Table of Contents
Executive Summary
-
- The market
-
- Figure 1: Luxury goods revenue, global and US, 2009-13
- Figure 2: US luxury revenue, by category, 2013
- Market drivers
- Leading companies
-
- Figure 3: Luxury sales by top luxury houses (in USD billions), FY2013
- Figure 4: Luxury sales by top luxury houses (in USD billions), FY2013
- The consumer
- Craftsmanship is the number one defining characteristic of luxury
-
- Figure 5: Top five defining attributes of luxury, by all and luxury goods buyers, September 2014
- Majority of luxury buyers only purchase discounted luxury
-
- Figure 6: Luxury purchasing habits, September 2014
- Accessible American brands popular among luxury consumers
-
- Figure 7: Premium brands owned and purchased in the last three years, September 2014
- Luxury consumers purchase across channels and across countries
-
- Figure 8: Where respondents bought luxury goods in the last 18 months, May 2014
- Luxury buyers over index in upscale activities
-
- Figure 9: Premium services/activities of the last 12 months, luxury goods buyers index to total, September 2014
- Consumers more likely to avoid visible trademarks than to enjoy owning them
-
- Figure 10: Attitudes toward logo visibility, by all and by luxury goods buyers, September 2014
- One third of luxury goods buyers say luxury makes them feel good, very few interested in knockoffs
-
- Figure 11: Attitudes toward quality, authenticity, and hedonistic thrill of buying luxury, September 2014
- What we think
Issues and Insights
-
- How can luxury companies leverage social media without losing the appearance of exclusivity?
- The issues
- The implications
- Should luxury brands operate e-commerce sites?
- The issues
- The implications
- Do luxury rental sites pose a threat to luxury companies?
- The issues
- The implications
Trend Application
-
- Trend: Fauxthenticity
- Trend: Make it Mine
- Trend: Let’s Make a Deal
Market Size
-
- Key points
- The market size
- US luxury revenue reaches nearly $36 billion, a 60% increase over 2009
-
- Figure 12: Luxury goods revenue, global and US, 2009-13
- US growth in luxury revenue outpaces all but Japan, China, Australia
-
- Figure 13: Top 10 countries in the luxury market, by revenue, 2009-13
-
- Figure 14: Top 10 countries in the luxury market, by revenue, 2013
- Fashion/leather is top category, perfume/cosmetics follows
-
- Figure 15: Luxury goods revenue, by category in selected luxury markets, 2013
-
- Figure 16: Luxury goods revenue share, by category in selected luxury markets, 2013
Market Drivers
-
- Key points
- International tourism
-
- Figure 17: International inbound tourism, 2000-13
-
- Figure 18: Overseas leisure visitors to the US, 2006-13
- US economic growth
-
- Figure 19: GDP change from previous period, Q1 2007-Q3 2014
-
- Figure 20: Consumer confidence and unemployment, by month*, January 2007-October 2014
- E-commerce
- Growing Asian and Hispanic populations
-
- Figure 21: Population, by race and Hispanic origin, 1970-2020
Leading Companies
-
- Key points
- Financial performance of leading companies
-
- Figure 22: Luxury sales by select companies, FY2012-FY2014*
- Company profiles
- Christian Dior
- LVMH Moët Hennessy – Louis Vuitton
- Richemont
- Kering
- PVH (Phillips-Van Heusen)
- Ralph Lauren
- Coach
- Other leading companies
Innovations and Innovators
-
- Overview
- Theme: Appeal to multicultural audiences
- Armani launches luxury chocolates for Ramadan
- Bloomingdale’s celebrates the Year of the Horse
- Theme: Launch relevant, but unexpected products
- Christian Louboutin launches nail polish that is applied to the underside of nails
- Louis Vuitton’s ‘Iconoclast’ partnership with Karl Lagerfeld offers monogrammed punching bag
- Theme: Let consumers customize their products
- Stuart Weitzman, Prada launch customizable shoe collections
- Burberry launches monogrammed blankets
- Theme: Can’t beat technology companies? Then join them.
