Global Luxury Goods Market Report: 2015 Edition
Luxury goods refer to products which are commonly characterized by their premium quality, craftsmanship, recognizability, exclusivity and reputation. These high-end goods tend to satisfy socio-psychological needs in greater form and bring esteem to the owner. Fondness for all forms of luxury like fashion products, accessories, bags & cases, cosmetics & fragrances, vehicles, utility gadgets, beverages and interior decoration products, has been seen since many centuries. In economic terms, luxury goods are the ones for which the law of demand is reverse i.e. the demand for such products increases with price.
Luxury is usually stratified in three layers viz. Accessible, Aspirational and Absolute. A few other factors which determine the degree of luxury are price, uniqueness, availability, promotion, and brand among others. Moreover, the luxury industry usually covers products like perfumes and cosmetics; hard luxury; cognac; handbags and cases; furniture; vehicles, etc. These products are sold through wholesale, retail or online channels.
Improving global economy, rising disposable income and wealth, growing consumption of luxury goods by middle class population and continuous global urbanization are all major factors that are fueling the development of global luxury goods market. Growth of this market is directly associated with macro indicators, including real GDP, tourist arrivals, wealth, and disposable income. One of the main drivers to propel the growth of this market is the booming business of online personal luxury goods. The emergence of an off-price pricing strategy in the global online luxury goods market is making personal luxury goods accessible to a greater number of individuals since they can compare the prices of different products and make the final deal. Further, men are increasing their contribution to this market by making more purchases.
This report analyzes the development of the "global luxury goods market", with a focus on some of the major segments including cars, wines and spirits, and jewelry. The mature market of Europe along with emerging market of China is being discussed in the report. The major trends, drivers facilitating growth of the luxury goods market as well as the issues being faced by the industry are being presented in this report. The four major players in the luxury goods industry include LVMH, Kering Group, Hermes International and Richemont are being profiled in the report highlighting their key financials and strategies for growth.
By combining SPSS Inc.’s data integration and analysis capabilities with our relevant findings, we have predicted the future growth of the industry. We employed various significant variables affecting this industry and created regression models with SPSS Base to determine the future direction of the industry. Before deploying the regression model, the relationship between several independent or predictor variables and the dependent variable was analyzed using standard SPSS output, including charts, tables and tests.
Luxury is usually stratified in three layers viz. Accessible, Aspirational and Absolute. A few other factors which determine the degree of luxury are price, uniqueness, availability, promotion, and brand among others. Moreover, the luxury industry usually covers products like perfumes and cosmetics; hard luxury; cognac; handbags and cases; furniture; vehicles, etc. These products are sold through wholesale, retail or online channels.
Improving global economy, rising disposable income and wealth, growing consumption of luxury goods by middle class population and continuous global urbanization are all major factors that are fueling the development of global luxury goods market. Growth of this market is directly associated with macro indicators, including real GDP, tourist arrivals, wealth, and disposable income. One of the main drivers to propel the growth of this market is the booming business of online personal luxury goods. The emergence of an off-price pricing strategy in the global online luxury goods market is making personal luxury goods accessible to a greater number of individuals since they can compare the prices of different products and make the final deal. Further, men are increasing their contribution to this market by making more purchases.
This report analyzes the development of the "global luxury goods market", with a focus on some of the major segments including cars, wines and spirits, and jewelry. The mature market of Europe along with emerging market of China is being discussed in the report. The major trends, drivers facilitating growth of the luxury goods market as well as the issues being faced by the industry are being presented in this report. The four major players in the luxury goods industry include LVMH, Kering Group, Hermes International and Richemont are being profiled in the report highlighting their key financials and strategies for growth.
By combining SPSS Inc.’s data integration and analysis capabilities with our relevant findings, we have predicted the future growth of the industry. We employed various significant variables affecting this industry and created regression models with SPSS Base to determine the future direction of the industry. Before deploying the regression model, the relationship between several independent or predictor variables and the dependent variable was analyzed using standard SPSS output, including charts, tables and tests.
