Table of Contents
Executive Summary
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- The market
- Growth in the luxury goods market accelerated in 2018
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- Figure 2: Luxury goods market size, reported and total retail sales and forecasts (excl VAT), 2014-24
- Asia Pacific continues to capture a bigger share of the market
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- Figure 3: Luxury goods, sales by region, 2009-18
- Fashion and leather goods is the best performing category
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- Figure 4: Global luxury market by type of product, 2018
- The consumer
- Fewer consumers buying luxury goods in Germany
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- Figure 5: Consumers who have bought luxury goods in the last 18 months, April/May 2015, May/June 2016, May/June 2017, June/July 2018 and June 2019
- Beauty, clothing and footwear most purchased
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- Figure 6: Types of luxury goods bought in the last 18 months, June 2019
- Rising number of consumers shopping online
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- Figure 7: Where luxury goods were bought in the last 18 months, June 2019
- Consumers in China are boycotting brands
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- Figure 8: Luxury consumer behaviours, June 2019
- Frequency is important to luxury shoppers
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- Figure 9: Attitudes towards luxury goods, June 2019
- Companies and brands
- Market shares
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- Figure 10: Top 10 luxury goods groups, share of all luxury goods sales, 2018
- Online growth continues to outpace the wider market
- Innovation focused on young consumers
- What we think
- Influence of new creative leaders
- Beauty facing masstige competition
- The need to be sustainable and inclusive
- Frequent range updates in demand
Issues and Insights
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- The changing face of luxury
- The facts
- The implications
- The importance of innovation
- The facts
- The implications
The Market – What You Need to Know
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- Slowing economy could subdue future growth
- Fashion and leather goods continue to perform well
- Recovery in Americas and Far East takes hold
- A decline in the HNWI population threatens market
Market Size and Forecast
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- The global economy
- Mintel’s market size methodology
- The switch to retailing
- Mintel’s market size and forecast
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- Figure 11: Luxury goods market size, reported and total retail sales and forecasts (excl VAT), 2014-24
Product Segmentation
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- Mintel’s segmentation methodology
- Market size breakdown
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- Figure 12: Global luxury market by type of product, 2018
- Figure 13: Global luxury market, sales by product, 2009-18
- Fashion and leather goods
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- Figure 14: Global luxury market: fashion and leather goods sales, 2014-18
- Figure 15: Top 10 leading luxury goods companies by share of the fashion and leather goods sector, 2018
- Jewellery and watches
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- Figure 16: Global luxury market: jewellery and watches sales, 2014-18
- Figure 17: Top 10 leading luxury goods companies by share of the jewellery and watches sector, 2018
- Perfumes and cosmetics
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- Figure 18: Global luxury market: perfumes and cosmetics sales, 2014-18
- Figure 19: Top 10 leading luxury goods companies by share of the perfumes and cosmetics sector, 2018
Regional Breakdown
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- Mintel’s segmentation methodology
- Market size breakdown
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- Figure 20: Luxury goods, sales by region, 2014-18
- Share of market by region
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- Figure 21: Regional share of the luxury goods market, 2018
- Figure 22: Luxury goods, percentage of sales by region, 2009-18
- Country market sizes
- Spend per capita
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- Figure 23: Wealth per HNWI by region, 2018
- Luxury spending by country
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- Figure 24: Top 10 luxury goods markets, 2014-18
- Figure 25: Top 10 countries in the luxury goods market by share of luxury spending, 2014-18
- Americas
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- Figure 26: The Americas: leading luxury goods markets, 2014-18
- Figure 27: The Americas, luxury markets’ shares of all luxury spending in the Americas, 2014-18
- Asia Pacific
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- Figure 28: Asia Pacific: leading luxury goods markets, 2014-18
- Figure 29: Asia Pacific luxury markets’ share of all luxury spending in the Asia Pacific region, 2014-18
- Europe
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- Figure 30: Europe: leading luxury goods markets, 2014-18
- Figure 31: European luxury markets’ share of all luxury spending in Europe, 2014-18
Market Drivers
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- Economic background
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- Figure 32: GDP growth in real and constant prices, 2015-19
- Global uncertainty: The trade war between the US and China
- Global uncertainty: Brexit
- Currency
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- Figure 33: Leading international currency exchange rates, 2008-19
- The who, where and why of the luxury goods consumer
- Who?
