Table of Contents
Overview
-
- What you need to know
- Products covered in this report
- Report scope
- Mintel market sizes
- Defining luxury goods
- Geographical breakdown
- Technical notes
- Financial definitions
- Exchange rates
-
- Figure 1: US Dollar to Euro annual average exchange rates, 2010-15
Executive Summary
-
- The market
- Market size and forecast
-
- Figure 2: Luxury goods market size and forecast (excl. VAT), 2011-21
- A regional view
-
- Figure 3: Regional share of the luxury goods market, 2007-15
- Figure 4: Top 10 countries in the luxury market, by sales, 2014-15
- Segmentation by product
-
- Figure 5: Luxury goods market split by product category, % share, 2011 and 2015
- Companies and brands
- Market shares
-
- Figure 6: Leading luxury companies: % share of all luxury sales, 2014 and 2015
- The consumer
- Who buys luxury goods
-
- Figure 7: Those who had bought luxury goods in the last 18 months, by country, May/June 2016 and April/May 2015
- Where they buy
-
- Figure 8: Where they bought luxury goods, by country, purchases made in-store in home country, May/June 2016
-
- Figure 9: Where they bought luxury goods, by country, purchases made in-store abroad, May/June 2016
- Luxury online
-
- Figure 10: Percentage of luxury goods shoppers buying luxury goods online in the last 18 months, by type of retailer website, May/June 2016
- Interest in luxury products and services
-
- Figure 11: Interest in luxury products and services, May/June 2016
- Attitudes towards luxury goods
-
- Figure 12: Attitudes towards luxury products, May/June 2016
- What we think
Issues and Insights
-
- What is driving growth in the luxury market?
- The facts
- The implications
- The downward pressure on pricing in luxury
- The facts
- The implications
- Strengthening the high-end positioning through luxury store experiences
- The facts
- The implications
The Luxury Market – What You Need to Know
-
- Steady growth
- Mintel’s market size
- High Net Worth Individuals
- Americans are low spenders
- Fashion and leather the largest sector
Market Size and Forecast
-
- Uncertainty
- Retail vs wholesale
- Outlook
-
- Figure 13: Luxury goods market size and forecast (Excl VAT), 2011-21
Market Drivers
-
- What are luxury goods?
- How important is quality?
- Who buys luxury goods, when and where?
- Luxury goods prices
- Wealthy individuals
-
- Figure 14: Numbers and share of wealth of HNWIs, 2015
- Growth in numbers
-
- Figure 15: Number of HNWIs, 2003-15
- Figure 16: Numbers of HNWIs, 2007-15
-
- Figure 17: Wealth of HNWIs, 2011-15
- Figure 18: Average wealth of HNWIs, 2003-15
- Economic background
-
- Figure 19: GDP growth in US dollars at current values, 2011-16
-
- Figure 20: Leading international currency exchange rates, 2002-16
- Stock markets
-
- Figure 21: Leading stock markets year-on-year growth, 2010-15
- Tourism
-
- Figure 22: International inbound tourism, 2000-15
Luxury Market – A Regional View
-
- Regional analysis
- Market size by region
-
- Figure 23: Luxury goods markets, 2011-15
- Figure 24: Regional share of the luxury goods market, 2007-15
- Country market sizes
- HNWIs and spending by region
-
- Figure 25: Sales of luxury goods per HNWI by region, 2011-15
- HNWIs and spending by country
-
- Figure 26: Top 10 countries in the luxury market, by sales, 2011-15
- Figure 27: Country shares of the global luxury market, 2011-15
- Americas
-
- Figure 28: The Americas: Leading luxury goods markets, 2011-15
- Figure 29: Leading American luxury markets’ share of all luxury spending in the Americas, 2011-15
