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
- Company profiles
- Technical notes
- Financial definitions
- Exchange rates
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- Figure 1: US Dollar to Euro annual average exchange rates, 2012-17
Executive Summary
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- The market
- Luxury market forecast to grow 7.9% in 2018
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- Figure 2: Luxury goods market size and forecast (excl. VAT), 2013-23
- Far East continues to expand the luxury goods market
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- Figure 3: Regional share of luxury goods sales, 2008-17
- Beauty outperforms, but demand for fashion and leather goods also robust
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- Figure 4: Luxury goods sales by product category, 2017
- The consumer
- Decline in the number of people buying luxury goods
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- Figure 5: Consumers who have bought luxury goods in the last 18 months, by country, April/May 2015, May/June 2016, May/June 2017 and June/July 2018
- Luxury consumers continue to favour physical stores
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- Figure 6: Where consumers bought luxury goods in the last 18 months, by country, June/July 2018
- Department stores and specialists remain popular
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- Figure 7: Retailers used to buy luxury goods in the last 18 months, by country, June/July 2018
- Bold branding is growing in popularity again
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- Figure 8: Consumer attitudes towards owning luxury goods, by country, June/July 2018
- Collaborations can strengthen a brand’s appeal
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- Figure 9: Consumer attitudes towards luxury goods and exclusivity, by country, June/July 2018
- Sustainability becomes a priority
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- Figure 10: Consumer attitudes towards luxury goods and sustainability, by country, June/July 2018
- Companies and brands
- Company market shares
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- Figure 11: Top 15 leading luxury companies’ shares of all luxury sales, 2016 and 2017
- Online sales of luxury goods account for 5% of the total market
- Innovation centred on customer experience
- What we think
Issues and Insights
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- The digital evolution of the luxury goods industry
- The facts
- The implications
- Exclusivity vs inclusivity – striking the right balance
- The facts
- The implications
- Ongoing pressure to up the ante on sustainability
- The facts
- The implications
The Luxury Market – What You Need to Know
Market Size and Forecast
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- Global economy
- Mintel’s market size
- The switch to retailing
- Prices and costs
- Market size and outlook
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- Figure 12: Luxury goods market size, reported and total retail sales and forecasts (excl VAT), 2013-23
Product Segmentation
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- Figure 13: Global luxury market, sales by product, 2013-17
- Figure 14: Global luxury market by type of product, 2017
- Fashion and leather goods
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- Figure 15: Global luxury market: fashion and leather goods sales, 2013-17
- Figure 16: Top 10 leading luxury goods companies by share of the fashion and leather goods sector, 2017
- Jewellery and watches
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- Figure 17: Global luxury market: jewellery and watches sales, 2013-17
- Figure 18: Top 10 leading luxury goods companies by share of the jewellery and watches sector, 2017
- Perfumes and cosmetics
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- Figure 19: Global luxury market: perfumes and cosmetics sales, 2013-17
- Figure 20: Top 10 leading luxury goods companies by share of the perfumes and cosmetics sector, 2017
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Regional View
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- Market size by region
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- Figure 21: Luxury goods, sales by region, 2013-17
- Figure 22: Regional share of the luxury goods market, 2008-17
- Country market sizes
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- Figure 23: Wealth per HNWI by region, 2017
- Luxury spending by country
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- Figure 24: Top 10 luxury goods markets, 2013-17
- Figure 25: Top 10 countries in the luxury goods market by share of luxury spending, 2013-17
- Americas
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- Figure 26: The Americas: leading luxury goods markets, 2013-17
- Figure 27: The Americas, luxury markets’ shares of all luxury spending in the Americas, 2013-17
- Asia Pacific
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- Figure 28: Asia Pacific: leading luxury goods markets, 2013-17
- Figure 29: Asia Pacific luxury markets’ share of all luxury spending in the Asia Pacific region, 2013-17
- Europe
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- Figure 30: Europe: leading luxury goods markets, 2013-17
- Figure 31: European luxury markets’ share of all luxury spending in Europe, 2013-17
Market Drivers
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- What are luxury goods?
