Table of Contents
Overview
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- What you need to know
- Products covered in this report
Executive Summary
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- The market
- Market size and forecast
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- Figure 1: China – Total domestic market value for personal luxury products retail, 2011-21
- Market segmentation
- Market drivers
- Regulatory and legislative changes
- Companies and brands
- Market share
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- Figure 2: Leading luxury personal products brands’ share of total personal luxury products market in Asia (excluding Japan), 2014/15
- Competitive strategies
- Advertising and marketing activity
- The consumer
- Consumer definitions of luxury
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- Figure 3: Consumer definitions of luxury, June 2016
- Consumers who have bought luxury products
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- Figure 4: Consumers who have bought luxury products, June 2014 and June 2016
- Types of luxury products bought
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- Figure 5: Consumers who have bought luxury products in the last 18 months, June 2016
- Retail channels luxury products bought from
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- Figure 6: Retail channels luxury products bought from, June 2016
- Consumer luxury brand purchasing
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- Figure 7: Consumer luxury brand purchasing, June 2016
- Consumer perceptions of luxury products
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- Figure 8: Consumer perceptions of luxury products, June 2016
- Consumer attitudes to luxury products
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- Figure 9: Consumer attitudes to luxury products, June 2016
- Key consumer groups
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- Figure 10: Key consumer groups according to attitudes to luxury products, June 2016
- What we think
Issues and Insights
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- The travel effect
- The facts
- The implications
- The online experience
- The facts
- The implications
- Persuading the doubters
- The facts
- The implications
- A new breed of luxury
- The facts
- The implications
The Market – What You Need to Know
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- Market size and forecast
- Market segmentation
- Market drivers
- Regulatory and legislative changes
Market Size and Forecast
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- Recovery, with caveats
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- Figure 11: China – Total domestic market value for personal luxury products retail, 2011-21
- Forecast methodology
Market Segmentation
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- Hard luxury hardest hit
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- Figure 12: China – Personal luxury goods value domestic retail market, 2011-16
- Figure 13: China – Period growth in personal luxury goods value domestic retail sales value, 2011-16
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- Figure 14: China – Total domestic luxury goods and services market, 2011-16
Market Drivers
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- Travel and tourism
- Virtual and augmented reality in the online luxury experience
- Chinese spirits enter the speakeasy cocktail culture
Regulatory and Legislative Changes
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- Encouraging more domestic luxury consumption
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- Figure 15: Chinese nationals’ personal luxury goods spending within the global and domestic context, 2012-16
- Changes in taxing overseas online shopping
- Fighting the online counterfeits
Companies and Brands – What You Need to Know
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- Market share
- Competitive strategies
- Advertising and marketing activity
Market Share
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- L’Oréal Luxe slightly up, LVMH slightly down
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- Figure 16: Leading luxury personal products brands’ share of total personal luxury products market in Asia (excluding Japan), 2014/15
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- Figure 17: Leading luxury personal products brands’ total personal luxury products value sales revenues, and % market share, in Asia (excluding Japan), 2014/15
Competitive Strategies
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- Consolidation
- Expansion
Advertising and Marketing Activity
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- Cutting prices
- Promoting independent designers
- China-inspired design
- Engaging with “geeks”
- Luxury brand catering
- Building exclusive experience into an online presence
Company Profiles
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- LVMH Moët Hennessy Louis Vuitton
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- Figure 18: LVMH: Distribution of revenues, by region, 2013-15
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- Figure 19: LVMH: Significance of Asia (excluding Japan) division to segment revenues, 2013-15
- L’Oréal Luxe
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- Figure 20: L’Oréal Group: Net revenues, by division, 2013-15
- Kering Luxury
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- Figure 21: Kering Luxury: Financial performance, 2013-15
- Figure 22: Kering Luxury: Breakdown of revenue, by product category and by region, 2013-15
- Hermès Group
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- Figure 23: Hermès: Financial performance, 2013-15
- Figure 24: Hermès: Sales, by product category, 2013-15
- Prada
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- Figure 25: Prada: Sales, by product territory, 2013-15
The Consumer – What You Need to Know
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- Consumer definitions of luxury
- Consumers who have bought luxury products
- Types of luxury products bought
- Retail channels luxury products bought from
- Consumer luxury brand purchasing
- Consumer perceptions of luxury products
- Consumer attitudes to luxury products
- Key consumer groups
Consumer Definitions of Luxury
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- Craftsmanship trumps cost
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- Figure 26: Consumer definitions of luxury, June 2016
- The crafting of individualism
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- Figure 27: Consumer definitions of luxury, June 2014 and June 2016
- Where the shift is being felt first
