Table of Contents
Market in Brief
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- Economic and luxury goods outlook
- Luxury market prospects
- Who’s innovating
- The competitive landscape
Report Scope
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- Company coverage
- Terms and definitions
- Luxury goods – a definition
- Market size – Mintel definition
- Market size at retail selling prices
- Exchange rates
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- Figure 1: US dollar to euro exchange rates, 2005-09
- Regions
- Product categories
- Technical notes
- Financial definitions
- Abbreviations
Broader Market Environment
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- Key points
- Past the worst?
- Europe struggling
- Better news in the Far East
- Russia growing, Japan in decline
- South America growing too
- Stock markets – some recovery after the sharp falls
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- Figure 2: Major stock market developments, 2008-10
- Problem of banking bonuses
- Strong euro, weak dollar – mixed news for luxury groups
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- Figure 3: Major exchange rate developments, 2002-10 (July)
- Luxury and the tourist
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- Figure 4: Outbound tourism, China, Japan, India, 2004-09
- Underlying growth in numbers of wealthy people
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- Figure 5: World: High Net Worth Individuals, 2005-09
Global Luxury Goods Market
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- Market size
- Mintel model
- Economic climate slows growth
- Winners and losers
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- Figure 6: Global luxury goods: Estimated market size by major player, 2005-09
- Market size at retail selling price
- Market shares
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- Figure 7: Global luxury goods: Estimated market shares of major players, 2005, 2007 and 2009
- Market size by region
- Europe still the largest region
- China drives Asia-Pacific
- Americas hit by heavy destocking in the US
- UAE key to the ‘other’ region
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- Figure 8: Global luxury goods: Estimated market size by region, 2005-09
- Market size by channel
Market Forecasts and Outlook
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- Forecasts
- A period of uncertainty
- Sales retreat in 2009
- Rebound accelerates in early 2010 but will soften in the back half
- The shape of recovery
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- Figure 9: Global luxury goods: Estimated market size at retail selling prices, 2006-12
- Key regions
- Europe
- Americas
- Non-Japan Asia-Pacific
- Japan
- What’s next?
- Latest fashion trends favour luxury
- Anti-bling, anti-extravagance
- ‘Quieter’ goods - responding to consumer sentiment
- But is their universal resonance?
- Customised design
- Differentiation
- Leveraging local craftsmanship
- New segments
- Youth unemployment
- Men only
- Corporate activity
- E-commerce potential
- Coy over the detail
- Cross channel experience will improve
- New initiatives
- Reaching out globally
- Mobilising the smart phone
Channels of Distribution
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- Introduction
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- Figure 10: Channels of distribution: Strengths and weaknesses by store-based channel
- Directly-operated stores
- Outperforming through the downturn
- Creative development
- Benefits seen to outweigh the risks
- Franchises – quick route into newly emerging markets
- Concessions
- Licensing
- Online – poised to take off?
- Pure players lead the way
- High barriers to entry or just excuses?
- Luxury houses respond belatedly to consumer needs
- Gucci ahead of its multi-brand peers
- But could this be about to change?
- Exclusive experience
Fashion and Leather Goods
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- Market size
- Gaining market share
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- Figure 11: Global luxury goods: Estimated fashion and leather goods market, 2005-09
- Leading players
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- Figure 12: Global luxury cosmetics and perfumes market: Estimated market shares of leading brands, 2005, 2007 and 2009
- Fashion/clothing
- Key developments
- Richemont
- Gucci Group (PPR)
- Christian Dior/LVMH
- Burberry
- Key trends
- What’s next?
- 2010/11: Seismic shift in womenswear
- Menswear
- Leather goods and accessories
- Key developments
- Christian Dior
- LVMH
- Gucci Group
- Richemont
- Burberry
- Hermès
- Key trends 2009
- What’s next?
Perfumes and Cosmetics
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- Market size
- Losing market share
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- Figure 13: Global luxury goods: estimated Perfumes and cosmetics market, 2005-09
- Leading players
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- Figure 14: Global luxury cosmetics and perfumes market: Estimated market shares of leading brands, 2005, 2007 and 2009
- Skincare
- Key developments
- Key trends
- What’s Next: Anti-ageing at a price
- Fragrance
- Key developments
- Key trends
- What’s next
- Colour cosmetics
- Key developments
- Key trends
- What’s next?