- 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, 2017
- Regional data
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- Figure 33: Number of HNWIs by region, 2009-17
- Figure 34: Wealth of HNWIs by region, 2010-17
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- Figure 35: Top 10 largest HNWI populations, 2016 and 2017
- Economic background
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- Figure 36: GDP growth in US dollars at current values, 2013-18
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- Figure 37: Leading international currency exchange rates, 2008-18*
- Stock markets
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- Figure 38: Leading stock markets, year-on-year growth, 2012-17
- Threat of trade war
- Tourism
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- Figure 39: International inbound tourism, 2011-17
The Consumer – What You Need to Know
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- Technical note
- Decline in the luxury shoppers
- Physical stores remain important
- Pressure on brands to act for sustainability
- Limited edition product and collaborations boost brand appeal
- Luxury goods perceived as too expensive
Who Buys Luxury Goods
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- Luxury demand remains strongest in China
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- Figure 40: Consumers who have bought luxury goods in the last 18 months, by country, June/July 2018
- Fewer consumers buying luxury goods
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- Figure 41: Consumers who have bought luxury goods in the last 18 months, April/May 2015, May/June 2016, May/June 2017 and June/July 2018
- Male shoppers still more engaged
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- Figure 42: Consumers who have bought luxury goods in the last 18 months, by gender, June/July 2018
- Young continue to buoy the market
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- Figure 43: Consumers who have bought luxury goods in the last 18 months, by age, June/July 2018
- Affluence is also a key driver
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- Figure 44: Europe: consumers who have bought luxury goods in the last 18 months, by annual household income, July 2018
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- Figure 45: UK: consumers who have bought luxury goods in the last 18 months, by annual household income, July 2018
- Figure 46: US: consumers who have bought luxury goods in the last 18 months, by annual household income, June 2018
- Female shoppers more important in China
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- Figure 47: China: consumers who have bought luxury goods in the last 18 months, by gender, age and annual household income, June 2018
Where They Shop for Luxury Goods
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- Most still shop in-store in home country
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- Figure 48: Where consumers bought luxury goods in the last 18 months, by country, June/July 2018
- Uplift in Chinese spending abroad
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- Figure 49: China: where consumers bought luxury goods abroad in the last 18 months, June 2018
- Department stores remain popular
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- Figure 50: Retailers used to buy luxury goods in the last 18 months, by country, June/July 2018
- Luxury customer profiles by country
- China: vintage stores appeal to younger consumers
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- Figure 51: China: where consumers bought luxury goods in the last 18 months, by age and annual household income, June 2018
- Italy: duty free usage highest amongst affluent shoppers
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- Figure 52: Italy: where consumers bought luxury goods in the last 18 months, by age and annual household income, July 2018
- Spain: online-only retailers attract a different audience
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- Figure 53: Spain: where consumers bought luxury goods in the last 18 months, by age and annual household income, July 2018
- UK: affluent head straight to the designer’s store or website
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- Figure 54: UK: where consumers bought luxury goods in the last 18 months, by age and annual household income, July 2018
- US: multibrand pureplay usage peaks amongst younger customers
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- Figure 55: US: where consumers bought luxury goods in the last 18 months, by age and annual household income, June 2018
- Germany: designer outlets appeal to high earners
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- Figure 56: Germany: where consumers bought luxury goods in the last 18 months, by age and annual household income, July 2018
- France: young and affluent most inclined to buy second-hand goods
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- Figure 57: France: where consumers bought luxury goods in the last 18 months, by age and annual household income, July 2018
Attitudes towards Luxury Goods
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- Why do consumers buy into luxury brands?
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- Figure 58: Consumer attitudes towards purchasing luxury goods, June/July 2018
- Italy: young consumers wait for special occasions
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- Figure 59: Italy: consumer attitudes towards purchasing luxury goods, by age, July 2018
- France: women want to buy into the luxury lifestyle
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- Figure 60: France: consumer attitudes towards purchasing luxury goods, by gender, July 2018
- Owning luxury goods makes people feel good
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- Figure 61: Consumer attitudes towards owning luxury goods, by country, June/July 2018
- US: men shop to make themselves stand out
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- Figure 62: US: consumer attitudes towards owning luxury goods, by gender, June 2018
- UK: young Brits want brands that reflect their personality
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- Figure 63: UK: consumer attitudes towards owning luxury goods, by age, July 2018
- Limited edition products can help brand retain exclusivity
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- Figure 64: Consumer attitudes towards luxury goods and exclusivity, by country, June/July 2018
- Spain: young most likely to buy into designer collaborations
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- Figure 65: Spain: consumer attitudes towards luxury goods and exclusivity, by age, July 2018
- China: men want brands to be exclusive
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- Figure 66: China: consumer attitudes towards luxury goods and exclusivity, by gender, June 2018
- Just how important is sustainability to luxury shoppers?
