - - - -

High-End Valentino 6 4 6 - 2 2 5 4 - 16 13 5 13 15 - 7 10 - - 1 2 2 4 7 3 3 5 3 2 11 - 1

Runner-Up Balenciaga 12 6 12 12 10 10 7 9 - 8 - 13 17 14 12 11 - - - 7 9 9 9 1 8 8 6 9 9 3 6 9

Mega-Brand Prada 7 7 11 5 11 12 9 8 7 4 - 17 8 6 - 2 5 - - - - - - - - - - - - - - -

Jeweller Tiffany - - 9 - - - - - - 19 - 14 - 11 8 15 11 6 5 - - - - - - - - - - - - -

Runner-Up Ferragamo 9 10 13 15 14 6 11 10 11 15 8 12 11 16 1 5 3 9 7 - - - - - - - - - - - - -

Mega-Brand Gucci 16 8 14 13 15 13 8 12 12 9 - 16 16 12 10 13 13 12 8 8 6 10 10 6 10 10 9 8 10 8 5 10

Premium Moncler 19 12 - - - 17 - 15 - - - - - - - - - - - 13 - - - - 6 - 11 11 - - - -

Runner-Up Tod's 10 - 18 9 12 14 12 13 13 - - 15 12 - - - - - - - - - - - - - - - - - - -

Mega-Brand Zegna - - - 11 - - - 17 10 - 10 - 10 - - - - - - - - - - 11 - 11 - 12 - 12 10 12

Mega-Brand Burberry 15 2 16 14 13 16 13 16 5 12 11 18 9 10 - - - 10 9 11 10 11 12 12 12 12 12 13 12 13 8 11

Premium Ralph Lauren 21 16 21 17 21 22 15 22 15 23 14 22 20 21 - 20 18 5 4 18 14 15 17 16 16 17 18 17 17 16 11 16

Premium Coach 20 17 20 - 19 18 18 19 16 17 - 21 19 20 15 19 17 15 10 12 11 12 11 - 11 13 13 14 11 10 - -

Premium Hugo Boss 17 11 17 16 16 15 16 19 17 21 15 19 21 - - - - 13 13 14 13 13 12 14 13 15 14 16 14 15 13 13

Premium Armani 24 15 23 18 18 19 14 21 14 19 12 24 22 17 13 16 14 16 12 17 16 16 16 15 17 16 16 18 16 17 12 15

Premium Tory Burch 22 14 19 - 17 20 17 - - 18 - 20 - 19 14 17 15 11 - 15 11 13 14 - 14 - 15 - 13 - - -

Premium Michael Kors 23 18 22 19 20 21 19 18 - 22 15 22 18 18 16 18 16 14 11 16 15 6 15 13 15 14 17 15 15 14 14 14

Brands

RTWBags Shoes S.Acc SLG Jewellery Watc.s


Figure 22: Summary – Median and average bottom quintile prices Overall price positioning by brand (Shoppable models, USD, US, SS15)

* Fragrances & Cosmetics only for Dior and Chanel


Armani, 210

Balenciaga, 815

Bottega Veneta, 730

Brunello Cucinelli, 1078

Bulgari, 1590

Burberry, 495

Cartier, 2510

* Chanel, 77

Coach, 249

* Dior, 55

Dolce & Gabbana, 995

Ferragamo, 540

Givenchy, 1225

Gucci, 550

Hermes, 620

Hugo Boss, 185

Loro Piana, 1691

Louis Vuitton, 895

Michael Kors, 250

Moncler, 650Prada, 640

Ralph Lauren, 145

Saint Laurent, 895

Tiffany, 750

Tod's, 565

Tory Burch, 225

Valentino, 1075

Zegna, 295

Armani, 60

Balenciaga, 265

Bottega Veneta, 300

Burnello Cucinelli, 355

Bulgari, 65

Burberry, 120

Cartier, 328

* Chanel, 32

Coach, 95

* Dior, 29

Dolce & Gabbana, 425

Ferragamo, 233

Givenchy, 555

Gucci, 195

Hermes, 150

Hugo Boss, 80

Loro Piana, 459

Louis Vuitton, 405

Michael Kors, 98

Moncler, 270

Prada, 255

Ralph Lauren, 45

Saint Laurent, 345

Tiffany, 150

Tod's 328

Tory Burch, 95

Valentino, 375

Zegna, 62

20

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Median Prices

Entry Prices(Bottom Quintile Average Prices)


Several brands exclude the very top of their offer from online purchase

In the case of LV, for example, products not available for online purchase are on average 70% more expensive. Hermès does not offer the Birkin or Kelly for online purchase. Chanel and Dior limit their online ‘Shoppable’ offer to Fragrances and Cosmetics. Hermès pursues an aggressive ‘category segregation’ strategy with compelling entry price points in Soft Accessories and Home Accessories (below many competitors’), using bags as the category to take the high ground.

Figure 23: Several brands exclude the very top of their offer from online purchase – e.g. Louis Vuitton, products not available for online purchase are on average 70% more expensive Web catalogue, Shoppable vs. Non-Shoppable models (US, SS15)


Figure 24: Several brands exclude the very top of their offer from online purchase – e.g. Jewellers, the median price of non-Shoppable models is much higher than that of Shoppable models Web median prices, Shoppable vs. Non-Shoppable Models (US, SS15)


0

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CARTIER BULGARI TIFFANY DOLCE&GABBANA LOUIS VUITTON

Pric

e (U

SD

)

Price Shoppable Models Price Non-Shoppable Models

8.0X

27.9X

28.4X

4.0X

1.7X


Figure 25: Bags are used mostly for differentiating entry prices, while Soft Accessories and SLG Categories have most similar entry prices Entry price, Shoppable models (USD, US, SS15)


$-

$500

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lph

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Mic

hae

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Arm

ani

Bags Shoes RTW SLG Soft Accessories


Figure 26: High-End brands and Jewellers have much wider price extension (>5x) than Premium Brands (<3x) Entry price, Shoppable models (USD, US, SS15)


BrandBags

Entry Price (USD)

Ratio Bags / Soft Acc.