1. MARKET OVERVIEW
1.1 Introduction
1.2 Types of Luxury
1.3 Channels of Distribution
2. MARKET SIZE
2.1 Global Luxury Goods Market
2.1.1 Luxury Goods Market – e-Commerce Channel
2.1.2 Luxury Goods Market: Retail vs. Wholesale
2.2 Luxury Market by Segment
2.2.1 Jewellery
Total Market Value
Fine Jewellery
Luxury Jewellery
2.2.2 Luxury Cars
Market Value
Regional Breakdown
2.2.3 Wines, Spirits and Cognac
Market Value
Cognac Shipments
Champagne Shipments
2.2.4 Watches
Swiss Watch Export Revenues
Exporting Countries
Importing Countries
2.3 Luxury Goods Market by Region
Breakdown by Region
Spending per Capita Comparison
2.3.1 China
Market Value
Shopping Destinations
Growth by Segments
2.3.2 Europe
Market Value
3. MARKET DYNAMICS
3.1 Key Trends
3.1.1 Travel Continues to Boost Luxury Industry
3.1.2 Dynamic Gender Preferences
3.1.3 Luxury Shoe Market
3.1.4 Demand for Alternate Luxury Goods
3.1.5 Pre-owned/ Second-hand Luxury Goods Market
3.2 Growth Drivers
3.2.1 Increasing Number of High Net Worth Individuals
3.2.2 Global Economic Growth
3.2.3 Growing Demand from Emerging Markets
3.2.4 Boosting e-Commerce via Increased Internet Penetration
3.3 Challenges
3.3.1 High Import Tariffs/Duties
3.3.2 Counterfeiting Of Luxury Goods
4. COMPETITIVE LANDSCAPE
5. COMPANY PROFILES
5.1 LVMH Moet Hennessy Louis Vuitton
5.1.1 Business Overview
5.1.2 Financial Overview
5.1.3 Business Strategies
Value Creation for Customers
Growth through Strategic Collaborations
5.2 Hermes International SCA
5.2.1 Business Overview
5.2.2 Financial Overview
5.2.3 Business Strategies
Expansion of Product Portfolio
Growth through Innovative Products
5.3 Richemont
5.3.1 Business Overview
5.3.2 Financial Overview
5.3.3 Business Strategies
Autonomy to Maisons
Growth through Innovation & Acquisitions
5.4 Kering
5.4.1 Business Overview
5.4.2 Financial Overview
5.4.3 Business Strategies
Organic Growth of Current Brands
Pursue Strategic Acquisitions
6. MARKET OUTLOOK
6.1 Market Forecast
6.2 Forecast Methodology
6.2.1 Dependent and Independent Variables
6.2.2 Correlation Analysis
6.2.3 Regression Analysis
1.1 Introduction
1.2 Types of Luxury
1.3 Channels of Distribution
2. MARKET SIZE
2.1 Global Luxury Goods Market
2.1.1 Luxury Goods Market – e-Commerce Channel
2.1.2 Luxury Goods Market: Retail vs. Wholesale
2.2 Luxury Market by Segment
2.2.1 Jewellery
Total Market Value
Fine Jewellery
Luxury Jewellery
2.2.2 Luxury Cars
Market Value
Regional Breakdown
2.2.3 Wines, Spirits and Cognac
Market Value
Cognac Shipments
Champagne Shipments
2.2.4 Watches
Swiss Watch Export Revenues
Exporting Countries
Importing Countries
2.3 Luxury Goods Market by Region
Breakdown by Region
Spending per Capita Comparison
2.3.1 China
Market Value
Shopping Destinations
Growth by Segments
2.3.2 Europe
Market Value
3. MARKET DYNAMICS
3.1 Key Trends
3.1.1 Travel Continues to Boost Luxury Industry
3.1.2 Dynamic Gender Preferences
3.1.3 Luxury Shoe Market
3.1.4 Demand for Alternate Luxury Goods
3.1.5 Pre-owned/ Second-hand Luxury Goods Market
3.2 Growth Drivers
3.2.1 Increasing Number of High Net Worth Individuals
3.2.2 Global Economic Growth
3.2.3 Growing Demand from Emerging Markets
3.2.4 Boosting e-Commerce via Increased Internet Penetration
3.3 Challenges
3.3.1 High Import Tariffs/Duties
3.3.2 Counterfeiting Of Luxury Goods
4. COMPETITIVE LANDSCAPE
5. COMPANY PROFILES
5.1 LVMH Moet Hennessy Louis Vuitton
5.1.1 Business Overview
5.1.2 Financial Overview
5.1.3 Business Strategies
Value Creation for Customers
Growth through Strategic Collaborations
5.2 Hermes International SCA
5.2.1 Business Overview
5.2.2 Financial Overview
5.2.3 Business Strategies
Expansion of Product Portfolio
Growth through Innovative Products
5.3 Richemont
5.3.1 Business Overview
5.3.2 Financial Overview
