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Luxury Goods Retail - International Market Report

Everything you need to make the right decisions

Providing the most comprehensive and up-to-date information and analysis of the Luxury Goods Retail market, and the behaviours, preferences and habits of the consumer.

Mintel has the answers you’re looking for

What are the key challenges facing the industry? Who is the consumer and what do they want? Where are the opportunities, where are the risks and what lies ahead?

What you need to know

The global luxury market performed well in 2017 and the outlook is optimistic. Although uncertainty continues to overhang the market, the underlying demand for luxury goods remains robust. During 2017, the market was boosted by a revived demand for fashion and leather goods, alongside a shift away from wholesale towards retail in recent years.

Purchasing is now being driven by young consumers and this has resulted in major strategic changes at a number of the leading luxury houses. Going forwards, as brands look to engage a younger luxury shopper, greater investment will be placed into digital strategies and there is also likely to be an ongoing balancing act as luxury houses seek to retain exclusivity, whilst also ensuring they reach a broad demographic of consumers.

Products covered in this Report

Report scope

Most people have an idea of what constitutes a luxury item, but it is very difficult to quantify it. However, one can say that a luxury good is branded and it is the goods that are luxury, not the retailer. It is up to the retailer to merchandise the goods in a way that sets them off to their best advantage.

Market sizes

Since it is the brands that are luxury and not the retailer, Mintel has calculated the size of the market from the aggregated turnover of brands that we think are viewed as luxury brands, adjusted where necessary to add a retail margin and the sales of smaller players.

Defining luxury goods

Luxury goods are priced high and that is often justified by a very high level of craftsmanship. They must have an element of exclusivity and be out of the reach of most mass market buyers, certainly in terms of regular purchasing. However, defining the market can be difficult because perception of luxury can be very subjective.

It is usually fairly apparent where a product is luxury and equally obvious where it isn’t, but there is a grey area that is more subjective. Take the Swatch Group, for example. The Swatch brand itself is mass market and, while they are more upmarket, we think that Longines and Tissot are too. But Omega is a luxury brand, and one of the more desirable as well. Or look at Net-a-Porter - some of the brands it sells are most definitely luxury brands (eg those from the Kering and Prada stables), but others are not. J Crew is a US mass market brand.

In our analysis there are three main categories of luxury goods to which we add a miscellaneous group of smaller products:

  • Fashion & leather goods
  • Fragrances & cosmetics
  • Jewellery & watches
  • Other – writing instruments, eyewear, furniture and other home goods and other miscellaneous items. It may also include a small element from hotels (eg Bulgari), spas and bars.

Food, beverages, tobacco, electronic/electrical goods, automobiles and services such as travel are all excluded from our market size.

Geographical breakdown

We provide a broad regional breakdown of our market size. This is based mainly on data published by the leading luxury groups themselves.

We look at the following regions:

  • Europe
  • Americas
  • Asia Pacific
  • Rest of the world (includes the Middle East and Africa)

We also estimate national market sizes for the ten largest markets, which together account for around three-quarters of the global luxury market.

The report also includes findings from Mintel’s exclusive consumer research carried out across seven major markets: the UK, the US, France, Germany, Italy, Spain and China. This proprietary data provides valuable insights into attitudes and buying habits related to luxury goods in the major markets.

Company profiles

The report also includes profiles of 17 leading luxury companies, spanning the categories that are the focus of this report: fashion and leather goods, fragrances and cosmetics and watches and jewellery.

Expert analysis from a specialist in the field

Written by Samantha Dover, a leading analyst in the Retail sector, her extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

The global luxury goods industry is going through a significant period of change. As young consumers are fast becoming key purchasers of high-end fashion, luxury houses need to adapt. This has resulted in polarised performances amongst the leading players. Those that were slower to respond have lost market share, whilst the brands that have successfully engaged a younger audience are driving growth in the market. Samantha Dover
Retail Analyst

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Table of contents

  1. Overview

    • What you need to know
      • Products covered in this Report
        • Report scope
          • Mintel market sizes
            • Defining luxury goods
              • Geographical breakdown
                • Company profiles
                  • Technical notes
                    • Financial definitions
                      • Exchange rates
                        • Figure 1: US Dollar to Euro annual average exchange rates, 2012-17
                    • Executive Summary