- Ralph Lauren moves wearable technology from hardlines to softlines
- Diane Von Furstenberg launches line of eyewear for Google Glass
- TAG Heuer announces plans to launch smartwatch
- Theme: Create elite spaces for luxury consumers online
- Auctionata brings verified luxury goods to auction online
- Composer launches social networking site for affluent consumers
- James Edition serves as Craigslist for the wealthy
Marketing Strategies
-
- Overview
- Strategy: Highlighting history
- Case study: The late Coco Chanel stars in “Inside CHANEL” campaign
-
- Figure 23: Chanel, “Paris by Chanel – Inside CHANEL,” chapter 12, Sept. 17, 2014
- Figure 24: Chanel, “The Colors – Inside CHANEL,” chapter 11, May 23, 2014
- Case study: DKNY’s Donna Karan iconizes her Cashmere Mist fragrance
-
- Figure 25: Donna Karan, “Cashmere Mist: THE MAKING OF AN ICON Chapter 2 –The Scent,” July 15, 2014
- Strategy: Celebrity endorsement
- Case study: Dior brings back Charlize Theron for new J’adore campaign
-
- Figure 26: Christian Dior, J’adore, “The Future is Gold,” Sept. 2, 2014
- Case study: Nicholas Hoult stars in “British Intelligence” campaign for Jaguar
-
- Figure 27: Jaguar USA, “British Intel,” Oct. 6, 2014
- Strategy: Involve consumers
- Case study: Burberry uses customizable ad campaign to support launch of fragrance
-
- Figure 28: Burberry, “Introducing My Burberry – The New Fragrance for Women,” Sept. 1, 2014
- Case study: Saks Fifth Avenue launches #SaksStyle content hub
- Strategy: Create art instead of ads
- Case study: Giorgio Armani collaborates with world-class film schools
-
- Figure 29: Giorgio Armani, “Ella,” Sept. 9, 2014
- Strategy: Mobilizing marketing
- Case study: Hermès breaks the mold with Tie Break app
-
- Figure 30: Hermès, “Tie Break App – A random dose of Hermès,” Aug. 7, 2014
What Defines Luxury
-
- Key points
- Quality, legacy, labels, high prices are hallmarks of luxury
-
- Figure 31: How luxury purchases are defined, by all and by luxury goods buyers, September 2014
- Women care more about quality, visibility, and uniqueness
-
- Figure 32: How luxury purchases are defined, by gender, September 2014
- Regardless of income, luxury should be visible
-
- Figure 33: How luxury purchases are defined, by household income, September 2014
- Key luxury qualities consistent across age groups
-
- Figure 34: How luxury purchases are defined, by age, September 2014
Luxury Purchasing Habits and Shopping Behaviors
-
- Key points
- Majority of luxury buyers purchase luxury items at a discount
-
- Figure 35: Neiman Marcus, email advertisement, October 2014
-
- Figure 36: Luxury purchasing habits, September 2014
- Figure 37: Luxury purchasing habits of luxury goods buyers, September 2014
- Women more likely to be deal seekers
-
- Figure 38: Luxury purchasing habits, by gender, September 2014
- Luxury buyers are savvy shoppers regardless of income
-
- Figure 39: Luxury purchasing habits, by household income, September 2014
- Young affluents more willing to splurge
-
- Figure 40: Luxury purchasing habits, by age and household income, September 2014
Premium Brands – Ownership and Acquisition
-
- Key points
- Popular premium brands are accessible, established
- Consumers drawn to accessible luxury
- Consumers purchase established premium brands
-
- Figure 41: Premium brands owned and purchased in the last three years, September 2014
- More men than women have purchased premium brands in recent years
-
- Figure 42: Premium brands owned and purchased in the last three years, by gender, September 2014
- Consumers from $150K+ households more likely to own premium brands
-
- Figure 43: Premium brands ownership, by household income, August 2014
- High net worth women report greater incidences of premium brand ownership
-
- Figure 44: Premium brands purchased in the last three years, by all and high net worth women, September 2014
- Qualitative brand personification
- Introduction
-
- Figure 45: Commonly owned premium brands
- Brand personification
Luxury Goods Retailing
-
- Key points
- Plurality of luxury purchases made in department stores and online
-