- High Net Wealth Individuals (HNWIs)
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- Figure 34: Numbers and share of wealth of HNWIs, 2018
- HNWIs: Regional view
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- Figure 35: Number of HNWIs by region, 2009-18
- Figure 36: Wealth of HNWIs by region, 2010-18
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- Figure 37: Top 10 largest HNWI populations, 2017 and 2018
- HENRY joins the party
- Where?
- Shopping channels
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- Figure 38: Retailers used to buy luxury goods in the last 18 months, June/July 2018
- Buying outside of the home market
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- Figure 39: International inbound tourism, 2005-18
The Consumer – What You Need to Know
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- Technical note
- Demand stable in most regions
- Product preferences vary by market
- Rising online penetration
- Sustainability concerns boosting the resale market
- Young luxury shoppers demand more
Who Buys Luxury Goods
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- Stability in the market
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- Figure 40: Consumers who have bought luxury goods in the last 18 months, April/May 2015, May/June 2016, May/June 2017, June/July 2018 and June 2019
- Young drive the Chinese luxury market
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- Figure 41: China: consumers who have bought luxury goods in the last 18 months, by gender, age and monthly household income, June 2019
- Men remain more engaged
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- Figure 42: Consumers who have bought luxury goods in the last 18 months, by gender, June 2019
- Purchasing influenced by age globally
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- Figure 43: Consumers who have bought luxury goods in the last 18 months, by age, June 2019
- Affluence inevitably also plays a part
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- Figure 44: Europe: consumers who have bought luxury goods in the last 18 months, by monthly household income, June 2019
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- Figure 45: US: consumers who have bought luxury goods in the last 18 months, by annual household income, June 2019
- Figure 46: UK: consumers who have bought luxury goods in the last 18 months, by annual household income, June 2019
What They Buy
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- Changes in luxury purchasing
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- Figure 47: Types of luxury goods bought in the last 18 months, June 2019
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- Figure 48: Breakdown of the types of luxury goods bought in the last 18 months, June 2019
- Luxury customer profiles by country
- China: Bags popular amongst affluent consumers
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- Figure 49: China: types of luxury goods bought in the last 18 months, by monthly household income and age, June 2019
- Italy: Older shoppers drive luxury fragrance purchasing
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- Figure 50: Italy: types of luxury goods bought in the last 18 months, by monthly household income and age, June 2019
- US: Footwear popular amongst less affluent buyers
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- Figure 51: US: types of luxury goods bought in the last 18 months, by annual household income and age, June 2019
- Spain: Jewellery and watch purchasing driven by young
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- Figure 52: Spain: types of luxury goods bought in the last 18 months, by monthly household income and age, June 2019
- UK: Affluent more likely to buy luxury childrenswear
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- Figure 53: UK: types of luxury goods bought in the last 18 months, by annual household income and age, June 2019
- France: An appetite for prestige beauty amongst older consumers
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- Figure 54: France: types of luxury goods bought in the last 18 months, by monthly household income and age, June 2019
- Germany: Luxury fragrance buyers age the customer profile
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- Figure 55: Germany: types of luxury goods bought in the last 18 months, by monthly household income and age, June 2019
Where They Shop
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- Most luxury buyers shop at home
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- Figure 56: Where luxury goods were bought in the last 18 months, June 2019
- A decline in domestic purchasing in China and the US
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- Figure 57: Where luxury goods were bought in the last 18 months, in-store in home country, May/June 2017 and June 2019
- Fewer British tourists are buying luxury goods abroad
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- Figure 58: Where luxury goods were bought in the last 18 months, in-store abroad, May/June 2017 and June 2019
