Table of Contents
Overview
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- Key issues covered in this Report
- COVID-19: market context
- France
- Germany
- Italy
- Spain
- UK
- US
- China
- Report scope
- Mintel market sizes
- Defining luxury goods
- Product breakdown
- Geographical breakdown
- Consumer research
- Company profiles
- Financial definitions
Executive Summary
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- Impact of COVID-19 on luxury goods retail
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- Figure 1: Short, medium and long term impact of COVID-19 on luxury goods retailing, August 2021
- The market
- Luxury market rebounds in 2021
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- Figure 2: Global luxury market: market size, reported and total retail sales and forecasts (excluding VAT), 2016-26
- Fashion holds largest share of luxury market
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- Figure 3: Global luxury market: percentage analysis of sales by product, 2020
- APAC accounts for 46% of luxury sales
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- Figure 4: Global luxury market: percentage analysis of sales by region, 2020
- The consumer
- COVID-19 hampers purchasing levels across Europe
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- Figure 5: Consumers who have bought luxury goods in the last 18 months, 2017-21
- Beauty most purchased category
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- Figure 6: Types of luxury goods bought in the last 18 months, 2021
- Growing shift towards buying luxury online
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- Figure 7: Where luxury goods were bought in the last 18 months, 2021
- Focus on sustainability rises
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- Figure 8: Impact of COVID-19 on luxury shopping behaviours, which factors have become more important, 2021
- Role of social media increases
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- Figure 9: Consumers behaviours in the past 18 months, 2021
- Companies and brands
- LVMH is the world’s largest luxury company
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- Figure 10: Leading luxury companies, % CAGR in revenues, 2015-20
- Online and social media come to the forefront
Issues and Insights
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- Plenty of positives for luxury goods despite the COVID hit
- What are the main opportunities for luxury growth?
- Targeting digitally-minded younger shoppers
- Tapping into growing importance of sustainability
- Growing role of social media
- Using technology to improve the online experience
COVID-19 and Luxury Goods Retailing
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- The market
- Impact of COVID-related store closures partially offset by online growth
- All sectors affected to similar degrees
- COVID-19 impact has varied considerably by region
- HNWI numbers and wealth relatively unaffected
- Global tourism decline pushes luxury sales back into domestic markets
- The consumer
- Pandemic causes declines in purchasing of luxury goods
- Sustainability and ethics rise up consumer agendas
- Companies and brands
- Online innovation drives channel growth during COVID-19 pandemic
The Market – Key Takeaways
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- Pandemic hits sales but Asia Pacific limits impact
- Demand in 2021 bounces back to higher than pre-pandemic levels
- Increasing preference for retail over wholesale is also driving market growth
- Fashion and leather goods account for approaching half of sales
- Asia-Pacific region grows in importance
- Japan retains spot as largest luxury goods market
Market Size and Forecast
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- Impact of COVID-19 on luxury goods retail
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- Figure 11: Short, medium and long term impact of COVID-19 on luxury goods retailing, August 2021
- Mintel’s market size methodology
- The impact of the switch to owned retail outlets
- Mintel’s market size and forecast
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- Figure 12: Global luxury market: market size, reported and total retail sales and forecasts (excluding VAT), 2016-26
Product Segmentation
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- Mintel’s segmentation methodology
- Market size breakdown
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- Figure 13: Global luxury market: percentage analysis of sales by product, 2020
- Figure 14: Global luxury market: sales by product, 2010-20
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- Figure 15: Global luxury market: percentage analysis of sales by product, 2010-20
- Fashion and leather goods
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- Figure 16: Global luxury market: fashion and leather goods sales, 2016-20
- Perfumes and cosmetics
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- Figure 17: Global luxury market: perfumes and cosmetics sales, 2016-20
- Watches and jewellery
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- Figure 18: Global luxury market: jewellery and watches sales, 2016-20
Regional Breakdown
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- Mintel’s segmentation methodology
- Market size breakdown
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- Figure 19: Global luxury market: percentage analysis of sales by region, 2020
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- Figure 20: Global luxury market: sales by region, 2010-20
- Figure 21: Global luxury market: percentage analysis of sales by region, 2010-20
Country Market Sizes
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- Spend per capita
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- Figure 22: Global luxury market: wealth per HNWI by region, 2020
- Luxury spending by country
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- Figure 23: Global luxury market: top 10 luxury goods markets, 2016-20
- Figure 24: Global luxury market: top 10 countries in the luxury goods market by share of luxury spending, 201
- Americas
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- Figure 25: Global luxury market: leading luxury goods markets in the Americas region, 2016-20
- Figure 26: Global luxury market: luxury markets’ shares of all luxury spending in the Americas region, 2016-20
- Asia-Pacific
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- Figure 27: Global luxury market: leading luxury goods markets in the Asia-Pacific region, 2016-20
- Figure 28: Global luxury market: luxury markets’ shares of all luxury spending in the Asia-Pacific region, 2016-20
- Europe
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- Figure 29: Global luxury market: leading luxury goods markets in the Europe region, 2016-20
- Figure 30: Global luxury market: luxury markets’ shares of all luxury spending in the Europe region, 2016-20
Market Drivers
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- Economic background
- Global uncertainty: COVID-19 knocks back the global economy
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- Figure 31: The global economy: forecast GDP percentage growth rates, constant prices US$, 2020-26
- Global uncertainty: the US-China trade war
- Global uncertainty: Brexit
- Currency
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- Figure 32: Leading international currency exchange rates, 2010-20
- The who, where and why of the luxury goods consumer
- Who?
