Table of Contents
Overview
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- 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
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- Figure 1: US Dollar to Euro annual average exchange rates, 2011-16
Executive Summary
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- The market
- Market size and forecast
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- Figure 2: Luxury goods market size and forecast (excl. VAT), 2012-22
- Regional breakdown of luxury market
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- Figure 3: Regional share of luxury goods sales, 2007-16
- Figure 4: Top 10 countries in the luxury market, by sales, 2014-16
- Product breakdown of luxury market
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- Figure 5: Luxury goods sales by product category, 2016
- The consumer
- Who buys luxury goods
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- Figure 6: Consumers who have bought luxury goods in the last 18 months, May/June 2017
- What luxury goods they buy
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- Figure 7: Luxury goods purchased in the last 18 months, May/June 2017
- Where they shop for luxury goods
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- Figure 8: Where consumers bought luxury goods in the last 18 months, May/June 2017
- Attitudes towards luxury goods
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- Figure 9: Consumer attitudes towards luxury goods, May/June 2017
- Luxury shopping behaviour
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- Figure 10: Luxury consumer shopping behaviours, May/June 2017
- Companies and brands
- Companies’ market shares
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- Figure 11: Leading luxury companies’ shares of all luxury sales, 2016
- Brands’ market shares
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- Figure 12: Leading luxury brands’ shares of all luxury sales, 2014-16
- Online
- What we think
Issues & Insights
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- Fragrances and cosmetics driving growth
- The facts
- The implications
- Luxury online: The growing importance of omnichannel
- The facts
- The implications
- Retail vs Wholesale: Taking control of distribution
- The facts
- The implications
The Luxury Market – What You Need to Know
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- Prospects look good
- Mintel’s market size
- A regional view
- Product segmentation
Market Size and Forecast
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- Uncertainty remains
- Who buys luxury goods?
- Mintel’s market size
- Retail vs wholesale
- Outlook
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- Figure 13: Luxury goods market size and forecast (excl VAT), 2012-22
Luxury Market – A Regional View
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- Market size by region
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- Figure 14: Luxury goods: Sales by region, 2012-16
- Figure 15: Regional share of the luxury goods market, 2007-16
- Country market sizes
- HNWIs and spending by region
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- Figure 16: Sales of luxury goods per HNWI by region, 2011-15
- HNWIs and spending by country
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- Figure 17: Top 10 countries in the luxury market, by sales, 2012-16
- Figure 18: Country shares of the global luxury market, 2012-16
- Americas
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- Figure 19: The Americas: Leading luxury goods markets, 2012-16
- Figure 20: Americas luxury markets’ share of all luxury spending in the Americas, 2012-16
- Asia Pacific
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- Figure 21: Asia Pacific region: Leading luxury goods markets, 2012-16
- Figure 22: Asia Pacific luxury markets’ share of all luxury spending in Asia Pacific, 2012-16
- Europe
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- Figure 23: Europe: Leading luxury goods markets, 2012-16
- Figure 24: Leading European luxury markets’ share of all luxury spending in Europe, 2012-16
Luxury Market – Product Segmentation
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- Figure 25: Global luxury market, sales by product, 2012-16
- Fashion and leather goods
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- Figure 26: Global luxury market, Fashion and leather goods sales, 2012-16
- Figure 27: Top 10 leading luxury goods retailers by share of the fashion and leather goods sector, 2016
- Jewellery and watches
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- Figure 28: Global luxury market, Jewellery and watches sales, 2012-16
- Figure 29: Top 10 leading luxury goods retailers by share of the jewellery and watches sector, 2016
- Perfumes and cosmetics
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- Figure 30: Global luxury market, Perfumes and cosmetics sales, 2012-16
- Figure 31: Top 10 leading luxury goods retailers by share of the perfumes and cosmetics sector, 2016
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Market Drivers
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- What are luxury goods?
- How damaging is ubiquity?
