headline verdana boldglobal powers of luxury goods 2017 ... · headline verdana boldglobal powers...
TRANSCRIPT
Headline Verdana BoldGlobal Powers of Luxury Goods 2017The new luxury consumer
Highlights presentation
Global economic outlook
© 2017. For more information, contact Deloitte Touche Tohmatsu Limited. 3
Global economic outlook
United States Slowdown in growth in 2016 Stronger Dollar and slowdown in trade from Chinese tourism
Risk of protectionist measures
Europe Slow, but steady, market growth Domestic shoppers cautious about spending
Tourists concerned about safety after terrorist attacks
Latin America Mexico is the largest luxury goods market, with a positive outlook
Brazil follows Mexico, with a good potential for growth
Middle East New growth potential Big opportunity for luxury goods brands
Russia Recent economic difficulties Luxury goods sales slowed Signs of stabilization for local currency in the future
Moderate growth expected
China & Hong Kong General economic uncertainty Weaknesses in the demand for luxury goods
Local price adjustment and related growth of domestic purchasing
Rest of Asia Strong growth in India Positive outlook for Japan Steady growth for South Korea
United Kingdom Sharp decline in pound value due to Brexit
Significant demand in UK luxury goods by Middle East, China, US an Russia
UK became the most affordable luxury market in the world
Global Powers of Luxury Goods 2017
© 2017. For more information, contact Deloitte Touche Tohmatsu Limited. 5
Top 100 quick statistics
© 2017. For more information, contact Deloitte Touche Tohmatsu Limited. 6
The top four companies retained their leading positions
Top 10 luxury goods companies
Compagnie Financière Richemont SA - Switzerland
The Estée Lauder Companies Inc. - US
Luxottica Group SpA – Italy
Kering SA - France
The Swatch Group Ltd. - Switzerland
L'Oréal Luxe - France
LVMH Moët Hennessy-Louis Vuitton SE - France
Ralph Lauren Corporation - US
Chow Tai Fook Jewellery Group Limited - Hong Kong
PVH Corp. - US
$ 22.4
$ 12.2
$ 11.3
$ 9.8
$ 8.7
$ 8.5
$ 8.0
$ 7.4
$ 7.3
$ 6.3
FY2015 sales (US$ billions) Change in rank
+1
-1
+1
+1
-2
%
Sales growth %
11.2
20.1
10.0
9.1
6.2
13.2
15.2
5.3
5.3
7.1
%
#1
#2
#3
#5
#4
#6
#7
#8
#9
#10
Key highlights
• Top 10 luxury goods companies
aggregate sales 48% of the total Top 100
• No new entrants to the Top 10 list in 2015
• Chow Tai Fook dropped two places in the
rankings
• All Top 10 companies profitable
c
FY2015 Top 100 rank#
Top 10
Top 100
$ 102.0
15.2
6.4
4.5
15.5
16.4
-3.0
16.7
-2.8
-11.9
-2.3
9.6
6.8$ 212.0
11.4
9.7
Net profit margin %
%
© 2017. For more information, contact Deloitte Touche Tohmatsu Limited. 7
Fastest 20
CAGR and YoY Growth for the Fastest 20 were almost 4 times the rate for the Top 100
FY2013-2015 CAGR % Top 100 ranking
#
FY2015 CAGR ranking#
Marcolin Group#1
Valentino Fashion Group SpA#2
Pandora A/S#3
Restoque Comércio e Confecções de Roupas S.A. #5
Gitanjali Gems Ltd. #4
Kate Spade & Company#6
Acne Studios Holding AB #7
SMCP SAS #8
Fastest 20
Moncler SpA#9
Furla SpA#10
43.1
37.8
36.3
30.6
29.1
28.1
27.6
26.5
23.1
22.9
22.2
22.3
22.1
19.9
19.3
19.1
18.4
17.3
16.5
13.7
13.6
5.2
64
43
24
30
74
41
99
51
46
72
20.1
44.1
40.2
43.1
55.2
10.3
23.7
32.8
26.8
27.2
24.0
95.1
10.7
19.6
7.8
17.7
21.7
15.2
17.6
17.5
11.9
6.8
FY 2013-2015 CAGR
FY15
Growth
Eastern Gold Jade Co., Ltd #11
Vicini SpA#12
Charles Tyrwhitt LLP #13
Ted Baker plc#15
Michael Kors Holdings Limited#14
Richard Mille SA#16
PC Jeweller Ltd.#17
Gianni Versace SpA#18
Top 100
Hermès International SCA#19
Kurt Geiger Limited#20
36
94
86
14
54
97
44
53
12
69
FY 2013-2015 CAGR
FY15
Growth
© 2017. For more information, contact Deloitte Touche Tohmatsu Limited. 8
Eight countries accounted for 88% of Top 100 sales
Geographic analysis
No. ofcompanies
Share of Top 100 luxury goods sales
FY 15 luxurygoods sales growth
China/Hong Kong 7 8.9% -2,4%
France 10 23.9% 14,9%
Germany 6 2.3% 5,6%
Italy 26 16.0% 9,3%
Spain 4 1.3% 9,7%
Switzerland 10 14.4% 3,6%
United Kingdom 10 5.6% 2,4%
United States 15 21.3% -0,3%
Other countries 12 6.3% 16,5%
Key highlights
• All the countries of Top 100 registered a
growth, except China/Hong Kong and United
States
• France has the highest share of sales and
biggest growth rate in 2015
• Italy is the leading country in terms of
number of companies
• Germany new entry in the ranking
c
© 2017. For more information, contact Deloitte Touche Tohmatsu Limited. 9
Product sector analysis
Apparel and footwear
Apparel and footwear sector had the largest number of companies in the Top 100
Multiple luxury goods
Jewellery and watches
c
Cosmetics and fragrances
Bags and accessories
Bags and accessories
% Share of sales
FY 15 luxury goods sales growth
TOP 100
41
10
Companies by sector
10
28
11
Key highlights
• Slow growth for the apparel and footwear sector
• Highest rate among all the luxury goods sectors for bags and
accessories
• Cosmetics and fragrances companies are the largest on average among the
100
• The lowest luxury goods sales growth for jewellery and watches
• Multiple luxury goods achieved the highest profit margin
19.5 7.4 13.9 26.7 32.5
4.4 13.4 6.5 2.0 10.8
FY 15 sector sales growth
6.8
The new luxury consumer
© 2017. For more information, contact Deloitte Touche Tohmatsu Limited. 11
Can we fit a vital section
of the global luxury
market inside Lisbon?