Jewellery and Watches
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- Market size
- Losing market share
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- Figure 15: Global luxury goods: estimated jewellery and watches market, 2005-09
- Leading players
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- Figure 16: Global luxury jewellery and watches market: Estimated market shares of leading brands, 2005, 2007 and 2009
- Key developments
- Rising prices
- Brands becoming more vertical
- Change in movement supply
- Innovation over fashion
- His and her watches
- Ethical issues
- Watch collaborations
- More single brand boutiques
- 2009 Jewellery Trends
- Leading players’ innovations
- Richemont
- Tiffany
- Christian Dior/LVMH
- Hermès
- Gucci Group
- What’s next?
Regional and Country Analysis - Introduction
Brazil
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- Background
- Luxury goods market
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- Figure 17: Brazil: Number of high net worth individuals, 2006-09
- Key developments
- São Paulo starts to become saturated
- Progress stalls through the global recession
- Rio and Brasilia next up
- Reasons to be cheerful
- But protectionist taxes also impede development
- Teaming up with local players
- Brand presence
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- Figure 18: Brazil luxury goods market: Presence of selected luxury brands, Summer 2010
- SWOT
- Strengths
- Weaknesses
- Opportunities
- Threats
China
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- Background
- Luxury goods market
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- Figure 19: China: Number of high net worth individuals, 2006-09
- Key developments
- Brand presence
- SWOT
- Strengths
- Weaknesses
- Opportunities
- Threats
Europe
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- Background
- High Net Worth Individuals
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- Figure 20: Europe: Number of high net worth individuals, 2005-09
- Luxury goods market
- Key developments
- West meets East
- Problems after the downturn
- Private ownership
- SWOT
- Strengths
- Weaknesses
- Opportunities
- Threats
India
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- Background
- Luxury goods market
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- Figure 21: India: Number of high net worth individuals, 2006-09
- Key developments
- Still in its infancy – but longer term prospects look good
- Investors have put India on hold
- Lack of quality space arrests development too
- Cultural challenges too
- Shopping overseas
- Brand presence
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- Figure 22: India luxury goods market: Presence of select luxury brands, Summer 2010
- SWOT
- Strengths
- Weaknesses
- Opportunities
- Threats
Japan
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- Background
- Luxury goods market
- Key developments
- Luxury out, thrifty in
- Parasites; good for the sector, bad for society
- Rise of the mass-market brands
- A helping hand from a large neighbour
- SWOT
- Strengths
- Weaknesses
- Opportunities
- Threats
Russia
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- Background
- High Net Worth Individuals
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- Figure 23: Russia: Breakdown of population by average monthly income per capita, 2004-08
- Figure 24: Russia: Number of high net worth individuals, 2005-09
- Luxury goods market
- Key developments
- SWOT
- Strengths
- Weaknesses
- Opportunities
- Threats
USA
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- Background
- Luxury goods markets
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- Figure 25: US: Number of high net worth individuals, 2005-09
- The US and the rest of the world
- First in, first out
- Online
- Pent up demand
- SWOT
- Strengths
- Weaknesses
- Opportunities
- Threats
Armani
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- Figure 26: Armani: Share of global luxury goods market, 2005-09
- Recent history
- Financial performance
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- Figure 27: Armani Financial performance, 2005-09
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- Figure 28: Armani: Sales by region and sales, by brand, 2008
- Figure 29: Armani: Sales growth by region and product, 2007-08
- Store portfolio
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- Figure 30: Armani: Outlets, 2005-09
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- Figure 31: Armani: Outlets by brand, 2008 and 2009
- Brand offering
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- Figure 32: Armani: Brands, 2010
- e-commerce
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Bulgari
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- Figure 33: Bulgari: Share of global luxury goods market, 2005-09
- Strategic evaluation
- 2009 was characterised by strategic restructuring
- Future strategy builds on past strengths
- Restructure of brand stores
- Plan to double accessories business
- Recent history
- Financial performance
- Five year record
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- Figure 34: Bulgari SpA: Financial performance, 2005-09
- 2009 results
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- Figure 35: Bulgari SpA: Operating income and operating margin, 2005-09
- Revenues by product category
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- Figure 36: Bulgari SpA: Net revenue by category, 2005 and 2009
- Revenues by region
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- Figure 37: Bulgari SpA: Net revenue by region, 2005-09
- Interim results 2010
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- Figure 38: Bulgari SpA: Revenue by product category, interim period, 2010
- Distribution
- Retail operations
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- Figure 39: Bulgari SpA: Outlet numbers 2005-09
- Brand offering
- Uber-luxury positioning
- Expanding product offer
- Marketing
- e-commerce
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Burberry
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- Figure 40: Burberry: Share of global luxury goods market, 2005-09
- Strategic evaluation
- Taking control in China
- Clear aims
- Desirability outweighs tougher market conditions
- Corporate culture
- Retail-led model
- Vulnerability?