- The who, when, where, and why of the luxury goods consumer
- Wealthy individuals
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- Figure 32: Numbers and share of wealth of HNWIs, 2015
- Regional data
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- Figure 33: Number of HNWIs by region, 2007-15
- Figure 34: Top 10 HNWI populations (in thousands), by country, 2014-15
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- Figure 35: Wealth of HNWIs by region, 2010-15
- Economic background
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- Figure 36: GDP growth in US dollars at current values, 2012-17
- Figure 37: Leading international currency exchange rates, 2003-17
- Stock markets
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- Figure 38: Leading stock markets year-on-year growth, 2011-16
- Tourism
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- Figure 39: International inbound tourism, 2010-16
The Consumer – What You Need to Know
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- Technical note
- Decline in luxury in the US
- Appetite for products varies by market
- Most people still shop in-store
- Demand for luxury experiences is high
- See now, buy now important to capture young consumers
- Democratising the luxury market
Who Buys Luxury Goods
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- China remains the most engaged market
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- Figure 40: Consumers who have bought luxury goods in the last 18 months, May/June 2017
- Decline in the number of US consumers
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- Figure 41: Consumers who have bought luxury goods in the last 18 months, April/May 2015, May/June 2016 and May/June 2017
- Male consumers more likely to purchase
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- Figure 42: Consumers who have bought luxury goods in the last 18 months, by gender, May/June 2017
- Young people are active luxury shoppers
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- Figure 43: Consumers who have bought luxury goods in the last 18 months, by age, May/June 2017
- Purchasing peaks amongst high earners
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- Figure 44: Europe: Consumers who have bought luxury goods in the last 18 months, by annual household income, June 2017
- Figure 45: UK - Consumers who have bought luxury goods in the last 18 months, by annual household income, May 2017
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- Figure 46: US - Consumers who have bought luxury goods in the last 18 months, by annual household income, May 2017
- China: Purchasing highest amongst men and the 20-29s
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- Figure 47: China - Consumers who have bought luxury goods in the last 18 months, by demographics, May 2017
What Luxury Goods They Buy
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- Beauty boosts volume sales
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- Figure 48: Luxury goods purchased in the last 18 months, May/June 2017
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- Figure 49: Luxury goods purchased in the last 18 months, by product type, May/June 2017
- Luxury customer profiles by country
- France: Young people drive footwear market
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- Figure 50: France - Luxury goods purchased in the last 18 months, by age and annual household income, June 2017
- Germany: Older, less affluent buy fragrances
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- Figure 51: Germany - Luxury goods purchased in the last 18 months, by age and annual household income, June 2017
- Italy: Jewellery, watches and clothing bought by affluent
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- Figure 52: Italy - Luxury goods purchased in the last 18 months, by age and annual household income, June 2017
- Spain: Low earners shop for luxury bags
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- Figure 53: Spain - Luxury goods purchased in the last 18 months, by age and annual household income, June 2017
- UK: Mature shoppers spend on premium fragrances
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- Figure 54: UK - Luxury goods purchased in the last 18 months, by age and annual household income, May 2017
- US: Childrenswear market driven by young and less affluent
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- Figure 55: US - Luxury goods purchased in the last 18 months, by age and annual household income, May 2017
- China: Leather goods popular amongst high earners
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- Figure 56: China - Luxury goods purchased in the last 18 months, by age and monthly household income, May 2017
Where They Shop for Luxury Goods
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- In-store continues to be primary channel
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- Figure 57: Where consumers bought luxury goods in the last 18 months, May/June 2017
- France: Online most popular amongst 35-44s
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- Figure 58: France - Where consumers bought luxury goods in the last 18 months, by age and annual household income, June 2017
- Germany: Mature online market drives luxury ecommerce
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- Figure 59: Germany - Where consumers bought luxury goods in the last 18 months, by age and annual household income, June 2017
- Italy: International shopping peaks amongst older Millennials
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- Figure 60: Italy - Where consumers bought luxury goods in the last 18 months, by age and annual household income, June 2017
- Spain: Online driven by high-earners
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- Figure 61: Spain - Where consumers bought luxury goods in the last 18 months, by age and annual household income, June 2017
- UK: Young people most likely to use e-commerce
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- Figure 62: UK - Where consumers bought luxury goods in the last 18 months, by age and annual household income, May 2017
- US: Affluent shop for luxury abroad
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- Figure 63: US - Where consumers bought luxury goods in the last 18 months, by age and annual household income, May 2017
- China: High levels of overseas purchasing
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- Figure 64: China - Where consumers bought luxury goods in the last 18 months, by age and monthly household income, May 2017
Attitudes towards Luxury Goods
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- Quality more important than brand name
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- Figure 65: Consumer attitudes towards luxury brands and products, May/June 2017
- Male consumers put off if a brand is too accessible
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- Figure 66: Consumer agreement with the statement ‘If a luxury brand is too widely available it loses its appeal’, by gender, May/June 2017