© 2017. For more information, contact Deloitte Touche Tohmatsu Limited. 12
Can we fit a vital section of the global luxury market inside Lisbon?
Focusing on the half that actually
matters…
2 billion(Excluding males)
Starting withthe world…
7 billion(World’s
population)
But you need enough money…
3.3 million(Including Top 1% of
emerging market and 10% of mature market
earners)
Picking a decent luxury dozen…
4 billion(Focusing on a selection of
major luxury markets)
Excluding thosewho don’t…
1.2 billion(Excluding those under 18)
It’s not everyone’scup of tea …
2.5 million(Let’s say 1 in 4 might
not be interested)
Concentrating on the rising powers…
500 million(Millennials)
© 2017. For more information, contact Deloitte Touche Tohmatsu Limited. 13
2.8million
And there you have it…
Some highlights from our research
© 2017. For more information, contact Deloitte Touche Tohmatsu Limited. 15
Younger
consumers
Older
consumers
Total
Mature
markets
Emerging
markets
Where do luxury
consumers buy?
Home country
Abroad
Airport
The travel imperative intensifies
Key highlights
• Almost half of luxury purchases are made by
consumers who are travelling
• The propensity to buy luxury products in the
tourist marketplace declines with age
• Greater affordability and product availability
are the two main drivers of luxury purchases
abroad
c
© 2017. For more information, contact Deloitte Touche Tohmatsu Limited. 16
The battle for price heats up
$350
$400
$450
$500
$550
$600
$650
$700
11-11月-16 11-12月-16 10-1月-17 09-2月-17 11-3月-17 10-4月-17
Weekly
media
n p
rice o
f lu
xury
goods
(USD
-adju
ste
d)
China Japan South Korea Hong Kong Russia
USA UK Italy FranceKey highlights
• US dollar-adjusted prices for equivalent items
are on average over 50% higher in China
than in Europe
• Price difference between China and Europe
varies by brand, from just 20% to over 70%
• The highest average premium is for watches
and jewellery (c.55%) and the lowest is for
bags (c.40%)
c
Source: BenchMarque by Deloitte. Covering 40 luxury
brands and over 100,000 luxury & fashion products.
© 2017. For more information, contact Deloitte Touche Tohmatsu Limited. 17
The channel trends amplify
Younger
consumers
Older
consumers
Total
Mature
markets
Emerging
markets
Where do luxury
consumers shop?
Online
Mobile
Store
Key highlights
• A third of transactions are taking place in the
digital channel
• Young luxury shoppers say that c.40% of
their luxury purchases take place digitally –
almost half of which are via smartphone
• Digital transactions are more common in
emerging markets than mature markets
c
© 2017. For more information, contact Deloitte Touche Tohmatsu Limited. 18
Followers of fashion … make America great again?
40% 50% 60% 70% 80% 90% 100%30%
97%
97%
68%
66%
68%
64%
63%
57%
54%
40%
38%
“When it comes to buying luxury products, for me
it’s important to buy the latest trend”
“I buy local luxury brands to
support the local economy”
40% 50% 60% 70% 80% 90% 100%30%
88%
77%
63%
28%
60%
66%
47%
57%
45%
38%
62%
© 2017. For more information, contact Deloitte Touche Tohmatsu Limited. 19
Consumers view of the future … technology and price harmonisation
How do you see the luxury goods market evolving in your
country in the near future?
“By linking luxury products to technology”
“How do you see the luxury goods market evolving in
your country in the near future?
“By a decrease in the prices of luxury products”
25% 30% 35% 40% 45% 50% 55%20%
34%
64%
34% 44%
38%32%
33%
29%
23%28%
15%
19%
60% 65%
40%
45%27%
33%
28%
31%
30%
21%40%
28%
22%
25% 30% 35% 40% 45% 50% 55%20%15%
© 2017. For more information, contact Deloitte Touche Tohmatsu Limited. 20
Top influencers of the luxury world
© 2017. For more information, contact Deloitte Touche Tohmatsu Limited. 21
Contacts
Patrizia Arienti
EMEA Fashion & Luxury Leader
Nick Pope
UK Fashion & Luxury Leader
Tianbing Zhang
China Consumer Products and Retail Leader
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. Please see www.deloitte.com/aboutfor a more detailed description of DTTL and its member firms.
This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms, or their related entities (collectively, the “Deloitte network”) is, by means of this communication, rendering professional advice or services. No entity in the Deloitte network shall be responsible for any loss whatsoever sustained by any person who relies on this communication.
© 2017. For information, contact Deloitte Touche Tohmatsu Limited