- Recent history
- Financial performance
- Five-year record
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- Figure 41: Burberry Group: Financial performance, 2005/06-2009/10
- 2009/10 results
- Q1 2010/11
- Revenues by channel
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- Figure 42: Burberry Group: Revenue by channel, 2005/06 and 2009/10
- Revenues by region
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- Figure 43: Burberry Group: Revenue by regional destination, 2005/06-2009/10
- Distribution
- Directly-operated retail network
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- Figure 44: Burberry retail division: directly-operated outlet data, 2005/06-2009/10
- Retail and franchise outlets by region
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- Figure 45: Burberry Group: Directly-operated and franchise outlets by region, 2009/10
- Brand offering
- Market positioning/target audience
- Product offer
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- Figure 46: Burberry Group: retail/wholesale revenue by product category, 2008/09 and 2009/10
- Product pyramid and brands
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- Figure 47: Burberry Group: Product pyramid
- Advertising
- e-commerce
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- Figure 48: Burberry Group: Websites
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Christian Dior Couture
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- Figure 49: Christian Dior couture: Share of global luxury goods market, 2005-10
- Strategic evaluation
- Recent history
- Ownership
- Financial performance
- 2009 results
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- Figure 50: Christian Dior Couture: Financial performance, 2005-09
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- Figure 51: Christian Dior Couture: Total revenue, by business sector, 2005-09
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- Figure 52: Christian Dior Couture: Retail revenue, by geographic region, 2005-10
- Distribution
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- Figure 53: Christian Dior Couture: Outlet numbers, 2005-09
- Figure 54: Christian Dior Couture: Store coverage by geographic region, 2009
- Brand offering
- Market positioning and values
- Product offer
- Marketing
- e-commerce
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Estée Lauder Companies
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- Figure 55: Estée Lauder: Share of global luxury goods market, 2005-09
- Recent history
- Strategic evaluation
- Financial performance
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- Figure 56: Estée Lauder: Group financial performance, by region, 2005/06-2009/10
- By region
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- Figure 57: Estée Lauder: Group sales, by region, 2009/10
- By product area
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- Figure 58: Estée Lauder: Group financial performance by product area, 2005/06-2009/10
- Figure 59: Estée Lauder: Group sales by product category, 2009/10
- Distribution
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- Figure 60: Estée Lauder, net sales by distribution channel, 2004/05 and 2008/09
- Brand offering
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- Figure 61: Estee Lauder, brand portfolio, 2010
- e-commerce
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- Figure 62: Estée lauder websites, 2010
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Gucci Group
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- Figure 63: Gucci Group: share of global luxury goods market, 2005-09
- Strategic evaluation
- Holding its nerve through the downturn
- Too ‘Gucci-centric’?
- Commitment to other brands?
- Stepping up investment in physical stores…
- … and online boutiques
- Recent history
- Financial performance
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- Figure 64: Gucci Group: Financial data, 2005-09
- Performance by region – China drives growth in emerging markets
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- Figure 65: Gucci group: Share of group sales by region, 2006 and 2009
- Performance by brand – still heavily dependent on Gucci profits
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- Figure 66: Gucci group: Relative sales importance by brand division, 2005 and 2009
- Gucci – 2009 highlights
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- Figure 67: Gucci group: Gucci division - turnover by product category and region, 2005-09
- Bottega Veneta – 2009 highlights
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- Figure 68: Gucci group: Bottega Veneta division - turnover by product and region, 2005-09
- Yves Saint Laurent – 2009 highlights
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- Figure 69: Gucci group: Yves Saint Laurent division - turnover by product and region, 2005-09
- Other brands – 2009 highlights
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- Figure 70: Gucci group: Other brands division - turnover by product and region, 2005-09
- Group interims 2010 – building on the late 2009 rebound
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- Figure 71: Gucci group: Interim sales and profit, 2009 and 2010
- Store distribution
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- Figure 72: Gucci Group: Directly-operated stores by brand, 2005-09
