Table of Contents
Introduction
-
- Company coverage
- Terms and definitions
- Luxury goods – a definition
- Market size – Mintel definition
- Market size at retail selling prices
- Exchange rates
-
- Figure 1: US dollar to euro exchange rates, 2005-10
- Technical notes
- Financial definitions
Executive Summary
-
- The market
- Strong performance in 2010
- Possible faltering in later 2011
- Variable outlook
- Forecast
-
- Figure 2: Global luxury goods: Estimated market size at retail selling prices, 2007-13
- Market factors
- Potential problems
- Tipping point?
- HNWIs are key
- Market breakdown: where and what
- Asia to overtake Europe
- Prospects for the Americas
-
- Figure 3: Global luxury goods: Estimated market breakdown by region, 2009 (inner ring) and 2010 (outer ring)
- Bounce back for hard luxury
- Perfumes and cosmetics outpaced
- Soft luxury buoyant
-
- Figure 4: Global luxury goods: Estimated market breakdown by product category, 2009 (inner ring) and 2010 (outer ring)
- Companies, brands and innovation
- Market shares
- LVMH maintains a strong lead
- But Richemont a powerful number two
- Shiseido in third place
-
- Figure 5: Global luxury goods: Estimated market shares, 2010
- Market developments
- Focusing on boutiques
- Flagship openings
- Online investments
- What we think
Issues in the Market
-
- After China, where’s next?
- Who is today’s luxury consumer?
- What’s driving digital?
- What new opportunities exist in the post-recession era?
Broader Market Environment
-
- Key points
- An international market
- Discretionary purchases
- Recovery
- Western Europe
- US
- Japan
- China, India
- Russia
- Brazil
- Stock markets
-
- Figure 6: Major stock market performance to 5/7/2011
- Currencies
-
- Figure 7: Major exchange rate developments, 2002-11 (H1)
- Tourism
-
- Figure 8: International arrivals, 2000-10
- The growth in numbers of wealthy people
-
- Figure 9: Numbers of HNWIs, 2003-10
-
- Figure 10: World: High net worth individuals, 2006-10
- Figure 11: Growth in worldwide share of HNWIs, 2005-10
Global Luxury Goods Market
-
- Market size
-
- Figure 12: Global luxury goods: Estimated market size by major player, 2006-10
- Market size at retail selling price
- Market shares
-
- Figure 13: Global luxury goods: Estimated market shares of major players, 2008-10
- Market size by region
-
- Figure 14: Global luxury goods: Estimated market size by region, 2006-10
- Channels of distribution
- Market size by channel
- Wholesale key to some sectors
- Licencing – an opportunity to diversify
- Retail is where it’s at
Market Forecasts
-
- Uncertain global environment
- Economic growth will slow
- Luxury sales rebounded strongly in 2010
- 2011 off to a cracking start
- USA and Europe stronger than expected
- The shape of recovery
-
- Figure 15: Global luxury goods: Estimated market size at retail selling prices, 2007-13
- Key regions
- Europe
- Americas
- Japan
- Other Asia-Pacific
- Middle East
Fashion and Leather Goods
-
- Market size
- Soft luxury proving dynamic
-
- Figure 16: Global luxury goods: Estimated luxury fashion & leather goods market, 2006-10
- Market shares
-
- Figure 17: Global luxury fashion & leather goods market: Estimated market shares of leading brands, 2006 & 2010
- Key developments
- Men – a major opportunity
- Diffusion lines hold their own
- Niche brands becoming lifestyle brands
- The role of the designer
- Changing value of luxury
- Celebrities and influences
- Fashion looks and trends
Jewellery and Watches
-
- Market size
- Strong bounce back for hard luxury
-
- Figure 18: Global luxury goods: Estimated luxury jewellery and watches market, 2006-10
- Market shares
-
- Figure 19: Global luxury jewellery & watches market: Estimated market shares of leading brands, 2006 and 2010
- Key developments
- Continued rising prices
- Royal Wedding
- Value for money
- Increased in-house movement
- Demand from China
- Watch releases
Perfumes and Cosmetics
-
- Market size
- Losing share of the luxury market
-
- Figure 20: Global luxury goods: Estimated luxury perfumes & cosmetics market, 2006-10
- Market shares
-
- Figure 21: Global luxury cosmetics & perfumes market: Estimated market shares of leading brands, 2006 and 2010
- Key developments