                        • The market
                          • Luxury market forecast to grow 7.9% in 2018
                            • Figure 2: Luxury goods market size and forecast (excl. VAT), 2013-23
                          • Far East continues to expand the luxury goods market
                            • Figure 3: Regional share of luxury goods sales, 2008-17
                          • Beauty outperforms, but demand for fashion and leather goods also robust
                            • Figure 4: Luxury goods sales by product category, 2017
                          • The consumer
                            • Decline in the number of people buying luxury goods
                              • Figure 5: Consumers who have bought luxury goods in the last 18 months, by country, April/May 2015, May/June 2016, May/June 2017 and June/July 2018
                            • Luxury consumers continue to favour physical stores
                              • Figure 6: Where consumers bought luxury goods in the last 18 months, by country, June/July 2018
                            • Department stores and specialists remain popular
                              • Figure 7: Retailers used to buy luxury goods in the last 18 months, by country, June/July 2018
                            • Bold branding is growing in popularity again
                              • Figure 8: Consumer attitudes towards owning luxury goods, by country, June/July 2018
                            • Collaborations can strengthen a brand’s appeal
                              • Figure 9: Consumer attitudes towards luxury goods and exclusivity, by country, June/July 2018
                            • Sustainability becomes a priority
                              • Figure 10: Consumer attitudes towards luxury goods and sustainability, by country, June/July 2018
                            • Companies and brands
                              • Company market shares
                                • Figure 11: Top 15 leading luxury companies’ shares of all luxury sales, 2016 and 2017
                              • Online sales of luxury goods account for 5% of the total market
                                • Innovation centred on customer experience
                                  • What we think
                                  • Issues and Insights

                                    • The digital evolution of the luxury goods industry
                                      • The facts
                                        • The implications
                                          • Exclusivity vs inclusivity – striking the right balance
                                            • The facts
                                              • The implications
                                                • Ongoing pressure to up the ante on sustainability
                                                  • The facts
                                                    • The implications
                                                    • The Luxury Market – What You Need to Know

                                                      • Market Size and Forecast

                                                        • Global economy
                                                          • Mintel’s market size
                                                            • The switch to retailing
                                                              • Prices and costs
                                                                • Market size and outlook
                                                                  • Figure 12: Luxury goods market size, reported and total retail sales and forecasts (excl VAT), 2013-23
                                                              • Product Segmentation

                                                                  • Figure 13: Global luxury market, sales by product, 2013-17
                                                                  • Figure 14: Global luxury market by type of product, 2017
                                                                • Fashion and leather goods
                                                                  • Figure 15: Global luxury market: fashion and leather goods sales, 2013-17
                                                                  • Figure 16: Top 10 leading luxury goods companies by share of the fashion and leather goods sector, 2017
                                                                • Jewellery and watches
                                                                  • Figure 17: Global luxury market: jewellery and watches sales, 2013-17
                                                                  • Figure 18: Top 10 leading luxury goods companies by share of the jewellery and watches sector, 2017
                                                                • Perfumes and cosmetics
                                                                  • Figure 19: Global luxury market: perfumes and cosmetics sales, 2013-17
                                                                  • Figure 20: Top 10 leading luxury goods companies by share of the perfumes and cosmetics sector, 2017
                                                              • Regional View

                                                                  • Market size by region
                                                                    • Figure 21: Luxury goods, sales by region, 2013-17
                                                                    • Figure 22: Regional share of the luxury goods market, 2008-17
                                                                  • Country market sizes
                                                                    • Figure 23: Wealth per HNWI by region, 2017
                                                                  • Luxury spending by country
                                                                    • Figure 24: Top 10 luxury goods markets, 2013-17
                                                                    • Figure 25: Top 10 countries in the luxury goods market by share of luxury spending, 2013-17
                                                                  • Americas
                                                                    • Figure 26: The Americas: leading luxury goods markets, 2013-17
                                                                    • Figure 27: The Americas, luxury markets’ shares of all luxury spending in the Americas, 2013-17
                                                                  • Asia Pacific
                                                                    • Figure 28: Asia Pacific: leading luxury goods markets, 2013-17
                                                                    • Figure 29: Asia Pacific luxury markets’ share of all luxury spending in the Asia Pacific region, 2013-17
                                                                  • Europe
                                                                    • Figure 30: Europe: leading luxury goods markets, 2013-17
                                                                    • Figure 31: European luxury markets’ share of all luxury spending in Europe, 2013-17
                                                                • Market Drivers