- Young people prioritise luxury experiences
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- Figure 67: Consumer agreement with the statement ‘Spending money on luxury experiences is more worthwhile than buying luxury products’, by age, May/June 2017
- See now, buy now most likely to resonate with 16-24s
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- Figure 68: Consumer agreement with the statement ‘It is frustrating to see luxury items before they are available to purchase’, by age, May/June 2017
- Consumers shop in-store for experience
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- Figure 69: Consumer attitudes towards luxury retail, May/June 2017
- Women most likely to be intimidated by luxury stores
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- Figure 70: Consumer agreement with the statement ‘Luxury stores are intimidating’, by gender, May/June 2017
- Young Chinese willing to travel for favourable exchange rates
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- Figure 71: China - Consumer attitudes towards luxury, by age, May 2017
Luxury Goods Shopping Behaviour
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- Consumers expect a high level of customer service
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- Figure 72: Luxury consumer shopping behaviours, May/June 2017
- Social media important to aspiring Millennials
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- Figure 73: Agreement with the statement ‘I follow luxury brands on social media that I'd like to be able to afford in the future’, by age, May/June 2017
- Accessible products attract young Chinese consumers
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- Figure 74: China - Luxury consumer shopping behaviours, by age, May 2017
- Less affluent US shoppers put off by online counterfeits
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- Figure 75: US - Luxury consumer shopping behaviours, by household income, May 2017
- Affluent UK shoppers engage with aspirational brands via social media
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- Figure 76: UK - Luxury consumer shopping behaviours, by household income, May 2017
Companies and Brands - What You Need to Know
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- LVMH consolidates its position as the world’s largest luxury group by revenue
- Haute couture fashion label Christian Dior Couture the strongest CAGR
- Local consumer spend boosts Asia Pacific luxury market
- LVMH boosts its market leading share of luxury goods market
- In-store experiences
- Online accounts for 5% of the luxury market
- Use of social media for marketing campaigns
Innovation & Launch Activity
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- In-store technology
- Farfetch: Store of the future
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- Figure 77: Farfetch store of the future, 2017
- Interactive mirrors
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- Figure 78: World’s most connected mirror in Heathrow Terminal 5, 2016
- Major players focus on e-commerce
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- Figure 79: 24 Sèvres homepage, 2017
- Improving online customer service
- Chatbots
- Improved delivery options
- Collaborations
- Louis Vuitton x Supreme
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- Figure 80: Louis Vuitton x Supreme collaboration, 2017
- Burberry collaborates with Mr. Bags
- VB x Estée Lauder
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- Figure 81: VB x Estée Lauder collaboration, 2017
- Personalisation
- Made to order
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- Figure 82: Jimmy Choo made to order shoe service, 2017
- Customisation in fragrance and beauty
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- Figure 83: Yves Saint Laurent engraving service, 2017
- Store Experience
- In-store dining
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- Figure 84: Ralph’s Coffee & Bar London, 2017
- Wellness
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- Figure 85: The Wellness Clinic in Harrods, 2017
- Social media and apps
Online and Social Media
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- The market
- The outlook
- The brands online
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- Figure 86: Major luxury brands: Number of markets with transactional websites, 2015-17
- Multi-brand e-commerce platforms
- The consumer: Shopping online
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- Figure 87: Where luxury consumers purchased luxury products in the last 18 months, May/June 2017
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- Figure 88: “To have the full luxury experience you need to buy products in-store rather than online”, May/June 2017
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- Figure 89: “I agree that luxury stores are intimidating”, May/June 2017
- Social media
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- Figure 90: “I follow luxury brands on social media that I’d like to be able to afford in the future”, May/June 2017
- Social media campaigns
Company Metrics
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- Figure 91: Leading luxury companies, by net revenues, 2014-16
- Revenue growth rates
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- Figure 92: Leading luxury companies, % CAGR in revenues, 2012-16
- Product revenue mix
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- Figure 93: Leading luxury companies, revenue by product group (%), 2016
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- Figure 94: Leading luxury companies, Percentage point change in product mix by product group revenue, 2012-16
- Regional revenue growth
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- Figure 95: Total luxury sales growth (%), by region, 2012-16
- Store numbers
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- Figure 96: Selected leading luxury retailers, estimated store numbers, 2016
- Brand ownership
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- Figure 97: Brand ownership, by leading luxury companies, 2017
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Brand Sales and Market Shares
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- Market shares
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- Figure 98: Top 10 Luxury Goods groups, shares of all luxury goods sales, 2014-16
- Brand sales
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- Figure 99: Leading luxury brands, Sales 2014-16
- Brand shares
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- Figure 100: Leading luxury brands, Shares of all luxury goods sales 2014-16
Appendix – Data Sources, Abbreviations and Supporting Information
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- Data Sources
- Abbreviations
- Consumer research methodology
Burberry Group
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- What we think
- Management changes
- Brand strategy
- Runway shows
- Embracing technology
- Social media
- Where next?