- Market recovers
- M&A activity muted
- Internet gains interest
- Key trends
- Skin care
- Colour cosmetics
- Fragrances
- What’s next:
Regional and Country Analysis – Introduction
Brazil
-
- Background
- Demographics
- Economy
- Consumer spending and retail sales
- Luxury goods market
-
- Figure 22: Brazil: Number of high net worth individuals, 2006-10
- Key developments
- Surging up the league tables
- Consumer trends look favourable
- Middle classes are key
- Taxes remain a barrier
- Consumers pushed abroad
- Strong domestic competition
- Market activity
- Retail development
- Brand presence
-
- Figure 23: Brazil luxury goods market: Presence of selected luxury brands, Summer 2011
- SWOT
- Strengths
- Weaknesses
- Opportunities
- Threats
China
-
- Background
- One child policy could hamper economic growth
- China overtakes Japan in 2010
- And discretionary spending rises
- Worrying inflation trends
- Retail sales surge ahead
- Luxury goods market
- GDP per capita growing but still very low
- But the gap is less pronounced on retail sales per capita
- Fourth largest HNWI population in the world
- From billionaires…
- … to the middle classes
-
- Figure 24: China: Number of high net worth individuals, 2006-10
- Key developments
- Another stellar performance drives up investor confidence
- Banned billboards to control spending
- Or economic protectionism?
- Luxury import taxes cause much debate
- The gender divide closes
- And affords matchmaking opportunities too
- SWOT
- Strengths
- Weaknesses
- Opportunities
- Threats
Europe
-
- Background
- Scale
- Diversity
- Politics
- Luxury goods market
- High Net Worth individuals
-
- Figure 25: Europe: Number of high net worth individuals, 2005-10
- The East
- The West
- Trophies
- The recovery
- Online
- SWOT
- Strengths
- Weaknesses
- Opportunities
- Threats
India
-
- Background
- Demographics
- Economy
- Consumer spending and retail sales
- Luxury goods market
-
- Figure 26: India: Number of high net worth individuals, 2006-10
- Key developments
- A culture ripe for luxury
- Purchasing priorities
- Space concerns
- Problematic partnerships
- FDI rules have proved a bar – up to now
- Domestic competition in luxury
- Brand presence
-
- Figure 27: India luxury goods market: Presence of selected luxury brands, Summer 2011
- SWOT
- Strengths
- Weaknesses
- Opportunities
- Threats
Japan
-
- Background
- Surprise population rise
- Economic malaise
- Tragedy strikes
- Prolonged retail malaise
- Luxury goods market
-
- Figure 28: Japan: Number of high net worth individuals, 2007-10
- Key developments
- A large but mature market
- Changing habits
- Operating in a saturated market
- Looking to affluent neighbours
- SWOT
- Strengths
- Weaknesses
- Opportunities
- Threats
Middle East
-
- Background
- Lebanon posts above average growth
- Saudi Arabia needs more quality space
- GDP per capita
- The Arab Spring
- Luxury goods market
- Less than 0.5 million HNWIs
- But growing faster than any other region
- Kuwait and Bahrain leap ahead
-
- Figure 29: Middle east: Number of high net worth individuals, 2006-10
- A younger and more male-focused cohort
-
- Figure 30: Middle east and Global average: high net worth individuals by age, 2010
- Figure 31: Middle east and Global average: high net worth individuals by gender, 2010
- Key developments
- Long tradition of luxury
- Activity starts to step up
- Better infrastructure and more established wealth than other emerging markets
- Focused centres of activity
- Dubai shows signs of recovery
- International tourist and shopping destination
- Capitalising on the Chinese tourist
- Beirut in the spotlight too
- Joint ventures
- SWOT
- Strengths
- Weaknesses
- Opportunities
- Threats
Russia
-
- Background
- Recovery
- Elections coming up
- Falling population
- Growing affluent middle class
- Luxury goods market
- High net worth individuals
-
- Figure 32: Russia: Breakdown of population, by average monthly income per capita, 2004-09
- Figure 33: Russia: Number of high net worth individuals, 2005-10
- Market developments
- SWOT
- Strengths
- Weaknesses
- Opportunities
- Threats
USA
-
- Background
- Population on the rise
- The recession
- Protracted recovery
- Can we really?