                                                                  • What are luxury goods?
                                                                    • The who, when, where, and why of the luxury goods consumer
                                                                      • Wealthy individuals
                                                                        • Figure 32: Numbers and share of wealth of HNWIs, 2017
                                                                      • Regional data
                                                                        • Figure 33: Number of HNWIs by region, 2009-17
                                                                        • Figure 34: Wealth of HNWIs by region, 2010-17
                                                                        • Figure 35: Top 10 largest HNWI populations, 2016 and 2017
                                                                      • Economic background
                                                                        • Figure 36: GDP growth in US dollars at current values, 2013-18
                                                                        • Figure 37: Leading international currency exchange rates, 2008-18*
                                                                      • Stock markets
                                                                        • Figure 38: Leading stock markets, year-on-year growth, 2012-17
                                                                      • Threat of trade war
                                                                        • Tourism
                                                                          • Figure 39: International inbound tourism, 2011-17
                                                                      • The Consumer – What You Need to Know

                                                                        • Technical note
                                                                          • Decline in the luxury shoppers
                                                                            • Physical stores remain important
                                                                              • Pressure on brands to act for sustainability
                                                                                • Limited edition product and collaborations boost brand appeal
                                                                                  • Luxury goods perceived as too expensive
                                                                                  • Who Buys Luxury Goods

                                                                                    • Luxury demand remains strongest in China
                                                                                      • Figure 40: Consumers who have bought luxury goods in the last 18 months, by country, June/July 2018
                                                                                    • Fewer consumers buying luxury goods
                                                                                      • Figure 41: Consumers who have bought luxury goods in the last 18 months, April/May 2015, May/June 2016, May/June 2017 and June/July 2018
                                                                                    • Male shoppers still more engaged
                                                                                      • Figure 42: Consumers who have bought luxury goods in the last 18 months, by gender, June/July 2018
                                                                                    • Young continue to buoy the market
                                                                                      • Figure 43: Consumers who have bought luxury goods in the last 18 months, by age, June/July 2018
                                                                                    • Affluence is also a key driver
                                                                                      • Figure 44: Europe: consumers who have bought luxury goods in the last 18 months, by annual household income, July 2018
                                                                                      • Figure 45: UK: consumers who have bought luxury goods in the last 18 months, by annual household income, July 2018
                                                                                      • Figure 46: US: consumers who have bought luxury goods in the last 18 months, by annual household income, June 2018
                                                                                    • Female shoppers more important in China
                                                                                      • Figure 47: China: consumers who have bought luxury goods in the last 18 months, by gender, age and annual household income, June 2018
                                                                                  • Where They Shop for Luxury Goods

                                                                                    • Most still shop in-store in home country
                                                                                      • Figure 48: Where consumers bought luxury goods in the last 18 months, by country, June/July 2018
                                                                                    • Uplift in Chinese spending abroad
                                                                                      • Figure 49: China: where consumers bought luxury goods abroad in the last 18 months, June 2018
                                                                                    • Department stores remain popular
                                                                                      • Figure 50: Retailers used to buy luxury goods in the last 18 months, by country, June/July 2018
                                                                                    • Luxury customer profiles by country
                                                                                      • China: vintage stores appeal to younger consumers
                                                                                        • Figure 51: China: where consumers bought luxury goods in the last 18 months, by age and annual household income, June 2018
                                                                                      • Italy: duty free usage highest amongst affluent shoppers
                                                                                        • Figure 52: Italy: where consumers bought luxury goods in the last 18 months, by age and annual household income, July 2018
                                                                                      • Spain: online-only retailers attract a different audience
                                                                                        • Figure 53: Spain: where consumers bought luxury goods in the last 18 months, by age and annual household income, July 2018
                                                                                      • UK: affluent head straight to the designer’s store or website
                                                                                        • Figure 54: UK: where consumers bought luxury goods in the last 18 months, by age and annual household income, July 2018
                                                                                      • US: multibrand pureplay usage peaks amongst younger customers
                                                                                        • Figure 55: US: where consumers bought luxury goods in the last 18 months, by age and annual household income, June 2018
                                                                                      • Germany: designer outlets appeal to high earners
                                                                                        • Figure 56: Germany: where consumers bought luxury goods in the last 18 months, by age and annual household income, July 2018
                                                                                      • France: young and affluent most inclined to buy second-hand goods
                                                                                        • Figure 57: France: where consumers bought luxury goods in the last 18 months, by age and annual household income, July 2018
                                                                                    • Attitudes towards Luxury Goods

