International Luxury Retailing Market Report 2023
£ 2,195 (Excl.Tax)
Description
“The luxury sector is in a key position to benefit from growing environmental awareness and consumers adopting more conscientious shopping behaviours, such as buying fewer but better quality items and investment pieces. Amid a raft of proposed legislation on sustainability and supply chain transparency in Europe, luxury companies can benefit from taking early action and prioritising investment in transparency and circularity.”
– Tamara Sender Ceron, Associate Director – Fashion Retail
Key issues covered in this report:
- The impact of rising inflation on the luxury goods market
- The total value of the luxury goods market, the value by product segments and by regions
- Where consumers buy luxury goods and which channels they use
- Shopping behaviours when buying luxury goods by country
- Interest in future innovations when shopping for luxury items
Table of Contents
-
Overview
-
- Key issues covered in this Report
- Products covered in this Report
- Report scope
- Mintel market sizes
- Defining luxury goods
- Product breakdown
- Geographical breakdown
- Company profiles
- Financial definitions
-
-
Executive Summary
-
- The five-year outlook for luxury goods retailing
- Figure 1: Category outlook, 2023-28
- The market
- Demand for luxury goods normalises after explosion in demand
- Figure 2: Global luxury market: market size, reported and total retail sales and forecasts (excluding VAT), 2018-28
- Watches/jewellery category regains share as investment pieces
- Figure 3: Global luxury market: percentage analysis of sales by product category, 2022
- APAC is the largest luxury market, but Europe is growing
- Figure 4: Global luxury market: percentage analysis of sales by region, 2022
- Companies and brands
- LVMH extends its lead
- Figure 5: Leading luxury goods groups’ shares of all luxury goods sales, 2022
- Tangible sustainable efforts from luxury brands
- Luxury brands continue to strengthen online offer
- The consumer
- Consumer demand for luxury goods driven by young consumers
- Figure 6: Consumers who have bought luxury goods in the last 18 months, 2023
- Beauty most commonly purchased category
- Figure 7: Types of luxury goods bought in the last 18 months, 2023
- In-store shopping boosted
- Figure 8: Where luxury goods were bought in the last 18 months, 2023
- Consumers purchase luxury products to treat themselves
- Figure 9: Luxury goods shopping behaviours, have done in the last 18 months, 2023
- Consumers look for value in price but also customisation, guarantees and exclusivity
- Figure 10: Future interests when shopping for luxury goods, 2023
- Digital authenticity important to Chinee luxury shoppers
- Figure 11: China: future interests when shopping for luxury goods, 2023
-
-
Issues & Insights
- How can luxury brands appeal to aspirational shoppers amid tougher economic times?
- Appealing to digitally minded younger consumers
- Tapping into the treat factor
- Benefiting from more sustainable shopping behaviours
- How can luxury brands appeal to aspirational shoppers amid tougher economic times?
-
Market Size and Forecast
- Mintel’s market size methodology
- The impact of the switch to owned retail outlets
- Mintel’s market size and forecast
-
- Figure 12: Global luxury market: market size, reported and total retail sales and forecasts (excluding VAT), 2008-28
- Mintel’s market size methodology
-
Product Segmentation
- Mintel’s segmentation methodology
- Market size breakdown
- Figure 13: Global luxury market: percentage analysis of sales by product category, 2022
- Figure 14: Global luxury market: sales by product, 2012-22
-
- Figure 15: Global luxury market: percentage analysis of sales by product, 2012-22
- Fashion and leather goods
- Figure 16: Global luxury market: fashion and leather goods sales, 2017-22
- Perfumes and cosmetics
- Figure 17: Global luxury market: perfumes and cosmetics sales, 2017-22
- Watches and jewellery
- Figure 18: Global luxury market: jewellery and watches sales, 2017-22
- Mintel’s segmentation methodology
-
Regional Segmentation
- Mintel’s segmentation methodology
- Market size breakdown
- Figure 19: Global luxury market: percentage analysis of sales by region, 2022
- Figure 20: Global luxury market: sales by region, 2012-22
-
- Figure 21: Global luxury market: percentage analysis of sales by region, 2012-22
- Asia Pacific
- Americas
- Europe
- Mintel’s segmentation methodology
-
Market Drivers
- Economic background
-
- Figure 22: The global economy: forecast GDP percentage growth rates, constant prices US$, 2021-28
- Inflation and the impact of the Ukraine conflict
- The who, where and why of the luxury goods consumer
- Who?