- High Net Worth Individuals (HNWIs)
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- Figure 33: HNWIs by level of wealth, 2020
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- Figure 34: Share of wealth of HNWIs, 2020
- HNWIs: regional view
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- Figure 35: Number of HNWIs by region, 2013-20
- Figure 36: Wealth of HNWIs by region, 2020
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- Figure 37: Top 10 largest HNWI populations, 2019 and 2020
- High Earners Not Rich Yet (HENRYs)
- Where they shop
- Shopping channels
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- Figure 38: Where luxury branded items have been bought in the past 18 months, 2020
- Buying outside of the home market
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- Figure 39: International inbound tourism, 2018-20
The Consumer – Key Takeaways
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- Younger shoppers drive demand for luxury
- Women dominate luxury beauty purchasing
- Travel bans lead to a drop in global tourism
- Environmentally-friendly positioning more popular since pandemic
- The role of social media increases
Who Buys Luxury Goods
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- COVID-19 hampers purchasing levels across Europe
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- Figure 40: Consumers who have bought luxury goods in the last 18 months, 2017-21
- Men remain the main luxury shoppers in Europe
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- Figure 41: Consumers who have bought luxury goods in the last 18 months, by gender, 2021
- Younger shoppers drive demand for luxury
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- Figure 42: Consumers who have bought luxury goods in the last 18 months, by age, 2021
- COVID-19 impacts lower income consumers
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- Figure 43: European consumers who have bought luxury goods in the last 18 months, by monthly household income, 2021
- High income UK consumers more likely to spend on luxury
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- Figure 44: UK consumers who have bought luxury goods in the last 18 months, by monthly household income, 2021
- US consumers earning more than $75,000 keen luxury shoppers
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- Figure 45: US consumers who have bought luxury goods in the last 18 months, by monthly household income, 2021
- China’s luxury purchasing driven by women
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- Figure 46: China: consumers who have bought luxury goods in the last 18 months, by gender, age and monthly household income, 2021
What They Buy
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- Beauty most purchased category
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- Figure 47: Types of luxury goods bought in the last 18 months, 2021
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- Figure 48: Breakdown of the types of luxury goods bought in the last 18 months
- Women drive beauty purchasing
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- Figure 49: Consumers who have bought luxury beauty items in the past 18 months, by gender, 2021
- Men more likely to buy luxury clothing in Germany, France and Spain
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- Figure 50: Consumers who have bought luxury clothing items in the past 18 months, by gender, 2021
- Watches and jewellery popular with male US and Chinese shoppers
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- Figure 51: Consumers who have bought luxury watches and jewellery items in the past 18 months, by gender, 2021
- Luxury fashion accessories popular with UK male shoppers
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- Figure 52: Consumers who have bought luxury fashion accessory items in the past 18 months, by gender, 2021
Where They Shop
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- Figure 53: Where luxury goods were bought in the last 18 months, 2021
- COVID-19 impacts domestic luxury market
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- Figure 54: Consumers who bought luxury goods in-store in home country in the last 18 months, 2019-21
- Travel bans lead to a drop in global tourism
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- Figure 55: Consumers who bought luxury goods in-store abroad in the last 18 months, 2019-21
- Online luxury shopping takes off in China, Italy and US
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- Figure 56: Consumers who bought luxury good online in the last 18 months, 2019-21
- Reduction in travel means fewer Chinese tourists shopping in stores abroad
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How COVID-19 Has Impacted Luxury Shopping Behaviours
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- Environmentally-friendly positioning more popular since pandemic
- Authenticity matters
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- Figure 57: Impact of COVID-19 on luxury shopping behaviours, which factors have become more important, 2021
- Fashion trends have become less important since pandemic
- Chinese shoppers want low-key brands
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- Figure 58: Impact of COVID-19 on luxury shopping behaviours, which factors have become less important, 2021
Current and Future Luxury Shopping Behaviour
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- The role of social media increases