Entry Price (X)

Ratio Bags / SLG

Entry Price (X)

Brunello Cucinelli 2,613 16.6x 5.9x

Bulgari 1,996 9.3x 6.1x

Loro Piana 1,880 5.0x 5.5x

Cartier 1,858 5.6x 4.8x

Hermès 1,704 8.8x 3.5x

Valentino 1,481 7.1x 5.4x

Bottega Veneta 1,375 6.9x 3.6x

Tiffany 1,179 11.8x 10.0x

Givenchy 1,167 2.1x 2.4x

Saint Laurent 1,130 4.8x 4.0x

Tod's 1,096 4.5x

Louis Vuitton 1,041 5.1x 2.9x

Prada 1,016 2.2x 3.7x

Balenciaga 1,014 2.6x 4.4x

Dolce&Gabbana 899 3.8x 3.1x

Gucci 811 3.3x 3.0x

Ferragamo 769 4.0x 2.7x

Burberry 755 4.7x 2.8x

Zegna 535 3.7x 3.2x

Hugo Boss 377 7.5x 4.2x

Tory Burch 251 1.9x 3.0x

Coach 234 2.2x 2.4x

Ralph Lauren 213 4.7x 3.6x

Michael Kors 172 2.0x 2.2x

Armani 129 1.5x 1.6x


Appendix

Figure 27: Product sub-categories analysed in detail

Source: ContactLab Analysis, Note: weight = Shoppable as a proportion of Web Catalog

Category Models Analysed Subcategories Models Weight Category Models Analysed Subcategories Models Weight

RTW 13,153 Soft Accessories 2,231

Women Dresses 1,078 33% Women Foulards 704 21%

Women Skirts 377 11% Men Ties 610 18%

Women Tops 251 8% TOTAL 1,314 59%

Women Pants 872 26%

Men Pants 1,078 33% SLG 2,772

Women T-Shirts 813 25% Women Wallets 613 19%

Men T-Shirts 688 21% Men Wallets 515 16%

Women Jackets 676 20% TOTAL 1,128 41%

Men Jackets 728 22%

Women Sweaters & Cardigans 672 20% Jewelry 4,980

Men Sweaters & Cardigans 690 21% Women Bracelets 1,074 32%

Men Shirts 1,265 38% Women Necklaces 1,170 35%

Men Blazers 337 10% Women Rings 547 17%

TOTAL 9,525 72% Women Earrings 612 18%

TOTAL 3,403 68%

Bags 3,311

Women Tote 574 17% Watches 971

Women Small Bags 280 8% Women Watches 574 17%

Women Clutches 231 7% Men Watches 295 9%

Men Briefcases 198 6% TOTAL 869 89%

TOTAL 1,283 39%

Shoes 3,226

Women Sandals 418 13% Children 2,166

Women Flat Sandals 255 8% Eyewear 1,304

Women Pumps 277 8% Home Accessories 3,662

Men Sneakers 339 10% Beauty & Fragrances 1,619

Men Loafers & Mocassins 298 9%

TOTAL 1,587 49% TOTAL 39,395 19,109 49%


Figure 28: Women Tote Bags – Median price (USD) vs. Product range (# Shoppable models)


ARMANI

BALENCIAGA

BOTTEGA VENETA

BRUNELLO CUCINELLI

BULGARI

BURBERRY

COACH

DOLCE&GABBANAFERRAGAMO

GIVENCHYGUCCI

HERMÈS

HUGO BOSS

LORO PIANA

LOUIS VUITTON

MICHAEL KORS

MONCLER

PRADA

RALPH LAUREN

SAINT LAURENT

TOD'S

TORY BURCH

VALENTINO

$-

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

$4,500

$5,000

0 20 40 60 80 100 120

Med

ian

Pri

ce (

US

D)

Shoppable Models (#)

Lower Positioning

Higher Positioning


Figure 29: Women Tote Bags – Price range by brand (Shoppable Models, USD, US, SS15), ranked by entry price (bottom quintile average)


$1

$10

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$1,000

$10,000

$100,000C

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MIN PRICE ENTRY PRICE MEDIAN PRICE MAX PRICE


Figure 30: Women Small Bags – Median price (USD) vs. Product range (# Shoppable models)


ARMANI

BALENCIAGA

BOTTEGA VENETA

BURBERRY

COACH

DOLCE&GABBANA

FERRAGAMO

GUCCI

HERMÈS

HUGO BOSS

LOUIS VUITTON

MICHAEL KORS

MONCLER

PRADARALPH LAUREN

SAINT LAURENT

TORY BURCH

VALENTINO

$-

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

$4,500

0 10 20 30 40 50 60 70 80

Med

ian

Pri

ce (

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D)


Lower Positioning

Higher Positioning


Figure 31: Women Small Bags – Price range by brand (Shoppable Models, USD, US, SS15), ranked by entry price (bottom quintile average)


$1

$10

$100

$1,000

$10,000

$100,000

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Figure 32: Women Clutches – Median price (USD) vs. Product range (# Shoppable models)


ARMANI

BALENCIAGA

BOTTEGA VENETA

BRUNELLO CUCINELLI

BULGARI

BURBERRY

CARTIER

COACH

DOLCE&GABBANA

FERRAGAMO

GIVENCHY

GUCCI

HUGO BOSS

LORO PIANA

LOUIS VUITTON

MICHAEL KORS

PRADARALPH LAUREN

SAINT LAURENTTIFFANY

TOD'STORY BURCH

VALENTINO

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$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

0 5 10 15 20 25 30 35 40

Med

ian

Pri

ce (

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D)


Lower Positioning

Higher Positioning


Figure 33: Women Clutches – Price range by brand (Shoppable Models, USD, US, SS15), ranked by entry price (bottom quintile average)


$1

$10

$100

$1,000

$10,000

$100,000B

RU

NE

LLO

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Figure 34: Men Briefcases – Median price (USD) vs. Product range (# Shoppable models)


ARMANI

BALENCIAGA

BOTTEGA VENETA

BULGARI BURBERRY

CARTIER

DOLCE&GABBANA

FERRAGAMO GUCCI

HERMÈS

HUGO BOSS

LORO PIANA

LOUIS VUITTON

MICHAEL KORS

PRADA

RALPH LAUREN

SAINT LAURENT

TOD'S

ZEGNA

$-

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

$10,000

0 5 10 15 20 25 30 35 40

Med

ian

Pri

ce (

US

D)


Lower Positioning

Higher Positioning


Figure 35: Men Briefcases – Price range by brand (Shoppable Models, USD, US, SS15), ranked by entry price (bottom quintile average)


$1

$10

$100

$1,000

$10,000

$100,000

HE

RM

ÈS

CA

RT

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TT

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Figure 36: Women Sandals – Median price (USD) vs. Product range (# Shoppable models)


ARMANI

BALENCIAGABOTTEGA VENETA

BRUNELLO CUCINELLI

BURBERRY

COACH

DOLCE&GABBANA

FERRAGAMO

GIVENCHY

GUCCI

HERMÈS

HUGO BOSS

LORO PIANA

LOUIS VUITTON

MICHAEL KORS

PRADA

RALPH LAUREN

SAINT LAURENT

TOD'S

TORY BURCH

VALENTINO

$-

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

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ian

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ce (

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D)


Lower Positioning

Higher Positioning


Figure 37: Women Sandals – Price range by brand (Shoppable Models, USD, US, SS15), ranked by entry price (bottom quintile average)


$1

$10

$100

$1,000

$10,000B

RU

NE

LLO

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Figure 38: Women Flat Sandals – Median price (USD) vs. Product range (# Shoppable models)


ARMANI

BALENCIAGA

BOTTEGA VENETA

BRUNELLO CUCINELLI

BURBERRY

COACH

DOLCE&GABBANA

FERRAGAMO

GIVENCHY

GUCCI

HERMÈS

HUGO BOSS

LORO PIANA

LOUIS VUITTON

MICHAEL KORS

MONCLER

PRADA

RALPH LAUREN

SAINT LAURENT

TOD'S

TORY BURCH

VALENTINO

$-

$200

$400

$600

$800

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$1,200

$1,400

$1,600

$1,800

0 5 10 15 20 25 30 35 40

Med

ian

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ce (

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D)