-
- Figure 23: HNWIs by level of wealth, 2022
- Figure 24: Share of wealth of HNWIs, 2022
-
- Figure 25: World HNWI Population, 2016-22
- Figure 26: World HNWI Financial Wealth, 2016-22
-
- Figure 27: Top 10 largest HNWI populations, 2021-22
- Where they shop
- Figure 28: Where luxury goods were bought in the last 18 months, 2023
- Buying outside of the home market
-
- Figure 29: International inbound tourism, 2019-22
- Economic background
-
Who Buys Luxury Goods
- Consumer demand for luxury goods reaches record highs
-
- Figure 30: Consumers who have bought luxury goods in the last 18 months, 2023
- Men are keen luxury shoppers
- Figure 31: Consumers who have bought luxury goods in the last 18 months, by gender, 2023
- Young shoppers key consumer group for luxury
- Figure 32: Consumers who have bought luxury goods in the last 18 months, by age, 2023
- Higher income households continue to drive growth
- Figure 33: European consumers who have bought luxury goods in the last 18 months, by monthly household income,2023
-
- Figure 34: UK consumers who have bought luxury goods in the last 18 months, by monthly household income, 2023
-
- Figure 35: US consumers who have bought luxury goods in the last 18 months, by monthly household income,2023
-
- Figure 36: China: consumers who have bought luxury goods in the last 18 months, by monthly household income and age, 2023
- Consumer demand for luxury goods reaches record highs
-
What They Buy
- Beauty is the most commonly purchased luxury category
- Figure 37: Types of luxury goods bought in the last 18 months, 2023
-
- Figure 38: Breakdown of types of luxury goods bought in the last 18 months, 2023
- Luxury beauty and fashion accessories appeal mostly to women
- Figure 39: Consumers who have bought luxury beauty items in the past 18 months, by gender, 2023
-
- Figure 40: Consumers who have bought luxury fashion accessory items in the past 18 months, by gender, 2023
- Men drive luxury clothing/footwear and watches & jewellery
- Figure 41: Consumers who have bought luxury clothing items in the past 18 months, by gender, 2023
- Figure 42: Consumers who have bought luxury watches and jewellery items in the past 18 months, by gender, 2023
- Younger generations are big buyers across categories
- Beauty is the most commonly purchased luxury category
-
Where They Shop
- In-store in home country is the most popular channel
- Figure 43: Where luxury goods were bought in the last 18 months, 2023
- In-store shopping: store experience where it counts
-
- Figure 44: Consumers who bought luxury goods in-store in home country in the last 18 months, 2020-23
- In-store abroad rises across many markets
- Figure 45: Consumers who bought luxury goods in-store abroad in the last 18 months, 2020-23
- Online shopping in China reaches new heights
- Figure 46: Consumers who bought luxury good online in the last 18 months, 2020-23
- In-store in home country is the most popular channel
-
Important Factors When Buying Luxury Goods
- Consumers purchase luxury products to treat themselves
- Figure 47: Luxury goods shopping behaviours, have done in the last 18 months, 2023
- Circular economy gains traction
- Rental fits well with luxury sector
- Opportunities in recycling
- Consumers purchase luxury products to treat themselves
-
Future interests when shopping for luxury goods
- How luxury brands can maintain appeal in harder economic times
- Customisation presents good opportunities
- Figure 48: Future interests when shopping for luxury goods, 2023
- Digital authenticity certificates come to the fore
- Quiet luxury drives purchasing
- Certificate of authenticity is important to Chinese luxury buyers
-
- Figure 49: China: future interests when shopping for luxury goods, 2023
- How luxury brands can maintain appeal in harder economic times
-
Company Metrics
- French-headquartered conglomerate LVMH is the world’s largest luxury company
- Figure 50: Leading luxury companies, by net revenues, 2020-22
- Revenue growth rates
- Figure 51: Leading luxury companies, % CAGR in revenues, 2017-22
- Product revenue mix
- Figure 52: Leading luxury companies, revenue by product group, 2022
-
- Figure 53: Leading luxury companies, percentage point change in product mix by product group revenue, 2017-22
- Sales across all regions up year-on-year, albeit at a slower rate than 2021
-
- Figure 54: Leading luxury companies, total revenue by region, 2018-22
- Store numbers
-