                                                                                      • Why do consumers buy into luxury brands?
                                                                                        • Figure 58: Consumer attitudes towards purchasing luxury goods, June/July 2018
                                                                                      • Italy: young consumers wait for special occasions
                                                                                        • Figure 59: Italy: consumer attitudes towards purchasing luxury goods, by age, July 2018
                                                                                      • France: women want to buy into the luxury lifestyle
                                                                                        • Figure 60: France: consumer attitudes towards purchasing luxury goods, by gender, July 2018
                                                                                      • Owning luxury goods makes people feel good
                                                                                        • Figure 61: Consumer attitudes towards owning luxury goods, by country, June/July 2018
                                                                                      • US: men shop to make themselves stand out
                                                                                        • Figure 62: US: consumer attitudes towards owning luxury goods, by gender, June 2018
                                                                                      • UK: young Brits want brands that reflect their personality
                                                                                        • Figure 63: UK: consumer attitudes towards owning luxury goods, by age, July 2018
                                                                                      • Limited edition products can help brand retain exclusivity
                                                                                        • Figure 64: Consumer attitudes towards luxury goods and exclusivity, by country, June/July 2018
                                                                                      • Spain: young most likely to buy into designer collaborations
                                                                                        • Figure 65: Spain: consumer attitudes towards luxury goods and exclusivity, by age, July 2018
                                                                                      • China: men want brands to be exclusive
                                                                                        • Figure 66: China: consumer attitudes towards luxury goods and exclusivity, by gender, June 2018
                                                                                      • Just how important is sustainability to luxury shoppers?
                                                                                        • Figure 67: Consumer attitudes towards luxury goods and sustainability, by country, June/July 2018
                                                                                      • Germany: older consumers show most concern about luxury ethics
                                                                                        • Figure 68: Germany: consumer attitudes towards luxury goods and sustainability, by age, July 2018
                                                                                    • Reasons for Not Purchasing Luxury Goods

                                                                                      • Consumers would rather spend money on other things
                                                                                        • Figure 69: Reasons for not purchasing luxury goods in the last 18 months, by country, June/July 2018
                                                                                      • Non-luxury customer profiles by country
                                                                                        • China: affluent consumers worry luxury goods aren’t ethical enough
                                                                                          • Figure 70: China: consumers’ reasons for not purchasing luxury goods in the last 18 months, June 2018
                                                                                        • Italy: Millennials think luxury brands are too expensive
                                                                                          • Figure 71: Italy: consumers’ reasons for not purchasing luxury goods in the last 18 months, July 2018
                                                                                        • Spain: older generation prefer to spend money on something else
                                                                                          • Figure 72: Spain: consumers’ reasons for not purchasing luxury goods in the last 18 months, July 2018
                                                                                        • UK: younger demographic have concerns about luxury ethics
                                                                                          • Figure 73: UK: consumers’ reasons for not purchasing luxury goods in the last 18 months, July 2018
                                                                                        • US: higher earners think luxury products are pretentious
                                                                                          • Figure 74: US: consumers’ reasons for not purchasing luxury goods in the last 18 months, June 2018
                                                                                        • Germany: low earners don’t feel luxury goods are better quality
                                                                                          • Figure 75: Germany: consumers’ reasons for not purchasing luxury goods in the last 18 months, July 2018
                                                                                        • France: affluent struggle to find what they are looking for
                                                                                          • Figure 76: France: consumers’ reasons for not purchasing luxury goods in the last 18 months, July 2018
                                                                                      • Companies and Brands – What You Need to Know