Lower Positioning

Higher Positioning


Figure 39: Women Flat Sandals – Price range by brand (Shoppable Models, USD, US, SS15), ranked by entry price (bottom quintile average)


$1

$10

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$1,000

$10,000B

RU

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Figure 40: Women Pumps – Median price (USD) vs. Product range (# Shoppable models)


ARMANI

BALENCIAGA

BOTTEGA VENETA

BURBERRY

COACH

DOLCE&GABBANA

FERRAGAMO

GIVENCHY

GUCCI

HERMÈS

HUGO BOSS

LOUIS VUITTON

MICHAEL KORS

PRADA

RALPH LAUREN

SAINT LAURENT

TOD'S

TORY BURCH

VALENTINO

$-

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

0 5 10 15 20 25 30 35 40

Med

ian

Pri

ce (

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D)


Lower Positioning

Higher Positioning


Figure 41: Women Pumps – Price range by brand (Shoppable Models, USD, US, SS15), ranked by entry price (bottom quintile average)


$1

$10

$100

$1,000

$10,000

$100,000

GIV

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CH

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RS



Figure 42: Mens Sneakers – Median price (USD) vs. Product range (# Shoppable models)


ARMANI

BALENCIAGA

BOTTEGA VENETA

BRUNELLO CUCINELLI

BURBERRY

COACH

DOLCE&GABBANA

FERRAGAMO

GIVENCHY

GUCCI

HERMÈS

HUGO BOSS

LORO PIANALOUIS VUITTON

MICHAEL KORS

MONCLER

PRADA

RALPH LAUREN

SAINT LAURENT

TOD'S

VALENTINO

ZEGNA

$-

$200

$400

$600

$800

$1,000

$1,200

0 10 20 30 40 50 60

Med

ian

Pri

ce (

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D)


Lower Positioning

Higher Positioning


Figure 43: Mens Sneakers – Price range by brand (Shoppable Models, USD, US, SS15), ranked by entry price (bottom quintile average)


$1

$10

$100

$1,000

$10,000G

IVE

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Figure 44: Mens Loafers & Moccasins – Median price (USD) vs. Product range (# Shoppable models)


ARMANI

BOTTEGA VENETA

BRUNELLO CUCINELLI

BURBERRY

COACH

DOLCE&GABBANA

FERRAGAMOGUCCI

HERMÈS

HUGO BOSS

LORO PIANA LOUIS VUITTON

PRADA

RALPH LAUREN

SAINT LAURENT

TOD'S

ZEGNA

$-

$200

$400

$600

$800

$1,000

$1,200

$1,400

0 10 20 30 40 50 60 70 80

Med

ian

Pri

ce (

US

D)


Lower Positioning

Higher Positioning


Figure 45: Mens Loafers & Moccasins – Price range by brand (Shoppable Models, USD, US, SS15), ranked by entry price (bottom quintile average)


$1

$10

$100

$1,000

$10,000B

RU

NE

LLO

CU

CIN

ELL

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LPH

LA

UR

EN

CO

AC

H

HU

GO

BO

SS



Figure 46: Women Foulards – Median price (USD) vs. Product range (# Shoppable models)


ARMANI

BALENCIAGABOTTEGA VENETA

BRUNELLO CUCINELLI

BULGARI BURBERRY

CARTIER

COACH

DOLCE&GABBANA

FERRAGAMO

GIVENCHY

GUCCI HERMÈS

HUGO BOSS

LORO PIANA

LOUIS VUITTON

MICHAEL KORS

PRADA

RALPH LAUREN

SAINT LAURENT

TIFFANY

TORY BURCH

VALENTINO

$-

$500

$1,000

$1,500

$2,000

$2,500

0 20 40 60 80 100 120 140 160 180 200

Med

ian

Pri

ce (

US

D)


Lower Positioning

Higher Positioning


Figure 47: Women Foulards – Price range by brand (Shoppable Models, USD, US, SS15), ranked by entry price (bottom quintile average)


$1

$10

$100

$1,000

$10,000

$100,000B

RU

NE

LLO

CU

CIN

ELL

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LOR

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GO

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LPH

LA

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Figure 48: Men Ties – Median price (USD) vs. Product range (# Shoppable models)


ARMANI

BOTTEGA VENETA

BRUNELLO CUCINELLI

BULGARI

BURBERRY

DOLCE&GABBANA

FERRAGAMOHERMÈS

HUGO BOSS

LORO PIANA

LOUIS VUITTON

MICHAEL KORS

RALPH LAUREN

SAINT LAURENT

VALENTINO

ZEGNA

$-

$50

$100

$150

$200

$250

$300

$350

0 20 40 60 80 100 120 140 160

Med

ian

Pri

ce (

US

D)


Lower Positioning

Higher Positioning


Figure 49: Men Ties – Price range by brand (Shoppable Models, USD, US, SS15), ranked by entry price (bottom quintile average)


$1

$10

$100

$1,000S

AIN

T L

AU

RE

NT

BR

UN

ELL

O C

UC

INE

LLI

DO

LCE

&G

AB

BA

NA

BU

LGA

RI

LOU

IS V

UIT

TO

N

BO

TT

EG

A V

EN

ET

A

HE

RM

ÈS

FE

RR

AG

AM

O

LOR

O P

IAN

A

ZE

GN

A

BU

RB

ER

RY

AR

MA

NI

VA

LEN

TIN

O

RA

LPH

LA

UR

EN

MIC

HA

EL

KO

RS

HU

GO

BO

SS



Figure 50: Women Wallets – Median price (USD) vs. Product range (# Shoppable models)


ARMANI

BALENCIAGA

BOTTEGA VENETA

BRUNELLO CUCINELLI

BULGARI

BURBERRY

CARTIER

COACH

DOLCE&GABBANA

FERRAGAMOGIVENCHY

GUCCI

HERMÈS

HUGO BOSS

LORO PIANA

LOUIS VUITTON

MICHAEL KORS

PRADA

RALPH LAUREN

SAINT LAURENT

TIFFANYTOD'S

TORY BURCH

VALENTINO

$-

$500

$1,000

$1,500

$2,000

$2,500

0 20 40 60 80 100 120

Med

ian

Pri

ce (

US

D)


Lower Positioning

Higher Positioning


Figure 51: Women Wallets – Price range by brand (Shoppable Models, USD, US, SS15), ranked by entry price (bottom quintile average)