- Resell luxury market expected to grow
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- Figure 59: Consumers behaviours in the past 18 months, 2021
- Shoppers interested in second-hand luxury
- Chinese shoppers interested in attending brand-led events
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- Figure 60: Behaviours consumers have not done but would be interested in doing, 2021
Impact of COVID-19 on Luxury Goods Behaviours
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- Concerns over risk of infection remain
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- Figure 61: Extremely worried about exposure to COVID-19/coronavirus*, 2021
- Consumers’ spending on beauty products remain stable
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- Figure 62: Consumers spending on beauty products and toiletries since the pandemic*, 2021
- Clothing and accessories take a hit
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- Figure 63: Consumers spending on clothing and accessories since the pandemic*, 2021
- Consumers opt to online shop to avoid crowded stores
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- Figure 64: Changes in behaviour due to COVID-19*
Companies and Brands – What You Need to Know
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- LVMH is the world’s largest luxury company
- Aggregate sales down year-on-year in all regions in 2020
- Leaders increase their grip on the market
- French companies dominate, while Ralph Lauren drops out of Top 10
- Online and social media come to the forefront
- Ecommerce capabilities grow amidst pandemic
Company Metrics
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- Rankings
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- Figure 65: Leading luxury companies, by net revenues, 2018-20
- Revenue growth rates
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- Figure 66: Leading luxury companies, % CAGR in revenues, 2015-20
- Product revenue mix
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- Figure 67: Leading luxury companies, revenue by product group, 2020
- Figure 68: Leading luxury companies, revenue by product group, 2020
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- Figure 69: Leading luxury companies, percentage point change in product mix by product group revenue, 2016-20
- Regional revenue growth
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- Figure 70: Leading luxury companies, total revenue by region, 2016-20
- Store numbers
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- Figure 71: Selected leading luxury retailers, estimated store numbers, 2020
- Brand ownership
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- Figure 72: Brand ownership, by leading luxury companies, 2021
Market Shares
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- Luxury leaders increase their grip on the market
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- Figure 73: Leading luxury goods groups’ shares of all luxury goods sales, 2020
- Figure 74: Leading luxury goods groups, share of all luxury goods sales, 2018-20
- Product market shares
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- Figure 75: Leading luxury goods groups’ shares of all luxury fashion/leather goods sales, 2020
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- Figure 76: Leading luxury goods groups’ shares of all luxury perfumes/cosmetics goods sales, 2020
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- Figure 77: Leading luxury goods groups, share of all luxury watches/jewellery goods sales, 2020
Online and Social Media
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- The market
- The outlook
- Retailers work on integrating offline and online shopping experiences
- Retailers experiment with augmented reality technology to enhance shopping experiences
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- Figure 78: Gucci virtual sneaker, 2021
- Brands launch virtual stores
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- Figure 79: Dior’s virtual boutique, 2020
- The brands online
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- Figure 80: Major luxury brands: Number of markets with transactional websites, 2017-21
- Pureplay luxury etailers
- Net-a-Porter, Mr Porter launch new ‘glanceable’ iOS widgets
- Yoox launches dedicated Generation Z hub
- Farfetch launches exclusive Burberry Olympia bags with 3D Experience
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- Figure 81: Farfetch, 2021
- The Restory and Farfetch team up to launch luxury aftercare service
- Amazon debuts ‘Luxury Stores’ with Oscar de la Renta
- Social media
- Brands leverage in-app shopping features
Launch Activity and Innovation
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- Brands push forward with sustainability agendas
- Handbag Clinic launches partnership with Fenwick
- Hurr Collective launches footprint tracker feature
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- Figure 82: Hurr carbon footprint calculator
- Rebag expands to watches and fine jewellery categories
- Selfridges sells vertically-farmed produce from its own store
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- Figure 83: Project Earth food edit 2020
- Kering invests in rental handbag service Cocoon
- Ecommerce capabilities grow amidst pandemic
- Salvatore Ferragamo teams up with Microsoft
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- Figure 84: Salvatore Ferragamo personalisation tool 2020
- Farfetch launches style advisor with Karla Welch’s Wishi