- Asia Pacific
-
- Figure 30: Asia Pacific region: Leading luxury goods markets, 2011-15
- Figure 31: Asia Pacific region: Leading luxury goods markets, 2011-15
- Europe
-
- Figure 32: Europe: Leading luxury goods markets, 2011-15
- Figure 33: Leading European luxury markets’ share of all luxury spending in Europe, 2011-15
Luxury Market – Segment Performance
-
- Fashion and leather goods
- Market size
-
- Figure 34: Global luxury market: Fashion and leather goods sales, 2011-15
- Market share
-
- Figure 35: Top 10 leading luxury goods retailers, by % share of global luxury fashion and leather goods market, 2015
- Jewellery and watches
- Market size
-
- Figure 36: Global luxury market: Jewellery and watch sales, 2011-15
- Market share
-
- Figure 37: Top 10 leading luxury goods retailers, by % share of global luxury fashion and leather goods market, 2015
- Perfumes and cosmetics
- Market size
-
- Figure 38: Global luxury market: Perfumes and cosmetics sales, 2011-15
- Market share
-
- Figure 39: Top 10 leading luxury goods retailers, by % share of global luxury perfumes and cosmetics market, 2013 and 2014
The Consumer – What You Need to Know
-
- China and the US see growth in luxury shoppers
- The young and affluent drive luxury purchasing
- In-store purchasing in the home country remains dominant
- Chinese luxury spend migrating overseas and online
- Growth online is being driven by official brand websites
- VIP events could tap into high-earners’ spend
- Personalisation key to luxury retail
- Luxury market remains discount driven
- Just a third of shoppers think luxury items offer superior quality
Who Buys Luxury Goods
-
- Technical note
- China and the US see growth in luxury shoppers
-
- Figure 40: Those who had bought luxury goods in the last 18 months, by country, May/June 2016 and April/May 2015
- Men out-purchase women
-
- Figure 41: Those who had bought luxury goods in the last 18 months by country and by gender, May/June 2016
- Young consumers drive luxury purchases
-
- Figure 42: Those who had bought luxury goods in the last 18 months by country and age, June 2016
-
- Figure 43: Those who had bought luxury goods in the last 18 months, China, by age, May 2016
- Affluence determines purchasing behaviour
-
- Figure 44: Those who had bought luxury goods in the last 18 months in Spain, Italy, France and Germany by household income, June 2016
- Figure 45: Those who had bought luxury goods in the last 18 months in UK, USA and China by annual household income (monthly income for China), May/June 2016
Where They Buy
-
- In-store purchasing in the home country remains dominant
-
- Figure 46: Where they bought luxury goods by country, May/June 2016
- Department stores the retailer of choice
-
- Figure 47: Where they bought luxury goods by country, May/June 2016
- Luxury brands gain shoppers through their own retail channels
-
- Figure 48: Percentage-point increase/decrease in online shopper numbers, by country, 2015 vs 2016
- Trend data
- UK
-
- Figure 49: UK: Where they bought luxury goods by selected channels, May 2015 and June 2016
- Mainland Europe
-
- Figure 50: Mainland Europe: Where they bought luxury goods by selected channels, May 2015 and June 2016
- US
-
- Figure 51: US: Where they bought luxury goods by selected channels, May 2015 and June 2016
- Chinese luxury spend migrating overseas and online
-
- Figure 52: China: Where they bought luxury goods by selected channels, May 2015 and May 2016
- Who buys where?