$1

$10

$100

$1,000

$10,000LO

RO

PIA

NA

BR

UN

ELL

O C

UC

INE

LLI

HE

RM

ÈS

BU

LGA

RI

VA

LEN

TIN

O

SA

INT

LA

UR

EN

T

BO

TT

EG

A V

EN

ET

A

CA

RT

IER

GIV

EN

CH

Y

LOU

IS V

UIT

TO

N

DO

LCE

&G

AB

BA

NA

FE

RR

AG

AM

O

BA

LEN

CIA

GA

TIF

FA

NY

TO

D'S

GU

CC

I

PR

AD

A

BU

RB

ER

RY

HU

GO

BO

SS

TO

RY

BU

RC

H

CO

AC

H

MIC

HA

EL

KO

RS

RA

LPH

LA

UR

EN

AR

MA

NI



Figure 52: Men Wallets – Median price (USD) vs. Product range (# Shoppable models)


ARMANIBALENCIAGA

BOTTEGA VENETA

BRUNELLO CUCINELLI

BULGARI

BURBERRY

CARTIER

COACH

DOLCE&GABBANA

FERRAGAMOGUCCI

HERMÈS

HUGO BOSS

LORO PIANA

LOUIS VUITTON

MICHAEL KORSPRADA

RALPH LAUREN

SAINT LAURENT

TOD'S

VALENTINOZEGNA

$-

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000

0 10 20 30 40 50 60 70 80 90

Med

ian

Pri

ce (

US

D)


Lower Positioning

Higher Positioning


Figure 53: Men Wallets – Price range by brand (Shoppable Models, USD, US, SS15), ranked by entry price (bottom quintile average)


$1

$10

$100

$1,000

$10,000

$100,000H

ER

MÈ

S

BR

UN

ELL

O C

UC

INE

LLI

LOR

O P

IAN

A

LOU

IS V

UIT

TO

N

CA

RT

IER

BO

TT

EG

A V

EN

ET

A

BU

LGA

RI

PR

AD

A

BU

RB

ER

RY

ZE

GN

A

FE

RR

AG

AM

O

TO

D'S

SA

INT

LA

UR

EN

T

VA

LEN

TIN

O

DO

LCE

&G

AB

BA

NA

GU

CC

I

BA

LEN

CIA

GA

MIC

HA

EL

KO

RS

CO

AC

H

RA

LPH

LA

UR

EN

HU

GO

BO

SS

AR

MA

NI



Figure 54: Women Bracelets – Median price (USD) vs. Product range (# Shoppable models)


ARMANI

BALENCIAGA

BOTTEGA VENETA

BRUNELLO CUCINELLI

BULGARIBURBERRY

CARTIER

COACH

DOLCE&GABBANA

FERRAGAMO

GIVENCHY

GUCCI HERMÈSLOUIS VUITTON

MICHAEL KORS

PRADA

RALPH LAUREN

SAINT LAURENT

TIFFANY

TORY BURCH

VALENTINO

$-

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

0 50 100 150 200 250 300 350 400 450 500

Med

ian

Pri

ce (

US

D)


Lower Positioning

Higher Positioning


Figure 55: Women Bracelets – Price range by brand (Shoppable Models, USD, US, SS15), ranked by entry price (bottom quintile average)


$1

$10

$100

$1,000

$10,000

$100,000

$1,000,000C

AR

TIE

R

DO

LCE

&G

AB

BA

NA

GIV

EN

CH

Y

BU

LGA

RI

HE

RM

ÈS

PR

AD

A

LOU

IS V

UIT

TO

N

BR

UN

ELL

O C

UC

INE

LLI

SA

INT

LA

UR

EN

T

BU

RB

ER

RY

TIF

FA

NY

GU

CC

I

BO

TT

EG

A V

EN

ET

A

BA

LEN

CIA

GA

VA

LEN

TIN

O

FE

RR

AG

AM

O

AR

MA

NI

MIC

HA

EL

KO

RS

TO

RY

BU

RC

H

CO

AC

H

RA

LPH

LA

UR

EN



Figure 56: Women Necklaces– Median price (USD) vs. Product range (# Shoppable models)


ARMANIBALENCIAGABOTTEGA VENETA

BRUNELLO CUCINELLI

BULGARI

CARTIER

COACH

DOLCE&GABBANA

FERRAGAMO

GIVENCHYGUCCI

HERMÈS

LOUIS VUITTON

MICHAEL KORS

PRADA

RALPH LAUREN

SAINT LAURENT

TIFFANY

TORY BURCH

VALENTINO

$-

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

0 100 200 300 400 500 600 700 800 900 1000

Med

ian

Pri

ce (

US

D)


Lower Positioning

Higher Positioning


Figure 57: Women Necklaces – Price range by brand (Shoppable Models, USD, US, SS15), ranked by entry price (bottom quintile average)


$1

$10

$100

$1,000

$10,000

$100,000

$1,000,000

BU

LGA

RI

PR

AD

A

CA

RT

IER

DO

LCE

&G

AB

BA

NA

FE

RR

AG

AM

O

BR

UN

ELL

O C

UC

INE

LLI

VA

LEN

TIN

O

GIV

EN

CH

Y

SA

INT

LA

UR

EN

T

LOU

IS V

UIT

TO

N

BA

LEN

CIA

GA

HE

RM

ÈS

GU

CC

I

BO

TT

EG

A V

EN

ET

A

TIF

FA

NY

AR

MA

NI

TO

RY

BU

RC

H

MIC

HA

EL

KO

RS

CO

AC

H

RA

LPH

LA

UR

EN



Figure 58: Women Ring – Median price (USD) vs. Product range (# Shoppable models)


ARMANIBALENCIAGA

BOTTEGA VENETA

BULGARI

CARTIER

COACH

DOLCE&GABBANA

FERRAGAMO

GIVENCHY

GUCCIHERMÈS

LOUIS VUITTON

MICHAEL KORS

SAINT LAURENT

TIFFANY

TORY BURCH $-

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

0 50 100 150 200 250 300 350 400 450

Med

ian

Pri

ce (

US

D)


Lower Positioning

Higher Positioning


Figure 59: Women Ring – Price range by brand (Shoppable Models, USD, US, SS15), ranked by entry price (bottom quintile average)


$1

$10

$100

$1,000

$10,000

$100,000

FE

RR

AG

AM

O

CA

RT

IER

BU

LGA

RI

DO

LCE

&G

AB

BA

NA

HE

RM

ÈS

GIV

EN

CH

Y

LOU

IS V

UIT

TO

N

TIF

FA

NY

BO

TT

EG

A V

EN

ET

A

GU

CC

I

SA

INT

LA

UR

EN

T

BA

LEN

CIA

GA

AR

MA

NI

TO

RY

BU

RC

H

CO

AC

H

MIC

HA

EL

KO

RS



Figure 60: Women Earrings – Median price (USD) vs. Product range (# Shoppable models)


ARMANI

BV

BULGARI

CARTIER

COACH

DOLCE&GABBANAFERRAGAMO

GIVENCHY

GUCCIHERMÈS

LV

MICHAEL KORS

PRADA

RALPH LAUREN

SAINT LAURENT

TIFFANY

TORY BURCHVALENTINO $-

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

0 50 100 150 200 250 300 350 400 450

Med

ian

Pri

ce (

US

D)


Lower Positioning

Higher Positioning


Figure 61: Women Earrings – Price range by brand (Shoppable Models, USD, US, SS15), ranked by entry price (bottom quintile average)