- Figure 55: Selected leading luxury retailers, store numbers, 2022
- Brand ownership
- Figure 56: Brand ownership, by leading luxury companies, 2023
- French-headquartered conglomerate LVMH is the world’s largest luxury company
-
Market Shares
- LVMH gaining market share and extending its lead
-
- Figure 57: Leading luxury goods groups’ shares of all luxury goods sales, 2022
- Figure 58: Leading luxury goods groups, share of all luxury goods sales, 2020-22
- Product market shares
- Figure 59: Leading luxury goods groups’ shares of all luxury fashion/leather goods sales, 2022
-
- Figure 60: Leading luxury goods groups’ shares of all luxury perfumes/cosmetics goods sales, 2022
-
- Figure 61: Leading luxury goods groups, share of all luxury watches/jewellery goods sales, 2022
- LVMH gaining market share and extending its lead
-
Launch activity and innovation
- Tangible sustainable efforts from luxury brands
- Versace launches eco-conscious capsule collection for children
- Farfetch launches online hub to help brands improve sustainability performance
- Koio launches 99% biodegradable trainer for spring summer 2023
- Figure 62: Koio’s 99% biodegradable trainer, 2023
- Prada enters the fine jewellery market with its 100% recycled gold collection
- Hublot and Nespresso collaborate to launch watch made from coffee pods
- Figure 63: Hublot and Nespresso watch, 2023
- LVMH collaborates with research labs to develop ‘lab-grown’ fur
- Luxury brands form partnerships to launch resell and rental initiatives
- Covett and Front Row launch a Circular Luxury Club
- Jimmy Choo offers resale through The RealReal partnership
- Rolex launches certified pre-owned programme
- Tommy Hilfiger launches on My Wardrobe HQ
- Balenciaga partners with Reflaunt enabling customers to sell pre-loved items
- Help consumers make informed decisions
- Hugo Boss makes online purchasing easier with the launch of its virtual dressing room
- Chloé launches digital ID for its Spring/Summer 2023 collection
- Store launches and pop-ups
- Prada Beauty launches its first Lunar New Year-themed pop-up
- Gucci Vault ventures into offline pop-ups for Palace Gucci collection
- eBay launches pop-up Luxury Exchange store in New York
- Brands and diversity
- L’Oréal unveils plans to launch a lipstick applicator for users with limited hand and arm mobility
- Estée Lauder Companies launches app for visually impaired makeup users
- Digital launches
- Farfetch offers cryptocurrency payment option to customers
- Consumers can discover Bulgari’s new fragrance through immersive experience
- Decentraland hosts first ever Metaverse Fashion Week
- Hugo explores the Metaverse with launch of NFT collection
- Phillip Plein launches ‘crypto concept’ within London flagship store
- Shiseido launches NFT based community programme offering exclusive rewards
- Collaborations
- Burberry x Minecraft
- Balmain partners with Barbie to launch capsule collection
- Nike and Jacquemus collaborate to launch Spring/Summer collection
- Gucci collaborates with Harry Styles to launch Menswear fashion collection
- Barbour collaborates for the first time to launch the ‘Barbour x Chloé’ collection
- H&M x Mugler
- Enhancing the luxury brand experience through personalisation
- Prada Group partners with Adobe to elevate customer experience
- Shiseido launches digital makeup advisor
- Tangible sustainable efforts from luxury brands
-
Online and Social Media
- The market
- The outlook
- Luxury brands continue to strengthen online offer
- Moda Operandi expands into beauty
- Yoox adds home decor to its marketplace
- Mainstream retailers also grow their online luxury offerings
- Amazon launches more ‘Luxury Stores at Amazon’
- Debenhams boasts new online division for premium brands
- Sustainability comes to the fore for online luxury retail
- Yoox Net-a-Porter launches a pre-owned category
- Farfetch unveils its 3rd annual ‘Conscious Luxury Trends’ report
- Flannels launches rental platform
- Valentino to quantify the carbon footprint of its website in new tie-up
- New collaborations, new opportunities
- YOOX X Aries celebrate gender inclusivity
- Mytheresa and Dolce & Gabbana team up for an exclusive collection
- 8 by YOOX partners with Coco Capitán
- Consolidation in the market as acquisitions gain pace
- Frasers Group buys Amara.com
- Goat confirms acquisition of resale site Grailed
- Online players experiment with brick-and-mortar
- Mytheresa revamps its Munich store