- The final days of the world’s largest superpower?
- Luxury goods markets
-
- Figure 34: US: Number of high net worth individuals, 2006-10
- Key developments
- Influence on the wane?
- The recovery
- Luxury tourism potential…
- …could be being undermined
- SWOT
- Strengths
- Weaknesses
- Opportunities
- Threats
Armani
-
-
- Figure 35: Armani: Share of global luxury goods market, 2006-10
- Recent history
- Financial performance
-
- Figure 36: Armani Financial performance, 2006-10
-
- Figure 37: Armani: Sales by brand and by region, 2010
- Store portfolio
-
- Figure 38: Armani: Outlets, 2006-10
- Figure 39: Armani: Outlets by brand, 2008-10
- Brand offering
-
- Figure 40: Armani: Brands, 2011
- e-commerce
-
Bulgari SpA
-
-
- Figure 41: Bulgari: Share of global luxury goods market, 2006-10
- Strategic evaluation
- Recent history
- Financial performance
-
- Figure 42: Bulgari SpA: Financial performance, 2006-10
-
- Figure 43: Bulgari SpA: Sales growth rates by category, 2008-09, 2009-10, Q4 2010, Q1 2011
-
- Figure 44: Bulgari SpA: Contribution to revenue by category, 2006-10
- Figure 45: Swiss-watch certificates issued by the COSC, 2007-09
-
- Figure 46: Bulgari SpA: Net revenue growth for selected regions, 2008-Q1 2011
-
- Figure 47: Bulgari SpA: Net revenue by region, 2006-10
- Figure 48: Bulgari SpA: Growth rates in Chinese net revenues, 2009, 2010 and Q1 2011
-
- Figure 49: Bulgari SpA: Contribution to revenue by region, 2006-10
- Distribution
-
- Figure 50: Bulgari SpA: Outlet numbers, 2006-10
- Brand offering
- e-commerce
-
Burberry
-
-
- Figure 51: Burberry: Share of global luxury goods market, 2006-10
- Strategic evaluation
- Outlook
- Recent history
- Financial performance
-
- Figure 52: Burberry Group: Financial performance, 2006/07-2010/11
-
- Figure 53: Burberry Group: Revenue by channel, 2005/06, 2009/10 and 2010/11
-
- Figure 54: Burberry Group: Revenue by regional destination, 2006/07-2010/11
-
- Figure 55: Burberry Group: FY retail/wholesale revenue by region and % year-on-year growth on underlying basis, 2010/11
- Distribution
-
- Figure 56: Burberry retail division: Directly-operated outlet data, 2006/07-2010/11
-
- Figure 57: Burberry Group: Directly-operated and franchise outlets, by region, 2010/11
- Brand offering
- Market positioning/target audience
- Product offer
-
- Figure 58: Burberry Group: Retail/wholesale revenue by product category, 2009/10 and 2010/11
- Figure 59: Burberry Group: Product categories retail/wholesale revenue and % year-on-year growth on underlying basis, FY 2011
-
- Figure 60: Burberry Group: Product pyramid
- Advertising
- Ethical/Environmental issues
- e-commerce
-
Christian Dior Couture
-
-
- Figure 61: Christian Dior couture: Share of global luxury goods market, 2006-10
- Strategic evaluation
- Recent history
- Ownership
- Financial performance
-
- Figure 62: Christian Dior Couture: Financial performance, 2006-10
- Sales by business sector
-
- Figure 63: Christian Dior Couture: Total revenue, by business sector, 2006-10
- Retail revenues by region
-
- Figure 64: Christian Dior Couture: Retail revenue by geographic region, 2006-10
- Distribution
-
- Figure 65: Christian Dior Couture: Outlet numbers, 2006-10
- Figure 66: Christian Dior Couture: Store coverage by geographic region, 2010
- Brand offering
- Market positioning and values
- Product offer
- Marketing
- e-commerce
-
Estée Lauder Companies
-
-
- Figure 67: Estée Lauder: Share of global luxury goods market, 2006-10
- Recent history
- Strategic evaluation
- Financial performance
-
- Figure 68: Estée Lauder: Group financial performance, by region, 2005/06-2009/10