$1

$10

$100

$1,000

$10,000

$100,000

BU

LGA

RI

CA

RT

IER

FE

RR

AG

AM

O

DO

LCE

&G

AB

BA

NA

PR

AD

A

GIV

EN

CH

Y

SA

INT

LA

UR

EN

T

HE

RM

ÈS

LOU

IS V

UIT

TO

N

VA

LEN

TIN

O

TIF

FA

NY

BO

TT

EG

A V

EN

ET

A

GU

CC

I

AR

MA

NI

TO

RY

BU

RC

H

MIC

HA

EL

KO

RS

CO

AC

H

RA

LPH

LA

UR

EN



Figure 62: Women Watches – Median price (USD) vs. Product range (# Shoppable models)


ARMANI

BULGARI

BURBERRY

CARTIER

COACH

DOLCE&GABBANAFERRAGAMOGIVENCHY

GUCCI

HERMÈS

HUGO BOSS

LOUIS VUITTON

MICHAEL KORS

RALPH LAUREN

TIFFANY

TORY BURCH

$-

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

0 20 40 60 80 100 120 140 160 180 200

Med

ian

Pri

ce (

US

D)


Lower Positioning

Higher Positioning


Figure 63: Women Watches – Price range by brand (Shoppable Models, USD, US, SS15), ranked by entry price (bottom quintile average)


$1

$10

$100

$1,000

$10,000

$100,000

BU

LGA

RI

CA

RT

IER

LOU

IS V

UIT

TO

N

HE

RM

ÈS

RA

LPH

LA

UR

EN

TIF

FA

NY

DO

LCE

&G

AB

BA

NA

GIV

EN

CH

Y

FE

RR

AG

AM

O

BU

RB

ER

RY

TO

RY

BU

RC

H

GU

CC

I

HU

GO

BO

SS

MIC

HA

EL

KO

RS

CO

AC

H

AR

MA

NI



Figure 64: Men Watches – Median price (USD) vs. Product range (# Shoppable models)


ARMANI

BULGARI

BURBERRY

CARTIER

COACH

DOLCE&GABBANA

FERRAGAMO

GUCCI

HUGO BOSS

LOUIS VUITTON

MICHAEL KORS

RALPH LAUREN

TIFFANY

$-

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

0 10 20 30 40 50 60

Med

ian

Pri

ce (

US

D)


Lower Positioning

Higher Positioning


Figure 65: Men Watches – Price range by brand (Shoppable Models, USD, US, SS15), ranked by entry price (bottom quintile average)


$1

$10

$100

$1,000

$10,000

$100,000B

ULG

AR

I

CA

RT

IER

LOU

IS V

UIT

TO

N

RA

LPH

LA

UR

EN

TIF

FA

NY

DO

LCE

&G

AB

BA

NA

FE

RR

AG

AM

O

GU

CC

I

BU

RB

ER

RY

CO

AC

H

MIC

HA

EL

KO

RS

AR

MA

NI

HU

GO

BO

SS



Figure 66: Women Dresses – Median price (USD) vs. Product range (# Shoppable models)


ARMANI

BALENCIAGA

BOTTEGA VENETA

BRUNELLO CUCINELLI

BURBERRY

COACH

DOLCE&GABBANA

GIVENCHY

GUCCI

HERMÈS

HUGO BOSS

LORO PIANA

MICHAEL KORS

MONCLER

RALPH LAUREN

SAINT LAURENT

TORY BURCH

VALENTINO

$-

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

$4,500

0 50 100 150 200 250 300 350 400 450

Med

ian

Pri

ce (

US

D)


Lower Positioning

Higher Positioning


Figure 67: Women Dresses – Price range by brand (Shoppable Models, USD, US, SS15), ranked by entry price (bottom quintile average)


$1

$10

$100

$1,000

$10,000

$100,000

VA

LEN

TIN

O

GIV

EN

CH

Y

DO

LC

E&

GA

BB

AN

A

HE

RM

ÈS

SA

INT

LA

UR

EN

T

BO

TT

EG

A V

EN

ET

A

LOR

O P

IAN

A

BA

LE

NC

IAG

A

GU

CC

I

BR

UN

ELL

O C

UC

INE

LLI

BU

RB

ER

RY

CO

AC

H

MO

NC

LER

HU

GO

BO

SS

TO

RY

BU

RC

H

MIC

HA

EL

KO

RS

AR

MA

NI

RA

LPH

LA

UR

EN



Figure 68: Women Skirt – Median price (USD) vs. Product range (# Shoppable models)


ARMANI

BALENCIAGA

BOTTEGA VENETA

BRUNELLO CUCINELLI

BURBERRY

COACH

DOLCE&GABBANA

GIVENCHY

GUCCI

HERMÈS

HUGO BOSS

MICHAEL KORS

RALPH LAUREN

SAINT LAURENT

TORY BURCH

VALENTINO

$-

$500

$1,000

$1,500

$2,000

$2,500

$3,000

0 20 40 60 80 100 120 140 160

Med

ian

Pri

ce (

US

D)


Lower Positioning

Higher Positioning


Figure 69: Women Skirt – Price range by brand (Shoppable Models, USD, US, SS15), ranked by entry price (bottom quintile average)


$1

$10

$100

$1,000

$10,000H

ER

MÈ

S

VA

LEN

TIN

O

GIV

EN

CH

Y

BR

UN

ELL

O C

UC

INE

LLI

SA

INT

LA

UR

EN

T

MIC

HA

EL

KO

RS

BO

TT

EG

A V

EN

ET

A

DO

LC

E&

GA

BB

AN

A

BA

LE

NC

IAG

A

GU

CC

I

BU

RB

ER

RY

CO

AC

H

TO

RY

BU

RC

H

HU

GO

BO

SS

RA

LPH

LA

UR

EN

AR

MA

NI



Figure 70: Women Top – Median price (USD) vs. Product range (# Shoppable models)


ARMANI

BALENCIAGA

BOTTEGA VENETA

BRUNELLO CUCINELLI

BURBERRY

COACH

DOLCE&GABBANA

GIVENCHY

GUCCI

HERMÈS

HUGO BOSS

LORO PIANA

MICHAEL KORS

RALPH LAUREN

TORY BURCH

VALENTINO

$-

$500

$1,000

$1,500

$2,000

$2,500

0 5 10 15 20 25 30 35 40 45 50

Med

ian

Pri

ce (

US

D)


Lower Positioning

Higher Positioning


Figure 71: Women Top – Price range by brand (Shoppable Models, USD, US, SS15), ranked by entry price (bottom quintile average)


$1

$10

$100

$1,000

$10,000

$100,000

GIV

EN

CH

Y

HE

RM

ÈS

VA

LEN

TIN

O

BR

UN

EL

LO C

UC

INE

LLI

DO

LC

E&

GA

BB

AN

A

GU

CC

I

LOR

O P

IAN

A

BO

TT

EG

A V

EN

ET

A

BA

LE

NC

IAG

A

BU

RB

ER

RY

CO

AC

H

TO

RY

BU

RC

H

HU

GO

BO

SS

RA

LP

H L

AU

RE

N

MIC

HA

EL

KO

RS

AR

MA

NI



Figure 72: Women Pants – Median price (USD) vs. Product range (# Shoppable models)


