luxury goods online pricing
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See Appendix (on p91) for Analyst Certifi cation, Important Disclosures and Non-US Research Analyst disclosures.
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NEW YORKExane Inc.640 Fifth Avenue15th FloorNew York, NY 10019 USATel: (+1) 212 634 4990Fax: (+1) 212 634 5171 WHY YOU SHOULD READ THIS REPORT
Pricing is a fundamental area of analysis in luxury goods. Higher prices correlate with superior margin performance and faster growth. A correlation with “Made in” highlights a “cost plus” pricing approach by most brands.
We ascertain here the hard facts on online pricing for the same 30 luxury brands we track in the USA in the Online Offer Dive, covering a total of 39,395 models.
Handbags act as a price differentiator, while entry price categories (eyewear, fragrances, cosmetics, and small leather goods) have fl atter price structures.
We vividly demonstrate “category segregation” at Hermès, and confi rm mega-brand price leadership by LV and Cartier. Only a handful of brands exclude the very high-end from their online offer.
8 OCTOBER 2015
Luca SolcaHui Fan ContactLabMarco PozziAlexandra BertasioDavide Sarra
Luxury Goods
Digital Luxury: Online Pricing Landscape SS15
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All Exane research documents are available to all clients simultaneously on the Exane website (www.exanebnpparibas-equities.com). Most published research is also available via third-party aggregators such as Bloomberg, Multex, Factset and Capital IQ. Exane is not responsible for the redistribution of research by third-party aggregators.
Important notice: Please refer to our complete disclosure notice available on www.exane.com/compliance
This research is produced by one or more of EXANE SA, EXANE Limited and Exane Inc (collectively referred to as “EXANE”) . EXANE SA is authorized by the Autorité de Contrôle Prudentiel et de Résolution and regulated by the Autorité des Marchés Financiers (“AMF”). EXANE Limited is authorized and regulated by the Financial Conduct Authority (“FCA”). Exane Inc is registered and regulated by the Financial Industry Regulatory Authority (“FINRA”). In accordance with the requirements of FCA COBS 12.2.3R and associated guidance, of article 313-20 of the AMF Règlement Général, and of FINRA Rule 2711, Exane’s policy for managing confl icts of interest in relation to investment research is published on Exane’s web site (www.exane.com). Exane also follows the guidelines described in the code of conduct of the Association Francaise des Entreprises d’Investissement (“AFEI”) on managing confl icts of interest in the fi eld of investment research. This code of conduct is available on Exane’s web site (www.exane.com).
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Exane BNP ParibasLuca Solca(+44) 203 430 8503luca.solca@exanebnpparibas.com
Hui Fan(+44) 203 430 8507hui.fan@exanebnpparibas.com
ContactLabMarco Pozzi(+39) 02 28 31 181marco.pozzi@contactlab.com
Alexandra Bertasio(+39) 02 28 31 181alexandra.bertasio@contactlab.com
Davide Sarra(+39) 02 28 31 181davide.sarra@contactlab.com
LUXURY GOODS
Digital Luxury:
Online Pricing Landscape SS15
8 OCTOBER 2015 We continue our partnership with ContactLab to ascertain quantitative hard facts on the pricing
of the luxury brands’ online product offerings. We have analysed the 30 brands in the USA that
we track in Online Offer Dive - SS 2015, covering a total of 39,395 models.
Pricing is a fundamental area of analysis in luxury goods Higher prices correlate with superior profit performance (especially for premium and mega-
brands), although other factors are at play, including off-price involvement and retail/wholesale
balance. Higher priced brands seem to have shown higher growth. The close correlation of
"Made in" heritage countries and price position suggests a "cost plus" strategy by most brands.
Luxury goods products available for purchase online span a very significant price rangeThis seems to disprove the perception that luxury players may be using the internet and e-
commerce to promote their entry price point products only. In fact, prices extend well beyond
USD100k in Jewellery and in RTW. Even in accessible product categories such as Eyewear
maximum prices exceed EUR2k. Price depth, calculated as the range of MAX price / MIN price,
varies from a minimum of c.34x in Eyewear to a maximum of c.6,000x in Jewellery.
Online pricing of our 30 benchmark brands is consistent with physical price positioning Five of the 10 most expensive brands (by median price of the products online) are ‘high end’:
Loro Piana, SL, BV, Hermès, Cucinelli. Surprisingly, runner-up Givenchy and D&G make
systematically part of the top 10 in most categories. Among jewellers, Cartier is more expensive
than Bulgari, which is more expensive than Tiffany. LV is the most expensive of the leather
goods mega-brands, followed by Prada and Gucci. The six least expensive brands are all
“premium” brands.
Several brands exclude the very top of their offer from online purchase For LV, products not available for purchase online are on average 70% more expensive.
Hermès aggressively pursues a ‘category segregation’ strategy with compelling entry price
points in Soft Accessories and Home Accessories — using bags as the category for taking the
high ground.
Luca Solca (+44) 203 430 8503 luca.solca@exanebnpparibas.com
Hui Fan (+44) 203 430 8507 hui.fan@exanebnpparibas.com
ContactLab
Marco Pozzi (+39) 02 28 31 181 marco.pozzi@contactlab.com
Alexandra Bertasio (+39) 02 28 31 181 alexandra.bertasio@contactlab.com
Davide Sarra (+39) 02 28 31 181 davide.sarra@contactlab.com
Exane BNP Paribas Research & ContactLab Luxury Goods 8 October 2015 page 2
We continue our partnership with ContactLab, the leading e-mail and CRM provider to the luxury industry, to ascertain quantitative hard facts on the pricing of the luxury brands’ online product offerings. We have analysed the 30 brands in the USA that we track in LUXURY GOODS: Online Offer Dive - SS 2015, covering a total of 39,395 Models.
Pricing is a fundamental area of analysis in luxury goods
Even a first level analysis shows that higher prices correlate with superior profit performance, especially for premium and mega-brands, although other important factors are at play, including off-price involvement and retail/wholesale balance. Higher priced brands seem to have shown higher growth. The close correlation of "Made in" heritage countries and price position suggests a ‘cost-plus’ strategy by most brands. But this is only part of the story. We will get back to pricing with more research in due course.
Luxury goods products available for purchase online span a very significant price range
This seems to disprove the perception that luxury players may be using the internet and e-commerce to promote their entry price point products only. In fact, prices extend well beyond USD100k in, for example, Jewellery and in RTW. Even in accessible product categories such as Eyewear maximum prices exceed EUR2k. Price depth, calculated as the range of MAX price / MIN price, varies from a minimum of c.34x in Eyewear to a maximum of c.6,000x in Jewellery.
Online pricing among our 30 benchmark brands is consistent with physical price positioning
Unsurprisingly, ‘high-end’ brands top our league. Five out of the 10 most expensive brands (in terms of median price of the products they sell online) are ‘high end’: Loro Piana, Saint Laurent, Bottega Veneta, Hermès, Brunello Cucinelli. Among the jewellery brands, Cartier is more expensive than Bulgari, which is in turn more expensive than Tiffany. Louis Vuitton is the most expensive of the leather goods mega-brands, followed by Prada, and Gucci. Again expectedly, the six least expensive brands are all ‘premium’ brands.
Several brands exclude the very top of their offer from online purchase
In the case of Louis Vuitton, for example, products not available for online purchase are on average 70% more expensive. Hermès does not offer the Birkin or Kelly for online purchase.
Chanel and Dior limit their online ‘Shoppable’ offer to Fragrances and Cosmetics. Hermès aggressively pursues a ‘category segregation’ strategy with compelling entry price points in Soft Accessories and Home Accessories, in some cases lower than many competitors’, using bags as the category with which to take the high ground.
Exane BNP Paribas Research & ContactLab Luxury Goods 8 October 2015 page 3
Pricing is a fundamental area of analysis in luxury goods. Even a first level analysis shows that higher prices correlate with superior profit performance, especially for premium and mega-brands, although other important factors are at play, including off-price involvement and retail/wholesale balance. Higher priced brands seem to have shown higher growth. The close correlation of "Made in" heritage countries and price position suggests a ‘cost-plus’ strategy by most brands. But this is only part of the story. We will get back to pricing with more research in due course.
Figure 1: Higher prices correlate with superior profit performance (especially for premium and mega-brands) - although other factors such as off-price involvement and retail/wholesale balance are at play Average EBITDA margin 2012-14 vs overall product range median price (%, USD, US, SS15)
Source: ContactLab Analysis
Figure 2: Higher priced brands seem to have benefited from higher growth recently (1/2) Revenue CAGR 2011–14 (%) vs. Overall product range median price (%, USD, US, SS15)
Source: ContactLab Analysis
Armani
Bottega Veneta
Brunello Cucinelli
Burberry
Coach
Ferragamo
Gucci
Hermès
Hugo Boss
Michael Kors
Prada
Ralph Lauren
Saint Laurent
TiffanyTod's
Zegna
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0 200 400 600 800 1000 1200
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Overall Product Range Median Price (USD)
Armani
Bottega Veneta
Brunello Cucinelli
Burberry
Coach
Ferragamo
Gucci
Hermès
Hugo Boss
Prada
Ralph Lauren
Saint Laurent
TiffanyTod's
Valentino
Zegna
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Exane BNP Paribas Research & ContactLab Luxury Goods 8 October 2015 page 4
Figure 3: Higher priced brands seem to have benefited from higher growth recently (2/2) Revenue CAGR 2011–14 (%) vs overall product range entry price (%, USD, US, SS15)
Source: ContactLab Analysis
Figure 4: High correlation of ‘Made in’ heritage countries and price position suggests a ‘cost-plus’ strategy by most competitors Correlation of prices and % of production in Heritage countries (R2)
Source: ContactLab Analysis
Armani
Bottega Veneta
Brunello Cucinelli
Burberry
Coach
Ferragamo
Gucci
Hermès
Hugo Boss
Prada
Ralph Lauren
Saint Laurent
Tiffany
Tod's
Valentino
Zegna
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Overall Product Range Entry Price (Bottom Quintile Average Prices, USD)
MEDIAN PRICES ENTRY PRICES
OVERALL PRODUCT RANGE 0.58 0.64
BAGS 0.72 0.71
SHOES 0.60 0.80
SOFT ACCESSORIES 0.57 0.66
SLG 0.66 0.64
Exane BNP Paribas Research & ContactLab Luxury Goods 8 October 2015 page 5
Luxury goods products available for purchase online span a very significant price range
This seems to disprove the perception that luxury players may be using the internet and e-commerce to promote their entry price point products only. In fact, prices extend well beyond USD100k in, for example, Jewellery and in RTW. Even in accessible product categories such as Eyewear maximum prices exceed EUR2k. Price depth, calculated as the range of MAX price / MIN price, varies from a minimum of c.34x in Eyewear to a maximum of c.6,000x in Jewellery.