- UK
-
- Figure 53: UK: Where they shop for luxury in UK, by age and affluence, June 2016
- France
-
- Figure 54: France: Where they shop for luxury in France, by age and affluence, June 2016
- Germany
-
- Figure 55: Germany: Where they shop for luxury in Germany, by age and affluence, June 2016
- Italy
-
- Figure 56: Italy: Where they shop for luxury in France, by age and affluence, Italy 2016
- Spain
-
- Figure 57: Spain: Where they shop for luxury in Spain, by age and affluence, June 2016
- US
-
- Figure 58: US: Where they shop for luxury in the US, by age and affluence, June 2016
- China
-
- Figure 59: China: Where they shop for luxury in China, by age and affluence, May 2016
Interest in Luxury Products and Services
-
-
- Figure 60: Interest in luxury products and services, May/June 2016
- Men show greater interest in wearable technology
-
- Figure 61: Interest in wearable technology, by gender, June 2016
- VIP events could tap into high-earners’ spend
-
- Figure 62: Interest in in-store events organised by luxury brands, by gender, June 2016
- Personalisation key to luxury retail
-
- Figure 63: Interest in personalisation, June 2016
- Opportunity for designer rental services in the US
-
- Figure 64: US: Interest in designer clothing, accessories or jewellery rental and monthly subscription services, by demographics, June 2016
-
Attitudes towards Luxury Goods
-
-
- Figure 65: Attitudes towards luxury products, May/June 2016
- Luxury market remains discount driven
-
- Figure 66: Those that have bought luxury items on discount/special offer in the last 18 months, by gender, May/June 216
- Brands must communicate the superior quality of their luxury goods
-
- Figure 67: Agreement that luxury products offer superior quality than non-luxury products, high earners vs all luxury buyers, June 2016
- Savvy shoppers mix and match luxury with non-luxury
- Second-hand luxury market has potential
-
- Figure 68: Purchasing of luxury items second hand, May 2016
- Young Chinese opt for unique designs over visible logos
-
- Figure 69: China: Those who prefer luxury products with a visible logo and those who like to wear items from less well-known luxury designers, by age, May 2016
-
Brand/Company – What You Need to Know
-
- LMVH out in front
- Christian Dior Couture strongest CAGR
- Americas the fastest growing region
- Luxury market dominated by a few players
- Innovation on the catwalk
- Online sales reach €10bn
- Social media crucial for luxury brands
Innovation and Launch Activity
-
- ‘Wow factor’ store experience
- Runway show innovation
- Ethical credentials
- Luxury watch with contactless payment functionality
- Limited-editions enhance exclusivity
- Boutique at sea
Online and Social Media
-
- The market
- The outlook
- The brands online
-
- Figure 70: Major luxury brands: Number of markets with transactional websites, 2014-16
- The luxury retailers online
- The consumer: Shopping online
-
- Figure 71: Percentage of luxury goods shoppers buying luxury goods online in the last 18 months, May 2014-16
-
- Figure 72: Percentage of luxury goods shoppers buying luxury goods online in the last 18 months, by type of retailer website, May 2016
- Online convenience
-
- Figure 73: I like the convenience of shopping for luxury products online, May/June 2016
- Social media
- Burberry
- The beauty brands
- Vloggers and Influencers
- See it, buy it
Company Metrics
-
-
- Figure 74: Leading luxury companies, by net revenues, 2013-15
- Revenue growth rates
-
- Figure 75: Leading luxury companies: % CAGR in revenues, 2011-15
- Product revenue mix
-
- Figure 76: Leading luxury companies: Sales mix (%), by product group revenue, 2015
-
- Figure 77: Leading luxury companies: Percentage point change in product mix by product group revenue, 2011-15
- Regional revenue growth
-
- Figure 78: Total luxury sales growth (%), by region, 2011-15
- Store numbers
-
- Figure 79: Selected leading luxury retailers, estimated store numbers, 2015
- Brand ownership
-
- Figure 80: Brand ownership, by leading luxury companies, 2016
- Swiss watchmakers output
-
- Figure 81: Share of all COSC certificates accounted for, by leading Swiss-watch brands, 2014-15
- Figure 82: Number of Swiss watch certificates issued by the COSC, 2014-15
- Figure 83: Number of Swiss watch certificates issued by the COSC, three leading brands, 2011-15
-
Brand Sales and Market Shares
-
-
- Figure 84: Top 10 luxury companies, share of all luxury goods sales, 2013-15
- Figure 85: Leading luxury brands: Sales, 2013-15
-
- Figure 86: Leading luxury brands: Share of all luxury sales, 2013-15
-
Appendix – Data Sources, Abbreviations and Supporting Information
-
- Data sources
- Abbreviations
- Consumer research methodology
Burberry Group
-
- What we think
- Performance
- Strategy
- Unifying the Burberry label into a single brand
- Embracing the commercial value of Snapchat
- A change to the seasonal runway calendar
- Experience is all
- Where next?