- France is the primary destination for Chinese luxury shoppers
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- Figure 59: China: where consumers bought luxury goods abroad in the last 18 months, June 2019
- More US luxury consumers shopping online
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- Figure 60: Where luxury goods were bought in the last 18 months, online, May/June 2017 and June 2019
Luxury Consumer Behaviours
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- Resale market gaining momentum
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- Figure 61: Luxury consumer behaviours, June 2019
- Discount purchasing is common
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- Figure 62: Luxury consumer shopping behaviours, June 2019
- China: Young are willing to boycott brands
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- Figure 63: China: luxury consumer behaviours, by age, June 2019
- Europe: Young men are particularly savvy
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- Figure 64: Europe: luxury consumer behaviours, by age and gender, June 2019
- US: Renting peaks amongst 25-34s
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- Figure 65: US: luxury consumer behaviours, by age, June 2019
- UK: Second-hand buying strongest amongst older millennials
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- Figure 66: UK: luxury consumer behaviours, by age, June 2019
Attitudes Towards Luxury Goods
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- Sustainability efforts lack conviction
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- Figure 67: Attitudes towards luxury goods, June 2019
- China: Young deterred by prolific discounting
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- Figure 68: China: attitudes towards luxury goods, by age, June 2019
- Europe: Older consumers want more provenance
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- Figure 69: Europe: attitudes towards luxury goods, by age, June 2019
- US: Demand for diversity amongst young
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- Figure 70: US: attitudes towards luxury goods, by age, June 2019
- UK: 24-44s driven by experiences
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- Figure 71: UK: attitudes towards luxury goods, by age, June 2019
Companies and Brands – What You Need to Know
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- Aggregate sales up in all regions in 2018
- Acquisitions provide a boost to revenues
- Leading players strengthen their position
- Online is becoming more important
- Young shoppers are shaping the industry
Company Metrics
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- Figure 72: Leading luxury companies, by net revenues, 2016-18
- Revenue growth rates
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- Figure 73: Leading luxury companies, % CAGR in revenues, 2013-18
- Product revenue mix
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- Figure 74: Leading luxury companies, revenue by product group, 2018
- Figure 75: Leading luxury companies, revenue by product group (continued), 2018
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- Figure 76: Leading luxury companies, percentage point change in product mix by product group revenue, 2014-18
- Regional revenue growth
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- Figure 77: Leading luxury companies, total revenue by region, 2014-18
- Store numbers
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- Figure 78: Selected leading luxury retailers, estimated store numbers, 2018
- Brand ownership
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- Figure 79: Brand ownership, by leading luxury companies, 2019
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Market Shares
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- Consolidation in the luxury goods market
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- Figure 80: Top 10 luxury goods groups’ shares of all luxury goods sales, 2018
- Figure 81: Top 20 luxury goods groups, share of all luxury goods sales, 2016-18
Online and Social Media
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- The market
- The outlook
- The allure of luxury e-commerce
- An opportunity for online growth in India
- The brands online
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- Figure 82: Major luxury brands: Number of markets with transactional websites, 2016-19
- Pureplay luxury e-tailers
- Social media
- Get with the program! How luxury brands are using WeChat’s Mini Programs
- Check out Instagram’s latest feature
Launch Activity and Innovation
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- Upping the ante on sustainability
- Animal welfare becomes a priority
- New ways to boost customer experience
- Pop-ups create hype
- Paying homage to brand heritage
- Virtual try-before-you buy
- Challenging luxury
- Ongoing brand extension
- New stores focus on the next generation
Giorgio Armani
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- What we think
- Brand restructuring should improve sales with wholesale accounts
- Exploring growth through pop-up shops
- What next?