Figure 5: Luxury products available for purchase online span a very significant price range. This seems to disprove the perception that luxury players use the internet and e-commerce to promote their entry price point products only Price range by category (Shoppable models, USD, US, SS15)
Source: ContactLab Analysis
Max Min Ratio (x)
Eyewear $2,220 $65 34
Beauty & Fragrances $4,200 $18 233
Watches $42,200 $88 480
Small Leather Goods $22,625 $38 595
Shoes $19,594 $25 784
Soft Accessories $27,664 $30 922
Bags $49,300 $30 1,643
Home Accessories $65,000 $14 4,643
Jewellery $147,800 $24 6,158
Children’s Wear & Accessories $28,000 $5 5,600
RTW $120,000 $8 15,000
Significantly impacted by sub-category mix
Exane BNP Paribas Research & ContactLab Luxury Goods 8 October 2015 page 6
Figure 6: Max prices even in Accessible product categories like Eyewear extend to over EUR 2k Eyewear mix by brand (Shoppable models, USD, US, SS15) – Ranked by median price
Source: ContactLab Analysis
BrandRanking
Median PriceMedian Price
Ranking Avge Bottom Quintile
Avge Bottom Quintile
Delta%Median-ABQ
Max Price Avge Price Min Price Models (#)
Loro Piana 1 $1,042 1 $1,042 0% $1,590 $1,155 $1,042 8
Cartier 2 $890 2 $575 -35% $2,220 $1,027 $500 53
Louis Vuitton 3 $635 3 $570 -10% $825 $643 $515 98
Balenciaga 4 $515 6 $338 -34% $675 $493 $330 7
Bottega Veneta 5 $465 4 $398 -14% $1,155 $607 $375 13
Bulgari 6 $400 5 $349 -13% $590 $413 $330 45
Tod's 7 $395 8 $303 -23% $455 $384 $275 7
Zegna 8 $380 13 $247 -35% $1,260 $484 $230 11
Saint Laurent 9 $345 7 $320 -7% $395 $352 $310 45
Ferragamo 10 $325 12 $259 -20% $495 $315 $235 70
Gucci 10 $325 10 $274 -16% $1,195 $339 $195 201
Moncler 10 $325 9 $278 -14% $510 $349 $270 16
Tiffany 13 $300 11 $273 -9% $480 $329 $260 80
Prada 13 $300 14 $245 -18% $625 $303 $220 165
Burberry 15 $230 15 $213 -8% $300 $234 $200 94
Ralph Lauren 16 $215 18 $145 -33% $425 $221 $140 94
Armani 17 $190 21 $97 -49% $500 $220 $65 108
Michael Kors 18 $185 20 $117 -37% $245 $184 $99 37
Coach 19 $184 16 $158 -14% $248 $186 $158 22
Hugo Boss 20 $180 19 $134 -25% $325 $188 $115 82
Tory Burch 21 $175 17 $157 -10% $250 $183 $145 39
AVERAGE $329 $265 -19% $2,220 $347 $65 1,304
EYEWEAR
Exane BNP Paribas Research & ContactLab Luxury Goods 8 October 2015 page 7
Figure 7: Beauty & Fragrances, the most accessible product category, with median prices between USD55 and USD110, is heavily exploited by high-end brands in a classic "category segregation" approach Beauty & Fragrance mix by brand (Shoppable models, USD, US, SS15) – Ranked by median price
Source: ContactLab Analysis
BrandRanking
Median PriceMedian Price
Ranking Avge Bottom Quintile
Avge Bottom Quintile
Delta%Median-ABQ
Max Price Avge Price Min Price Models (#)
Balenciaga 1 $110 3 $75 -32% $145 $106 $70 17
Ferragamo 1 $110 4 $71 -35% $250 $138 $60 21
Hermès 1 $110 8 $52 -53% $405 $127 $31 169
Cartier 4 $105 9 $51 -51% $375 $125 $31 74
Tiffany 5 $100 5 $67 -33% $170 $110 $60 13
Bottega Veneta 6 $95 10 $47 -50% $475 $109 $42 29
Coach 6 $95 1 $95 0% $95 $95 $95 3
Valentino 8 $88 2 $75 -15% $117 $93 $75 3
Zegna 9 $78 11 $37 -53% $285 $109 $20 23
Chanel 10 $77 15 $31 -59% $4,200 $141 $20 348
Prada 10 $77 7 $57 -26% $114 $79 $54 14
Hugo Boss 12 $75 6 $65 -13% $140 $87 $60 23
Ralph Lauren 13 $71 17 $30 -58% $105 $65 $19 28
Bulgari 14 $65 13 $33 -49% $148 $66 $27 90
Gucci 14 $65 12 $35 -46% $200 $69 $27 121
Armani 16 $62 16 $30 -51% $410 $83 $20 206
Michael Kors 17 $60 19 $28 -54% $108 $64 $18 38
Tory Burch 17 $60 14 $32 -47% $140 $69 $25 15
Burberry 19 $57 20 $28 -52% $2,700 $102 $20 103
Dior 20 $55 18 $28 -49% $2,000 $89 $20 281
AVERAGE $74 $36 -51% $4,200 $103 $18 1,619
BEAUTY & FRAGRANCES
Exane BNP Paribas Research & ContactLab Luxury Goods 8 October 2015 page 8
Figure 8: Small Leather Goods is among the categories with the most similar entry prices Small leather goods mix by brand (Shoppable models, USD, US, SS15) – Ranked by median price
Source: ContactLab Analysis
BrandRanking
Median PriceMedian Price
Ranking Avge Bottom Quintile
Avge Bottom Quintile
Delta%Median-ABQ
Max Price Avge Price Min Price Models (#)
Hermès 1 $880 2 $490 -44% $22,625 $1,869 $225 95
Givenchy 2 $795 1 $495 -38% $2,550 $937 $445 10
Loro Piana 3 $728 7 $339 -53% $4,077 $1,230 $224 33
Brunello Cucinelli 4 $660 3 $440 -33% $1,470 $713 $375 13
Bottega Veneta 5 $650 5 $381 -41% $14,500 $823 $230 189
Louis Vuitton 6 $633 6 $364 -42% $3,500 $685 $205 256
Cartier 7 $590 4 $384 -35% $1,550 $618 $150 83
Bulgari 8 $530 8 $327 -38% $1,100 $613 $220 44
Balenciaga 9 $525 17 $230 -56% $835 $467 $155 31
Dolce&Gabbana 10 $495 9 $289 -42% $2,995 $631 $175 43
Valentino 11 $485 12 $277 -43% $825 $515 $195 12
Saint Laurent 12 $470 10 $284 -40% $1,490 $560 $175 102
Burberry 13 $465 14 $273 -41% $11,000 $660 $150 193
Prada 14 $440 13 $273 -38% $1,550 $481 $180 151
Gucci 15 $420 15 $267 -36% $4,600 $567 $140 359
Ferragamo 16 $380 11 $281 -26% $1,350 $428 $195 192
Tod's 17 $375 16 $244 -35% $850 $416 $195 57
Tiffany 18 $350 19 $118 -66% $2,500 $423 $65 33
Zegna 19 $295 18 $169 -43% $540 $285 $140 25
Armani 20 $275 23 $82 -70% $2,125 $281 $40 255
Tory Burch 21 $185 22 $85 -54% $295 $174 $55 64
Ralph Lauren 22 $165 25 $59 -64% $2,500 $319 $38 260
Coach 23 $160 20 $96 -40% $798 $179 $50 95
Michael Kors 24 $138 24 $80 -42% $750 $200 $45 83
Hugo Boss 25 $118 21 $89 -24% $425 $137 $65 94
AVERAGE $417 $239 -43% $22,625 $539 $38 2,772
SMALL LEATHER GOODS
Exane BNP Paribas Research & ContactLab Luxury Goods 8 October 2015 page 9
Figure 9: Soft Accessories are used by most brands as an entry point, with broadly similar entry prices. This is the same approach as in Small Leather Good Soft accessories mix by brand (Shoppable models, USD, US, SS15) – Ranked by median price
Source: ContactLab Analysis
BrandRanking
Median PriceMedian Price
Ranking Avge Bottom Quintile
Avge Bottom Quintile
Delta%Median-ABQ
Max Price Avge Price Min Price Models (#)
Loro Piana 1 $1,176 4 $379 -68% $27,664 $2,700 $112 166
Givenchy 2 $643 1 $568 -12% $765 $644 $545 8
Saint Laurent 3 $475 8 $238 -50% $2,390 $612 $145 53
Louis Vuitton 4 $473 11 $202 -57% $3,750 $604 $150 104
Balenciaga 5 $465 3 $385 -17% $695 $495 $385 5
Prada 6 $460 2 $460 0% $460 $460 $460 7
Hermès 7 $450 13 $194 -57% $9,350 $519 $135 381
Gucci 8 $443 6 $243 -45% $2,850 $549 $145 138
Cartier 9 $435 5 $330 -24% $910 $451 $330 10
Dolce&Gabbana 10 $425 7 $239 -44% $1,375 $491 $185 50
Tiffany 11 $395 20 $100 -75% $595 $398 $100 5
Bottega Veneta 12 $390 12 $200 -49% $1,380 $434 $200 59
Burberry 13 $375 15 $160 -57% $4,895 $470 $85 149
Brunello Cucinell 14 $295 16 $158 -47% $1,805 $613 $130 29
Valentino 14 $295 10 $209 -29% $1,445 $434 $150 23
Bulgari 16 $265 9 $215 -19% $850 $302 $215 28
Zegna 17 $205 17 $143 -30% $675 $216 $100 29
Armani 18 $195 22 $84 -57% $1,325 $253 $39 219
Coach 18 $195 19 $106 -46% $295 $190 $95 15
Ferragamo 20 $190 14 $190 0% $690 $264 $190 93
Tory Burch 21 $175 18 $133 -24% $385 $185 $95 31
Ralph Lauren 22 $120 24 $45 -62% $1,950 $144 $30 423
Michael Kors 23 $98 21 $87 -11% $1,695 $272 $48 29
Hugo Boss 24 $95 23 $50 -47% $295 $104 $30 177
AVERAGE $353 $160 -55% $27,664 $526 $30 2,231
SOFT ACCESSORIES
Exane BNP Paribas Research & ContactLab Luxury Goods 8 October 2015 page 10
Figure 10: Ralph Lauren surprisingly leads the watches category in both median and max price — followed by jewellers Cartier, Bulgari and Tiffany Watches mix by brand (Shoppable models, USD, US, SS15) – Ranked by median price
Source: ContactLab Analysis
BrandRanking
Median PriceMedian Price
Ranking Avge Bottom Quintile
Avge Bottom Quintile
Delta%Median-ABQ
Max Price Avge Price Min Price Models (#)
Ralph Lauren 1 $11,500 4 $2,870 -75% $42,200 $12,296 $2,300 47
Cartier 2 $9,100 2 $4,075 -55% $41,600 $11,507 $2,590 139
Bulgari 3 $7,025 1 $4,693 -33% $9,950 $7,145 $3,200 32
Tiffany 4 $5,000 6 $2,283 -54% $12,600 $5,247 $1,950 44
Louis Vuitton 5 $4,650 3 $3,200 -31% $9,000 $4,842 $3,200 13
Hermès 6 $4,100 5 $2,588 -37% $21,750 $5,766 $2,425 38
Dolce&Gabbana 7 $2,450 7 $1,750 -29% $5,950 $3,450 $1,750 11
Ferragamo 8 $1,495 9 $1,170 -22% $3,295 $1,705 $995 31
Givenchy 9 $1,390 8 $1,390 0% $1,390 $1,390 $1,390 1
Burberry 10 $1,245 10 $705 -43% $18,500 $2,181 $395 62
Gucci 11 $1,020 11 $551 -46% $12,600 $1,490 $195 113
Tory Burch 12 $595 12 $384 -36% $895 $618 $350 37
Armani 13 $345 16 $162 -53% $1,595 $607 $120 91
Michael Kors 14 $263 13 $209 -20% $550 $266 $180 212
Coach 15 $250 14 $175 -30% $498 $257 $88 40
Hugo Boss 16 $243 15 $166 -32% $495 $269 $125 60
AVERAGE $2,953 $1,385 -53% $42,200 $3,579 $88 971
WATCHES
Exane BNP Paribas Research & ContactLab Luxury Goods 8 October 2015 page 11
Figure 11: Shoes stand in the middle ground in terms of price depth (calculated as the ratio of MAX / MIN price). Half of the brands have an entry price between USD550 and USD660 Shoes mix by brand (Shoppable models, USD, US, SS15) – Ranked by median price
Source: ContactLab Analysis
BrandRanking
Median PriceMedian Price
Ranking Avge Bottom Quintile
Avge Bottom Quintile
Delta%Median-ABQ
Max Price Avge Price Min Price Models (#)
Brunello Cucinelli 1 $1,248 1 $887 -29% $1,725 $1,244 $855 24
Givenchy 2 $1,095 3 $642 -41% $3,625 $1,196 $240 61
Valentino 3 $995 6 $618 -38% $5,995 $1,031 $295 129
Loro Piana 4 $946 4 $636 -33% $19,594 $2,172 $549 52
Saint Laurent 5 $925 9 $568 -39% $2,495 $980 $475 145
Hermès 6 $920 2 $684 -26% $3,400 $1,072 $405 133