ARMANI

BALENCIAGA

BOTTEGA VENETA

BRUNELLO CUCINELLI

BURBERRY

COACH

DOLCE&GABBANA

GIVENCHY

GUCCI

HERMÈS

HUGO BOSS

LORO PIANA

MICHAEL KORS

RALPH LAUREN

SAINT LAURENT

TORY BURCH

VALENTINO

$-

$500

$1,000

$1,500

$2,000

$2,500

$3,000

0 50 100 150 200 250 300 350 400 450

Med

ian

Pri

ce (

US

D)


Lower Positioning

Higher Positioning


Figure 73: Women Pants – Price range by brand (Shoppable Models, USD, US, SS15), ranked by entry price (bottom quintile average)


$1

$10

$100

$1,000

$10,000

$100,000

GIV

EN

CH

Y

HE

RM

ÈS

BR

UN

ELL

O C

UC

INE

LLI

VA

LEN

TIN

O

DO

LC

E&

GA

BB

AN

A

BO

TT

EG

A V

EN

ET

A

LOR

O P

IAN

A

SA

INT

LA

UR

EN

T

BA

LE

NC

IAG

A

GU

CC

I

CO

AC

H

HU

GO

BO

SS

BU

RB

ER

RY

TO

RY

BU

RC

H

MIC

HA

EL

KO

RS

AR

MA

NI

RA

LPH

LA

UR

EN



Figure 74: Men Pants – Median price (USD) vs. Product range (# Shoppable models)


ARMANI

BALENCIAGA

BOTTEGA VENETA

BRUNELLO CUCINELLI

BURBERRY

DOLCE&GABBANA

GIVENCHY GUCCI

HERMÈS

HUGO BOSS

LORO PIANA

MICHAEL KORSRALPH LAUREN

SAINT LAURENT

VALENTINO

ZEGNA

$-

$100

$200

$300

$400

$500

$600

$700

$800

$900

$1,000

0 50 100 150 200 250 300 350 400

Med

ian

Pri

ce (

US

D)


Lower Positioning

Higher Positioning


Figure 75: Men Pants – Price range by brand (Shoppable Models, USD, US, SS15), ranked by entry price (bottom quintile average)


$1

$10

$100

$1,000

$10,000

BA

LEN

CIA

GA

BR

UN

ELL

O C

UC

INE

LLI

DO

LCE

&G

AB

BA

NA

HE

RM

ÈS

GIV

EN

CH

Y

GU

CC

I

VA

LEN

TIN

O

BO

TT

EG

A V

EN

ET

A

SA

INT

LA

UR

EN

T

LOR

O P

IAN

A

ZE

GN

A

BU

RB

ER

RY

MIC

HA

EL

KO

RS

HU

GO

BO

SS

AR

MA

NI

RA

LPH

LA

UR

EN



Figure 76: Women T-Shirts – Median price (USD) vs. product range (# Shoppable models)


ARMANI

BALENCIAGA

BRUNELLO CUCINELLI

BURBERRY

COACH

DOLCE&GABBANA

GIVENCHY

GUCCI

HERMÈS

HUGO BOSS

LORO PIANA

MICHAEL KORS

MONCLER

RALPH LAUREN

SAINT LAURENT

TORY BURCH

VALENTINO

$-

$200

$400

$600

$800

$1,000

$1,200

0 50 100 150 200 250 300 350 400 450

Med

ian

Pri

ce (

US

D)


Lower Positioning

Higher Positioning


Figure 77: Women T-Shirts – Price range by brand (Shoppable Models, USD, US, SS15), ranked by entry price (bottom quintile average)


$1

$10

$100

$1,000

$10,000G

IVE

NC

HY

LOR

O P

IAN

A

VA

LEN

TIN

O

BR

UN

ELL

O C

UC

INE

LLI

DO

LCE

&G

AB

BA

NA

MO

NC

LER

SA

INT

LA

UR

EN

T

BA

LEN

CIA

GA

HE

RM

ÈS

GU

CC

I

CO

AC

H

BU

RB

ER

RY

HU

GO

BO

SS

TO

RY

BU

RC

H

MIC

HA

EL

KO

RS

RA

LPH

LA

UR

EN

AR

MA

NI



Figure 78: Men T-Shirts – Median price (USD) vs. product range (# Shoppable models)


ARMANI

BALENCIAGA

BOTTEGA VENETA

BRUNELLO CUCINELLI

BURBERRY

COACH

DOLCE&GABBANA

GIVENCHY

GUCCI

HERMÈS

HUGO BOSS

LORO PIANA

MICHAEL KORS

RALPH LAUREN

SAINT LAURENT

VALENTINO

ZEGNA

$-

$100

$200

$300

$400

$500

$600

$700

$800

$900

0 50 100 150 200 250

Med

ian

Pri

ce (

US

D)


Lower Positioning

Higher Positioning


Figure 79: Men T-Shirts – Price range by brand (Shoppable Models, USD, US, SS15), ranked by entry price (bottom quintile average)


$1

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Figure 80: Women Jackets – Median Price (USD) vs. Product Range (# Shoppable models)


ARMANI

BALENCIAGA

BOTTEGA VENETA

BRUNELLO CUCINELLI

BURBERRY

COACH

DOLCE&GABBANA

GIVENCHY

GUCCIHERMÈS

HUGO BOSS

LORO PIANA

MICHAEL KORS

MONCLER

RALPH LAUREN

SAINT LAURENT

TORY BURCH

VALENTINO

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Figure 81: Women Jackets – Price range by brand (Shoppable Models, USD, US, SS15), ranked by entry price (bottom quintile average)


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Figure 82: Men Jackets – Median price (USD) vs. product range (# Shoppable models)


ARMANI

BALENCIAGA

BOTTEGA VENETA

BRUNELLO CUCINELLI

BURBERRY

COACH

DOLCE&GABBANA

GIVENCHY

GUCCIHERMÈS

HUGO BOSS

LORO PIANA

MICHAEL KORS

MONCLER

RALPH LAUREN

SAINT LAURENT

VALENTINO

ZEGNA

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$6,000

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Figure 83: Men Jackets – Price range by brand (Shoppable Models, USD, US, SS15), ranked by entry price (bottom quintile average)


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Figure 84: Women Sweaters – median price (USD) vs. product range (# Shoppable models)


ARMANI

BALENCIAGA

BOTTEGA VENETA

BRUNELLO CUCINELLI

BURBERRY

COACH

DOLCE&GABBANA

GIVENCHY

GUCCI

HERMÈS

HUGO BOSS

LORO PIANA

MICHAEL KORS

RALPH LAUREN

SAINT LAURENT

TORY BURCH

VALENTINO

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$500

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$2,500

$3,000

0 50 100 150 200 250 300 350

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Figure 85: Women Sweaters – Price range by brand (Shoppable Models, USD, US, SS15), ranked by entry price (bottom quintile average)