5.3.3 Business Strategies
Autonomy to Maisons
Growth through Innovation & Acquisitions
5.4 Kering
5.4.1 Business Overview
5.4.2 Financial Overview
5.4.3 Business Strategies
Organic Growth of Current Brands
Pursue Strategic Acquisitions
6. MARKET OUTLOOK
6.1 Market Forecast
6.2 Forecast Methodology
6.2.1 Dependent and Independent Variables
6.2.2 Correlation Analysis
6.2.3 Regression Analysis
LIST OF CHARTS
Characteristics of Luxury Products
Various Routes of Luxury Goods in Reaching the Customers
Global Personal Luxury Goods Market Size (2007-2014E)
Global Online Personal Luxury Goods Market (2007-2014E)
Global Luxury Good Market: Retail vs. Wholesale (2014E)
Global Luxury Good Broken Down by Channel (2014E)
Global Luxury Market Breakdown by Segment (2014E)
Global Personal Luxury Goods Market Breakdown by Sub-Segment (2014E)
Global Jewellery Market Size (2000 vs. 2013)
Global Branded Fine Jewellery Market Size (2000 vs. 2012)
Global Luxury Jewellery Market Size (2007-2013)
Global Jewellery Market Share by Countries (2013)
Branded Jewellery Revenue Share by Players (2013)
Global Luxury Cars Market Size (2010-2014E)
Global Luxury Cars Market Share by Region (2013E)
Global Luxury Wines & Spirits Market (2010-2014E)
High-end Cognac Shipment Share by Quality Type (2012/2013)
Global Champagne Shipments by Volume (2006-2013)
Swiss Watch Export Revenues (2006-2013)
Composition of Swiss Watches - Units and Revenues by Material (2013)
Swiss Watch Market Exports by Region (2013)
Revenues of Major Swiss Watch Exporting Countries (2013)
Major Swiss importing Countries (2013)
Global Watch Market: Market Share by Brands (2013)
Global Luxury Goods Market Share by Geography (2014E)
Luxury Spending Per Capita (US$)
Local Currency Growth of Global Luxury Goods Market - Top 10 Countries (2013-2014E)
China HNWI – Preferred Source of Information (2014)
Mainland China’s Demand for Luxury Goods (2008-2014E)
Number of Cities with Disposable Income Per Capita > RMB 17K and > 5M Population
Chinese Millionaires Luxury Goods Duty Free Shopping Destinations (2014)
Europe’s Luxury Goods Market Revenues (2010-2014E)
Share of Sales to Tourist vs. Domestic for European Major Countries (2013E)
Global Premium Bag & Accessories Market (FY08, FY13 & FY18)
Luxury Shoe Market Revenue (2012-2015E)
Growth of HNIs’ Wealth and Population (2008-2013)
HNWI Population by Country (2012 vs. 2013)
Global GDP (2005-2014)
GDP Growth Rate & Luxury Goods Industry Growth (Ex Forex) – (2009-2015E)
Online Personal Luxury Goods Market Sales (2011-2014E)
Global Internet Users (2000 vs. 2014E)
Global Internet Penetration Rate by Region (June 30, 2014E)
LVMH’s Revenue Share by Business Segments (2014)
LVMH’s Revenue Share by Geographic Region (2014)
LVMH’s Revenues and Net Profit (2009-2014)
Hermes’ Revenue Share by Segment (2013)
Hermes’ Revenue Share by Geographic Region (2013)
Hermes Consolidated Revenues and Recurring Operating Income (2009-2013)
Richemont’s Revenue Share by Business Segments (FY14)
Richemont’s Sales by Geographic Region (FY14)
Richemont Sales Revenues (FY10-FY14)
Kering’s Revenue Share by Business Segments (2014)
Kering’s Revenue Share by Geographic Region (2014)
Kering’s Revenues and Operating Income (2013-2014)
Global Luxury Goods Market Forecast (2012-2017E)
Characteristics of Luxury Products
Various Routes of Luxury Goods in Reaching the Customers
Global Personal Luxury Goods Market Size (2007-2014E)
Global Online Personal Luxury Goods Market (2007-2014E)
Global Luxury Good Market: Retail vs. Wholesale (2014E)
Global Luxury Good Broken Down by Channel (2014E)
Global Luxury Market Breakdown by Segment (2014E)
Global Personal Luxury Goods Market Breakdown by Sub-Segment (2014E)
Global Jewellery Market Size (2000 vs. 2013)