Louis Vuitton 7 $903 5 $625 -31% $2,130 $943 $425 136
Dolce&Gabbana 8 $895 7 $616 -31% $3,395 $955 $395 121
Prada 9 $750 8 $582 -22% $2,900 $840 $395 115
Bottega Veneta 10 $720 10 $563 -22% $1,750 $773 $390 72
Balenciaga 11 $695 11 $552 -21% $1,565 $748 $515 61
Ferragamo 11 $695 12 $491 -29% $2,700 $770 $195 217
Gucci 13 $660 14 $451 -32% $3,500 $818 $160 396
Burberry 14 $595 16 $349 -41% $1,395 $620 $250 204
Tod's 15 $565 13 $470 -17% $945 $570 $275 135
Zegna 16 $550 15 $382 -31% $795 $547 $350 20
Moncler 17 $490 17 $330 -33% $645 $476 $230 7
Armani 18 $475 21 $115 -76% $1,150 $460 $25 269
Ralph Lauren 19 $450 23 $63 -86% $12,000 $527 $25 337
Hugo Boss 20 $325 18 $195 -40% $1,045 $351 $105 113
Tory Burch 21 $250 20 $119 -52% $525 $248 $50 155
Coach 22 $225 19 $153 -32% $395 $232 $95 61
Michael Kors 23 $198 22 $101 -49% $8,000 $333 $39 263
AVERAGE $616 $374 -39% $19,594 $702 $25 3,226
SHOES
Exane BNP Paribas Research & ContactLab Luxury Goods 8 October 2015 page 12
Figure 12: High-end brands Hermes, Loro Piana and Cucinelli lead the Bags category with higher median price, while mega-brands LV, Gucci and Prada have more models available online Bag mix by brand (Shoppable models, USD, US, SS15) – Ranked by median price
Source: ContactLab Analysis
BrandRanking
Median PriceMedian Price
Ranking Avge Bottom Quintile
Avge Bottom Quintile
Delta%Median-ABQ
Max Price Avge Price Min Price Models (#)
Hermès 1 $5,700 5 $1,704 -70% $30,400 $5,697 $1,000 65
Loro Piana 2 $4,368 3 $1,880 -57% $34,586 $7,910 $1,176 51
Brunello Cucinelli 3 $3,370 1 $2,613 -22% $6,395 $3,592 $2,370 11
Bulgari 4 $3,075 2 $1,996 -35% $28,000 $4,386 $1,550 66
Bottega Veneta 5 $2,805 7 $1,375 -51% $29,600 $3,286 $490 136
Cartier 6 $2,460 4 $1,858 -24% $14,100 $3,464 $1,480 19
Valentino 7 $2,295 6 $1,481 -35% $3,995 $2,356 $1,125 77
Louis Vuitton 8 $2,110 12 $1,041 -51% $5,750 $2,297 $310 367
Givenchy 9 $2,018 9 $1,167 -42% $4,650 $2,056 $1,045 58
Saint Laurent 10 $1,990 10 $1,130 -43% $5,950 $2,038 $650 137
Prada 11 $1,950 13 $1,016 -48% $10,300 $1,981 $750 201
Tiffany 11 $1,950 8 $1,179 -40% $18,000 $2,685 $650 27
Tod's 13 $1,765 11 $1,096 -38% $3,995 $1,831 $425 52
Dolce&Gabbana 14 $1,695 15 $899 -47% $8,895 $1,904 $595 72
Balenciaga 15 $1,685 14 $1,014 -40% $4,650 $1,675 $695 82
Ferragamo 16 $1,650 17 $769 -53% $5,400 $1,785 $520 154
Burberry 17 $1,595 18 $755 -53% $38,000 $3,457 $395 178
Gucci 18 $1,590 16 $811 -49% $49,300 $2,742 $440 327
Ralph Lauren 19 $1,100 24 $213 -81% $21,500 $2,036 $45 293
Zegna 20 $985 19 $535 -46% $2,075 $1,116 $395 9
Moncler 21 $775 20 $508 -35% $2,220 $1,178 $505 7
Hugo Boss 22 $645 21 $377 -42% $2,495 $748 $255 41
Armani 23 $575 26 $129 -77% $5,275 $760 $30 228
Coach 24 $425 23 $234 -45% $1,095 $459 $135 152
Tory Burch 24 $425 22 $251 -41% $1,200 $416 $175 157
Michael Kors 26 $298 25 $172 -42% $20,000 $751 $88 344
AVERAGE $1,566 $760 -51% $49,300 $2,077 $30 3,311
BAGS
Exane BNP Paribas Research & ContactLab Luxury Goods 8 October 2015 page 13
Figure 13: Luxury products available for purchase online span a very significant price range, i.e. Home Accessories, varying from a minimum of USD14 to a maximum of USD65,000 (1/2) Home accessories mix by brand (Shoppable models, USD, US, SS15) – Ranked by median price
Source: ContactLab Analysis
Figure 14: Luxury products available for purchase online span a very significant price range, i.e. Children’s Wear & Accessories, varying from a minimum of USD5 to a maximum of USD28,000, (2/2) Children’s Wear & Accessories mix by brand (Shoppable models, USD, US, SS15) – Ranked by median price
Source: ContactLab Analysis
BrandRanking
Median PriceMedian Price
Ranking Avge Bottom Quintile
Avge Bottom Quintile
Delta%Median-ABQ
Max Price Avge Price Min Price Models (#)
Loro Piana 1 $2,800 3 $473 -83% $32,256 $4,326 $56 62
Cartier 2 $1,625 2 $1,030 -37% $3,250 $1,757 $1,030 6
Dolce&Gabbana 3 $1,195 1 $1,195 0% $1,195 $1,195 $1,195 1
Gucci 4 $1,085 4 $430 -60% $5,050 $1,638 $190 6
Louis Vuitton 5 $590 10 $125 -79% $1,420 $712 $125 3
Burberry 6 $575 5 $268 -53% $3,995 $1,174 $65 23
Hermès 7 $520 9 $127 -76% $62,700 $1,852 $15 617
Bottega Veneta 8 $400 7 $255 -36% $3,500 $686 $180 17
Brunello Cucinelli 8 $400 6 $265 -34% $640 $435 $265 3
Moncler 10 $225 8 $225 0% $225 $225 $225 1
Tiffany 11 $215 11 $83 -61% $65,000 $814 $25 868
Ralph Lauren 12 $185 13 $69 -63% $13,000 $626 $14 1,990
Tory Burch 13 $147 12 $78 -47% $395 $147 $54 56
Armani 14 $95 14 $63 -34% $145 $98 $45 6
Hugo Boss 15 $89 15 $59 -34% $126 $91 $59 3
AVERAGE $300 $94 -69% $65,000 $938 $14 3,662
HOME ACCESSORIES
BrandRanking
Median PriceMedian Price
Ranking Avge Bottom Quintile
Avge Bottom Quintile
Delta%Median-ABQ
Max Price Avge Price Min Price Models (#)
Cartier 1 $2,290 1 $2,150 -6% $2,430 $2,290 $2,150 2
Loro Piana 2 $560 3 $250 -55% $4,872 $862 $179 42
Moncler 3 $340 4 $168 -51% $575 $342 $75 51
Ferragamo 4 $325 2 $325 0% $325 $325 $325 4
Hermès 5 $315 6 $146 -54% $4,125 $489 $55 39
Gucci 6 $260 5 $151 -42% $4,900 $381 $85 493
Tiffany 7 $180 7 $123 -32% $28,000 $1,113 $90 65
Burberry 8 $175 9 $75 -57% $1,695 $229 $50 387
Armani 9 $165 8 $86 -48% $950 $183 $50 277
Hugo Boss 10 $72 10 $45 -37% $286 $94 $25 55
Ralph Lauren 11 $42 11 $14 -67% $495 $51 $5 751
AVERAGE $161 $83 -49% $28,000 $241 $5 2,166
CHILDREN
Exane BNP Paribas Research & ContactLab Luxury Goods 8 October 2015 page 14
Figure 15: Luxury players are not using the internet and e-commerce to promote their entry price point products only. In fact, max prices reach well above USD100k in Jewellery and in RTW (1/2) Jewellery mix by brand (Shoppable models, USD, US, SS15) – Ranked by median price
Source: ContactLab Analysis
BrandRanking
Median PriceMedian Price
Ranking Avge Bottom Quintile
Avge Bottom Quintile
Delta%Median-ABQ
Max Price Avge Price Min Price Models (#)
Bulgari 1 $4,600 3 $720 -84% $69,000 $10,093 $140 179
Cartier 2 $3,425 1 $1,031 -70% $59,500 $5,544 $400 372
Dolce&Gabbana 3 $1,475 2 $738 -50% $1,775 $1,294 $385 17
Tiffany 4 $1,400 11 $258 -82% $120,000 $4,268 $50 2,505
Brunello Cucinelli 5 $1,188 9 $295 -75% $2,115 $1,234 $295 10
Givenchy 6 $765 4 $459 -40% $3,345 $867 $360 59
Hermès 7 $725 5 $408 -44% $147,800 $3,570 $240 540
Gucci 8 $698 10 $260 -63% $17,500 $1,797 $170 194
Prada 9 $680 6 $382 -44% $1,990 $779 $340 28
Louis Vuitton 10 $660 7 $354 -46% $13,400 $1,714 $220 156
Saint Laurent 11 $595 8 $307 -48% $5,795 $786 $165 85
Ferragamo 12 $485 14 $227 -53% $21,000 $1,563 $140 92
Bottega Veneta 13 $430 12 $239 -44% $2,900 $525 $180 85
Valentino 14 $360 19 $106 -70% $795 $338 $40 26
Balenciaga 15 $355 16 $209 -41% $815 $407 $185 41
Zegna 16 $280 13 $229 -18% $560 $300 $190 21
Burberry 17 $275 17 $188 -32% $1,250 $370 $155 31
Tod's 18 $225 15 $225 0% $265 $238 $225 3
Armani 19 $160 18 $117 -27% $1,125 $223 $95 50
Tory Burch 20 $125 21 $77 -39% $1,300 $153 $38 107
Michael Kors 21 $115 22 $65 -43% $425 $113 $45 190
Hugo Boss 21 $115 20 $92 -20% $245 $121 $85 36
Coach 23 $95 23 $59 -38% $795 $111 $38 59
Ralph Lauren 24 $63 24 $29 -55% $1,895 $200 $24 94
AVERAGE $1,318 $334 -75% $147,800 $3,532 $24 4,980
JEWELLERY
Exane BNP Paribas Research & ContactLab Luxury Goods 8 October 2015 page 15
Figure 16: Luxury players are not using the internet and e-commerce to promote their entry price point products only. In fact, max prices reach well above USD100k in Jewellery and in RTW (2/2) RTW mix by brand (Shoppable models, USD, US, SS15) – Ranked by median price
Source: ContactLab Analysis
BrandRanking
Median PriceMedian Price
Ranking Avge Bottom Quintile
Avge Bottom Quintile
Delta%Median-ABQ
Max Price Avge Price Min Price Models (#)
Loro Piana 1 $2,352 4 $516 -78% $44,240 $5,641 $168 380
Givenchy 2 $1,625 2 $595 -63% $65,650 $2,837 $395 154
Valentino 3 $1,440 5 $507 -65% $10,500 $2,208 $90 138
Saint Laurent 4 $1,320 7 $472 -64% $7,590 $1,915 $290 276
Balenciaga 5 $1,285 6 $496 -61% $16,500 $1,633 $305 119
Brunello Cucinelli 6 $1,105 3 $532 -52% $7,795 $1,487 $355 134
Bottega Veneta 7 $1,100 9 $455 -59% $6,900 $1,655 $310 111
Hermès 8 $1,075 11 $260 -76% $9,250 $1,425 $55 123
Moncler 8 $1,075 1 $639 -41% $3,975 $1,213 $360 89
Dolce&Gabbana 10 $995 8 $458 -54% $12,500 $1,546 $65 708
Burberry 10 $995 12 $247 -75% $120,000 $1,618 $30 894
Gucci 12 $990 10 $380 -62% $16,500 $1,730 $110 419
Coach 13 $625 13 $202 -68% $1,895 $730 $95 73
Michael Kors 14 $395 15 $96 -76% $9,995 $949 $20 757
Zegna 15 $360 17 $69 -81% $3,095 $503 $25 156
Tory Burch 16 $275 14 $130 -53% $1,995 $327 $85 309
Armani 17 $210 19 $54 -74% $4,475 $375 $22 2,129
Hugo Boss 18 $205 16 $82 -60% $2,395 $348 $10 1,448
Ralph Lauren 19 $140 18 $56 -60% $8,500 $388 $8 4,736
AVERAGE $476 $159 -66% $120,000 $884 $8 13,153
RTW
Exane BNP Paribas Research & ContactLab Luxury Goods 8 October 2015 page 16
Online pricing among our 30 benchmark brands is consistent with physical price positioning
Unsurprisingly, ‘high-end’ brands top our league. Five out of the 10 most expensive brands (in terms of median price of the products they sell online) are ‘high end’: Loro Piana, Saint Laurent, Bottega Veneta, Hermès, Brunello Cucinelli. Among the jewellery brands, Cartier is more expensive than Bulgari, which is in turn more expensive than Tiffany. Louis Vuitton is the most expensive of the leather goods mega-brands, followed by Prada, and Gucci. Again expectedly, the six least expensive brands are all ‘premium’ brands.