- Burberry launches virtual replica of Tokyo flagship store
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- Figure 85: Burberry virtual store 2021
- Pandemic heightens role of virtual reality technology
- Chanel launches Lipscanner app
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- Figure 86: Chanel Lipscanner App 2021
- Gucci launches Gucci Sneaker Garage
- Burberry launches AR Pocket bag experience
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- Figure 87: Burberry AR pocket bag feature 2021
- In-store experiences
- Burberry blends physical and digital with first social retail store in China
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- Figure 88: Burberry’s ‘social store’ in China, 2020
- Swarovski opens first Crystal Studio in the UK
- Selfridges teams up with SoulCycle to open first Outside Studio
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- Figure 89: SoulCycle Studio with Selfridges 2021
- Anya Hindmarch reveals plans for new physical retail concept The Village
- Selfridges reveals permanent bike shop at Oxford Street flagship
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- Figure 90: Selfridges bike shop 2021
- Pop ups
- Selfridges reveals first kitchen pop-up
- Stella McCartney celebrating reopening with a series of pop-ups
- Burberry launching ‘Animal Kingdom’ pop-ups
- Rent the Runway launches Swap Stop traveling pop-up experience
Burberry
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- What we think
- Livestreamed Spring/Summer 2021 fashion show
- Burberry launches virtual replica of Tokyo flagship store
- Burberry blends physical and digital with first social retail store in China
- Burberry launches digital and in-store ‘Animal Kingdom’ pop-ups
- Burberry launches AR Pocket bag experience
- Burberry launches World of Olympia pop-up at Harrods
- Burberry launches fabric recycling scheme with British Fashion Council
- Burberry teams up with students from IBM to create prototype system for product traceability
- Company background
- Company performance
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- Figure 91: Burberry Group Plc: Group financial performance, 2016/17-2020/21
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- Figure 92: Burberry Group Plc: revenue by product division, 2016/17-2020/21
- Figure 93: Burberry Group Plc: Outlet data, 2016/17-2020/21
- E-commerce
Estée Lauder
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- What we think
- The Estée Lauder Companies increases share in DECIEM
- QVC expands Estée Lauder partnership with livestream video launch
- Estée Lauder terminates Rodin Olio Lusso brand
- Estée Lauder launches Uber delivery partnership
- Estée Lauder launches Snapchat AR makeup try-on
- Company background
- Company performance
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- Figure 94: Estée Lauder Companies: group financial performance, 2014/15-2020/21
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- Figure 95: Estée Lauder Companies: group financial performance, by region, 2015/16-2020/21
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- Figure 96: Estée Lauder Companies: group financial performance, by product category, 2015/16-2020/21
- Q1 2022
- E-commerce
Hermès
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- What we think
- Sustainable flagship
- Fungus handbag
- Hermès adds to lipstick collection
- Company background
- Company performance
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- Figure 97: Hermès: financial performance, 2016-20
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- Figure 98: Hermès: group sales, by region, 2016-20
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- Figure 99: Hermès: group sales by product category, 2016-20
- Q1 2021
- E-commerce
Kering
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- What we think
- Rental and resale
- A wave of pop-up stores to capture the imagination as lockdown restrictions ease
- Ultra-personalised beauty experience
- Maximising on the lifestyle potential of its brands
- Alternative sourcing and eco-friendly fabric innovation
- Company background
- Company performance
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- Figure 100: Kering: financial performance, 2016-20
- Figure 101: Kering Luxury: breakdown of revenue by region, 2016-20
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- Figure 102: Kering Luxury: directly-operated stores, 2019 and 2020
- E-commerce
L'Oréal Luxe
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- What we think
- L’Oréal Group brands launch sustainable and ethical innovations
- Diesel launches Antimicrobial Unisex Capsule Collection
- Urban Decay’s first vegan Naked palette
- Lancôme launches First Global Sustainability Programme
- L'Oréal launches make-up recycling across UK shops
- Giorgio Armani reveals new sustainable fragrance pillar
- Ralph Lauren launches Custom Polo Program…
- …while Giorgio Armani launches made-to-order service for womenswear
- Valentino launches virtual open house
- Valentino’s first makeup collection
- Company background
- Company performance
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- Figure 103: L’Oréal Luxe: financial performance,2016-20
- E-commerce
LVMH
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- What we think
- A broad geographical spread
- Tiffany deal increases presence in watches & jewellery category
- Off-White purchase brings new, more diverse audience
- Sustainability growing in importance
- What next?