- Figure 46: Where respondents bought luxury goods in the last 18 months, May 2014
- Figure 47: Retailers shopped at in the last three months, April 2013-June 2014
- Online shoppers tend to be younger, slightly less affluent
-
- Figure 48: Where they shop for luxury, by age and household income, May 2014
-
- Figure 49: Most popular locations where luxury branded items were bought, by age and household income, May 2014
- Male luxury buyers significantly more likely than women to buy premium brands online
-
- Figure 50: Most popular locations where luxury branded items were bought, by gender, May 2014
- Majority of recent luxury buyers purchased apparel, fashion accessories
-
- Figure 51: Luxury branded items bought in the past 18 months, by category, May 2014
-
- Figure 52: Luxury branded items bought in the past 18 months, May 2014
Participation in Upscale Activities
-
- Key points
- More than three quarters of luxury buyers participate in “upscale” activities
-
- Figure 53: Premium services/activities of the last 12 months, by all and luxury goods buyers, September 2014
- Luxury brand ownership goes hand in hand with upscale services
-
- Figure 54: Premium services/activities of the last 12 months, by count of luxury brands owned, September 2014
- Male and female luxury buyers both participate in upscale activities, but specific activities vary by gender
-
- Figure 55: Premium services/activities of the last 12 months, by gender, September 2014
- Involvement in luxury activities increases with income
-
- Figure 56: Premium services/activities of the last 12 months, by household income, September 2014
- Figure 57: Premium services/activities of the last 12 months, by age and household income, September 2014
Consumer Attitudes about Luxury
-
- Key points
- Attitudes toward luxury goods and spending
- For most consumers, participation in activities does not occur at the expense of luxury purchases
-
- Figure 58: Attitudes toward spending, by all and luxury goods buyers, September 2014
- Attitudes toward luxury goods and spending by gender, age, and household income
-
- Figure 59: Attitudes toward luxury purchases – Spending, by gender, age, and household income, September 2014
- Attitudes toward logo visibility
- About one in four avoid obvious designer logos
-
- Figure 60: Attitudes toward logo visibility, September 2014
- Attitudes toward logo visibility by gender, age, and household income
-
- Figure 61: Attitudes toward luxury purchases – Logo visibility, by gender, age, and household income, September 2014
- Attitudes toward exclusivity
- More than one in 10 do not think luxury and attainability can coincide
-
- Figure 62: Attitudes toward exclusivity, September 2014
- Attitudes toward exclusivity by gender, age, and household income
-
- Figure 63: Attitudes toward luxury purchases – Exclusivity, by gender, age, and household income, September 2014
- Attitudes toward quality, authenticity, and the hedonistic thrill of buying luxury
- Roughly one quarter of luxury buyers say luxury is better quality and makes them feel good; most are not interested in knockoffs
-
- Figure 64: Attitudes toward quality, authenticity, and hedonistic thrill of buying luxury, September 2014
- Qualitative findings: Knockoffs viewed as both fun and guilt inducing
- Attitudes about quality, authenticity, and the hedonistic thrill of buying luxury by gender, age, and household income
-
- Figure 65: Attitudes toward luxury purchases – Quality, authenticity, and hedonistic thrill of buying luxury, by gender, age, and household income, September 2014
Impact of Race and Hispanic Origin
-
- Key points
- The core defining traits of luxury are the same regardless of race, Hispanic origin
-
- Figure 66: How luxury purchases are defined, by race/Hispanic origin, September 2014
- “Other races,” including Asians, more likely than average to pay full price for luxury
-
- Figure 67: Luxury purchasing habits, by race/Hispanic origin, September 2014
- Asians, Hispanics most likely to own a premium brand
-
- Figure 68: Premium brands owned, by race/Hispanic origin, September 2014