Figure 17: Price depth varies among Luxury goods brands - from a minimum of 20x at Tod’s to a maximum of c.9800x at Hermes Price range by brand (Shoppable models, USD, US, SS15)
Source: ContactLab Analysis
Max Min Ratio (x)
Runner-Up Tod's $3,995 $195 20
Premium Coach $1,895 $38 50
High-End Saint Laurent $7,590 $145 52
Premium Moncler $3,975 $75 53
High-End Brunello Cucinelli $7,795 $130 60
Premium Tory Burch $1,995 $25 80
High-End Dior $2,000 $20 100
Mega-Brand Louis Vuitton $13,400 $125 107
Mega-Brand Zegna $3,095 $20 155
Mega-Brand Prada $10,300 $54 191
Runner-Up Dolce&Gabbana $12,500 $65 192
High-End Chanel $4,200 $20 210
Runner-Up Balenciaga $16,500 $70 236
Premium Hugo Boss $2,495 $10 250
High-End Valentino $10,500 $40 263
Premium Armani $5,275 $20 264
Runner-Up Givenchy $65,650 $240 274
Runner-Up Ferragamo $21,000 $60 350
High-End Bottega Veneta $29,600 $42 705
High-End Loro Piana $44,240 $56 790
Premium Michael Kors $20,000 $18 1,111
Mega-Brand Gucci $49,300 $27 1,826
Jeweller Cartier $59,500 $31 1,919
Jeweller Bulgari $69,000 $27 2,556
Jeweller Tiffany $100,000 $25 4,000
Mega-Brand Burberry $120,000 $20 6,000
Premium Ralph Lauren $42,200 $5 8,440
High-End Hermès $147,800 $15 9,853
Exane BNP Paribas Research & ContactLab Luxury Goods
Figure 18: The online pricing approach by the 30 brands we have benchmarked is consistent with their position in the physical world — Unsurprisingly, ‘high-end’ brands top our league. Five of the 10 most expensive brands (in terms of median price of the products they sell online) are ‘high end’ (1/4) Median price, Shoppable models (1 = highest median price)
Source: ContactLab Analysis Note: As of June 2015 (period of data collection) Fendi and Celine did not have e-commerce in the USA
RTW Bags ShoesSoft
accessoriesSLG Children Jewellery Watches Eyewear
Home accessories
Beauty & Fragrances
High-End Loro Piana 1 2 4 1 3 2 - - 1 1 -
Jeweller Cartier - 6 - 9 7 1 2 2 2 2 4
Runner-Up Givenchy 2 9 2 2 2 - 6 9 - - -
High-End Saint Laurent 4 10 5 3 12 - 11 - 9 - -
High-End Bottega Veneta 7 5 10 12 5 - 13 - 5 8 6
High-End Hermès 8 1 6 7 1 5 7 6 - 7 1
Mega-Brand Louis Vuitton - 8 7 4 6 - 10 5 3 5 -
Runner-Up Dolce&Gabbana 10 14 8 10 10 - 3 7 - 3 -
High-End Brunello Cucinelli 6 3 1 14 4 - 5 - - 8 -
Jeweller Bulgari - 4 - 16 8 - 1 3 6 - 14
High-End Valentino 3 7 3 14 11 - 14 - - - 8
Runner-Up Balenciaga 5 15 11 5 9 - 15 - 4 - 1
Mega-Brand Prada - 11 9 6 14 - 9 - 13 - 10
Jeweller Tiffany - 11 - 11 18 7 4 4 13 11 5
Runner-Up Ferragamo - 16 11 20 16 4 12 8 10 - 1
Mega-Brand Gucci 12 18 13 8 15 6 8 11 10 4 14
Premium Moncler 8 21 17 - - 3 - - 10 10 -
Runner-Up Tod's - 13 15 - 17 - 18 - 7 - -
Mega-Brand Zegna 15 20 16 17 19 - 16 - 8 - 9
Mega-Brand Burberry 10 17 14 13 13 8 17 10 15 6 19
Premium Ralph Lauren 19 19 19 22 22 11 24 1 16 12 13
Premium Coach 13 24 22 18 23 - 23 15 19 - 6
Premium Hugo Boss 18 22 20 24 25 10 21 16 20 15 12
Premium Armani 17 23 18 18 20 9 19 13 17 14 16
Premium Tory Burch 16 24 21 21 21 - 20 12 21 13 17
Premium Michael Kors 14 26 23 23 24 - 21 14 18 - 17
High-End Chanel - - - - - - - - - - 10
High-End Dior - - - - - - - - - - 20
Brands
Exane BNP Paribas Research & ContactLab Luxury Goods
Figure 19: The online pricing approach by the 30 brands we have benchmarked is consistent with their position in the physical world — Unsurprisingly, ‘high-end’ brands top our league. Five of the 10 most expensive brands (in terms of median price of the products they sell online) are ‘high end’ (2/4) Median price by sub-category, Shoppable models (1 = highest median price)
Source: ContactLab Analysis
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High-End Loro Piana 2 - 1 5 7 4 - 9 4 1 4 2 1 - - - - - - 8 6 - 9 10 3 4 1 1 6 1 - 5
Jeweller Cartier 1 - 8 2 - - - - - 13 - 7 5 1 1 2 2 3 2 - - - - - - - - - - - - -
Runner-Up Givenchy 17 - 7 - 2 2 1 1 - 5 - 11 - 5 9 10 8 9 - 1 1 3 1 6 2 1 5 9 3 7 3 6
High-End Saint Laurent 6 3 13 11 6 6 6 11 6 6 3 8 8 4 11 12 11 - - 4 - 6 7 8 5 6 3 2 8 6 6 2
High-End Bottega Veneta 3 4 5 4 12 10 9 7 7 14 9 6 6 9 10 14 10 - - 6 9 7 8 9 - 7 4 3 4 3 5 7
High-End Hermès 11 1 - 1 8 8 5 2 2 12 9 1 2 7 6 11 6 2 - 6 3 1 5 7 6 10 10 7 2 2 2 8
Mega-Brand Louis Vuitton 15 11 9 3 4 5 2 8 5 4 5 5 4 12 6 4 7 6 4 - - - - - - - - - - - - -
Runner-Up Dolce&Gabbana 10 6 2 9 5 7 3 4 3 3 2 10 11 3 8 7 5 7 6 3 7 8 6 2 4 3 8 4 7 4 4 3
High-End Brunello Cucinelli 5 - 4 - 1 1 - 2 1 2 1 3 3 16 - 5 - - - 9 4 5 4 3 7 8 6 5 1 5 1 4
Jeweller Bulgari 4 - 3 8 - - - - - 8 5 4 7 11 3 1 1 4 3 - - - - - - - - - - - - -
High-End Valentino 8 2 11 - 3 3 4 4 - 14 13 9 16 14 - 12 13 - - 2 2 2 2 1 1 2 2 10 5 9 - 1
Runner-Up Balenciaga 13 6 15 14 9 11 7 12 - 9 - 13 19 15 12 15 - - - 10 5 9 3 3 10 5 7 6 10 8 8 10
Mega-Brand Prada 7 10 10 6 11 12 10 10 10 10 - 12 10 8 - 6 9 - - - - - - - - - - - - - - -
Jeweller Tiffany - - 12 - - - - - - 16 - 15 - 2 2 9 3 5 5 - - - - - - - - - - - - -
Runner-Up Ferragamo 12 12 16 12 10 9 11 6 11 17 11 15 13 13 4 3 4 8 8 - - - - - - - - - - - - -
Mega-Brand Gucci 16 8 14 10 13 13 8 13 12 11 - 14 13 6 5 8 12 11 9 5 8 11 10 5 9 8 9 8 9 10 7 9
Premium Moncler 20 15 - - - 17 - 16 - - - - - - - - - - - 15 - - - - 8 - 12 12 - - - -
Runner-Up Tod's 14 - 20 13 13 14 11 14 13 - - 15 15 - - - - - - - - - - - - - - - - - - -
Mega-Brand Zegna - - - 15 - - - 17 8 - 8 - 17 - - - - - - - - - - 11 - 12 - 13 - 11 11 11
Mega-Brand Burberry 18 5 18 7 16 15 14 15 8 7 12 18 9 10 - - - 10 7 11 11 10 13 12 13 11 11 11 12 12 9 12
Premium Ralph Lauren 9 9 6 16 17 16 15 22 15 23 14 22 20 21 - 20 18 1 1 18 10 16 17 14 17 17 17 16 17 15 12 15
Premium Coach 21 16 23 - 20 20 18 21 17 20 - 23 21 19 15 19 17 16 10 13 14 13 12 - 14 14 12 13 13 13 - -
Premium Hugo Boss 19 14 17 18 18 18 16 20 16 22 15 19 22 - - - - 13 13 14 15 15 14 16 11 16 16 17 16 17 13 14
Premium Armani 24 13 19 17 15 19 13 18 14 19 7 20 18 17 13 16 14 15 11 17 12 12 15 12 15 15 14 15 15 14 10 13
Premium Tory Burch 23 17 21 - 19 21 17 - - 21 - 21 - 20 16 16 15 12 - 16 13 14 16 - 11 - 18 - 14 - - -
Premium Michael Kors 22 18 22 19 20 22 19 19 - 18 16 24 12 18 14 18 16 14 12 12 16 4 11 15 15 13 15 18 11 15 14 15
Brands
Watc.sBags Shoes S.Acc SLG Jewellery RTW
Exane BNP Paribas Research & ContactLab Luxury Goods
Figure 20: The online pricing approach by the 30 brands we have benchmarked is consistent with their position in the physical world — Unsurprisingly, ‘high-end’ brands top our league. Five of the 10 most expensive brands (in terms of median price of the products they sell online) are ‘high end’ (3/4) Bottom quintile average price, Shoppable models (1 = highest entry price defined as bottom quintile average price)
Source: ContactLab Analysis Note: As of June 2015 (period of data collection) Fendi and Celine did not have e-commerce in the USA
RTW Bags ShoesSoft
accessoriesSLG Children Jewellery Watches Eyewear
Home accessories
Beauty & Fragrances
High-End Loro Piana 4 3 4 4 7 3 - - 1 3 -
Jeweller Cartier - 4 - 5 4 1 1 2 2 2 9
Runner-Up Givenchy 2 9 3 1 1 - 4 8 - - -
High-End Saint Laurent 7 10 9 8 10 - 8 - 7 - -
High-End Bottega Veneta 9 7 10 12 5 - 12 - 4 7 10
High-End Hermès 11 5 2 13 2 6 5 5 - 9 8
Mega-Brand Louis Vuitton - 12 5 11 6 - 7 3 3 10 -
Runner-Up Dolce&Gabbana 8 15 7 7 9 - 2 7 - 1 -
High-End Brunello Cucinelli 3 1 1 16 3 - 9 - - 6 -
Jeweller Bulgari - 2 - 9 8 - 3 1 5 - 13
High-End Valentino 5 6 6 10 12 - 19 - - - 2
Runner-Up Balenciaga 6 14 11 3 17 - 16 - 6 - 2
Mega-Brand Prada - 13 8 2 13 - 6 - 14 - 7
Jeweller Tiffany - 8 - 20 19 7 11 6 11 11 5
Runner-Up Ferragamo - 17 12 14 11 2 14 9 12 - 4
Mega-Brand Gucci 10 16 14 6 15 5 10 11 10 4 12
Premium Moncler 1 20 17 - - 4 - - 9 8 -
Runner-Up Tod's - 11 13 - 16 - 15 - 8 - -
Mega-Brand Zegna 17 19 15 17 18 - 13 - 13 - 11
Mega-Brand Burberry 12 18 16 15 13 9 17 10 15 5 18
Premium Ralph Lauren 18 24 23 24 25 11 24 4 18 13 16
Premium Coach 13 23 19 19 20 - 23 14 16 - 1
Premium Hugo Boss 16 21 18 23 21 10 20 15 19 15 6
Premium Armani 19 26 21 22 23 8 18 16 21 14 16
Premium Tory Burch 14 22 20 18 22 - 21 12 17 12 14
Premium Michael Kors 15 25 22 21 24 - 22 13 20 - 18
High-End Chanel - - - - - - - - - - 15
High-End Dior - - - - - - - - - - 18
Brands
Exane BNP Paribas Research & ContactLab Luxury Goods
Figure 21: The online pricing approach by the 30 brands we have benchmarked is consistent with their position in the physical world — Unsurprisingly, ‘high-end’ brands top our league. Five of the 10 most expensive brands (in terms of median price of the products they sell online) are ‘high end’ (4/4) Bottom quintile average price by sub-category, Shoppable models (1 = highest entry price defined as bottom quintile average price)
Source: ContactLab Analysis
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High-End Loro Piana 5 - 8 10 4 3 - 5 9 2 9 1 3 - - - - - - 6 7 - 7 10 2 2 3 2 7 2 - 8
Jeweller Cartier 1 - 7 2 - - - - - 11 - 8 5 1 2 3 2 2 2 - - - - - - - - - - - - -
Runner-Up Givenchy 14 - 4 - 5 9 1 1 - 3 - 9 - 3 6 8 6 8 - 2 1 3 1 5 1 1 4 6 4 6 6 4
High-End Saint Laurent 3 5 10 7 8 11 9 11 4 10 1 6 13 9 11 9 7 - - 4 - 5 8 9 7 6 7 5 8 7 2 2
High-End Bottega Veneta 18 3 5 3 9 7 6 7 8 6 6 7 6 13 9 14 12 - - 5 8 7 6 8 - 7 1 7 3 5 9 7
High-End Hermès 13 1 - 1 7 5 4 3 2 13 6 3 1 5 5 12 8 4 - 9 3 1 2 4 8 9 10 10 6 1 1 6
Mega-Brand Louis Vuitton 11 13 15 6 3 4 3 6 6 14 4 10 4 7 7 10 9 3 3 - - - - - - - - - - - - -
Runner-Up Dolce&Gabbana 8 9 2 8 6 8 2 14 3 5 3 11 15 2 4 4 4 7 6 3 5 7 5 3 5 5 8 1 5 4 4 5
High-End Brunello Cucinelli 4 - 1 - 1 1 - 2 1 1 2 2 2 8 - 6 - - - 10 4 4 3 2 4 4 2 4 1 9 3 3
Jeweller Bulgari 2 - 3 4 - - - - - 7 4 4 7 4 3 1 1 1 1 - - - - - - - - - - - - -
High-End Valentino 6 4 6 - 2 2 5 4 - 16 13 5 13 15 - 7 10 - - 1 2 2 4 7 3 3 5 3 2 11 - 1
Runner-Up Balenciaga 12 6 12 12 10 10 7 9 - 8 - 13 17 14 12 11 - - - 7 9 9 9 1 8 8 6 9 9 3 6 9
Mega-Brand Prada 7 7 11 5 11 12 9 8 7 4 - 17 8 6 - 2 5 - - - - - - - - - - - - - - -
Jeweller Tiffany - - 9 - - - - - - 19 - 14 - 11 8 15 11 6 5 - - - - - - - - - - - - -
Runner-Up Ferragamo 9 10 13 15 14 6 11 10 11 15 8 12 11 16 1 5 3 9 7 - - - - - - - - - - - - -
Mega-Brand Gucci 16 8 14 13 15 13 8 12 12 9 - 16 16 12 10 13 13 12 8 8 6 10 10 6 10 10 9 8 10 8 5 10
Premium Moncler 19 12 - - - 17 - 15 - - - - - - - - - - - 13 - - - - 6 - 11 11 - - - -
Runner-Up Tod's 10 - 18 9 12 14 12 13 13 - - 15 12 - - - - - - - - - - - - - - - - - - -
Mega-Brand Zegna - - - 11 - - - 17 10 - 10 - 10 - - - - - - - - - - 11 - 11 - 12 - 12 10 12
Mega-Brand Burberry 15 2 16 14 13 16 13 16 5 12 11 18 9 10 - - - 10 9 11 10 11 12 12 12 12 12 13 12 13 8 11
Premium Ralph Lauren 21 16 21 17 21 22 15 22 15 23 14 22 20 21 - 20 18 5 4 18 14 15 17 16 16 17 18 17 17 16 11 16
Premium Coach 20 17 20 - 19 18 18 19 16 17 - 21 19 20 15 19 17 15 10 12 11 12 11 - 11 13 13 14 11 10 - -
Premium Hugo Boss 17 11 17 16 16 15 16 19 17 21 15 19 21 - - - - 13 13 14 13 13 12 14 13 15 14 16 14 15 13 13
Premium Armani 24 15 23 18 18 19 14 21 14 19 12 24 22 17 13 16 14 16 12 17 16 16 16 15 17 16 16 18 16 17 12 15
Premium Tory Burch 22 14 19 - 17 20 17 - - 18 - 20 - 19 14 17 15 11 - 15 11 13 14 - 14 - 15 - 13 - - -
Premium Michael Kors 23 18 22 19 20 21 19 18 - 22 15 22 18 18 16 18 16 14 11 16 15 6 15 13 15 14 17 15 15 14 14 14
Brands
RTWBags Shoes S.Acc SLG Jewellery Watc.s
Exane BNP Paribas Research & ContactLab Luxury Goods 8 October 2015 page 21
Figure 22: Summary – Median and average bottom quintile prices Overall price positioning by brand (Shoppable models, USD, US, SS15)
* Fragrances & Cosmetics only for Dior and Chanel
Source: ContactLab Analysis
Armani, 210
Balenciaga, 815
Bottega Veneta, 730
Brunello Cucinelli, 1078
Bulgari, 1590
Burberry, 495
Cartier, 2510
* Chanel, 77
Coach, 249
* Dior, 55
Dolce & Gabbana, 995
Ferragamo, 540
Givenchy, 1225
Gucci, 550
Hermes, 620
Hugo Boss, 185
Loro Piana, 1691
Louis Vuitton, 895
Michael Kors, 250
Moncler, 650Prada, 640
Ralph Lauren, 145
Saint Laurent, 895
Tiffany, 750
Tod's, 565
Tory Burch, 225
Valentino, 1075
Zegna, 295
Armani, 60
Balenciaga, 265
Bottega Veneta, 300
Burnello Cucinelli, 355
Bulgari, 65
Burberry, 120
Cartier, 328
* Chanel, 32
Coach, 95
* Dior, 29
Dolce & Gabbana, 425