                                                                                        • LVMH is the world’s largest luxury group by revenue
                                                                                          • Kering the strongest CAGR
                                                                                            • Revenue growth up across all regions
                                                                                              • Online sales of luxury goods account for 5% of the total market
                                                                                              • Innovation and Launch Activity

                                                                                                • Breakfast at Tiffany’s
                                                                                                  • Figure 77: Tiffany’s take on Breakfast at Tiffany’s –The Blue Box Cafe, November 2017
                                                                                                • Gucci turns to augmented reality
                                                                                                  • Figure 78: Gucci Spring/Summer 2018 AR campaign, titled ‘The Gucci Hallucination’
                                                                                                • Harvey Nichols’ not so little ‘Black Book’
                                                                                                  • Figure 79: Harvey Nichols partnership with Hero
                                                                                                • MatchesFashion London townhouse
                                                                                                  • Figure 80: Matchesfashion.com London townhouse at 5 Carlos place London, May 2018
                                                                                                • Stella McCartney’s sustainable store
                                                                                                  • Figure 81: Luxury leather alternative Mylo™ made from mycelium
                                                                                                • Gucci’s ‘Artlab’
                                                                                                  • See-Now-Buy-Now with Burberry
                                                                                                    • Menswear at Moda Operandi
                                                                                                      • Farfetch and Chanel partnership
                                                                                                        • YNAP communicates via WhatsApp
                                                                                                          • One-click with Oyst
                                                                                                            • Hermès connects with consumers through play
                                                                                                              • Customisation at Burberry and Ralph Lauren
                                                                                                                • Design collaborations from Louis Vuitton
                                                                                                                  • RIMOWA benefits from LVMH acquisition
                                                                                                                    • Activewear everywhere
                                                                                                                    • Online and Social Media

                                                                                                                      • The market
                                                                                                                        • The outlook
                                                                                                                          • Figure 82: Patek Philippe Instagram debut, 2018
                                                                                                                        • The brands online
                                                                                                                          • Figure 83: Major luxury brands: number of markets with transactional websites, 2016-18
                                                                                                                        • Pureplay luxury e-tailers
                                                                                                                          • Figure 84: Martha Louisa footwear, 2018
                                                                                                                        • The consumer: shopping online
                                                                                                                            • Figure 85: Where luxury consumers purchased luxury products in the last 18 months, by country, June/July 2018
                                                                                                                            • Figure 86: Type of online channel luxury brands were purchased from, by country, June/July 2018
                                                                                                                            • Figure 87: Luxury buyers who research luxury purchases more than other purchases, by country, June/July 2018
                                                                                                                          • Social media
                                                                                                                            • Prada case study
                                                                                                                              • Figure 88: Postman Dreams 2 series, by Prada, 2017
                                                                                                                              • Figure 89: Prada Nylon Farm, 2018
                                                                                                                              • Figure 90: Lil Miquela showcasing Prada on Instagram, 2018
                                                                                                                          • Company Metrics

                                                                                                                              • Figure 91: Leading luxury companies, by net revenues, 2015-17
                                                                                                                            • Revenue growth rates
                                                                                                                              • Figure 92: Leading luxury companies, % CAGR in revenues, 2012-17
                                                                                                                            • Product revenue mix
                                                                                                                              • Figure 93: Leading luxury companies, revenue by product group, 2017
                                                                                                                              • Figure 94: Leading luxury companies, percentage point change in product mix by product group revenue, 2013-17
                                                                                                                            • Regional revenue growth
                                                                                                                              • Figure 95: Leading luxury companies, total revenue by region, 2013-17
                                                                                                                            • Store numbers
                                                                                                                                • Figure 96: Selected leading luxury retailers, estimated store numbers, 2017
                                                                                                                              • Brand ownership
                                                                                                                                • Figure 97: Brand ownership, by leading luxury companies, 2018
                                                                                                                            • Market Shares

                                                                                                                                • Figure 98: Top 20 luxury goods groups, share of all luxury goods sales, 2015-17
                                                                                                                            • Appendix – Data Sources, Abbreviations and Supporting Information

                                                                                                                              • Data sources
                                                                                                                                • Abbreviations
                                                                                                                                  • Consumer research methodology
                                                                                                                                  • Burberry Group