- Nearly half of Blacks have not participated in an upscale activity
-
- Figure 69: Premium services/activities of the last 12 months, by race/Hispanic origin, September 2014
- Hispanics, Asians most likely to say that purchasing luxury makes them feel good
-
- Figure 70: Attitudes toward luxury purchases, by race/Hispanic origin, September 2014
Appendix – Other Useful Market Tables
-
- Market drivers
-
- Figure 71: International inbound tourism, 2000-13
- Figure 72: Overseas leisure visitors to the US, 2006-13
Appendix – Other Useful Consumer Tables
-
- What defines luxury
-
- Figure 73: How luxury purchases are defined, by attitudes toward luxury purchase – Spending, September 2014
-
- Figure 74: How luxury purchases are defined, by attitudes toward luxury purchase – Logo visibility, September 2014
-
- Figure 75: How luxury purchases are defined, by attitudes toward luxury purchase – Quality and authenticity, September 2014
-
- Figure 76: How luxury purchases are defined, by attitudes toward luxury purchase – Exclusivity, September 2014
- Luxury purchasing habits and shopping behaviors
-
- Figure 77: Luxury purchasing habits, September 2014
-
- Figure 78: Luxury purchasing habits, by age, September 2014
-
- Figure 79: Luxury purchasing habits, by race/Hispanic origin, September 2014
-
- Figure 80: Luxury purchasing habits, by attitudes toward luxury purchase, September 2014
- Premium brands: Ownership and acquisition – brands owned
-
- Figure 81: Luxury brands owned, September 2014
-
- Figure 82: Luxury brands owned by luxury goods buyers, by gender, September 2014
-
- Figure 83: Luxury brands ownership, by age, August 2014
-
- Figure 84: Luxury brands owned, by household income, September 2014
-
- Figure 85: Luxury brands owned, by race/Hispanic origin, September 2014
-
- Figure 86: Luxury brands owned, by age and household income, September 2014
-
- Figure 87: Luxury brands owned, by luxury purchasing habits, September 2014
-
- Figure 88: Luxury brands owned, by repertoire of luxury brands owned, September 2014
-
- Figure 89: Luxury brands owned, by luxury brands owned, part I, September 2014
-
- Figure 90: Luxury brands owned, by luxury brands owned, part II, September 2014
-
- Figure 91: Luxury brands owned, by luxury brands owned, part III, September 2014
-
- Figure 92: Luxury brands owned, by luxury brands owned, part IV, September 2014
-
- Figure 93: Luxury brands owned, by luxury brands owned, Part V, September 2014
-
- Figure 94: Last watch brand purchased, by race/Hispanic origin, April 2013-June 2014
-
- Figure 95: Last watch brand purchased, by household income, April 2013-June 2014
-
- Figure 96: Brand of nail polish/nail care products used by women, by age, April 2013-June 2014
-
- Figure 97: Brand of perfume, toilet water, or cologne used most often, by gender, April 2013-June 2014
-
- Figure 98: Brand of perfume, toilet water, or cologne used most often, by age, April 2013-June 2014
-
- Figure 99: Brand of perfume, toilet water, or cologne used most often, by household income, April 2013-June 2014
- Premium brands: Ownership and acquisition – brands purchased in last three years
-
- Figure 100: Luxury brands purchased in the last three years, September 2014
-
- Figure 101: Luxury brands purchased in the last three years, by age, September 2014
-
- Figure 102: Luxury brands purchased in the last three years, by household income, September 2014
-
- Figure 103: Luxury brands purchased in the last three years, by age and household income, September 2014
-
- Figure 104: Luxury brands purchased in the last three years, by spending, September 2014
-
- Figure 105: Luxury brands purchased in the last three years, by logo visibility, September 2014
-
- Figure 106: Luxury brands purchased in the last three years, by quality and authenticity, September 2014
-
- Figure 107: Luxury brands purchased in the last three years, by exclusivity, September 2014
- Luxury goods retailing
-
- Figure 108: Most popular locations where luxury branded items were bought in the last 18 months, by gender, May 2014
-
- Figure 109: Retailers purchased from online in past three months, by gender, April 2013-June 2014