$1

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RU

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Figure 86: Men Sweaters – Median price (USD) vs. product range (# Shoppable models)


ARMANI

BALENCIAGA

BOTTEGA VENETA

BRUNELLO CUCINELLI

BURBERRY

COACH

DOLCE&GABBANA

GIVENCHY

GUCCI

HERMÈS

HUGO BOSS

LORO PIANA


SAINT LAURENT

VALENTINO

ZEGNA

$-

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Figure 87: Men Sweaters – Price range by brand (Shoppable Models, USD, US, SS15), ranked by entry price (bottom quintile average)


$1

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Figure 88: Men Shirts – Median price (USD) vs. product range (# Shoppable models)


ARMANI

BALENCIAGA

BOTTEGA VENETA

BRUNELLO CUCINELLI

BURBERRY

DOLCE&GABBANA

GIVENCHY

GUCCI

HERMÈS

HUGO BOSS

LORO PIANA


SAINT LAURENT

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Figure 89: Men Shirts – Price range by brand (Shoppable Models, USD, US, SS15), ranked by entry price (bottom quintile average)


$1

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Figure 90: Men Blazers – Median price (USD) vs. product range (# Shoppable models)


ARMANI

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BOTTEGA VENETA

BRUNELLO CUCINELLI

BURBERRY

DOLCE&GABBANAGIVENCHY

GUCCI

HERMÈS

HUGO BOSSMICHAEL KORS

RALPH LAUREN

SAINT LAURENT

ZEGNA

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Figure 91: Men Blazers – Price range by brand (Shoppable Models, USD, US, SS15), ranked by entry price (bottom quintile average)


$1

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Exane presentation Specialising in European equities, Exane is active in three businesses:

– Cash Equities: under the brand name Exane BNP Paribas, Exane provides institutional investors with a range of services, such as research, sale and execution on European equities;

– Equity Derivatives: Exane Derivatives has built a robust structured products franchise, based on its longstanding leadership in European convertible bonds and options;

– Asset Management: Exane Asset Management is one of the leaders in long/short equity fund management in Europe.

The agreement between Exane and BNP Paribas, signed in 2004 and strengthened in 2010 and 2011, revolves around three core elements:

– An operational partnership in European cash equities where BNP Paribas conferred exclusivity on secondary equity brokerage and the distribution of primary market activity to Exane under the Exane BNP Paribas brand;

– A balance sheet partnership, which is particularly well suited to our Equity Derivatives business, providing financing and support for our rating;

– A capital partnership uniting the strength of BNP Paribas with the independence of Exane.

Exane works primarily with institutional clients worldwide (pension funds, fund managers for banks and insurers and hedge funds), and markets its derivatives products to a broader pool of clients comprising private asset managers and investment advisors. Exane has a workforce of over 900 employees operating from offices in Paris, London, Frankfurt, Geneva, Madrid, Milan, New York, Stockholm and Singapore. Exane BNP Paribas equity research team covers c.600 companies. UK companies represent the biggest part of our coverage universe (25% of covered market cap), followed by France (15%) and USA (13%). Our research receives regular acclaim in leading industry surveys.

For further information, log on to our website at www.exane.com

ContactLab presentation ContactLab is a market leader in digital direct marketing products and services and a strategic partner for enterprise clients who wish to manage a customer engagement model on a global scale.

With offices in Milan, Paris and Munich, over 1000 customers, 15 years of experience and more than 130 specialists, ContactLab provides comprehensive solutions to enable top clients and brands to meet and exceed their business objectives through sophisticated CRM programs with their customers and prospects.

ContactLab is exclusively dedicated to the Enterprise segment with strong focus and expertise in the luxury industry, supporting leading brands worldwide in multiple languages, with a special tang towards Asian markets - in particular China - and emerging markets.

Over the years, ContactLab has expanded its offering by including added value services to its leading technological platform for outbound messaging enabling the uptake of digital marketing as a user-centric strategic tool for business growth.

ContactLab’s solutions are based on a triple player approach:

- Technology: focusing on digital direct multichannel messaging with a solid platform developed in-house since 2001, offering the highest level of security, scalability and deliverability.

- Agency: a full range of added value marketing services covering customer life-cycle engagement, from the definition of the data capture strategy, to the creative concept, to project execution, to the analysis of email impact on the bottom-line.

- Business Strategy Consulting: a proven set of capabilities including digital audit and strategy, Top Management Tableau de Bord, customer segmentation and data mining on complex databases, interpolating email shipments with e-commerce and retail transactions.

The ContactLab offering also includes Market Research products and services with a dedicated team aiming to identify behavioural trends by applying the CAWI methodology. ContactLab produces and publishes multi-country reports on European digital behaviours on a regular basis.

ContactLab has also created and developed NewsletterMonitor, a freeware internet application for competitive benchmarking, to monitor, track, analyze and compare over 4 million emails sent by more than 15,000 brands over the last 7 years.

ContactLab was founded by Massimo Fubini, an internet industry veteran and an opinion leader in the New Media and Digital Direct Marketing arena since 1995. He gained experience in Internet security in the mid-nineties, working for the military. He contributed to the network security rules for the Italian public administration. He has been a member of the Technical Committee at Audiweb - AssoComunicazione web sector for 7 years. He is a recognized keynote speaker on direct marketing and privacy topics.

For more information visit our website www.contactlab.com and www.newslettermonitor.com.

Disclosures All stock-specific commentary and recommendations in this report are solely based on Exane Research.

ContactLab This report is co-authored by Exane and ContactLab and draws upon research and analysis of both Exane and ContactLab.

ContactLab does not make investment recommendations, in this report or otherwise, and nothing in this report should be interpreted as an opinion by ContactLab either on market forecasts or on the prospects of specific companies.

This report and all of its content are strictly confidential. It may not be circulated or otherwise reproduced in whole or in part.

The analyses set out in the Report are the result of the aggregation of public materials and data coming from a sample of industry players.

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Any use which a person makes of this document, or any reliance on it, or decisions to be made based on it, are the responsibility of such person.

ContactLab, its affiliates and representatives accept no duty of care or liability of any kind whatsoever to any person, and no responsibility for damages, if any, suffered by any person as the result of decision made, or not made, or actions taken, or not taken, based on this document.

http://www.exane.com/�

http://www.contactlab.com/�

http://www.newslettermonitor.com/�


DISCLOSURE APPENDIX Analyst Certification We, Hui Fan, Luca Solca, (authors of or contributors to the report) hereby certify that all of the views expressed in this report accurately reflect our personal view(s) about the company or companies and securities discussed in this report. No part of our compensation was, is, or will be, directly, or indirectly, related to the specific recommendations or views expressed in this research report.