- Figure 73: Gucci Group: Directly-operated stores by brand and region, 2008 and 2009
- Brand offering
- Market positioning and brand essence
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- Figure 74: Gucci Group: Brand essence and positioning, 2010
- Product offer – stretching the brands
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- Figure 75: Gucci group: main product categories by brand, 2010
- Advertising and marketing
- e-commerce
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- Figure 76: Gucci Group: Group websites, 2010
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Hermès International
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- Figure 77: Hermès: Share of global luxury goods market, 2005-09
- Strategic evaluation
- Recent history
- Financial performance
- 2009 highlights
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- Figure 78: Hermès: Financial performance, 2005-09
- Sales by region
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- Figure 79: Hermès: Share of group sales by region, 2005 and 2009
- Sales by product category
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- Figure 80: Hermès: Sales by major product category, 2005-09
- H1 2010 sales
- Distribution
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- Figure 81: Hermès: Stores by region, June 2008 and January 2010
- Brand offering
- Market positioning
- Product offer
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- Figure 82: Hermès: Product breakdown, 2009
- Marketing
- e-commerce
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L’Oréal (Luxury Division)
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- Figure 83: L’Oréal luxury division: Share of global luxury goods market, 2005-09
- Strategic evaluation
- Recent history
- YSL Beauté acquisition
- Financial performance
- Group results
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- Figure 84: L’Oréal: Sales by division, 2009
- Luxury division – a good track record
- But under pressure in 2009
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- Figure 85: L’Oréal Luxury division: Financial performance, 2005-09
- Sales by region and product area
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- Figure 86: L’Oréal Luxury division: Sales by region and product area, 2008 and 2009
- Figure 87: L’Oréal Luxury division: Sales breakdown, by geographic region, 2005 and 2009
- Figure 88: L’Oréal Luxury division: Sales breakdown, by product area, 2005 and 2009
- First half 2010 results
- Distribution
- Brand offering
- Market positioning
- Product offer and major lines
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- Figure 89: L’Oréal: Luxury brands, product offer and major lines
- e-commerce
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- Figure 90: L’Oréal luxury brands: e-commerce offer
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LVMH Holding
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- Figure 91: LVMH: Share of global luxury goods market, 2005-09
- Strategic evaluation
- Adapting in the downturn
- 2010 rebound
- Staying true to its values
- Driving the business for the longer term
- Stack’s may pave the way to further e-commerce investment
- Recent history
- Group financial data
- 2009 highlights
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- Figure 92: LVMH: Group financial performance, 2005-09
- Figure 93: LVMH: Relative sales importance, by division, 2005 and 2009
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- Figure 94: LVMH: Relative profit importance by division, 2005 and 2009
- Rest of Asia and Other markets drive revenue growth
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- Figure 95: LVMH: Group sales by region, 2009
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- Figure 96: LVMH: Fashion & leather goods division’s sales breakdown, by region, 2001 and 2009
- Figure 97: LVMH: Perfumes and cosmetics division sales, by region, 2001 and 2009
- Figure 98: LVMH: Watches and jewellery division sales, by region, 2001 and 2009
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- Figure 99: LVMH: Sales growth by division and region, 2008-09
- Star brands underpin performance
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- Figure 100: LVMH: Performance by luxury brand, 2009
- 2010 interims – building on the late 2009 rebound
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- Figure 101: LVMH: Sales by luxury division, interim period, 2009 and 2010
- Distribution
- Store development accelerates in most regions
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- Figure 102: LVMH: Group outlet numbers, by region, 2005-09
- Store developments by luxury brand
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- Figure 103: LVMH: Outlet data by luxury brand, 2009
- Brand offering
- Market positioning and brand essence
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- Figure 104: LVMH: Brand positioning/essence, 2009/10
- Product offer
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- Figure 105: LVMH: Main products categories by brand, 2009/10
- Innovation
- Marketing
- e-commerce
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Prada
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- Figure 106: Prada Holding NV: Group share of global luxury market, 2005-09
- Strategic evaluation
- Strength in its brands
- Debt to impact on expansion
- IPO or takeover?