Ferragamo, 233
Givenchy, 555
Gucci, 195
Hermes, 150
Hugo Boss, 80
Loro Piana, 459
Louis Vuitton, 405
Michael Kors, 98
Moncler, 270
Prada, 255
Ralph Lauren, 45
Saint Laurent, 345
Tiffany, 150
Tod's 328
Tory Burch, 95
Valentino, 375
Zegna, 62
20
200
2,000
Pric
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SD
)
Median Prices
Entry Prices(Bottom Quintile Average Prices)
Exane BNP Paribas Research & ContactLab Luxury Goods 8 October 2015 page 22
Several brands exclude the very top of their offer from online purchase
In the case of LV, for example, products not available for online purchase are on average 70% more expensive. Hermès does not offer the Birkin or Kelly for online purchase. Chanel and Dior limit their online ‘Shoppable’ offer to Fragrances and Cosmetics. Hermès pursues an aggressive ‘category segregation’ strategy with compelling entry price points in Soft Accessories and Home Accessories (below many competitors’), using bags as the category to take the high ground.
Figure 23: Several brands exclude the very top of their offer from online purchase – e.g. Louis Vuitton, products not available for online purchase are on average 70% more expensive Web catalogue, Shoppable vs. Non-Shoppable models (US, SS15)
Source: ContactLab Analysis
Figure 24: Several brands exclude the very top of their offer from online purchase – e.g. Jewellers, the median price of non-Shoppable models is much higher than that of Shoppable models Web median prices, Shoppable vs. Non-Shoppable Models (US, SS15)
Source: ContactLab Analysis
0
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CARTIER BULGARI TIFFANY DOLCE&GABBANA LOUIS VUITTON
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8.0X
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28.4X
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Exane BNP Paribas Research & ContactLab Luxury Goods 8 October 2015 page 23
Figure 25: Bags are used mostly for differentiating entry prices, while Soft Accessories and SLG Categories have most similar entry prices Entry price, Shoppable models (USD, US, SS15)
Source: ContactLab Analysis
$-
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Bags Shoes RTW SLG Soft Accessories
Exane BNP Paribas Research & ContactLab Luxury Goods 8 October 2015 page 24
Figure 26: High-End brands and Jewellers have much wider price extension (>5x) than Premium Brands (<3x) Entry price, Shoppable models (USD, US, SS15)
Source: ContactLab Analysis
BrandBags
Entry Price (USD)
Ratio Bags / Soft Acc.
Entry Price (X)
Ratio Bags / SLG
Entry Price (X)
Brunello Cucinelli 2,613 16.6x 5.9x
Bulgari 1,996 9.3x 6.1x
Loro Piana 1,880 5.0x 5.5x
Cartier 1,858 5.6x 4.8x
Hermès 1,704 8.8x 3.5x
Valentino 1,481 7.1x 5.4x
Bottega Veneta 1,375 6.9x 3.6x
Tiffany 1,179 11.8x 10.0x
Givenchy 1,167 2.1x 2.4x
Saint Laurent 1,130 4.8x 4.0x
Tod's 1,096 4.5x
Louis Vuitton 1,041 5.1x 2.9x
Prada 1,016 2.2x 3.7x
Balenciaga 1,014 2.6x 4.4x
Dolce&Gabbana 899 3.8x 3.1x
Gucci 811 3.3x 3.0x
Ferragamo 769 4.0x 2.7x
Burberry 755 4.7x 2.8x
Zegna 535 3.7x 3.2x
Hugo Boss 377 7.5x 4.2x
Tory Burch 251 1.9x 3.0x
Coach 234 2.2x 2.4x
Ralph Lauren 213 4.7x 3.6x
Michael Kors 172 2.0x 2.2x
Armani 129 1.5x 1.6x
Exane BNP Paribas Research & ContactLab Luxury Goods 8 October 2015 page 25
Appendix
Figure 27: Product sub-categories analysed in detail
Source: ContactLab Analysis, Note: weight = Shoppable as a proportion of Web Catalog
Category Models Analysed Subcategories Models Weight Category Models Analysed Subcategories Models Weight
RTW 13,153 Soft Accessories 2,231
Women Dresses 1,078 33% Women Foulards 704 21%
Women Skirts 377 11% Men Ties 610 18%
Women Tops 251 8% TOTAL 1,314 59%
Women Pants 872 26%
Men Pants 1,078 33% SLG 2,772
Women T-Shirts 813 25% Women Wallets 613 19%
Men T-Shirts 688 21% Men Wallets 515 16%
Women Jackets 676 20% TOTAL 1,128 41%
Men Jackets 728 22%
Women Sweaters & Cardigans 672 20% Jewelry 4,980
Men Sweaters & Cardigans 690 21% Women Bracelets 1,074 32%
Men Shirts 1,265 38% Women Necklaces 1,170 35%
Men Blazers 337 10% Women Rings 547 17%
TOTAL 9,525 72% Women Earrings 612 18%
TOTAL 3,403 68%
Bags 3,311
Women Tote 574 17% Watches 971
Women Small Bags 280 8% Women Watches 574 17%
Women Clutches 231 7% Men Watches 295 9%
Men Briefcases 198 6% TOTAL 869 89%
TOTAL 1,283 39%
Shoes 3,226
Women Sandals 418 13% Children 2,166
Women Flat Sandals 255 8% Eyewear 1,304
Women Pumps 277 8% Home Accessories 3,662
Men Sneakers 339 10% Beauty & Fragrances 1,619
Men Loafers & Mocassins 298 9%
TOTAL 1,587 49% TOTAL 39,395 19,109 49%
Exane BNP Paribas Research & ContactLab Luxury Goods
Figure 28: Women Tote Bags – Median price (USD) vs. Product range (# Shoppable models)
Source: ContactLab Analysis
ARMANI
BALENCIAGA
BOTTEGA VENETA
BRUNELLO CUCINELLI
BULGARI
BURBERRY
COACH
DOLCE&GABBANAFERRAGAMO
GIVENCHYGUCCI
HERMÈS
HUGO BOSS
LORO PIANA
LOUIS VUITTON
MICHAEL KORS
MONCLER
PRADA
RALPH LAUREN
SAINT LAURENT
TOD'S
TORY BURCH
VALENTINO
$-
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Lower Positioning
Higher Positioning
Exane BNP Paribas Research & ContactLab Luxury Goods
Figure 29: Women Tote Bags – Price range by brand (Shoppable Models, USD, US, SS15), ranked by entry price (bottom quintile average)
Source: ContactLab Analysis
$1
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Exane BNP Paribas Research & ContactLab Luxury Goods
Figure 30: Women Small Bags – Median price (USD) vs. Product range (# Shoppable models)
Source: ContactLab Analysis
ARMANI
BALENCIAGA
BOTTEGA VENETA
BURBERRY
COACH
DOLCE&GABBANA
FERRAGAMO
GUCCI
HERMÈS
HUGO BOSS
LOUIS VUITTON
MICHAEL KORS
MONCLER
PRADARALPH LAUREN
SAINT LAURENT
TORY BURCH
VALENTINO
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Exane BNP Paribas Research & ContactLab Luxury Goods
Figure 31: Women Small Bags – Price range by brand (Shoppable Models, USD, US, SS15), ranked by entry price (bottom quintile average)
Source: ContactLab Analysis
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Exane BNP Paribas Research & ContactLab Luxury Goods
Figure 32: Women Clutches – Median price (USD) vs. Product range (# Shoppable models)
Source: ContactLab Analysis
ARMANI
BALENCIAGA
BOTTEGA VENETA
BRUNELLO CUCINELLI
BULGARI
BURBERRY
CARTIER
COACH
DOLCE&GABBANA
FERRAGAMO
GIVENCHY
GUCCI
HUGO BOSS
LORO PIANA
LOUIS VUITTON
MICHAEL KORS
PRADARALPH LAUREN
SAINT LAURENTTIFFANY
TOD'STORY BURCH
VALENTINO
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Exane BNP Paribas Research & ContactLab Luxury Goods
Figure 33: Women Clutches – Price range by brand (Shoppable Models, USD, US, SS15), ranked by entry price (bottom quintile average)
Source: ContactLab Analysis
$1
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Exane BNP Paribas Research & ContactLab Luxury Goods
Figure 34: Men Briefcases – Median price (USD) vs. Product range (# Shoppable models)
Source: ContactLab Analysis
ARMANI
BALENCIAGA
BOTTEGA VENETA
BULGARI BURBERRY
CARTIER
DOLCE&GABBANA
FERRAGAMO GUCCI
HERMÈS
HUGO BOSS
LORO PIANA
LOUIS VUITTON
MICHAEL KORS
PRADA
RALPH LAUREN
SAINT LAURENT
TOD'S
ZEGNA
$-
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0 5 10 15 20 25 30 35 40
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Higher Positioning
Exane BNP Paribas Research & ContactLab Luxury Goods
Figure 35: Men Briefcases – Price range by brand (Shoppable Models, USD, US, SS15), ranked by entry price (bottom quintile average)
Source: ContactLab Analysis
$1
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Exane BNP Paribas Research & ContactLab Luxury Goods
Figure 36: Women Sandals – Median price (USD) vs. Product range (# Shoppable models)
Source: ContactLab Analysis
ARMANI
BALENCIAGABOTTEGA VENETA
BRUNELLO CUCINELLI
BURBERRY
COACH
DOLCE&GABBANA
FERRAGAMO
GIVENCHY
GUCCI
HERMÈS
HUGO BOSS
LORO PIANA
LOUIS VUITTON
MICHAEL KORS
PRADA
RALPH LAUREN
SAINT LAURENT
TOD'S
TORY BURCH
VALENTINO
$-
$200
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$600
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$1,800
0 10 20 30 40 50 60 70 80
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Lower Positioning
Higher Positioning
Exane BNP Paribas Research & ContactLab Luxury Goods
Figure 37: Women Sandals – Price range by brand (Shoppable Models, USD, US, SS15), ranked by entry price (bottom quintile average)
Source: ContactLab Analysis
$1
$10
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$1,000
$10,000B
RU
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Exane BNP Paribas Research & ContactLab Luxury Goods
Figure 38: Women Flat Sandals – Median price (USD) vs. Product range (# Shoppable models)
Source: ContactLab Analysis
ARMANI
BALENCIAGA
BOTTEGA VENETA
BRUNELLO CUCINELLI
BURBERRY
COACH
DOLCE&GABBANA
FERRAGAMO
GIVENCHY
GUCCI
HERMÈS
HUGO BOSS
LORO PIANA
LOUIS VUITTON
MICHAEL KORS
MONCLER
PRADA
RALPH LAUREN
SAINT LAURENT
TOD'S
TORY BURCH
VALENTINO
$-
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
0 5 10 15 20 25 30 35 40
Med
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D)
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Lower Positioning
Higher Positioning
Exane BNP Paribas Research & ContactLab Luxury Goods
Figure 39: Women Flat Sandals – Price range by brand (Shoppable Models, USD, US, SS15), ranked by entry price (bottom quintile average)
Source: ContactLab Analysis
$1
$10
$100
$1,000
$10,000B
RU
NE
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CIN
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MIN PRICE ENTRY PRICE MEDIAN PRICE MAX PRICE
Exane BNP Paribas Research & ContactLab Luxury Goods
Figure 40: Women Pumps – Median price (USD) vs. Product range (# Shoppable models)
Source: ContactLab Analysis
ARMANI
BALENCIAGA
BOTTEGA VENETA
BURBERRY
COACH
DOLCE&GABBANA
FERRAGAMO
GIVENCHY
GUCCI
HERMÈS
HUGO BOSS
LOUIS VUITTON
MICHAEL KORS
PRADA
RALPH LAUREN
SAINT LAURENT
TOD'S
TORY BURCH
VALENTINO
$-
$200
$400
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$1,200
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0 5 10 15 20 25 30 35 40
Med
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D)
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Lower Positioning
Higher Positioning
Exane BNP Paribas Research & ContactLab Luxury Goods
Figure 41: Women Pumps – Price range by brand (Shoppable Models, USD, US, SS15), ranked by entry price (bottom quintile average)
Source: ContactLab Analysis
$1
$10
$100
$1,000
$10,000
$100,000
GIV
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Exane BNP Paribas Research & ContactLab Luxury Goods
Figure 42: Mens Sneakers – Median price (USD) vs. Product range (# Shoppable models)
Source: ContactLab Analysis
ARMANI
BALENCIAGA
BOTTEGA VENETA
BRUNELLO CUCINELLI
BURBERRY
COACH
DOLCE&GABBANA
FERRAGAMO
GIVENCHY
GUCCI
HERMÈS
HUGO BOSS
LORO PIANALOUIS VUITTON
MICHAEL KORS
MONCLER
PRADA
RALPH LAUREN
SAINT LAURENT
TOD'S
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ZEGNA
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D)
Shoppable Models (#)
Lower Positioning
Higher Positioning
Exane BNP Paribas Research & ContactLab Luxury Goods
Figure 43: Mens Sneakers – Price range by brand (Shoppable Models, USD, US, SS15), ranked by entry price (bottom quintile average)
Source: ContactLab Analysis
$1
$10
$100
$1,000
$10,000G
IVE
NC
HY
BR
UN
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LO C
UC
INE
LLI
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RM
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VA
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VU
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&G
AB
BA
NA
MO
NC
LER
BU
RB
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GN
A
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HU
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BO
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CO
AC
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AR
MA
NI
RA
LP
H L
AU
RE
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MIN PRICE ENTRY PRICE MEDIAN PRICE MAX PRICE
Exane BNP Paribas Research & ContactLab Luxury Goods
Figure 44: Mens Loafers & Moccasins – Median price (USD) vs. Product range (# Shoppable models)