- By region
-
- Figure 69: Estée Lauder: Group sales by region, 2009/10
- By product area
-
- Figure 70: Estée Lauder: Group financial performance, by product area, 2005/06-2009/10
- Figure 71: Estée Lauder: Group sales by product category, 2009/10
- Distribution
-
- Figure 72: Estée Lauder, Net sales by distribution channel, 2004/05 and 2009/10
- Brand offering
- e-commerce
-
- Figure 73: Estée Lauder websites, 2011
-
Gucci Group
-
-
- Figure 74: Gucci Group: share of global luxury goods market, 2006-2010
- Strategic evaluation
- Recent history
- Financial performance
-
- Figure 75: Gucci Group: Financial data, 2006-10
-
- Figure 76: Gucci Group: Share of group sales, by region, 2006 and 2010
-
- Figure 77: Gucci Group: Relative sales importance, by brand division, 2006 and 2010
-
- Figure 78: Gucci Group: Gucci division –turnover by product category and region, 2006-10
-
- Figure 79: Gucci Group: Bottega Veneta division –turnover by product and region, 2006-10
-
- Figure 80: Gucci Group: Yves Saint Laurent division –turnover by product and region, 2006-10
-
- Figure 81: Gucci Group: Other brands division –turnover by product and region, 2006-10
-
- Figure 82: Gucci group: Interim sales and profit, 2010 and 2011
- Distribution
-
- Figure 83: Gucci Group: Directly-operated stores, by brand, 2006-10
- Figure 84: Gucci Group: Directly-operated stores by brand and region, 2009 and 2010
- Brand offering
- Market positioning and brand essence
-
- Figure 85: Gucci Group: Brand essence and positioning, 2011
- Product offer
-
- Figure 86: Gucci Group: Breakdown of revenue, by major category, 2010
-
- Figure 87: Gucci Group: Main product categories, by brand, 2011
- Advertising and marketing
- e-commerce
-
- Figure 88: Gucci Group: Group websites, 2011
-
Hermès International
-
-
- Figure 89: Hermès: Share of global luxury goods market, 2006-10
- Strategic evaluation
- Recent history
- Financial performance
-
- Figure 90: Hermès: Financial performance, 2006-10
- Sales by region
-
- Figure 91: Hermès: Share of group sales by region, 2006 and 2010
- Sales by product category
-
- Figure 92: Hermès: Sales by major product category, 2006-10
- Distribution
-
- Figure 93: Hermès: Retail outlets, 2006-10
- Figure 94: Hermès: Stores by region, 2007-10
- Brand offering
- Market positioning
- Product offer
-
- Figure 95: Hermès: Product breakdown, 2010
- Marketing
- e-commerce
-
L’Oréal (Luxury Division)
-
-
- Figure 96: L’Oréal luxury division: Share of global luxury goods market, 2006-10
- Strategic evaluation
- Recent history
- Financial performance
-
- Figure 97: L’Oréal: Sales by division, 2009-10
-
- Figure 98: L’Oréal Luxury division: Financial performance, 2006-10
- Sales by region and product area
-
- Figure 99: L’Oréal Luxury division: Sales by region and product area, 2009 and 2010
-
- Figure 100: L’Oréal Luxury division: Sales breakdown by geographic region, 2005 and 2010
- Figure 101: L’Oréal Luxury division: Sales breakdown by product area, 2005 and 2010
- First half 2011 results
- Distribution
- Brand offering
- Market positioning
- Product offer and major lines
-
- Figure 102: L’Oréal: Luxury brands, product offer and major lines, 2011
- e-commerce
-
- Figure 103: L’Oréal luxury brands: E-commerce offer, July 2011
-
LVMH Holding
-
-
- Figure 104: LVMH: Share of global luxury goods market, 2006-10
- Strategic evaluation
- Recent history
- Financial performance
-
- Figure 105: LVMH: Group financial performance, 2006-10
-
- Figure 106: LVMH: Relative sales importance, by division, 2006 and 2010
-