- Participation in upscale activities
-
- Figure 110: Premium services/activities of the last 12 months, by gender, September 2014
-
- Figure 111: Premium services/activities of the last 12 months, by age, September 2014
-
- Figure 112: Premium services/activities of the last 12 months, by race/Hispanic origin, September 2014
-
- Figure 113: Premium services/activities of the last 12 months, by age and household income, September 2014
-
- Figure 114: Premium services/activities of the last 12 months, by spending, September 2014
-
- Figure 115: Premium services/activities of the last 12 months, by logo visibility, September 2014
-
- Figure 116: Premium services/activities of the last 12 months, by quality and authenticity, September 2014
-
- Figure 117: Premium services/activities of the last 12 months, by exclusivity, September 2014
- Attitudes toward luxury goods and spending
-
- Figure 118: Attitudes toward luxury purchases, September 2014
-
- Figure 119: Attitudes toward luxury purchase – Spending, by race/Hispanic origin, September 2014
-
- Figure 120: Attitudes toward luxury purchase – Spending, by demographics, September 2014
-
- Figure 121: Attitudes toward luxury purchase – Logo visibility, by race/Hispanic origin, September 2014
-
- Figure 122: Attitudes toward luxury purchase – Logo visibility, by demographics, September 2014
-
- Figure 123: Attitudes toward luxury purchase – Quality and authenticity, by race/Hispanic origin, September 2014
-
- Figure 124: Attitudes toward luxury purchase – Quality and authenticity, by demographics, September 2014
-
- Figure 125: Attitudes toward luxury purchase – Exclusivity, by race/Hispanic origin, September 2014
-
- Figure 126: Attitudes toward luxury purchase – Exclusivity, by demographics, September 2014
-
- Figure 127: Attitudes toward luxury purchase, by spending, September 2014
-
- Figure 128: Attitudes toward luxury purchase, by logo visibility, September 2014
-
- Figure 129: Attitudes toward luxury purchase, by quality and authenticity, September 2014
-
- Figure 130: Attitudes toward luxury purchase, by exclusivity, September 2014
-
- Figure 131: Attitudes about apparel (any agree), by gender, April 2013-June 2014
-
- Figure 132: Attitudes about apparel (any agree), by age, April 2013-June 2014
-
- Figure 133: Attitudes about apparel (any agree), by race and Hispanic origin, April 2013-June 2014
-
- Figure 134: Attitudes about apparel (any agree), by household income, April 2013-June 2014
-
- Figure 135: Attitudes about apparel (any agree), by race and age groups, April 2013-June 2014
-
- Figure 136: Attitudes about apparel (any agree), by Hispanic origin and age groups, April 2013-June 2014
-
- Figure 137: Attitudes about apparel (any agree), by region, April 2013-June 2014
-
- Figure 138: Agreement that “A designer label improves a person’s image,” by gender, age, and household income, April 2013-June 2014
-
- Figure 139: Attitudes toward designer quality, by gender, age, and household income, April 2013-June 2014
-
- Figure 140: Attitudes/opinions about money, quality, and status (any agree), by gender, April 2013-June 2014
-
- Figure 141: Attitudes/opinions about money, quality, and status (any agree), by age, April 2013-June 2014
-
- Figure 142: Attitudes/opinions about money, quality, and status (any agree), by race/Hispanic origin, April 2013-June 2014
-
- Figure 143: Attitudes/opinions about money, quality, and status (any agree), by household income, April 2013-June 2014
- Teens and luxury
-
- Figure 144: Retailers shopped at in past three months, by gender and by age, April 2013-June 2014
-
- Figure 145: Retailers shopped at in past three months, by gender by age, April 2013-June 2014
-
- Figure 146: Brand of nail polish/nail care products used by teen girls, by age, April 2013-June 2014
-
- Figure 147: Brand of perfume, toilet water, or cologne used most often, by gender and by age, April 2013-June 2014
-
- Figure 148: Brand of perfume, toilet water, or cologne used most often, by gender and age, April 2013-June 2014
Appendix – Trade Associations
Back to top