- Company background
- Company performance
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- Figure 104: LVMH: group financial performance, 2016-20
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- Figure 105: LVMH: distribution of luxury revenues by region, 2016-20
- Figure 106: LVMH Group: distribution of luxury revenues by product category, 2016-20
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- Figure 107: LVMH: outlet data, 2019 and 2020
- Figure 108: LVMH: store numbers by Luxury division, 2018-20
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- Figure 109: LVMH: luxury goods ‘maisons’ by division, 2021
- E-commerce
- Tiffany
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- Figure 110: Tiffany: group financial performance, 2018-20
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- Figure 111: Tiffany: distribution of revenues by region, 2018-20
- Figure 112: Tiffany: outlet data, 2020
Prada
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- What we think
- First campaign for Galleria handbag
- Art in Prada Mode
- Prada launches organic denim for pre-autumn 2021
- Prada expands Re-Nylon range
- Prada brings customers behind the scenes
- Company background
- Company performance
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- Figure 113: Prada Group: financial performance, 2016-20
- Figure 114: Prada Group: net revenues breakdown, by channel, 2016-20
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- Figure 115: Prada Group: net retail revenues breakdown, by brand, 2016-20
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- Figure 116: Prada Group: net retail revenues breakdown, by region, 2016-20
- Figure 117: Prada Group: net retail revenues breakdown, by product line, 2016-20
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- Figure 118: Prada Group: directly-operated stores, 2016-20
- E-commerce
Ralph Lauren
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- What we think
- Working hard in the physical space to woo back shoppers
- Augmented reality experiences to keep brand ahead in the digital space
- Made-to-order service
- Targeting aspiring luxury sportswear shoppers
- New eco-friendlier fabric dyeing processing
- A new affordable and sustainable method to owning luxury fashion
- Company background
- Company performance
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- Figure 119: Ralph Lauren Corporation: group financial performance, 2016/17-2020/21
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- Figure 120: Ralph Lauren Corporation: global directly-operated stores and concessions, 2016/17-2020/21
- E-commerce
Richemont
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- What we think
- New fashion-forward strategy as competition intensifies in ‘hard’ luxury
- Virtual boutiques and enhanced mobile shopping experiences
- New Chinese marketplace venture with Alibaba and Farfetch
- ‘Digital passports’ to boost traceability of garments
- Company background
- Company performance
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- Figure 121: Richemont: group financial performance, 2016/17-2020/21
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- Figure 122: Richemont: revenues by region, 2016/17-2020/21
- Figure 123: Richemont: revenues by product, 2016/17-2020/21
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- Figure 124: Richemont: revenues by maison, 2016/17-2020/21
- E-commerce
Shiseido
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- What we think
- Shiseido sells mass-market personal care brands in $1.5 billion deal
- Shiseido opens virtual-technology led store in Ginza
- Shiseido to focus on holistic beauty
- Shiseido launches sustainable options
- Company background
- Company performance
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- Figure 125: Shiseido: group financial performance, 2016-20
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- Figure 126: Shiseido: group sales performance, by region, 2016-20
- Q1 2020
- E-commerce
Swatch Group
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- What we think
- Premium priced timepieces leading the recovery in Swiss watch exports
- New immersive travel retail shopping experience
- Stepping up direct-to-consumer sales with one-click social commerce
- Boosting brand awareness through celebrity partnerships
- Company background
- Company performance
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- Figure 127: Swatch Group: financial performance by brand, 2016-20
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- Figure 128: Swatch Group: net sales by region, 2016-20
- Figure 129: Swatch Group: watches and jewellery segment financial performance, 2016-20
- Ecommerce
Tapestry
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- What we think
- Expanded digital capabilities and services drive ecommerce sales
- Coach makes a big splash with affordable Jennifer Lopez collaboration
- Kate Spade strengthening commitment to responsible sourcing
- Company background
- Company performance
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- Figure 130: Tapestry Inc.: group financial performance, 2015/16-2019/20
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- Figure 131: Tapestry Inc.: net sales, by region, 2015/16-2019/20
- Figure 132: Tapestry Inc.: product sales breakdown, 205/26-2019/20
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- Figure 133: Tapestry Inc.: directly-operated stores, 2015/16-2019/20
- E-commerce
Tod's Group
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- What we think
- A potential takeover target for a bigger group, possibly LVMH
- Reaching out to influencers to broaden appeal among younger generations
- A more enriched and user-friendly digital experience
- Expanded customisation options
- Seasonal pop-up concept to target the wealthy while on holiday
- Company background
- Company performance
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- Figure 134: Tod's Group: group financial performance, 2016-20
- Figure 135: Tod’s Group: sales, by region, 2019 and 2020
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- Figure 136: Tod’s Group: sales by product type, 2019 and 2020
- Figure 137: Tod’s Group: sales, by brand, 2019-20
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- Figure 138: Tod’s Group: sales by distribution channel, 2019-20
- Ecommerce
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
- Data sources
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