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- Figure 67: Consumer attitudes towards luxury goods and sustainability, by country, June/July 2018
- Germany: older consumers show most concern about luxury ethics
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- Figure 68: Germany: consumer attitudes towards luxury goods and sustainability, by age, July 2018
Reasons for Not Purchasing Luxury Goods
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- Consumers would rather spend money on other things
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- Figure 69: Reasons for not purchasing luxury goods in the last 18 months, by country, June/July 2018
- Non-luxury customer profiles by country
- China: affluent consumers worry luxury goods aren’t ethical enough
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- Figure 70: China: consumers’ reasons for not purchasing luxury goods in the last 18 months, June 2018
- Italy: Millennials think luxury brands are too expensive
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- Figure 71: Italy: consumers’ reasons for not purchasing luxury goods in the last 18 months, July 2018
- Spain: older generation prefer to spend money on something else
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- Figure 72: Spain: consumers’ reasons for not purchasing luxury goods in the last 18 months, July 2018
- UK: younger demographic have concerns about luxury ethics
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- Figure 73: UK: consumers’ reasons for not purchasing luxury goods in the last 18 months, July 2018
- US: higher earners think luxury products are pretentious
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- Figure 74: US: consumers’ reasons for not purchasing luxury goods in the last 18 months, June 2018
- Germany: low earners don’t feel luxury goods are better quality
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- Figure 75: Germany: consumers’ reasons for not purchasing luxury goods in the last 18 months, July 2018
- France: affluent struggle to find what they are looking for
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- Figure 76: France: consumers’ reasons for not purchasing luxury goods in the last 18 months, July 2018
Companies and Brands – What You Need to Know
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- LVMH is the world’s largest luxury group by revenue
- Kering the strongest CAGR
- Revenue growth up across all regions
- Online sales of luxury goods account for 5% of the total market
Innovation and Launch Activity
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- Breakfast at Tiffany’s
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- Figure 77: Tiffany’s take on Breakfast at Tiffany’s –The Blue Box Cafe, November 2017
- Gucci turns to augmented reality
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- Figure 78: Gucci Spring/Summer 2018 AR campaign, titled ‘The Gucci Hallucination’
- Harvey Nichols’ not so little ‘Black Book’
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- Figure 79: Harvey Nichols partnership with Hero
- MatchesFashion London townhouse
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- Figure 80: Matchesfashion.com London townhouse at 5 Carlos place London, May 2018
- Stella McCartney’s sustainable store
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- Figure 81: Luxury leather alternative Mylo™ made from mycelium
- Gucci’s ‘Artlab’
- See-Now-Buy-Now with Burberry
- Menswear at Moda Operandi
- Farfetch and Chanel partnership
- YNAP communicates via WhatsApp
- One-click with Oyst
- Hermès connects with consumers through play
- Customisation at Burberry and Ralph Lauren
- Design collaborations from Louis Vuitton
- RIMOWA benefits from LVMH acquisition
- Activewear everywhere
Online and Social Media
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- The market
- The outlook
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- Figure 82: Patek Philippe Instagram debut, 2018
- The brands online
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- Figure 83: Major luxury brands: number of markets with transactional websites, 2016-18
- Pureplay luxury e-tailers
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- Figure 84: Martha Louisa footwear, 2018
- The consumer: shopping online
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- Figure 85: Where luxury consumers purchased luxury products in the last 18 months, by country, June/July 2018
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- Figure 86: Type of online channel luxury brands were purchased from, by country, June/July 2018
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- Figure 87: Luxury buyers who research luxury purchases more than other purchases, by country, June/July 2018
- Social media
- Prada case study
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- Figure 88: Postman Dreams 2 series, by Prada, 2017
- Figure 89: Prada Nylon Farm, 2018