- Company background
- Company performance
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- Figure 83: Giorgio Armani: group financial performance, 2012-18
- E-commerce
Burberry Group
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- What we think
- New contemporary logo to reflect new vision and repositioning strategy under new chief creative director
- Collaborations
- Reducing in-store technology
- Internationals Women’s Day
- Ramps up sustainable and eco-credentials
- Company background
- Company performance
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- Figure 84: Burberry Group Plc: Group financial performance, 2014/15-2018/19
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- Figure 85: Burberry Group Plc: revenue by product division, 2014/15-2018/19
- Figure 86: Burberry Group Plc: outlet data, 2014/15-2018/19
- E-commerce
Hermès
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- What we think
- The Chinese hunger for luxury
- Pop-up shops offering personalisation
- The face of Hermès cosmetics and skincare
- Plastic-free packaging on upcoming cosmetics and skin care
- What next?
- Company background
- Company performance
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- Figure 87: Hermès: financial performance, 2014-18
- Figure 88: Hermès: sales by product category, 2016-18
- Q1 2019
- E-commerce
Kering
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- What we think
- Flagship Gucci brand experiencing slower growth
- Revitalised in-store shopping experience helping drive directly-operated store sales
- Stepping up its own digital operations and taking e-commerce in-house
- Moving towards a more sustainable and eco-friendly luxury fashion house
- Company background
- Company performance
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- Figure 89: Kering: Financial performance, 2014-18
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- Figure 90: Kering Luxury: Breakdown of revenue by region, 2013-18
- Figure 91: Kering Luxury: Directly-operated stores, 2017-18
- E-commerce
Estée Lauder
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- What we think
- Estée Lauder showcases latest research into anti-ageing
- Estée Lauder expands its Animal Welfare Partnerships
- Estée Lauder raises outlook of Leading Beauty Forward initiative
- Company background
- Company performance
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- Figure 92: Estée Lauder Companies: group financial performance, 2013/14-2017/18
- Figure 93: Estée Lauder Companies: Group financial performance, by region, 2013/14-2017/18
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- Figure 94: Estée Lauder Companies: Group financial performance, by product category, 2013/14-2017/18
- E-commerce
Ralph Lauren
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- What we think
- Social media celebrities to woo high-spending younger consumers
- Accelerating push into streetwear to win over millennials
- Bricks-and-mortar expansion focused on China
- Pushing further into the digital space
- New commitment to boost eco-friendly credentials
- Company background
- Company performance
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- Figure 95: Ralph Lauren Corporation: Group financial performance, 2014/15-2018/19
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- Figure 96: Ralph Lauren Corporation: Global directly-operated stores and concessions, 2014/15-2018/19
- E-commerce
L’Oréal Luxe
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- What we think
- L’Oréal launches AI powered Mobile Acne Analysis App with Alibaba
- L’Oréal revolutionises the plastic lifecycle with Carbios
- L’Oréal confirms exclusive negotiation for acquiring Mugler and Azzaro
- Company background
- Company performance
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- Figure 97: L’Oréal group: net revenues b division, 2014-18
- Figure 98: L’Oréal Luxe: financial; performance, 2014-18
- E-commerce
LVMH
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- What we think
- A diverse and balanced group
- Acquisitions and launches boost diversity
- Digital is the future
- Commitment to France
- What next?
- Company background
- Company performance
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- Figure 99: LVMH Group: financial performance, 2014-18
- Figure 100: LVMH: Distribution of luxury revenues by region, 2014-18
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- Figure 101: LVMH: geographic distribution of total revenues by product category, 2014-18
- Wholesale/retail
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- Figure 102: LVMH: sales by type of distribution, 2014-18
- Figure 103: LVMH: outlet portfolio, 2017 and 2018
- Figure 104: LVMH: Store numbers by Maison (division), 2018
- Brands
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- Figure 105: LVMH: Brands by ‘Maisons’, 2019
- E-commerce
Prada Group
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- What we think
- Shaping a digital future for Prada
- Partnerships with e-tailers
- Investing in a sustainable and environmentally-friendly makeover
- Prada stops end-of-season markdowns to protect its brand
- What’s next?