- Recent history
- Financial performance
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- Figure 107: Prada Holding NV: Financial data, 2006/07-2009/10
- Asia-Pacific gains share of sales
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- Figure 108: Prada Holding NV: Estimated sales by region, 2007/08 and 2009/10
- Store portfolio
- Store format
- Brand offering
- Prada
- Miu Miu
- Luna Rossa
- Church’s Shoes
- Product offer
- Operational issues
- e-commerce and home shopping
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Polo Ralph Lauren
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- Figure 109: Polo Ralph Lauren: Share of global luxury goods market, 2005-09
- Recent history
- Financial performance
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- Figure 110: Polo Ralph Lauren: Group Financial performance, 2005/6-2009/10
- 2009/10 highlights
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- Figure 111: Polo Ralph Lauren: Turnover, by region, 2009/10
- First quarter 2010/11 highlights
- Store portfolio
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- Figure 112: Polo Ralph Lauren: Outlet numbers, 2008-10
- Brand offering
- Product offer
- Brands
- Marketing
- Wholesale distribution
- e-commerce
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Richemont
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- Figure 113: Richemont Group: Group share of global luxury market, 2005-09
- Strategic evaluation
- A robust, diversified and innovative portfolio
- Tapping into the right markets
- Taking more control
- Buying into e-commerce knowledge and skills
- Recent history
- Financial performance
- 2009/10 a challenging year
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- Figure 114: Richemont Group: Financial performance, 2005/06-2009/10
- Performance by geographic region
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- Figure 115: Richemont Group: Sales performance by region, 2005/06-2009/10
- Figure 116: Richemont group: Sales by region, 2006/07 and 2009/10
- Performance by business segment
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- Figure 117: Richemont Group: Financial performance by business segment, 2005/06-2009/10
- Figure 118: Richemont group: Sales by business segment, 2009/10
- Performance by product type
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- Figure 119: Richemont Group: Sales by product line, 2005/06-2009/10
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- Figure 120: Richemont Group: sales mix by product line, 2005/06 and 2009/10
- Performance by brand
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- Figure 121: Richemont Group: performance by brand, 2009/10
- Store portfolio/distribution
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- Figure 122: Richemont Group: Number of outlets, 2005/06-2009/10
- Distribution developments by brand
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- Figure 123: Richemont Group: Distribution developments by brand, 2009/10
- Tapping into the aspirational Chinese market
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- Figure 124: Richemont Group: Number of outlets in Greater China, 2009/10
- Brand offering
- Market positioning and brand essence
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- Figure 125: Richemont group: Brand positioning/essence
- Product offer
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- Figure 126: Richemont Group: Product offer, 2009/10
- Advertising and marketing
- e-commerce and home shopping
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- Figure 127: Richemont Group: Brand websites, 2009/10
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Shiseido
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- Figure 128: Shiseido: Share of global luxury goods market, 2005-09
- Recent history
- Financial performance
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- Figure 129: Shiseido: Financial performance, 2005/06-2009/10
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- Figure 130: Shiseido: Sales by region, 2009/10
- Figure 131: Shiseido: Financial performance, by geographic segment, 2005/06-2009/10
- Distribution
- Japan
- Overseas
- Brand offering
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- Figure 132: Shiseido, main product lines, 2010
- e-commerce
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Swatch
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- Recent history
- Financial performance
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- Figure 133: Swatch Group: Financial performance, 2005-09
- Figure 134: Swatch group: Net sales by division, 2009
- Store portfolio
- Brand offering
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- Figure 135: Swatch Group: Watch brands and retail interests, 2009
Tiffany & Co
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- Figure 136: Tiffany & Co: Share of global luxury goods market, 2005-09
- Strategic evaluation
- Geographical rebalancing
- Greater format flexibility
- Online a major growth area
- Diversification still eludes Tiffany
- Recent history
- Financial data
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- Figure 137: Tiffany & Co: Financial data, 2005/06-2009/10
- Q1 2010/11 highlights
- Turnover by region
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- Figure 138: Tiffany & Co: retail turnover by region, 2005/06-2009/10
- Distribution
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- Figure 139: Tiffany & Co: Outlet data, 2005/06-2009/10
- 2010/11 planned openings
- Brand offering
- Market positioning/brand values
- Product offer
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- Figure 140: Tiffany & Co: Sales mix, by category, 2009/10
- Brands
- Price
- Advertising
- e-commerce
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Valentino Fashion Group
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- Figure 141: Valentino: Share of global luxury goods market, 2005-09
- Recent history
- Financial performance
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- Figure 142: Valentino Fashion Group: Financial performance, 2004, 2006-09
- Store portfolio
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- Figure 143: Valentino: Boutiques, 2010
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- Figure 144: Valentino Fashion Group: Outlets 2009
- Brand offer
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- Figure 145: Valentino: Principal brands, 2010
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- Figure 146: Hugo Boss: Principal brands, 2010
- e-commerce
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