                                                                                                                                      • What we think
                                                                                                                                        • The dream team
                                                                                                                                          • A greater focus on leather goods
                                                                                                                                            • Collaborations
                                                                                                                                              • Digital focus
                                                                                                                                                • Burberry rainbow check design
                                                                                                                                                  • Cracking down on counterfeits
                                                                                                                                                    • Company background
                                                                                                                                                      • Company performance
                                                                                                                                                        • Figure 99: Burberry Group Plc: group financial performance, 2013/14-2017/18
                                                                                                                                                        • Figure 100: Burberry Group Plc: revenue by product division, 2013/14-2017/18
                                                                                                                                                        • Figure 101: Burberry Group Plc: outlet data, 2013/14-2017/18
                                                                                                                                                      • E-commerce
                                                                                                                                                      • Estée Lauder

                                                                                                                                                          • What we think
                                                                                                                                                            • Too faced and BECCA forecast to contribute to 2% of annual sales
                                                                                                                                                              • Further influencer partnerships
                                                                                                                                                                • #Beautyhub partnership with Debenhams
                                                                                                                                                                  • Access to a beauty expert is as easy as reaching for your phone
                                                                                                                                                                    • Boost continues from Millennials
                                                                                                                                                                      • Company background
                                                                                                                                                                        • Figure 102: Estée Lauder Companies brand map, 2018
                                                                                                                                                                      • Company performance
                                                                                                                                                                        • Figure 103: Estée Lauder Companies: group financial performance, 2012/13-2017/18
                                                                                                                                                                        • Figure 104: Estée Lauder Companies: group financial performance, by region, 2012/13-2016/17
                                                                                                                                                                        • Figure 105: Estée Lauder Companies: group financial performance, by product category, 2012/13-2016/17
                                                                                                                                                                      • E-commerce
                                                                                                                                                                      • Giorgio Armani

                                                                                                                                                                          • What we think
                                                                                                                                                                            • Could do better when it comes to e-commerce
                                                                                                                                                                              • Succession plans clearer but no news on successor
                                                                                                                                                                                • Exposure to department stores sector could become a problem
                                                                                                                                                                                  • Company background
                                                                                                                                                                                    • Company performance
                                                                                                                                                                                      • Figure 106: Giorgio Armani: group financial performance, 2012-17
                                                                                                                                                                                    • E-commerce
                                                                                                                                                                                    • Hermès

                                                                                                                                                                                        • What we think
                                                                                                                                                                                          • Hermès.com spreads its reach
                                                                                                                                                                                            • Growth in workforce
                                                                                                                                                                                              • Let’s play!
                                                                                                                                                                                                • Highlights commitment to sustainability
                                                                                                                                                                                                  • Company background
                                                                                                                                                                                                    • Company performance
                                                                                                                                                                                                        • Figure 107: Hermès: financial performance, 2013-17
                                                                                                                                                                                                        • Figure 108: Hermès: sales by product category, 2016-17
                                                                                                                                                                                                      • Q1 2018
                                                                                                                                                                                                        • E-commerce
                                                                                                                                                                                                        • Kering

                                                                                                                                                                                                            • What we think
                                                                                                                                                                                                              • Expanding e-commerce footprint
                                                                                                                                                                                                                • Gucci puts sustainability and transparency in the spotlight
                                                                                                                                                                                                                  • New retail concepts to excite customers and drive footfall
                                                                                                                                                                                                                    • Bag and sneaker personalisation
                                                                                                                                                                                                                      • Testing luxury fashion and accessories rental service
                                                                                                                                                                                                                        • Gucci launches luxury home décor collection
                                                                                                                                                                                                                          • Company background
                                                                                                                                                                                                                            • Company performance
                                                                                                                                                                                                                                • Figure 109: Kering: financial performance, 2013-17
                                                                                                                                                                                                                                • Figure 110: Kering Luxury: breakdown of revenue by region, 2013-17
                                                                                                                                                                                                                                • Figure 111: Kering Luxury: directly-operated stores, 2016-17
                                                                                                                                                                                                                              • E-commerce
                                                                                                                                                                                                                              • L'Oréal Luxe