- Company background
- Company performance
-
- Figure 87: Burberry Group Plc: Group financial performance, 2011/12-2015/16
- Figure 88: Burberry Group Plc: Group financial performance, revenue by product division, 2011/12-2015/16
-
- Figure 89: Burberry Group Plc: Outlet data, 2011/12-2015/16
- E-commerce
Christian Dior Couture
-
- What we think
- Double-digit retail revenue growth on back of store investment
- Tapping into haute couture demand in emerging markets
- New creative director to lure female clients away from rivals
- Luxury menswear retail
- Advertising
- Company background
- Company performance
-
- Figure 90: Christian Dior Couture: Financial performance, 2011-2015/16
- E-commerce
Coach
-
- What we think
- Reconnecting the brand with its core craftsmanship roots
- Unique in-store experience
- New luxury store concept to showcase the brand
- Reinventing itself as a full lifestyle label
- Apple Watch tie-up
- Walt Disney collaboration brings together two iconic brands
- Company background
- Company performance
-
- Figure 91: Coach Inc.: Group financial performance, 2011/12-2015/16
- Figure 92: Coach Inc.: Net sales, by region, 2011/12-2015/16
-
- Figure 93: Coach Inc.: Coach product sales breakdown, 2011/12-2014/15
-
- Figure 94: Coach Inc.: Operated store data, 2012/13-2014/15
- E-commerce
Estée Lauder
-
- What we think
- Skincare struggles while haircare excels
- Targeting the young
- The ‘Ageless’ market
-
- Figure 95: Darphin Exquisâge Beauty Revealing Collection, 2015
- Man in the mirror
- Company background
- Company performance
-
- Figure 96: Estée Lauder Companies: Group financial performance, 2010/11-2015/16
-
- Figure 97: Estée Lauder Companies: Group financial performance, by region, 2010/11-2014/15
- Figure 98: Estée Lauder Companies: Group financial performance, by product category, 2010/11-2014/15
- E-commerce
Giorgio Armani
-
- What we think
- 40th anniversary celebrations go digital
- Introducing the New Normal
- Extensions create a lifestyle brand
- Company background
- Company performance
-
- Figure 99: Giorgio Armani: Group financial performance, 2011-15
- E-commerce
Hermès
-
- What we think
- Performance
- Partners with Apple on the Hermès smartwatch series
- Increasing manufacturing capabilities to meet demand
- Strengthens relationship with footwear designer Pierre Hardy
- Improving brand transparency
- Where next?
- Company background
- Company performance
-
- Figure 100: Hermès: Financial performance, 2011-15
- Figure 101: Hermès: Sales by product category, 2014-15
- E-commerce
Kering
-
- What we think
- The resurgence of Gucci in 2015
- More ways to shop Bottega Veneta
- YSL revenue up 37.8% on the back of e-commerce and store expansion
- Luxury fashion themed restaurants
- Company background
- Company performance
-
- Figure 102: Kering: Financial Performance, 2011-15
- Figure 103: Kering Luxury: Breakdown of revenue by region, 2011-15
- Outlets
-
- Figure 104: Kering Luxury: Directly-operated stores, 2014-15
- E-commerce
L’Oréal Luxe
-
- What we think
- Make-up a driver of luxury growth
- Travel Retail
- Digital
- Company background
- Company performance
-
- Figure 105: L’Oréal Group: Net revenues by division, 2011-15
- Figure 106: L’Oréal Luxe: Financial performance, 2011-15
-
- Figure 107: L’Oréal Luxe: Sales by region and product area, 2011-15
- E-commerce
LVMH
-
- What we think
- Where next
- Company background
- Company performance
-
- Figure 108: LVMH: Group financial performance, 2011-15
- Figure 109: LVMH: Distribution of revenues by region, 2011-15
-
- Figure 110: LVMH: Distribution of segment revenues by region, 2011-15
- Figure 111: LVMH: Sales by type of distribution, 2013-15
-
- Figure 112: LVMH: Outlet portfolio, 2014, 2015
- E-commerce
Prada Group
-
- What we think
- Performance
- Strategy
- New social responsibility
- Tapping into the personalisation trend
- See now, buy now
- Where next?