Non-US Research Analyst Disclosure The research analysts named below were involved in preparing this research report. Research analysts at Exane Ltd and Exane SA are not associated persons of Exane Inc. and thus are not registered or qualified in the U.S. as research analysts with the Financial Industry Regulatory Authority (FINRA) or the New York Stock Exchange (NYSE). These non-U.S. analysts are not subject to the NASD Rule 2711 and NYSE Rule 472 restrictions on communications with a subject company, public appearances and trading securities held by a research analyst account. Hui Fan Exane Ltd Luca Solca Exane SA Exane SA is regulated by the Autorité des Marchés Financiers (AMF) in France, Exane Ltd is authorised and regulated by the Financial Conduct Authority in the United Kingdom, and Exane Inc. is regulated by FINRA and the U.S. Securities and Exchange Commission in the United States.

Research Analyst Compensation The research analyst(s) responsible for the preparation of this report receive(s) compensation based upon various factors including overall firm revenues, which may include investment banking activities.

Disclosure of the report to the company/ies Companies Disclosures NONE 1 – Sections of this report, with the research summary, target price and rating removed, have been presented to the subject company/ies prior to its distribution, for the sole purpose of verifying the accuracy of factual statements. 2 – Following the presentation of sections of this report to this subject company, some conclusions were amended.

Definitions For an explanation of definitions used in Exane research reports, please see the glossary at https://www.exane.com/jsp/action/commun/JSPacLexique.jsp

Commitment to transparency on potential conflicts of interest: BNP Paribas While BNP Paribas (“BNPP”) holds a material ownership interest in the various Exane entities, Exane and BNPP have entered into an agreement to maintain the independence of Exane's research reports from BNPP. These research reports are published under the brand name “Exane BNP Paribas”. Nevertheless, for the sake of transparency, we separately identify potential conflicts of interest with BNPP regarding the company/(ies) covered by this research document.

The latest company-specific disclosures, valuation methodologies and investment case risks for all other companies covered by this document are available on www.exane.com/toolbox/compliance.

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All Exane research documents are available to all clients simultaneously on the Exane website (www.exanebnpparibas-equities.com). Most published research is also available via third-party aggregators such as Bloomberg, Multex, Factset and Capital IQ. Exane is not responsible for the redistribution of research by third-party aggregators.

Important notice: Please refer to our complete disclosure notice available on www.exane.com/compliance

This research is produced by one or more of EXANE SA, EXANE Limited and Exane Inc (collectively referred to as “EXANE”) . EXANE SA is authorized by the Autorité de Contrôle Prudentiel et de Résolution and regulated by the Autorité des Marchés Financiers (“AMF”). EXANE Limited is authorized and regulated by the Financial Conduct Authority (“FCA”). Exane Inc is registered and regulated by the Financial Industry Regulatory Authority (“FINRA”). In accordance with the requirements of FCA COBS 12.2.3R and associated guidance, of article 313-20 of the AMF Règlement Général, and of FINRA Rule 2711, Exane’s policy for managing confl icts of interest in relation to investment research is published on Exane’s web site (www.exane.com). Exane also follows the guidelines described in the code of conduct of the Association Francaise des Entreprises d’Investissement (“AFEI”) on managing confl icts of interest in the fi eld of investment research. This code of conduct is available on Exane’s web site (www.exane.com).

This research is solely for the private information of the recipients. All information contained in this research report has been compiled from sources believed to be reliable. However, no representation or warranty, express or implied, is made with respect to the completeness or accuracy of its contents, and it is not to be relied upon as such. Opinions contained in this research report represent Exane’s current opinions on the date of the report only. Exane is not soliciting an action based upon it, and under no circumstances is it to be used or considered as an offer to sell, or a solicitation of any offer to buy.

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BNP PARIBAS has acquired an interest in VERNER INVESTISSEMENTS the parent company of EXANE. VERNER INVESTISSEMENTS is controlled by the management of EXANE. BNP PARIBAS’s voting rights as a shareholder of VERNER INVESTISSEMENTS will be limited to 40% of overall voting rights of VERNER INVESTISSEMENTS.

Exane BNP ParibasLuca Solca(+44) 203 430 [email protected]

Hui Fan(+44) 203 430 [email protected]

ContactLabMarco Pozzi(+39) 02 28 31 [email protected]

Alexandra Bertasio(+39) 02 28 31 [email protected]

Davide Sarra(+39) 02 28 31 [email protected]

See Appendix (on p91) for Analyst Certifi cation, Important Disclosures and Non-US Research Analyst disclosures.

LONDONExane Ltd1 Hanover StreetLondon W1S 1YZUKTel: (+44) 207 039 9400Fax: (+44) 207 039 9440

EXANE BNP PARIBAS

CONTACTLAB

MILANContactLab S.p.AVia Natale Battaglia, 1220127 MilanItalyTel: (+39) 02 28 31 181Fax: (+39) 02 70 03 02 69

GENEVABranch of Exane S.A. Rue du Rhône 801204 GenevaSwitzerlandTel: (+41) 22 718 65 65Fax: (+41) 22 718 65 00

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PARISExane S.A.16 Avenue Matignon75008 Paris FranceTel: (+33) 1 44 95 40 00Fax: (+33) 1 44 95 40 01

PARISContactLab France, Sarl12 rue du Helder75009 Paris FranceTel: (+33) 1 42 46 28 18Fax: (+33) 1 74 18 05 55

MADRIDBranch of Exane S.A. Calle Serrano 7328006 MadridSpainTel: (+34) 91 114 83 00Fax: (+34) 91 114 83 01

STOCKHOLMRepresentative offi ce of Exane SANybrokajen 5111 48 StockholmSwedenTel: (+46) 8 5629 3500 Fax: (+46) 8 611 1802

MILANBranch of Exane S.A.Via dei Bossi 420121 MilanItalyTel: (+39) 02 89 63 17 13Fax: (+39) 02 89 63 17 01

FRANKFURTBranch of Exane S.A.Europa-Allee 12, 3rd fl oor60327 FrankfurtGermanyTel: (+49) 69 42 72 97 300Fax: (+49) 69 42 72 97 301

MUNICHContactLab Deutschland, GmbHLandwehrstrasse 6180336 MunichGermanyTel: (+49) 89 41 11 23 444Fax: (+49) 89 41 11 23 111

NEW YORKExane Inc.640 Fifth Avenue15th FloorNew York, NY 10019 USATel: (+1) 212 634 4990Fax: (+1) 212 634 5171 WHY YOU SHOULD READ THIS REPORT

Pricing is a fundamental area of analysis in luxury goods. Higher prices correlate with superior margin performance and faster growth. A correlation with “Made in” highlights a “cost plus” pricing approach by most brands.

We ascertain here the hard facts on online pricing for the same 30 luxury brands we track in the USA in the Online Offer Dive, covering a total of 39,395 models.

Handbags act as a price differentiator, while entry price categories (eyewear, fragrances, cosmetics, and small leather goods) have fl atter price structures.

We vividly demonstrate “category segregation” at Hermès, and confi rm mega-brand price leadership by LV and Cartier. Only a handful of brands exclude the very high-end from their online offer.

8 OCTOBER 2015

Luca SolcaHui Fan ContactLabMarco PozziAlexandra BertasioDavide Sarra

Luxury Goods

Digital Luxury: Online Pricing Landscape SS15

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