- Figure 107: LVMH: Relative profit importance, by division, 2006 and 2010
- Sales by region: Rest of Asia drives growth
-
- Figure 108: LVMH: Group sales by region, 2010
- Regional sales by division
-
- Figure 109: LVMH: Fashion & leather goods division sales breakdown, by region, 2001, 2009 and 2010
-
- Figure 110: LVMH: Perfumes and cosmetics division sales, by region, 2001, 2009 and 2010
- Figure 111: LVMH: Watches and jewellery division sales, by region, 2001 and 2009
-
- Figure 112: LVMH: Sales growth by division and region, 2009-10
-
- Figure 113: LVMH: Performance by luxury brand, 2010
-
- Figure 114: LVMH: Sales by luxury division, interim period 2010 and 2011
- Distribution
-
- Figure 115: LVMH: Group outlet numbers, by region, 2006-10
-
- Figure 116: LVMH: Outlet data by luxury brand, 2010
- Brand offering
- Market positioning and brand essence
-
- Figure 117: LVMH: Brand positioning/essence, 2010/11
- Product offer
-
- Figure 118: LVMH: Main product categories by brand, 2010/11
- Innovation
- Marketing
- e-commerce
-
Polo Ralph Lauren Corp
-
-
- Figure 119: Polo Ralph Lauren: Share of global luxury goods market, 2006-10
- Recent history
- Financial performance
-
- Figure 120: Polo Ralph Lauren: Group Financial performance, 2006/07-2010/11
-
- Figure 121: Polo Ralph Lauren: Revenue contributions by segment, 2006/07-2010/11
-
- Figure 122: Polo Ralph Lauren: Turnover by region, 2006/07-10/11
-
- Figure 123: Polo Ralph Lauren: Total group turnover by region, 2008/09-2010/11
- Note: No continuous data prior to 2008/09 as Asia was not reported as a segment.
-
- Figure 124: Comparable store sales by fascia, 2009/10-2010/11
- Distribution
-
- Figure 125: Polo Ralph Lauren: Company-owned outlet numbers, 2008-11
-
- Figure 126: Polo Ralph Lauren: Retail outlets supplied, 2010-11
- Figure 127: Polo Ralph Lauren: % breakdown of outlet numbers supplied, 2010-11
-
- Figure 128: Polo Ralph Lauren: Owned retail outlets, by region, 2010-11
- Brand offering
-
- Figure 129: Polo Ralph Lauren: Brands and positioning, 2011
- Figure 130: Polo Ralph Lauren: Advertising expenditure, 2008/09-2010/11
- e-commerce
-
- Figure 131: Polo Ralph Lauren: Unique visitor and customer numbers, 2009/10-2010/11
-
Prada
-
-
- Figure 132: Prada Holding NV: Group share of global luxury market, 2006-10
- Strategic evaluation
- Recent history
- Financial performance
-
- Figure 133: Prada Group: Financial data, 2006/07-2010/11
-
- Figure 134: Prada Group: Sales by region, 2009/10 and 2010/11
- Distribution
- Brand offering
- Product offer
-
- Figure 135: Prada Group and major brands: Sales by major product category, 2010/11
- Figure 136: Prada Group: Sales growth, by major product category, 2009/10 and 2010/11
- e-commerce and home shopping
-
Richemont
-
-
- Figure 137: Richemont Group: Share of global luxury market, 2006-10
- Strategic evaluation
- Recent history
- Financial performance
-
- Figure 138: Richemont Group: Financial performance, 2006/07-2010/11
-
- Figure 139: Richemont Group: Sales performance, by region, 2006/07-2010/11
-
- Figure 140: Richemont Group: Contribution to total sales by region, 2006/07-2010/11
-
- Figure 141: Richemont Group: Financial performance by business segment, 2006/07-2010/11
-
- Figure 142: Richemont group: Sales by business segment, 2006/07-2010/11
-
- Figure 143: Richemont Group: Sales by product line, 2006/07-2010/11
-
- Figure 144: Richemont Group: Sales growth rates, by product category, 2009/10 and 2010/11
- Figure 145: Richemont Group: Turnover by product category, 2006/07-2010/11
-
- Figure 146: Richemont Group: Performance by brand, 2009/10-2010/11