Global Branded Fine Jewellery Market Size (2000 vs. 2012)
Global Luxury Jewellery Market Size (2007-2013)
Global Jewellery Market Share by Countries (2013)
Branded Jewellery Revenue Share by Players (2013)
Global Luxury Cars Market Size (2010-2014E)
Global Luxury Cars Market Share by Region (2013E)
Global Luxury Wines & Spirits Market (2010-2014E)
High-end Cognac Shipment Share by Quality Type (2012/2013)
Global Champagne Shipments by Volume (2006-2013)
Swiss Watch Export Revenues (2006-2013)
Composition of Swiss Watches - Units and Revenues by Material (2013)
Swiss Watch Market Exports by Region (2013)
Revenues of Major Swiss Watch Exporting Countries (2013)
Major Swiss importing Countries (2013)
Global Watch Market: Market Share by Brands (2013)
Global Luxury Goods Market Share by Geography (2014E)
Luxury Spending Per Capita (US$)
Local Currency Growth of Global Luxury Goods Market - Top 10 Countries (2013-2014E)
China HNWI – Preferred Source of Information (2014)
Mainland China’s Demand for Luxury Goods (2008-2014E)
Number of Cities with Disposable Income Per Capita > RMB 17K and > 5M Population
Chinese Millionaires Luxury Goods Duty Free Shopping Destinations (2014)
Europe’s Luxury Goods Market Revenues (2010-2014E)
Share of Sales to Tourist vs. Domestic for European Major Countries (2013E)
Global Premium Bag & Accessories Market (FY08, FY13 & FY18)
Luxury Shoe Market Revenue (2012-2015E)
Growth of HNIs’ Wealth and Population (2008-2013)
HNWI Population by Country (2012 vs. 2013)
Global GDP (2005-2014)
GDP Growth Rate & Luxury Goods Industry Growth (Ex Forex) – (2009-2015E)
Online Personal Luxury Goods Market Sales (2011-2014E)
Global Internet Users (2000 vs. 2014E)
Global Internet Penetration Rate by Region (June 30, 2014E)
LVMH’s Revenue Share by Business Segments (2014)
LVMH’s Revenue Share by Geographic Region (2014)
LVMH’s Revenues and Net Profit (2009-2014)
Hermes’ Revenue Share by Segment (2013)
Hermes’ Revenue Share by Geographic Region (2013)
Hermes Consolidated Revenues and Recurring Operating Income (2009-2013)
Richemont’s Revenue Share by Business Segments (FY14)
Richemont’s Sales by Geographic Region (FY14)
Richemont Sales Revenues (FY10-FY14)
Kering’s Revenue Share by Business Segments (2014)
Kering’s Revenue Share by Geographic Region (2014)
Kering’s Revenues and Operating Income (2013-2014)
Global Luxury Goods Market Forecast (2012-2017E)
LIST OF TABLES
Difference between Regular and Luxury Goods
Types of Luxury Segment
Luxury Goods’ Industry Classification
Country-wise Champagne Exports by Volume & Quantity (2013)
Positioning of Watch Brands by Pricing Points (2014E)
Luxury Goods Industry Percentage Share by Customer Nationality (2000-2014E)
Y-O-Y Growth Rate by Category in China (2012-2013)
Affordable Luxury Brands Growth in Percent (2010-2013)
Composition of Global HNWI Population by Wealth Bands (2013)
Organic Sales Growth Comparison of Major Players in Luxury Goods Market
Comparison of Four Largest Luxury Goods Companies – Key Financials, (2014)
Organic Sales Growth Estimates (FY13-FY16)
Reported EBIT Growth (FY13-FY16)
Difference between Regular and Luxury Goods
Types of Luxury Segment
Luxury Goods’ Industry Classification
Country-wise Champagne Exports by Volume & Quantity (2013)
Positioning of Watch Brands by Pricing Points (2014E)
Luxury Goods Industry Percentage Share by Customer Nationality (2000-2014E)
Y-O-Y Growth Rate by Category in China (2012-2013)
Affordable Luxury Brands Growth in Percent (2010-2013)
Composition of Global HNWI Population by Wealth Bands (2013)
Organic Sales Growth Comparison of Major Players in Luxury Goods Market
Comparison of Four Largest Luxury Goods Companies – Key Financials, (2014)
Organic Sales Growth Estimates (FY13-FY16)
Reported EBIT Growth (FY13-FY16)