Source: ContactLab Analysis
ARMANI
BOTTEGA VENETA
BRUNELLO CUCINELLI
BURBERRY
COACH
DOLCE&GABBANA
FERRAGAMOGUCCI
HERMÈS
HUGO BOSS
LORO PIANA LOUIS VUITTON
PRADA
RALPH LAUREN
SAINT LAURENT
TOD'S
ZEGNA
$-
$200
$400
$600
$800
$1,000
$1,200
$1,400
0 10 20 30 40 50 60 70 80
Med
ian
Pri
ce (
US
D)
Shoppable Models (#)
Lower Positioning
Higher Positioning
Exane BNP Paribas Research & ContactLab Luxury Goods
Figure 45: Mens Loafers & Moccasins – Price range by brand (Shoppable Models, USD, US, SS15), ranked by entry price (bottom quintile average)
Source: ContactLab Analysis
$1
$10
$100
$1,000
$10,000B
RU
NE
LLO
CU
CIN
ELL
I
HE
RM
ÈS
DO
LCE
&G
AB
BA
NA
SA
INT
LA
UR
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BU
RB
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LOU
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A
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A
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A
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LA
UR
EN
CO
AC
H
HU
GO
BO
SS
MIN PRICE ENTRY PRICE MEDIAN PRICE MAX PRICE
Exane BNP Paribas Research & ContactLab Luxury Goods
Figure 46: Women Foulards – Median price (USD) vs. Product range (# Shoppable models)
Source: ContactLab Analysis
ARMANI
BALENCIAGABOTTEGA VENETA
BRUNELLO CUCINELLI
BULGARI BURBERRY
CARTIER
COACH
DOLCE&GABBANA
FERRAGAMO
GIVENCHY
GUCCI HERMÈS
HUGO BOSS
LORO PIANA
LOUIS VUITTON
MICHAEL KORS
PRADA
RALPH LAUREN
SAINT LAURENT
TIFFANY
TORY BURCH
VALENTINO
$-
$500
$1,000
$1,500
$2,000
$2,500
0 20 40 60 80 100 120 140 160 180 200
Med
ian
Pri
ce (
US
D)
Shoppable Models (#)
Lower Positioning
Higher Positioning
Exane BNP Paribas Research & ContactLab Luxury Goods
Figure 47: Women Foulards – Price range by brand (Shoppable Models, USD, US, SS15), ranked by entry price (bottom quintile average)
Source: ContactLab Analysis
$1
$10
$100
$1,000
$10,000
$100,000B
RU
NE
LLO
CU
CIN
ELL
I
LOR
O P
IAN
A
GIV
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Y
PR
AD
A
DO
LCE
&G
AB
BA
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A
BU
LGA
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GA
GU
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LOU
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AG
AM
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O
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AC
H
TO
RY
BU
RC
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FA
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AR
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NI
HU
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MIC
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KO
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RA
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LA
UR
EN
MIN PRICE ENTRY PRICE MEDIAN PRICE MAX PRICE
Exane BNP Paribas Research & ContactLab Luxury Goods
Figure 48: Men Ties – Median price (USD) vs. Product range (# Shoppable models)
Source: ContactLab Analysis
ARMANI
BOTTEGA VENETA
BRUNELLO CUCINELLI
BULGARI
BURBERRY
DOLCE&GABBANA
FERRAGAMOHERMÈS
HUGO BOSS
LORO PIANA
LOUIS VUITTON
MICHAEL KORS
RALPH LAUREN
SAINT LAURENT
VALENTINO
ZEGNA
$-
$50
$100
$150
$200
$250
$300
$350
0 20 40 60 80 100 120 140 160
Med
ian
Pri
ce (
US
D)
Shoppable Models (#)
Lower Positioning
Higher Positioning
Exane BNP Paribas Research & ContactLab Luxury Goods
Figure 49: Men Ties – Price range by brand (Shoppable Models, USD, US, SS15), ranked by entry price (bottom quintile average)
Source: ContactLab Analysis
$1
$10
$100
$1,000S
AIN
T L
AU
RE
NT
BR
UN
ELL
O C
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LLI
DO
LCE
&G
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NA
BU
LGA
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LOU
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TO
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A
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A
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KO
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HU
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MIN PRICE ENTRY PRICE MEDIAN PRICE MAX PRICE
Exane BNP Paribas Research & ContactLab Luxury Goods
Figure 50: Women Wallets – Median price (USD) vs. Product range (# Shoppable models)
Source: ContactLab Analysis
ARMANI
BALENCIAGA
BOTTEGA VENETA
BRUNELLO CUCINELLI
BULGARI
BURBERRY
CARTIER
COACH
DOLCE&GABBANA
FERRAGAMOGIVENCHY
GUCCI
HERMÈS
HUGO BOSS
LORO PIANA
LOUIS VUITTON
MICHAEL KORS
PRADA
RALPH LAUREN
SAINT LAURENT
TIFFANYTOD'S
TORY BURCH
VALENTINO
$-
$500
$1,000
$1,500
$2,000
$2,500
0 20 40 60 80 100 120
Med
ian
Pri
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US
D)
Shoppable Models (#)
Lower Positioning
Higher Positioning
Exane BNP Paribas Research & ContactLab Luxury Goods
Figure 51: Women Wallets – Price range by brand (Shoppable Models, USD, US, SS15), ranked by entry price (bottom quintile average)
Source: ContactLab Analysis
$1
$10
$100
$1,000
$10,000LO
RO
PIA
NA
BR
UN
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UC
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MIN PRICE ENTRY PRICE MEDIAN PRICE MAX PRICE
Exane BNP Paribas Research & ContactLab Luxury Goods
Figure 52: Men Wallets – Median price (USD) vs. Product range (# Shoppable models)
Source: ContactLab Analysis
ARMANIBALENCIAGA
BOTTEGA VENETA
BRUNELLO CUCINELLI
BULGARI
BURBERRY
CARTIER
COACH
DOLCE&GABBANA
FERRAGAMOGUCCI
HERMÈS
HUGO BOSS
LORO PIANA
LOUIS VUITTON
MICHAEL KORSPRADA
RALPH LAUREN
SAINT LAURENT
TOD'S
VALENTINOZEGNA
$-
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
$2,000
0 10 20 30 40 50 60 70 80 90
Med
ian
Pri
ce (
US
D)
Shoppable Models (#)
Lower Positioning
Higher Positioning
Exane BNP Paribas Research & ContactLab Luxury Goods
Figure 53: Men Wallets – Price range by brand (Shoppable Models, USD, US, SS15), ranked by entry price (bottom quintile average)
Source: ContactLab Analysis
$1
$10
$100
$1,000
$10,000
$100,000H
ER
MÈ
S
BR
UN
ELL
O C
UC
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A
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A
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LGA
RI
PR
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A
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RB
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A
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AG
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D'S
SA
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&G
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EN
HU
GO
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AR
MA
NI
MIN PRICE ENTRY PRICE MEDIAN PRICE MAX PRICE
Exane BNP Paribas Research & ContactLab Luxury Goods
Figure 54: Women Bracelets – Median price (USD) vs. Product range (# Shoppable models)
Source: ContactLab Analysis
ARMANI
BALENCIAGA
BOTTEGA VENETA
BRUNELLO CUCINELLI
BULGARIBURBERRY
CARTIER
COACH
DOLCE&GABBANA
FERRAGAMO
GIVENCHY
GUCCI HERMÈSLOUIS VUITTON
MICHAEL KORS
PRADA
RALPH LAUREN
SAINT LAURENT
TIFFANY
TORY BURCH
VALENTINO
$-
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
0 50 100 150 200 250 300 350 400 450 500
Med
ian
Pri
ce (
US
D)
Shoppable Models (#)
Lower Positioning
Higher Positioning
Exane BNP Paribas Research & ContactLab Luxury Goods
Figure 55: Women Bracelets – Price range by brand (Shoppable Models, USD, US, SS15), ranked by entry price (bottom quintile average)
Source: ContactLab Analysis
$1
$10
$100
$1,000
$10,000
$100,000
$1,000,000C
AR
TIE
R
DO
LCE
&G
AB
BA
NA
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BU
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MIN PRICE ENTRY PRICE MEDIAN PRICE MAX PRICE
Exane BNP Paribas Research & ContactLab Luxury Goods
Figure 56: Women Necklaces– Median price (USD) vs. Product range (# Shoppable models)
Source: ContactLab Analysis
ARMANIBALENCIAGABOTTEGA VENETA
BRUNELLO CUCINELLI
BULGARI
CARTIER
COACH
DOLCE&GABBANA
FERRAGAMO
GIVENCHYGUCCI
HERMÈS
LOUIS VUITTON
MICHAEL KORS
PRADA
RALPH LAUREN
SAINT LAURENT
TIFFANY
TORY BURCH
VALENTINO
$-
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
0 100 200 300 400 500 600 700 800 900 1000
Med
ian
Pri
ce (
US
D)
Shoppable Models (#)
Lower Positioning
Higher Positioning
Exane BNP Paribas Research & ContactLab Luxury Goods
Figure 57: Women Necklaces – Price range by brand (Shoppable Models, USD, US, SS15), ranked by entry price (bottom quintile average)
Source: ContactLab Analysis
$1
$10
$100
$1,000
$10,000
$100,000
$1,000,000
BU
LGA
RI
PR
AD
A
CA
RT
IER
DO
LCE
&G
AB
BA
NA
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AG
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MIN PRICE ENTRY PRICE MEDIAN PRICE MAX PRICE
Exane BNP Paribas Research & ContactLab Luxury Goods
Figure 58: Women Ring – Median price (USD) vs. Product range (# Shoppable models)
Source: ContactLab Analysis
ARMANIBALENCIAGA
BOTTEGA VENETA
BULGARI
CARTIER
COACH
DOLCE&GABBANA
FERRAGAMO
GIVENCHY
GUCCIHERMÈS
LOUIS VUITTON
MICHAEL KORS
SAINT LAURENT
TIFFANY
TORY BURCH $-
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
0 50 100 150 200 250 300 350 400 450
Med
ian
Pri
ce (
US
D)
Shoppable Models (#)
Lower Positioning
Higher Positioning
Exane BNP Paribas Research & ContactLab Luxury Goods
Figure 59: Women Ring – Price range by brand (Shoppable Models, USD, US, SS15), ranked by entry price (bottom quintile average)
Source: ContactLab Analysis
$1
$10
$100
$1,000
$10,000
$100,000
FE
RR
AG
AM
O
CA
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BU
LGA
RI
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&G
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GIV
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LOU
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Exane BNP Paribas Research & ContactLab Luxury Goods
Figure 60: Women Earrings – Median price (USD) vs. Product range (# Shoppable models)
Source: ContactLab Analysis
ARMANI
BV
BULGARI
CARTIER
COACH
DOLCE&GABBANAFERRAGAMO
GIVENCHY
GUCCIHERMÈS
LV
MICHAEL KORS
PRADA
RALPH LAUREN
SAINT LAURENT
TIFFANY
TORY BURCHVALENTINO $-
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
0 50 100 150 200 250 300 350 400 450
Med
ian
Pri
ce (
US
D)
Shoppable Models (#)
Lower Positioning
Higher Positioning
Exane BNP Paribas Research & ContactLab Luxury Goods
Figure 61: Women Earrings – Price range by brand (Shoppable Models, USD, US, SS15), ranked by entry price (bottom quintile average)
Source: ContactLab Analysis
$1
$10
$100
$1,000
$10,000
$100,000
BU
LGA
RI
CA
RT
IER
FE
RR
AG
AM
O
DO
LCE
&G
AB
BA
NA
PR
AD
A
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SA
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LA
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LOU
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MIN PRICE ENTRY PRICE MEDIAN PRICE MAX PRICE
Exane BNP Paribas Research & ContactLab Luxury Goods
Figure 62: Women Watches – Median price (USD) vs. Product range (# Shoppable models)
Source: ContactLab Analysis
ARMANI
BULGARI
BURBERRY
CARTIER
COACH
DOLCE&GABBANAFERRAGAMOGIVENCHY
GUCCI
HERMÈS
HUGO BOSS
LOUIS VUITTON
MICHAEL KORS
RALPH LAUREN
TIFFANY
TORY BURCH
$-
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
0 20 40 60 80 100 120 140 160 180 200
Med
ian
Pri
ce (
US
D)
Shoppable Models (#)
Lower Positioning
Higher Positioning
Exane BNP Paribas Research & ContactLab Luxury Goods
Figure 63: Women Watches – Price range by brand (Shoppable Models, USD, US, SS15), ranked by entry price (bottom quintile average)
Source: ContactLab Analysis
$1
$10
$100
$1,000
$10,000
$100,000
BU
LGA
RI
CA
RT
IER
LOU
IS V
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TO
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ÈS
RA
LPH
LA
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TIF
FA
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LCE
&G
AB
BA
NA
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FE
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AG
AM
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BU
RB
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TO
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BU
RC
H