- Company background
- Company performance
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- Figure 101: Burberry Group Plc: Group financial performance, 2012/13-2016/17
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- Figure 102: Burberry Group Plc: Revenue by product division, 2012/13-2016/17
- Figure 103: Burberry Group Plc: Outlet data, 2012/13-2016/17
- E-commerce
Christian Dior Couture
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- What we think
- LVMH to purchase Christian Dior Couture
- Reinventing the brand’s image with new creative director
- Well-received new products
- Ephemeral stores to pique consumer interest
- Exclusive online pop-up footwear shop
- Dedicated store concept for fine jewellery and watches
- Tapping into the direct-to-consumer social selling potential in China through WeChat
- Company background
- Company performance
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- Figure 104: Christian Dior Couture: Financial performance, 2012-2016-17
- E-commerce
Coach
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- What we think
- Pulling products from hundreds of North American department stores
- New brand ambassador suggests a more millennial-friendly marketing approach
- $2.4bn agreed takeover of Kate Spade to boost access to millennials
- Building on fragrance range with the launch of Coach for Men
- New flagship stores focus on the brand’s evolution and commitment to craftsmanship
- Plans to expand Stuart Weitzman label into a multi-category brand
- Company background
- Company performance
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- Figure 105: Coach Inc.: Group financial performance, 2011/12-2015/16
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- Figure 106: Coach Inc.: Net sales, by region, 2011/12-2015/16
- Figure 107: Coach Inc.: Coach product sales breakdown, 2011/12-2015/16
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- Figure 108: Coach Inc.: Directly-operated store data, 2012/13-2016/17
- E-commerce
Estée Lauder
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- What we think
- A multi-faceted strategy
- Millennials driving makeup category sales growth…
- …and set to become more important customer segment
- Switching channel focus
- Relentless focus on innovation
- Acquisitions provide bolt-on growth but also longer-term growth opportunities
- Leading Beauty Forward aims to create a more efficient organisation
- Company background
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- Figure 109: Estée Lauder Companies brand map, 2017
- Company performance
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- Figure 110: Estée Lauder Companies: Group financial performance, 2011/12-2016/17
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- Figure 111: Estée Lauder Companies: Group financial performance, by region, 2011/12-2015/16
- Figure 112: Estée Lauder Companies: Group financial performance, by product category, 2011/12-2015/16
- E-commerce
Giorgio Armani
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- What we think
- Succession issue
- Brand reorganisation
- Connected hybrid watch
- Cutting back on staff
- Emporio Armani showcases sportswear
- Company background
- Company performance
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- Figure 113: Giorgio Armani, Group financial performance, 2012-16
- E-commerce
Hermès
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- What we think
- Production of Hermès Birkin bag increased
- Leather drives growth
- Customisable handbags
- Looking ahead
- Company background
- Company performance
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- Figure 114: Hermès: Financial performance, 2012-16
- Figure 115: Hermès: Sales by product category, 2015-16
- H1 2017
- E-commerce
Kering
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- What we think
- Store-to-door in 90 minutes
- Gucci.com to launch in China in 2017
- Big plans for Yves Saint Laurent
- Bottega Veneta’s multi-product lifestyle strategy
- Company background
- Company performance
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- Figure 116: Kering: Financial performance, 2012-16
- Figure 117: Kering Luxury: Breakdown of revenue by region, 2012-16
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- Figure 118: Kering Luxury: Directly-operated stores, 2015-16
- E-commerce
L’Oréal Luxe
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- What we think
- Acquisitions
- North American growth
- Personalisation
- Increasing retail presence
- Where next?
- Company background
- Company performance
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- Figure 119: L’Oréal Group: Net revenues by division, 2012-16
- Figure 120: L’Oréal Luxe: Financial performance, 2012-16
- E-commerce
LVMH
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- What we think
- Recent performance
- Underlying progress?
- Mass market retail
- Where next?