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- Figure 28: Consumer definitions of luxury of increased significance compared with 2014, by consumers who have bought luxury products in the last 18 months, June 2016
- Men and women
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- Figure 29: Consumer definitions of luxury, by gender and age group, June 2016
- The higher income emphasis shift
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- Figure 30: Consumer definitions of luxury, by monthly household income group, June 2016
Consumers Who Have Bought Luxury Products
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- Slight decline in luxury purchaser proportion
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- Figure 31: Consumers who have bought luxury products, June 2014 and June 2016
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- Figure 32: Consumers who have bought luxury products, by demographics, June 2016
Types of Luxury Products Bought
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- The ladies’ indulgences
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- Figure 33: Consumers who have bought luxury products in the last 18 months, June 2016
- The decline in the value of time
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- Figure 34: Consumers who have bought luxury products in the last 18 months, June 2014 and June 2016
- Cosmetic inconsistencies
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- Figure 35: Consumers who have bought luxury cosmetics/fragrances/skincare in the last 18 months, instance above or below the average by city, June 2016
- Venus versus Mars
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- Figure 36: Consumers who have bought luxury products in the last 18 months, by gender and age group, June 2016
- Luxury perceptions by sector
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- Figure 37: Consumers who have bought luxury products in the last 18 months, by consumer perceptions of luxury products (A), June 2016
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- Figure 38: Consumers who have bought luxury products in the last 18 months, by consumer perceptions of luxury products (B), June 2016
Retail Channels Luxury Products Bought From
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- Don’t underestimate department stores!
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- Figure 39: Retail channels luxury products bought from, June 2016
- Online and overseas outlets gain
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- Figure 40: Retail channels luxury products bought from, June 2014 and June 2016
- The gender gap not that great
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- Figure 41: Retail channels luxury products bought from, by gender and age group, June 2016
- The income gap significant
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- Figure 42: Retail channels luxury products bought from, by monthly household income group, June 2016
- Brands bought online
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- Figure 43: Retail channels luxury products bought from online, by consumer luxury brand purchasing, June 2016
- Brands bought in China
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- Figure 44: Retail channels luxury products bought from in China, by consumer luxury brand purchasing, June 2016
- Brands bought in another country
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- Figure 45: Retail channels luxury products bought from in another country, by consumer luxury brand purchasing, June 2016
Consumer Luxury Brand Purchasing
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- The French connection
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- Figure 46: Consumer luxury brand purchasing, June 2016
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- Figure 47: Consumer awareness of selected leading luxury brands, June 2014
- Brand awareness-to-sale conversion rate
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- Figure 48: Consumer luxury brand purchasing, June 2014 and June 2016
- Brand purchasing by gender
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- Figure 49: Consumer luxury brand purchasing, by gender and age group, June 2016
- Brand purchasing by income
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- Figure 50: Consumer luxury brand purchasing, by monthly household income group, June 2016
- Brand perceptions
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- Figure 51: Consumer luxury top-5 brand purchasing, by Consumer perceptions of luxury products, June 2016
Consumer Perceptions of Luxury Products
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- Luxury is still a badge of image…
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- Figure 52: Consumer perceptions of luxury products, June 2016
- …but without showing off
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- Figure 53: Consumer perceptions of luxury products, June 2014 and June 2016
- Showing off versus being “in-the-know”
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- Figure 54: Consumer perceptions of luxury products, by key consumer groups, June 2016
- Luxury perceptions by demographic group
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- Figure 55: Consumer perceptions of luxury products, by gender and age group, June 2016
Consumer Attitudes to Luxury Products
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- Individualism and craftsmanship dominate
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- Figure 56: Consumer attitudes to luxury products, June 2016
- Craftsmanship, individualism and inner-peace
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- Figure 57: Consumer attitudes to luxury products, June 2014 and June 2016
- Attitudes by demographics
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- Figure 58: Consumer attitudes to luxury products, by gender and age group, June 2016
Key Consumer Groups
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- Half of luxury buyers are Status seekers
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- Figure 59: Key consumer groups according to attitudes to luxury products, June 2016
- Status luxury seekers
- Who they are
- What they like
- How to market to them
- In-the-know lifestyle seekers
- Who they are
- What they like
- How to market to them
- Luxury doubters
- Who they are
- What they like
- How to market to them
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
Appendix – Market Size and Forecast
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- Total luxury retail market value
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- Figure 60: China – Total domestic market value for luxury retail, 2011-21
- Forecast Methodology
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