- Social media and the metaverse
- Printemps reveals first metaverse store
- NFTs present good prospects to tap into
- Figure 64: Gucci provides exclusivity for NFT holders
-
- Figure 65: Ralph Lauren lets consumers express their identity in the video game Fortnite
- Tiffany & Co launches a hybrid piece of jewellery and NFT
- Figure 66: Tiffany & Co’s NFT campaign
- The market
-
Burberry
-
- What we think
- Reopens global flagship store with a focus on customer experience
- Augmented reality-enhanced online shopping bringing products to life
- Limited editions can forge stronger connections with luxury consumers
- Tapping into consumers’ hankering for the comfort of halcyon days
- Expanded aftercare services to keep products in use for longer
- Company background
- Company performance
- Figure 67: Burberry Group Plc: group financial performance, 2018/19-2022/23
-
- Figure 68: Burberry Group Plc: revenue by product division, 2018/19-2022/23
- Figure 69: Burberry Group Plc: outlet data, 2018/19-2022/23
- Ecommerce
-
-
Estée Lauder
-
- What we think
- New opportunities with Tom Ford acquisition and Balmain licence
- Lower environmental impact store initiative
- Pioneering AI-powered makeup app for the visually impaired
- Longer-lasting lipstick
- Opens biggest travel retail store in the Haikou duty-free complex
- Company background
- Company performance
- Figure 70: Estée Lauder Companies: group financial performance, 2017/18-2021/22
-
- Figure 71: Estée Lauder Companies: group financial performance, 2017/18-2021/22
-
- Figure 72: Estée Lauder Companies: group financial performance, 2017/18-2021/22
- Ecommerce
-
-
Hermès
-
- What we think
- Betting big on beauty
- No plans to expand into the second-hand luxury market, yet
- Fitness pop-up offering goes global
- Company background
- Company performance
- Figure 73: Hermès: financial performance, 2018-22
-
- Figure 74: Hermès: group sales, by region, 2018-22
-
- Figure 75: Hermès: group sales by product category, 2018-22
- Ecommerce
-
-
Kering
-
- What we think
- Gucci targeting wealthier consumers with ultra-high-end store concept
- New home, pet and fine jewellery collections
- Ramping up its business in the beauty space
- Tapping into the experience-focused mindset
- Making strides to reduce its environmental impact
- Revamped proposition to soften the blow of increased prices
- Company background
- Company performance
- Figure 76: Kering: financial performance, 2018-22
-
- Figure 77: Kering: breakdown of revenue by region, 2018-22
-
- Figure 78: Kering: Directly-operated stores, 2021 and 2022
- Ecommerce
-
-
Ralph Lauren
-
- What we think
- New luxury focused store combining digital innovation and experiences
- Expanding into ‘everyday essentials’
- Phygital apparel and accessories
- A more sustainable wardrobe
- Company background
- Company performance
- Figure 79: Ralph Lauren Corporation: Group financial performance, 2018/19-2022/23
-
- Figure 80: Ralph Lauren Corporation: Global directly-operated stores and concessions, 2018/19-2022/23
- Ecommerce
-
-
L’Oréal Luxe
-
- What we think
- Aesop acquisition strengthens luxury brand portfolio
- Pushing the boundaries of luxury beauty shopping
- Physical presence sits well with UK consumers’ prestige beauty buying
- New luxury K-beauty brand
- Embracing inclusivity with personalised beauty products
- Some influencers are more influential than others
- Company background
- Company performance
- Figure 81: L’Oréal Luxe: financial performance, 2018-22
- Ecommerce
-
-
LVMH
-
- What we think
- Reopening of one of the largest single-brand luxury stores in the world
- Frictionless payment stores
- New e-boutique offering one-of-a-kind items and experiences
- Bespoke jewellery
- Regenerative solutions to reduce waste
- Olympic Games deal an opportunity to boost awareness of sportswear
- Company background
- Company performance
- Figure 82: LVMH: Group financial performance, 2018-22
- Figure 83: LVMH: Total luxury goods revenue, by region, 2018-22
-
- Figure 84: Total luxury goods revenue, by product category and region, 2018-22
- Figure 85: LVMH: outlet data, 2021 and 2022
-
- Figure 86: LVMH: Luxury goods ‘maisons’ by division, 2022
- Ecommerce
-
-
Prada
-
- What we think
- Expanding production capacity and craftsmanship expertise
- 100% recycled gold jewellery collection
- Generating buzz with foodservice experiences
- High-performance sport couture collaboration with Adidas