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HU
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MIC
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KO
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CO
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H
AR
MA
NI
MIN PRICE ENTRY PRICE MEDIAN PRICE MAX PRICE
Exane BNP Paribas Research & ContactLab Luxury Goods
Figure 64: Men Watches – Median price (USD) vs. Product range (# Shoppable models)
Source: ContactLab Analysis
ARMANI
BULGARI
BURBERRY
CARTIER
COACH
DOLCE&GABBANA
FERRAGAMO
GUCCI
HUGO BOSS
LOUIS VUITTON
MICHAEL KORS
RALPH LAUREN
TIFFANY
$-
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
0 10 20 30 40 50 60
Med
ian
Pri
ce (
US
D)
Shoppable Models (#)
Lower Positioning
Higher Positioning
Exane BNP Paribas Research & ContactLab Luxury Goods
Figure 65: Men Watches – Price range by brand (Shoppable Models, USD, US, SS15), ranked by entry price (bottom quintile average)
Source: ContactLab Analysis
$1
$10
$100
$1,000
$10,000
$100,000B
ULG
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MIN PRICE ENTRY PRICE MEDIAN PRICE MAX PRICE
Exane BNP Paribas Research & ContactLab Luxury Goods
Figure 66: Women Dresses – Median price (USD) vs. Product range (# Shoppable models)
Source: ContactLab Analysis
ARMANI
BALENCIAGA
BOTTEGA VENETA
BRUNELLO CUCINELLI
BURBERRY
COACH
DOLCE&GABBANA
GIVENCHY
GUCCI
HERMÈS
HUGO BOSS
LORO PIANA
MICHAEL KORS
MONCLER
RALPH LAUREN
SAINT LAURENT
TORY BURCH
VALENTINO
$-
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
$4,500
0 50 100 150 200 250 300 350 400 450
Med
ian
Pri
ce (
US
D)
Shoppable Models (#)
Lower Positioning
Higher Positioning
Exane BNP Paribas Research & ContactLab Luxury Goods
Figure 67: Women Dresses – Price range by brand (Shoppable Models, USD, US, SS15), ranked by entry price (bottom quintile average)
Source: ContactLab Analysis
$1
$10
$100
$1,000
$10,000
$100,000
VA
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A
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Exane BNP Paribas Research & ContactLab Luxury Goods
Figure 68: Women Skirt – Median price (USD) vs. Product range (# Shoppable models)
Source: ContactLab Analysis
ARMANI
BALENCIAGA
BOTTEGA VENETA
BRUNELLO CUCINELLI
BURBERRY
COACH
DOLCE&GABBANA
GIVENCHY
GUCCI
HERMÈS
HUGO BOSS
MICHAEL KORS
RALPH LAUREN
SAINT LAURENT
TORY BURCH
VALENTINO
$-
$500
$1,000
$1,500
$2,000
$2,500
$3,000
0 20 40 60 80 100 120 140 160
Med
ian
Pri
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D)
Shoppable Models (#)
Lower Positioning
Higher Positioning
Exane BNP Paribas Research & ContactLab Luxury Goods
Figure 69: Women Skirt – Price range by brand (Shoppable Models, USD, US, SS15), ranked by entry price (bottom quintile average)
Source: ContactLab Analysis
$1
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MIN PRICE ENTRY PRICE MEDIAN PRICE MAX PRICE
Exane BNP Paribas Research & ContactLab Luxury Goods
Figure 70: Women Top – Median price (USD) vs. Product range (# Shoppable models)
Source: ContactLab Analysis
ARMANI
BALENCIAGA
BOTTEGA VENETA
BRUNELLO CUCINELLI
BURBERRY
COACH
DOLCE&GABBANA
GIVENCHY
GUCCI
HERMÈS
HUGO BOSS
LORO PIANA
MICHAEL KORS
RALPH LAUREN
TORY BURCH
VALENTINO
$-
$500
$1,000
$1,500
$2,000
$2,500
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Med
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Lower Positioning
Higher Positioning
Exane BNP Paribas Research & ContactLab Luxury Goods
Figure 71: Women Top – Price range by brand (Shoppable Models, USD, US, SS15), ranked by entry price (bottom quintile average)
Source: ContactLab Analysis
$1
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$100,000
GIV
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MIN PRICE ENTRY PRICE MEDIAN PRICE MAX PRICE
Exane BNP Paribas Research & ContactLab Luxury Goods
Figure 72: Women Pants – Median price (USD) vs. Product range (# Shoppable models)
Source: ContactLab Analysis
ARMANI
BALENCIAGA
BOTTEGA VENETA
BRUNELLO CUCINELLI
BURBERRY
COACH
DOLCE&GABBANA
GIVENCHY
GUCCI
HERMÈS
HUGO BOSS
LORO PIANA
MICHAEL KORS
RALPH LAUREN
SAINT LAURENT
TORY BURCH
VALENTINO
$-
$500
$1,000
$1,500
$2,000
$2,500
$3,000
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Med
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Lower Positioning
Higher Positioning
Exane BNP Paribas Research & ContactLab Luxury Goods
Figure 73: Women Pants – Price range by brand (Shoppable Models, USD, US, SS15), ranked by entry price (bottom quintile average)
Source: ContactLab Analysis
$1
$10
$100
$1,000
$10,000
$100,000
GIV
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MIN PRICE ENTRY PRICE MEDIAN PRICE MAX PRICE
Exane BNP Paribas Research & ContactLab Luxury Goods
Figure 74: Men Pants – Median price (USD) vs. Product range (# Shoppable models)
Source: ContactLab Analysis
ARMANI
BALENCIAGA
BOTTEGA VENETA
BRUNELLO CUCINELLI
BURBERRY
DOLCE&GABBANA
GIVENCHY GUCCI
HERMÈS
HUGO BOSS
LORO PIANA
MICHAEL KORSRALPH LAUREN
SAINT LAURENT
VALENTINO
ZEGNA
$-
$100
$200
$300
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$800
$900
$1,000
0 50 100 150 200 250 300 350 400
Med
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Pri
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D)
Shoppable Models (#)
Lower Positioning
Higher Positioning
Exane BNP Paribas Research & ContactLab Luxury Goods
Figure 75: Men Pants – Price range by brand (Shoppable Models, USD, US, SS15), ranked by entry price (bottom quintile average)
Source: ContactLab Analysis
$1
$10
$100
$1,000
$10,000
BA
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BR
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LA
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MIN PRICE ENTRY PRICE MEDIAN PRICE MAX PRICE
Exane BNP Paribas Research & ContactLab Luxury Goods
Figure 76: Women T-Shirts – Median price (USD) vs. product range (# Shoppable models)
Source: ContactLab Analysis
ARMANI
BALENCIAGA
BRUNELLO CUCINELLI
BURBERRY
COACH
DOLCE&GABBANA
GIVENCHY
GUCCI
HERMÈS
HUGO BOSS
LORO PIANA
MICHAEL KORS
MONCLER
RALPH LAUREN
SAINT LAURENT
TORY BURCH
VALENTINO
$-
$200
$400
$600
$800
$1,000
$1,200
0 50 100 150 200 250 300 350 400 450
Med
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Pri
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US
D)
Shoppable Models (#)
Lower Positioning
Higher Positioning
Exane BNP Paribas Research & ContactLab Luxury Goods
Figure 77: Women T-Shirts – Price range by brand (Shoppable Models, USD, US, SS15), ranked by entry price (bottom quintile average)
Source: ContactLab Analysis
$1
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$1,000
$10,000G
IVE
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Exane BNP Paribas Research & ContactLab Luxury Goods
Figure 78: Men T-Shirts – Median price (USD) vs. product range (# Shoppable models)
Source: ContactLab Analysis
ARMANI
BALENCIAGA
BOTTEGA VENETA
BRUNELLO CUCINELLI
BURBERRY
COACH
DOLCE&GABBANA
GIVENCHY
GUCCI
HERMÈS
HUGO BOSS
LORO PIANA
MICHAEL KORS
RALPH LAUREN
SAINT LAURENT
VALENTINO
ZEGNA
$-
$100
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Med
ian
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D)
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Lower Positioning
Higher Positioning
Exane BNP Paribas Research & ContactLab Luxury Goods
Figure 79: Men T-Shirts – Price range by brand (Shoppable Models, USD, US, SS15), ranked by entry price (bottom quintile average)
Source: ContactLab Analysis
$1
$10
$100
$1,000
$10,000G
IVE
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MIN PRICE ENTRY PRICE MEDIAN PRICE MAX PRICE
Exane BNP Paribas Research & ContactLab Luxury Goods
Figure 80: Women Jackets – Median Price (USD) vs. Product Range (# Shoppable models)
Source: ContactLab Analysis
ARMANI
BALENCIAGA
BOTTEGA VENETA
BRUNELLO CUCINELLI
BURBERRY
COACH
DOLCE&GABBANA
GIVENCHY
GUCCIHERMÈS
HUGO BOSS
LORO PIANA
MICHAEL KORS
MONCLER
RALPH LAUREN
SAINT LAURENT
TORY BURCH
VALENTINO
$-
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
$9,000
$10,000
0 50 100 150 200 250
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Lower Positioning
Higher Positioning
Exane BNP Paribas Research & ContactLab Luxury Goods
Figure 81: Women Jackets – Price range by brand (Shoppable Models, USD, US, SS15), ranked by entry price (bottom quintile average)
Source: ContactLab Analysis
$1
$10
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$1,000
$10,000
$100,000
BO
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Exane BNP Paribas Research & ContactLab Luxury Goods
Figure 82: Men Jackets – Median price (USD) vs. product range (# Shoppable models)
Source: ContactLab Analysis
ARMANI
BALENCIAGA
BOTTEGA VENETA
BRUNELLO CUCINELLI
BURBERRY
COACH
DOLCE&GABBANA
GIVENCHY
GUCCIHERMÈS
HUGO BOSS
LORO PIANA
MICHAEL KORS
MONCLER
RALPH LAUREN
SAINT LAURENT
VALENTINO
ZEGNA
$-
$1,000
$2,000
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Lower Positioning
Higher Positioning
Exane BNP Paribas Research & ContactLab Luxury Goods
Figure 83: Men Jackets – Price range by brand (Shoppable Models, USD, US, SS15), ranked by entry price (bottom quintile average)
Source: ContactLab Analysis
$1
$10
$100
$1,000
$10,000
$100,000
DO
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Exane BNP Paribas Research & ContactLab Luxury Goods
Figure 84: Women Sweaters – median price (USD) vs. product range (# Shoppable models)
Source: ContactLab Analysis
ARMANI
BALENCIAGA
BOTTEGA VENETA
BRUNELLO CUCINELLI
BURBERRY
COACH
DOLCE&GABBANA
GIVENCHY
GUCCI
HERMÈS
HUGO BOSS
LORO PIANA
MICHAEL KORS
RALPH LAUREN
SAINT LAURENT
TORY BURCH
VALENTINO
$-
$500
$1,000
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$2,000
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Lower Positioning
Higher Positioning
Exane BNP Paribas Research & ContactLab Luxury Goods
Figure 85: Women Sweaters – Price range by brand (Shoppable Models, USD, US, SS15), ranked by entry price (bottom quintile average)
Source: ContactLab Analysis
$1
$10
$100
$1,000
$10,000B
RU
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Exane BNP Paribas Research & ContactLab Luxury Goods
Figure 86: Men Sweaters – Median price (USD) vs. product range (# Shoppable models)
Source: ContactLab Analysis
ARMANI
BALENCIAGA
BOTTEGA VENETA
BRUNELLO CUCINELLI
BURBERRY
COACH
DOLCE&GABBANA
GIVENCHY
GUCCI
HERMÈS
HUGO BOSS
LORO PIANA
MICHAEL KORSRALPH LAUREN
SAINT LAURENT
VALENTINO
ZEGNA
$-
$200
$400
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$1,000
$1,200
$1,400
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$2,000
0 50 100 150 200 250 300
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D)
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Lower Positioning
Higher Positioning
Exane BNP Paribas Research & ContactLab Luxury Goods
Figure 87: Men Sweaters – Price range by brand (Shoppable Models, USD, US, SS15), ranked by entry price (bottom quintile average)
Source: ContactLab Analysis
$1
$10
$100
$1,000
$10,000H
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Exane BNP Paribas Research & ContactLab Luxury Goods
Figure 88: Men Shirts – Median price (USD) vs. product range (# Shoppable models)
Source: ContactLab Analysis
ARMANI
BALENCIAGA
BOTTEGA VENETA
BRUNELLO CUCINELLI
BURBERRY
DOLCE&GABBANA
GIVENCHY
GUCCI
HERMÈS
HUGO BOSS
LORO PIANA
MICHAEL KORSRALPH LAUREN
SAINT LAURENT
VALENTINO
ZEGNA
$-
$200
$400
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0 100 200 300 400 500 600
Med
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Lower Positioning
Higher Positioning
Exane BNP Paribas Research & ContactLab Luxury Goods
Figure 89: Men Shirts – Price range by brand (Shoppable Models, USD, US, SS15), ranked by entry price (bottom quintile average)
Source: ContactLab Analysis
$1
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$100
$1,000
$10,000
VA
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Exane BNP Paribas Research & ContactLab Luxury Goods
Figure 90: Men Blazers – Median price (USD) vs. product range (# Shoppable models)
Source: ContactLab Analysis
ARMANI
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BRUNELLO CUCINELLI
BURBERRY