- Company background
- Christian Dior Couture– An explanation
- Company performance
- First half upturn
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- Figure 121: LVMH Group, Financial performance, 2012-16
- Figure 122: LVMH: Distribution of revenues by region, 2012-16
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- Figure 123: LVMH: Geographic distribution of revenues by product category, 2012-16
- Wholesale/retail
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- Figure 124: LVMH: Sales by type of distribution, 2013-16
- Figure 125: LVMH: Outlet portfolio, 2015-16
- E-commerce
Prada Group
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- What we think
- Performance
- Strategy
- Collaborations
- Where next?
- Company background
- Company performance
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- Figure 126: Prada: Group financial performance, 2012/13-2016/17
- Figure 127: Prada: Group net revenue breakdown, by channel, 2012/13-2016/17
- Figure 128: Prada: Group retail revenue breakdown, by brand, 2012/13-2016/17
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- Figure 129: Prada: Group retail revenue breakdown, by market, 2015/16-2016/17
- Figure 130: Prada: Group retail revenue breakdown, by product line, 2012/13-2016/17
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- Figure 131: Prada: Directly-operated stores, 2013/14-2016/17
- E-commerce
Ralph Lauren
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- What we think
- Rolling out new coffee shop/hybrid bar concept to more stores
- Debuts 'See Now, Buy Now' collection
- New e-commerce platform to capture more digital sales
- Consumers abandoning the brand
- Company background
- Company performance
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- Figure 132: Ralph Lauren Corporation: Group financial performance, 2012/13-2016/17
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- Figure 133: Ralph Lauren Corporation: Retail store and concession-based shop-within-shops network, 2012/13-2016/17
- E-commerce
Richemont
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- What we think
- Recent performance
- Watches – Being redefined again
- Where next?
- Company background
- Company performance
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- Figure 134: Richemont: Group financial performance, 2013/14-2016/17
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- Figure 135: Richemont: Revenues by region, 2014/15-2016/17
- Figure 136: Richemont: Revenues by product, 2013/14-2016/17
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- Figure 137: Richemont: Revenues by maison, 2013/14-2016/17
- Figure 138: Richemont Group: Outlet numbers and transactional websites, 2015/16-2016/17
- E-commerce
Shiseido
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- What we think
- Vision 2020 initiative aims to put Shiseido back on track
- Prestige brands at core of Shiseido business
- bareMinerals prestige brand targeted for turnaround
- Gaultier licence revenue loss to be offset by Dolce&Gabbana investment
- Company background
- Company performance
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- Figure 139: Shiseido: Group financial performance, 2011/12-2016
- Figure 140: Shiseido: Group sales performance, by region, 2012-16
- E-commerce
Swatch Group - Luxury
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- What we think
- Developing a smartwatch operating system
- Contactless payment watches
- Company background
- Company performance
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- Figure 141: Swatch Group financial performance by brand, 2012-16
- Figure 142: Swatch Group, Net sales by region, 2012-16
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- Figure 143: Swatch Group: Watches and jewellery segment performance, 2012-16
- H1 2017
- E-commerce
Tiffany & Co.
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- What we think
- New jewellery collection to appeal to younger generations
- Lady Gaga to push the brand’s new fashion jewellery collection
- Hong Kong airport pop-up
- Plans to beef up its e-commerce platform
- In-store customer experience
- Looking to non-core jewellery product categories for sales growth opportunities
- Company background
- Company performance
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- Figure 144: Tiffany & Co.: Group financial performance, 2012/13-2016/17
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- Figure 145: Tiffany & Co.: Company-operated stores and estimated sales per outlet, 2012/13-2016/17
- E-commerce
Tod’s Group
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- What we think
- Enhancing the in-store experience
- Embracing the athleisure trend with collaboration with Aston Martin
- Exclusive capsule collection with Yoox Net-a-Porter
- Luxury consumers on-the-go
- Company background
- Company performance
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- Figure 146: Tod’s Group: Financial performance, 2012-16
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- Figure 147: Tod’s Group: Sales, by region, 2015-16
- Figure 148: Tod’s Group: Sales by product type, 2015-16
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- Figure 149: Tod’s Group: Sales by brand, 2015-16
- Breakdown of sales by distribution channel
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- Figure 150: Tod’s Group: Sales by distribution channel, 2015-16
- E-commerce
YNAP Group
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- What we think
- The future: more investment in technology
- Company background
- Company performance
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- Figure 151: YNAP Group: Group financial performance, 2014-16
- Retail offering
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- Figure 152: YNAP Group, sales mix, 2016
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