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- Figure 90: Lil Miquela showcasing Prada on Instagram, 2018
Company Metrics
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- Figure 91: Leading luxury companies, by net revenues, 2015-17
- Revenue growth rates
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- Figure 92: Leading luxury companies, % CAGR in revenues, 2012-17
- Product revenue mix
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- Figure 93: Leading luxury companies, revenue by product group, 2017
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- Figure 94: Leading luxury companies, percentage point change in product mix by product group revenue, 2013-17
- Regional revenue growth
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- Figure 95: Leading luxury companies, total revenue by region, 2013-17
- Store numbers
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- Figure 96: Selected leading luxury retailers, estimated store numbers, 2017
- Brand ownership
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- Figure 97: Brand ownership, by leading luxury companies, 2018
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Market Shares
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- Figure 98: Top 20 luxury goods groups, share of all luxury goods sales, 2015-17
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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
- The dream team
- A greater focus on leather goods
- Collaborations
- Digital focus
- Burberry rainbow check design
- Cracking down on counterfeits
- Company background
- Company performance
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- Figure 99: Burberry Group Plc: group financial performance, 2013/14-2017/18
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- Figure 100: Burberry Group Plc: revenue by product division, 2013/14-2017/18
- Figure 101: Burberry Group Plc: outlet data, 2013/14-2017/18
- E-commerce
Estée Lauder
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- What we think
- Too faced and BECCA forecast to contribute to 2% of annual sales
- Further influencer partnerships
- #Beautyhub partnership with Debenhams
- Access to a beauty expert is as easy as reaching for your phone
- Boost continues from Millennials
- Company background
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- Figure 102: Estée Lauder Companies brand map, 2018
- Company performance
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- Figure 103: Estée Lauder Companies: group financial performance, 2012/13-2017/18
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- Figure 104: Estée Lauder Companies: group financial performance, by region, 2012/13-2016/17
- Figure 105: Estée Lauder Companies: group financial performance, by product category, 2012/13-2016/17
- E-commerce
Giorgio Armani
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- What we think
- Could do better when it comes to e-commerce
- Succession plans clearer but no news on successor
- Exposure to department stores sector could become a problem
- Company background
- Company performance
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- Figure 106: Giorgio Armani: group financial performance, 2012-17
- E-commerce
Hermès
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- What we think
- Hermès.com spreads its reach
- Growth in workforce
- Let’s play!
- Highlights commitment to sustainability
- Company background
- Company performance
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- Figure 107: Hermès: financial performance, 2013-17
- Figure 108: Hermès: sales by product category, 2016-17
- Q1 2018
- E-commerce
Kering
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- What we think
- Expanding e-commerce footprint
- Gucci puts sustainability and transparency in the spotlight
- New retail concepts to excite customers and drive footfall
- Bag and sneaker personalisation
- Testing luxury fashion and accessories rental service
- Gucci launches luxury home décor collection
- Company background
- Company performance
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- Figure 109: Kering: financial performance, 2013-17
- Figure 110: Kering Luxury: breakdown of revenue by region, 2013-17
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- Figure 111: Kering Luxury: directly-operated stores, 2016-17
- E-commerce
L'Oréal Luxe
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- What we think
- Accessible luxury boosts Chinese spending
- David Beckham in partnership with L'Oréal Luxe
- L’Oréal ‘s new paper-based bottle
- Company background
- Company performance
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- Figure 112: L'Oréal group: net revenues by division, 2013-17
- Figure 113: L'Oréal Luxe: financial performance, 2013-17
- E-commerce
LVMH
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- What we think
- RIMOWA gains greater brand awareness
- Christian Dior Couture continues with excellent momentum
- Launch of 24Sèvres.com
- What next?