DOLCE&GABBANAGIVENCHY
GUCCI
HERMÈS
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RALPH LAUREN
SAINT LAURENT
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Exane BNP Paribas Research & ContactLab Luxury Goods
Figure 91: Men Blazers – Price range by brand (Shoppable Models, USD, US, SS15), ranked by entry price (bottom quintile average)
Source: ContactLab Analysis
$1
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Exane BNP Paribas Research & ContactLab Luxury Goods 8 October 2015 page 90
Exane presentation Specialising in European equities, Exane is active in three businesses:
– Cash Equities: under the brand name Exane BNP Paribas, Exane provides institutional investors with a range of services, such as research, sale and execution on European equities;
– Equity Derivatives: Exane Derivatives has built a robust structured products franchise, based on its longstanding leadership in European convertible bonds and options;
– Asset Management: Exane Asset Management is one of the leaders in long/short equity fund management in Europe.
The agreement between Exane and BNP Paribas, signed in 2004 and strengthened in 2010 and 2011, revolves around three core elements:
– An operational partnership in European cash equities where BNP Paribas conferred exclusivity on secondary equity brokerage and the distribution of primary market activity to Exane under the Exane BNP Paribas brand;
– A balance sheet partnership, which is particularly well suited to our Equity Derivatives business, providing financing and support for our rating;
– A capital partnership uniting the strength of BNP Paribas with the independence of Exane.
Exane works primarily with institutional clients worldwide (pension funds, fund managers for banks and insurers and hedge funds), and markets its derivatives products to a broader pool of clients comprising private asset managers and investment advisors. Exane has a workforce of over 900 employees operating from offices in Paris, London, Frankfurt, Geneva, Madrid, Milan, New York, Stockholm and Singapore. Exane BNP Paribas equity research team covers c.600 companies. UK companies represent the biggest part of our coverage universe (25% of covered market cap), followed by France (15%) and USA (13%). Our research receives regular acclaim in leading industry surveys.
For further information, log on to our website at www.exane.com
ContactLab presentation ContactLab is a market leader in digital direct marketing products and services and a strategic partner for enterprise clients who wish to manage a customer engagement model on a global scale.
With offices in Milan, Paris and Munich, over 1000 customers, 15 years of experience and more than 130 specialists, ContactLab provides comprehensive solutions to enable top clients and brands to meet and exceed their business objectives through sophisticated CRM programs with their customers and prospects.
ContactLab is exclusively dedicated to the Enterprise segment with strong focus and expertise in the luxury industry, supporting leading brands worldwide in multiple languages, with a special tang towards Asian markets - in particular China - and emerging markets.
Over the years, ContactLab has expanded its offering by including added value services to its leading technological platform for outbound messaging enabling the uptake of digital marketing as a user-centric strategic tool for business growth.
ContactLab’s solutions are based on a triple player approach:
- Technology: focusing on digital direct multichannel messaging with a solid platform developed in-house since 2001, offering the highest level of security, scalability and deliverability.
- Agency: a full range of added value marketing services covering customer life-cycle engagement, from the definition of the data capture strategy, to the creative concept, to project execution, to the analysis of email impact on the bottom-line.
- Business Strategy Consulting: a proven set of capabilities including digital audit and strategy, Top Management Tableau de Bord, customer segmentation and data mining on complex databases, interpolating email shipments with e-commerce and retail transactions.
The ContactLab offering also includes Market Research products and services with a dedicated team aiming to identify behavioural trends by applying the CAWI methodology. ContactLab produces and publishes multi-country reports on European digital behaviours on a regular basis.
ContactLab has also created and developed NewsletterMonitor, a freeware internet application for competitive benchmarking, to monitor, track, analyze and compare over 4 million emails sent by more than 15,000 brands over the last 7 years.
ContactLab was founded by Massimo Fubini, an internet industry veteran and an opinion leader in the New Media and Digital Direct Marketing arena since 1995. He gained experience in Internet security in the mid-nineties, working for the military. He contributed to the network security rules for the Italian public administration. He has been a member of the Technical Committee at Audiweb - AssoComunicazione web sector for 7 years. He is a recognized keynote speaker on direct marketing and privacy topics.
For more information visit our website www.contactlab.com and www.newslettermonitor.com.
Disclosures All stock-specific commentary and recommendations in this report are solely based on Exane Research.
ContactLab This report is co-authored by Exane and ContactLab and draws upon research and analysis of both Exane and ContactLab.
ContactLab does not make investment recommendations, in this report or otherwise, and nothing in this report should be interpreted as an opinion by ContactLab either on market forecasts or on the prospects of specific companies.
This report and all of its content are strictly confidential. It may not be circulated or otherwise reproduced in whole or in part.
The analyses set out in the Report are the result of the aggregation of public materials and data coming from a sample of industry players.
Use of this report by any person for whatever purpose should not, and does not, absolve such third party from using due diligence and care in verifying the report’s contents.
Any use which a person makes of this document, or any reliance on it, or decisions to be made based on it, are the responsibility of such person.
ContactLab, its affiliates and representatives accept no duty of care or liability of any kind whatsoever to any person, and no responsibility for damages, if any, suffered by any person as the result of decision made, or not made, or actions taken, or not taken, based on this document.
Exane BNP Paribas Research & ContactLab Luxury Goods 8 October 2015 page 91
DISCLOSURE APPENDIX Analyst Certification We, Hui Fan, Luca Solca, (authors of or contributors to the report) hereby certify that all of the views expressed in this report accurately reflect our personal view(s) about the company or companies and securities discussed in this report. No part of our compensation was, is, or will be, directly, or indirectly, related to the specific recommendations or views expressed in this research report.
Non-US Research Analyst Disclosure The research analysts named below were involved in preparing this research report. Research analysts at Exane Ltd and Exane SA are not associated persons of Exane Inc. and thus are not registered or qualified in the U.S. as research analysts with the Financial Industry Regulatory Authority (FINRA) or the New York Stock Exchange (NYSE). These non-U.S. analysts are not subject to the NASD Rule 2711 and NYSE Rule 472 restrictions on communications with a subject company, public appearances and trading securities held by a research analyst account. Hui Fan Exane Ltd Luca Solca Exane SA Exane SA is regulated by the Autorité des Marchés Financiers (AMF) in France, Exane Ltd is authorised and regulated by the Financial Conduct Authority in the United Kingdom, and Exane Inc. is regulated by FINRA and the U.S. Securities and Exchange Commission in the United States.
Research Analyst Compensation The research analyst(s) responsible for the preparation of this report receive(s) compensation based upon various factors including overall firm revenues, which may include investment banking activities.
Disclosure of the report to the company/ies Companies Disclosures NONE 1 – Sections of this report, with the research summary, target price and rating removed, have been presented to the subject company/ies prior to its distribution, for the sole purpose of verifying the accuracy of factual statements. 2 – Following the presentation of sections of this report to this subject company, some conclusions were amended.
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This research is produced by one or more of EXANE SA, EXANE Limited and Exane Inc (collectively referred to as “EXANE”) . EXANE SA is authorized by the Autorité de Contrôle Prudentiel et de Résolution and regulated by the Autorité des Marchés Financiers (“AMF”). EXANE Limited is authorized and regulated by the Financial Conduct Authority (“FCA”). Exane Inc is registered and regulated by the Financial Industry Regulatory Authority (“FINRA”). In accordance with the requirements of FCA COBS 12.2.3R and associated guidance, of article 313-20 of the AMF Règlement Général, and of FINRA Rule 2711, Exane’s policy for managing confl icts of interest in relation to investment research is published on Exane’s web site (www.exane.com). Exane also follows the guidelines described in the code of conduct of the Association Francaise des Entreprises d’Investissement (“AFEI”) on managing confl icts of interest in the fi eld of investment research. This code of conduct is available on Exane’s web site (www.exane.com).
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This report may not be reproduced, distributed or published by any recipient for any purpose. Any United States person wishing to obtain further information or to effect a transaction in any security discussed in this report should do so only through Exane Inc., which has distributed this report in the United States and, subject to the above, accepts responsibility for its contents.
BNP PARIBAS has acquired an interest in VERNER INVESTISSEMENTS the parent company of EXANE. VERNER INVESTISSEMENTS is controlled by the management of EXANE. BNP PARIBAS’s voting rights as a shareholder of VERNER INVESTISSEMENTS will be limited to 40% of overall voting rights of VERNER INVESTISSEMENTS.
Exane BNP ParibasLuca Solca(+44) 203 430 8503luca.solca@exanebnpparibas.com
Hui Fan(+44) 203 430 8507hui.fan@exanebnpparibas.com
ContactLabMarco Pozzi(+39) 02 28 31 181marco.pozzi@contactlab.com
Alexandra Bertasio(+39) 02 28 31 181alexandra.bertasio@contactlab.com
Davide Sarra(+39) 02 28 31 181davide.sarra@contactlab.com
See Appendix (on p91) for Analyst Certifi cation, Important Disclosures and Non-US Research Analyst disclosures.
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NEW YORKExane Inc.640 Fifth Avenue15th FloorNew York, NY 10019 USATel: (+1) 212 634 4990Fax: (+1) 212 634 5171 WHY YOU SHOULD READ THIS REPORT
Pricing is a fundamental area of analysis in luxury goods. Higher prices correlate with superior margin performance and faster growth. A correlation with “Made in” highlights a “cost plus” pricing approach by most brands.
We ascertain here the hard facts on online pricing for the same 30 luxury brands we track in the USA in the Online Offer Dive, covering a total of 39,395 models.
Handbags act as a price differentiator, while entry price categories (eyewear, fragrances, cosmetics, and small leather goods) have fl atter price structures.
We vividly demonstrate “category segregation” at Hermès, and confi rm mega-brand price leadership by LV and Cartier. Only a handful of brands exclude the very high-end from their online offer.
8 OCTOBER 2015
Luca SolcaHui Fan ContactLabMarco PozziAlexandra BertasioDavide Sarra
Luxury Goods
Digital Luxury: Online Pricing Landscape SS15
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