- Distribution
-
- Figure 147: Richemont Group: Number of outlets, 2006/07-2010/11
- Figure 148: Richemont Group: Number of outlets, by brand, 2006/07-2010/11
- Distribution developments by brand
-
- Figure 149: Richemont Group: Distribution developments by brand 2009/10 and 2010/11
- Brand offering
-
- Figure 150: Richemont group: Brand positioning
- Figure 151: Richemont Group: Product developments, 2009/10 & 2010/11
- Advertising and marketing
- e-commerce
-
- Figure 152: Richemont Group: Brand websites, 2011
-
Shiseido
-
-
- Figure 153: Shiseido: Share of global luxury goods market, 2006-10
- Recent history
- Strategic evaluation
- Financial performance
-
- Figure 154: Shiseido: Financial performance, 2006/07-2010/11
- Figure 155: Shiseido: Sales by region, 2010/11
-
- Figure 156: Shiseido: Financial performance, by region, 2006/07-2010/11
- Distribution
- Brand offering
- e-commerce
-
Swatch
-
-
- Figure 157: Swatch Group (Luxury): Estimated share of global luxury goods market, 2006-10
- Recent history
- Financial performance
-
- Figure 158: Swatch Group: Financial data, 2006-H1 2011
-
- Figure 159: Swiss-watch certificates issued by the COSC, 2007-09
-
- Figure 160: Swatch Group: Estimated contribution to watch & jewellery sales by brand/segment, 2010
-
- Figure 161: Swatch Group: Turnover by region, 2006-10
- Figure 162: Swatch Group: Total group turnover, by region, 2006-10
- Distribution
-
- Figure 163: Swatch Group: Retail fascia, 2010
- Brand offering
-
- Figure 164: Swatch Group: Watch brands by segment, 2010
- e-commerce
-
- Figure 165: Swatch Group: Brand websites, 2011
-
Tiffany & Co
-
-
- Figure 166: Tiffany & Co: Share of global luxury goods market, 2006-10
- Strategic evaluation
- Recent history
- Financial performance
-
- Figure 167: Tiffany & Co: Financial performance, 2006/07-2010/11
-
- Figure 168: Tiffany & Co: Turnover by region, 2006/07-2010/11
- Distribution
-
- Figure 169: Tiffany & Co: Outlet data, 2006/07-2010/11
- Brand offering
- Market positioning/brand values
- Product offer
- Brands
- Price
- Advertising
- Home shopping and e-commerce
-
Valentino Fashion Group
-
-
- Figure 170: Valentino: Share of global luxury goods market, 2006-10
- Recent history
- Financial performance
-
- Figure 171: Valentino Fashion Group: Financial performance, 2006/07-2010/11
- Distribution
-
- Figure 172: Valentino: Boutiques, 2010
- Figure 173: Valentino Fashion Group: Outlets, 2009
- Brand offering
-
- Figure 174: Valentino: Principal brands, 2010
-
- Figure 175: Hugo Boss: Principal brands, 2010
- e-commerce
-
Appendix – Broader Market Environment
-
- Population
-
- Figure 176: Selected luxury goods markets: Total population, 2006-10
- Figure 177: Selected luxury goods markets: Population breakdown, by age group, 2010
- GDP
-
- Figure 178: Selected luxury goods markets: GDP (in current prices), 2001-10
- Figure 179: Selected luxury goods markets: GDP growth rates (in constant prices), 2001-10
- Consumer prices
-
- Figure 180: Selected luxury goods markets: Consumer prices, 2006-10
- Retail sales
-
- Figure 181: Selected luxury goods markets: Total retail sales, 2006-10
- High Net Worth individuals
-
- Figure 182: Selected luxury goods markets: HNWI numbers, 2006-10
- Figure 183: Selected luxury goods markets: HNWIs as a proportion of the total population, 2006-10
- Exchange rates
-
- Figure 184: Selected luxury goods markets: $ to currencies of markets in this report, 2006-10
- Figure 185: Selected luxury goods markets: € to currencies of markets in this report, 2006-10
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