- Company background
- Company performance
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- Figure 106: Prada: group financial performance, 2013-18
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- Figure 107: Prada: group net revenues breakdown, by channel, 2013-18
- Figure 108: Prada: group net retail revenues breakdown, by brand, 2013-18
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- Figure 109: Prada: group net retail revenues breakdown, by region, 2013-18
- Figure 110: Prada: group net retail revenues breakdown, by product line, 2013-18
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- Figure 111: Prada: directly operated stores, 2013-18
- E-commerce
Richemont
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- What we think
- YNAP’s post-Richemont acquisition figures send out mixed messages
- YNAP acquisition will boost online presence of Richemont’s other brands
- Being part of Richemont opens up access to more brands for YNAP
- Partnership with Alibaba takes Richemont deeper into China
- What next?
- Company background
- Company performance
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- Figure 112: Richemont: group financial performance, 2014/15-2018/19
- Figure 113: Richemont: revenues by region, 2014/15-2018/19
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- Figure 114: Richemont: revenues by product, 2014/15-2018/19
- Figure 115: Richemont: revenues by maison, 2014/15-2018/19
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- Figure 116: Richemont Group: outlet numbers and transactional websites, 2017/18-2018/19
- Figure 117: YNAP Group: group financial performance, 2015-2018/19
Shiseido
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- What we think
- Shiseido partners with Alibaba to accelerate growth
- Shiseido ups its green efforts
- Shiseido launches IoT skincare service, Optune
- Integrating foundation and medicated skincare
- Company background
- Company performance
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- Figure 118: Shiseido: group financial performance, 2014/15-2018
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- Figure 119: Shiseido: Group Financial performance, by region, 2014/15-2018
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- Figure 120: Shiseido: Group sales performance, by region, 2017-18
- Q1 2019
- E-commerce
Swatch Group
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- What we think
- Growth expected to continue across all product ranges
- Swatch Group withdraws from Baselworld to hold its own fair in 2019
- After success in China, Swatch Pay contactless payment comes to Switzerland
- Positive outlook in spite of potential turbulence from the Chinese market
- Where next?
- Company background
- Company performance
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- Figure 121: Swatch Group: financial performance by brand, 2013-18
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- Figure 122: Swatch Group: net sales by region, 2013-18
- Figure 123: Swatch Group: watches and jewellery segment, financial performance, 2013-18
- Retail operations
- E-commerce
Tapestry
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- What we think
- Building a house of brands
- Expanded product offering sales offsetting sluggish women’s handbag revenue
- Maximising opportunities with Chinese consumers
- Reducing its environmental impact
- Company background
- Company performance
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- Figure 124: Tapestry Inc.: Group financial performance, 2013/14-2017/18
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- Figure 125: Tapestry Inc.: Net sales, by region, 2013/14-2017/18
- Figure 126: Tapestry Inc.: Product sales breakdown, 2013/14-2017/18
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- Figure 127: Tapestry Inc.: Directly-operated stores, 2013/14-2017/18
- E-commerce
Tiffany & Co.
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- What we think
- Continuous investment in marketing and public relations
- Stronger presence in digital and social media
- Selling through emotions
- Serious about diamond sourcing
- What next?
- Company background
- Company performance
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- Figure 128: Tiffany & Co., sales performance by jewellery category, 2018/19
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- Figure 129: Tiffany & Co.: group financial performance, 2013/14-2018/19
- Figure 130: Tiffany & Co.: company-operated stores and estimated sales per outlet, 2013/14-2018/19
- E-commerce
Tod’s Group
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- What we think
- More frequent product launches and collaborations
- Directly-operated store sales bounce on back of new boutique concept
- Maximising digital opportunities with newly acquired e-commerce business
- Company background
- Company performance
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- Figure 131: Tod’s Group: Financial performance, 2014-18
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- Figure 132: Tod’s Group: sales, by region, 2017-18
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- Figure 133: Tod’s Group: Sales by product type, 2017-18
- Figure 134: Tod’s Group: Sales, by brand, 2017-18
- Breakdown of sales by distribution channel
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- Figure 135: Tod’s Group: sales by distribution channel, 2017-18
- E-commerce
Appendix – Data Sources, Abbreviations and Supporting Information
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- Data Sources
- Abbreviations
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