- Launches premium makeup and skincare line
- Prada looking to take personalisation to a new level
- Company background
- Company performance
- Figure 87: Prada Group: financial performance, 2018-22
-
- Figure 88: Prada Group: net sales, by brand, 2018-22
-
- Figure 89: Prada Group: net sales, by region, 2018-22
-
- Figure 90: Prada Group: net sales by product line, 2018-22
-
- Figure 91: Prada Group: directly-operated stores, 2018-22
- Ecommerce
-
-
Richemont
-
- What we think
- Empowering customers to make informed sustainable purchase choices
- Luxury watches multi-brand concept debuts in cruise retail
- Making it more difficult to resell and buy stolen watches and jewellery
- Access to an even wider selection of pre-owned luxury watches
- Company background
- Company performance
- Figure 92: Richemont: group financial performance, 2018/19-2022/23
- Figure 93: Richemont: revenues by region, 2018/19-2022/23
-
- Figure 94: Richemont: revenues by product, 2018/19-2022/23
-
- Figure 95: Richemont: revenues by maison, 2018/19-2022/23
- Ecommerce
-
-
Shiseido
-
- What we think
- ‘Hands-on’ Shiseido Beauty Planet experience
- Pop-ups re-engage with consumers in-person
- Amps up duty free business as pandemic travel restrictions ease
- NFT-based customer loyalty scheme
- Strengthens brand portfolio in growing UK and French beauty market
- Revolutionary new multifunctional sunscreen product
- Reducing its environmental impact and building a circular economy
- Company background
- Company performance
- Figure 96: Shiseido: group financial performance, 2018-22
-
- Figure 97: Shiseido: group sales performance, by region, 2018-22
- Ecommerce
-
-
Swatch Group
-
- What we think
- A taste of luxury at an affordable price during the cost-of-living crisis
- Rising direct-to-consumer, through boutiques and ecommerce
- Company background
- Company performance
- Figure 98: Swatch Group: financial performance by brand, 2018-22
-
- Figure 99: Swatch Group: net sales by region, 2018-22
- Figure 100: Swatch Group: watches and jewellery segment financial performance, 2018-22
- Ecommerce
-
-
Tapestry
-
- What we think
- Capri Holdings acquisition will more than double annual revenue
- Reaching out to younger, digital-first luxury shoppers
- New brick-and-mortar concepts
- Reaping the benefits of expanded lifestyles offering
- Products that are better for the planet
- Pre-loved goods a cost-effective way to access the luxury market for price-sensitive consumers
- Company background
- Company performance
- Figure 101: Tapestry Inc.: group financial performance, 2017/18-2021/22
-
- Figure 102: Tapestry Inc.: net sales, by region, 2017/18-2021/22
- Figure 103: Tapestry Inc.: product sales breakdown, 2017/18-2021/22
-
- Figure 104: Tapestry Inc.: directly-operated stores, 2017/18-2021/22
- Ecommerce
-
-
Tod’s Group
-
- What we think
- Tie-ups to increase brand awareness among a wider audience
- New exclusive customisation service
- Century-old brand trying to resonate more with younger people
- Discounts will resonate with cautious consumers
- Company background
- Company performance
- Figure 105: Tod’s Group: group financial performance, 2018-22
-
- Figure 106: Tod’s Group: sales, by region, 2021 and 2022
-
- Figure 107: Tod’s Group: sales by product type, 2021 and 2022
- Figure 108: Tod’s Group: sales, by brand, 2021-22
-
- Figure 109: Tod’s group: sales by distribution channel, 2021-22
- Ecommerce
-
About the report
This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.
Market
Mintel provides a range of market information, frequently through the category level, including market size and forecasting, complete with market drivers that illustrate the forces that shape a category or market.
Consumer
Mintel’s proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.
Brand/Company
Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.
Data
Market reports provide appendices of data to support the research and insight produced. Our databooks* are easily manipulated and downloadable to support your research needs and covers factors from consumer attitudes to market forecasts.
*databooks not available with UK B2B Industry reports.
Below is a sample report, understand what you are buying.
Please Note: This is a sample report. All of the figures, graphs, and tables have been redacted. Our reports are available to download in PDF and PPT formats.
Trusted by companies. Big and small.