- Company background
- Company performance
-
- Figure 113: Prada: Group financial performance, 2011/12-2015/16
- Figure 114: Prada: Group net revenue breakdown, by channel, 2011/12-2015/16
-
- Figure 115: Prada: Group financial performance, by trademark, 2011/12-2015/16
- Figure 116: Prada: Group retail revenue breakdown, by channel, 2011/12-2015/16
-
- Figure 117: Prada: Group revenue breakdown, by product line, 2011/12-2015/16
- Figure 118: Prada: Directly operated stores, 2013/14-2015/16
- E-commerce
Ralph Lauren Corporation
-
- What we think
- New CEO brings mass market retail acumen to shore up the business side of things
- Getting designs to market more quickly
- Focusing more on the company’s three core brands
- E-commerce improvements driving retail revenue
- Reimagining the shopping experience
- Company background
- Company performance
-
- Figure 119: Ralph Lauren Corporation: Group financial performance, 2011/12-2015/16
-
- Figure 120: Ralph Lauren Corporation: Store and concession-based shop-within-shops network, 2012-16
- E-commerce
Richemont
-
- What we think
- Where next?
- Company background
- Company performance
-
- Figure 121: Richemont: Group financial performance, 2011/12-2015/16
-
- Figure 122: Richemont: Revenues by region, 2013/14-2015/16
- Figure 123: Richemont: Revenues by product category, 2013/14-2015/16
-
- Figure 124: Richemont: Performance by Maison, 2013/14-2015/16
- E-commerce
Shiseido
-
- What we think
- VISION 2020 paves the way
- China is challenging but holds promise
- Loss of the Gaultier licence will hit EMEA
- Travel Retail represents a growth area
- Company background
- Company performance
-
- Figure 125: Shiseido: Group financial performance, 2010/11-2016
- Performance by brand
-
- Figure 126: Shiseido revenues, by region, 2010/11-2015
-
- Figure 127: Shiseido revenues, by region, 2015-16
- E-commerce
Swatch Group - Luxury
-
- What we think
- Master Chronometer
- Brand extension
- Revamping online but e-commerce still missing
- Store expansions
- Company background
- Company performance
-
- Figure 128: Swatch: Group financial performance, 2011-15
- Figure 129: Swatch Group: Net sales, by region, 2011-15
-
- Figure 130: Swatch Group: Watches and jewellery segment performance, 2011-15
- E-commerce
Tiffany & Co.
-
- What we think
- Net-a-Porter deal an opportunity for the heritage brand to reach a new audience
- Focusing on reinvigorating non-jewellery offering
- Limited editions strengthen Tiffany & Co.’s exclusivity credentials
- Boutique at sea to woo affluent travellers
- Company background
- Company performance
-
- Figure 131: Tiffany & Co.: Group financial performance, 2011/12-2015/16
-
- Figure 132: Tiffany & Co.: Stores and estimated sales per outlet, 2011/12-2015/16
- E-commerce
Tod’s Group
-
- What we think
- Partners with Net-a-Porter
- New third party e-commerce strategy to reach out to China’s online luxury consumers
- Slowdown in store expansion on the back of slump in same-store sales
- Bolstering its authentic Italian style credentials
- Considering scrapping six-monthly collections and introducing new products every month
- Company background
- Company performance
-
- Figure 133: Tod’s Group: Financial performance, 2011-15
- Sales by region
-
- Figure 134: Tod’s Group: Sales, by region, 2015
-
- Figure 135: Tod’s Group: Sales, by region, 2014-15
- Sales by product category
-
- Figure 136: Tod’s Group: Sales, by product type, 2015
- Figure 137: Tod’s Group: Sales by product type, 2014-15
- Sales by brand
-
- Figure 138: Tod’s Group: Sales by brand, 2015
- Figure 139: Tod’s Group: Sales, by brand, 2014-15
- E-commerce
YNAP Group
-
- What we think
- The merger
- Where next?
- Company background
- Company performance
-
- Figure 140: YNAP group: Group financial performance, 2012-15
- Retail offering
-
- Figure 141: YNAP Group: Sales mix, 2014
Back to top