- Company background
- Christian Dior Couture
- Company performance
- Excellent 2018 first half
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- Figure 114: LVMH Group: financial performance, 2013-17
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- Figure 115: LVMH: distribution of revenues by region, 2013-17
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- Figure 116: LVMH: geographic distribution of revenues by product category, 2013-17
- Wholesale/retail
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- Figure 117: LVMH: sales by type of distribution (excluding Louis Vuitton and Christian Dior Couture), 2013-17
- Figure 118: LVMH: outlet portfolio, 2016 and 2017
- E-commerce
Prada Group
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- What we think
- The devil clicks Prada
- A family affair
- Exclusive collaborations
- Celebrities showcase the brand
- Company background
- Company performance
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- Figure 119: Prada: group financial performance, 2013/14-2017
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- Figure 120: Prada: group net revenue breakdown, by channel, 2013/14-2017
- Figure 121: Prada: group retail revenue breakdown, by brand, 2013/14-2017
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- Figure 122: Prada: group retail revenue breakdown, by market, 2016/17-2017
- Figure 123: Prada: group retail revenue breakdown, by product line, 2013/14-2017
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- Figure 124: Prada: directly-operated stores, 2013/14-2017
- E-commerce
Ralph Lauren
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- What we think
- Brand damage and dilution
- Accelerating digital sales growth a priority
- China a key growth market for Ralph Lauren
- Increasing its focus on customisation
- Company background
- Company performance
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- Figure 125: Ralph Lauren Corporation: group financial performance, 2013/14-2017/18
- Figure 126: Ralph Lauren Corporation: global directly-operated stores and concessions, 2013/14-2017/18
- E-commerce
Richemont
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- What we think
- Cartier rereleases classic designs
- Richemont succeeds in its bid for YNAP
- Chloe and Dunhill welcome new creative directors in 2017
- A celebration of the life of Alaïa
- What next
- Company background
- Company performance
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- Figure 127: Richemont: group financial performance, 2013/14-2017/18
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- Figure 128: Richemont: revenues by region, 2013/14-2017/18
- Figure 129: Richemont: revenues by product, 2013/14-2017/18
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- Figure 130: Richemont: revenues by maison, 2013/14-2017/18
- Figure 131: Richemont Group: outlet numbers and transactional websites, 2016/17-2017/18
- YNAP: company performance
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- Figure 132: YNAP Group: group financial performance, 2014-17
- E-commerce
Shiseido
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- What we think
- Luxury brands come first
- Shiseido embraces personalisation
- Environmental issues come to the fore
- Company background
- Company performance
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- Figure 133: Shiseido: group financial performance, 2012/13-2017
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- Figure 134: Shiseido: outlet data, 2012/13-2017
- E-commerce
Swatch Group – Luxury
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- What we think
- An opportunity to extend personalisation to the luxury range
- Swatch Pay contactless payment taps into growth of contactless payment
- Experimenting with new retail formats
- Move online in the US could signal change of strategy
- Company background
- Company performance
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- Figure 135: Swatch Group: financial performance by brand, 2013-17
- Figure 136: Swatch Group: net sales by region, 2013-17
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- Figure 137: Swatch Group: watches and jewellery segment financial performance, 2013-17
- Retail operations
- E-commerce
Tapestry
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- What we think
- New name to reflect the group’s brand and product diversity
- Turnaround plan for Kate Spade
- Targeting younger shoppers
- Stuart Weitzman debuts handbag and jewellery collections and new store concept
- Extending customisation options to more stores and product categories
- Handbag specialist expands product offering with touchscreen smartwatch
- Company background
- Company performance
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- Figure 138: Coach Inc.: group financial performance, 2012/13-2016/17
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- Figure 139: Coach Inc.: net sales, by region, 2012/13-2016/17
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- Figure 140: Coach Inc.: Coach product sales breakdown, 2012/13-2016/17
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- Figure 141: Coach Inc.: directly-operated store data, 2013/14-2016/17
- E-commerce
Tiffany & Co.
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- What we think
- Shop renovation programme helping boost same-store sales growth
- Diversifying its product range to appeal to a wider audience
- Celebrity-driven campaigns to appeal to a younger audience
- New ‘everyday luxury’ range a shift away from special occasion jewellery
- Breakfast at Tiffany's
- Company background
- Company performance
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- Figure 142: Tiffany & Co.: group financial performance, 2013/14-2017/18
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- Figure 143: Tiffany & Co.: company-operated stores and estimated sales per outlet, 2013/14-2017/18
- E-commerce
Tod’s Group
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- What we think
- Multiple collections throughout the year
- Reaching out to China’s high-end shoppers
- New ideas and concepts to drive store sales
- Bespoke upgrade for iconic driving shoe
- Collaborating with social media celebrities
- Banking on Kendall Jenner to better engage with a younger audience
- Company background
- Company performance
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- Figure 144: Tod’s Group: financial performance, 2013-17
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- Figure 145: Tod’s Group: sales, by region, 2016-17
- Figure 146: Tod’s Group: sales, by product type, 2016-17
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- Figure 147: Tod’s Group: sales, by brand, 2016-17
- Breakdown of sales by distribution channel
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- Figure 148: Tod’s Group: sales by distribution channel, 2016-17
- E-commerce
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