                                                                                                                                                                                                                                  • What we think
                                                                                                                                                                                                                                    • Accessible luxury boosts Chinese spending
                                                                                                                                                                                                                                      • David Beckham in partnership with L'Oréal Luxe
                                                                                                                                                                                                                                        • L’Oréal ‘s new paper-based bottle
                                                                                                                                                                                                                                          • Company background
                                                                                                                                                                                                                                            • Company performance
                                                                                                                                                                                                                                              • Figure 112: L'Oréal group: net revenues by division, 2013-17
                                                                                                                                                                                                                                              • Figure 113: L'Oréal Luxe: financial performance, 2013-17
                                                                                                                                                                                                                                            • E-commerce
                                                                                                                                                                                                                                            • LVMH

                                                                                                                                                                                                                                                • What we think
                                                                                                                                                                                                                                                  • RIMOWA gains greater brand awareness
                                                                                                                                                                                                                                                    • Christian Dior Couture continues with excellent momentum
                                                                                                                                                                                                                                                      • Launch of 24Sèvres.com
                                                                                                                                                                                                                                                        • What next?
                                                                                                                                                                                                                                                          • Company background
                                                                                                                                                                                                                                                            • Christian Dior Couture
                                                                                                                                                                                                                                                              • Company performance
                                                                                                                                                                                                                                                                • Excellent 2018 first half
                                                                                                                                                                                                                                                                  • Figure 114: LVMH Group: financial performance, 2013-17
                                                                                                                                                                                                                                                                  • Figure 115: LVMH: distribution of revenues by region, 2013-17
                                                                                                                                                                                                                                                                  • Figure 116: LVMH: geographic distribution of revenues by product category, 2013-17
                                                                                                                                                                                                                                                                • Wholesale/retail
                                                                                                                                                                                                                                                                  • Figure 117: LVMH: sales by type of distribution (excluding Louis Vuitton and Christian Dior Couture), 2013-17
                                                                                                                                                                                                                                                                  • Figure 118: LVMH: outlet portfolio, 2016 and 2017
                                                                                                                                                                                                                                                                • E-commerce
                                                                                                                                                                                                                                                                • Prada Group

                                                                                                                                                                                                                                                                    • What we think
                                                                                                                                                                                                                                                                      • The devil clicks Prada
                                                                                                                                                                                                                                                                        • A family affair
                                                                                                                                                                                                                                                                          • Exclusive collaborations
                                                                                                                                                                                                                                                                            • Celebrities showcase the brand
                                                                                                                                                                                                                                                                              • Company background
                                                                                                                                                                                                                                                                                • Company performance
                                                                                                                                                                                                                                                                                  • Figure 119: Prada: group financial performance, 2013/14-2017
                                                                                                                                                                                                                                                                                  • Figure 120: Prada: group net revenue breakdown, by channel, 2013/14-2017
                                                                                                                                                                                                                                                                                  • Figure 121: Prada: group retail revenue breakdown, by brand, 2013/14-2017
                                                                                                                                                                                                                                                                                  • Figure 122: Prada: group retail revenue breakdown, by market, 2016/17-2017
                                                                                                                                                                                                                                                                                  • Figure 123: Prada: group retail revenue breakdown, by product line, 2013/14-2017
                                                                                                                                                                                                                                                                                  • Figure 124: Prada: directly-operated stores, 2013/14-2017
                                                                                                                                                                                                                                                                                • E-commerce
                                                                                                                                                                                                                                                                                • Ralph Lauren

                                                                                                                                                                                                                                                                                    • What we think
                                                                                                                                                                                                                                                                                      • Brand damage and dilution
                                                                                                                                                                                                                                                                                        • Accelerating digital sales growth a priority
                                                                                                                                                                                                                                                                                          • China a key growth market for Ralph Lauren
                                                                                                                                                                                                                                                                                            • Increasing its focus on customisation
                                                                                                                                                                                                                                                                                              • Company background
                                                                                                                                                                                                                                                                                                • Company performance
                                                                                                                                                                                                                                                                                                  • Figure 125: Ralph Lauren Corporation: group financial performance, 2013/14-2017/18
                                                                                                                                                                                                                                                                                                  • Figure 126: Ralph Lauren Corporation: global directly-operated stores and concessions, 2013/14-2017/18
                                                                                                                                                                                                                                                                                                • E-commerce
                                                                                                                                                                                                                                                                                                • Richemont

                                                                                                                                                                                                                                                                                                    • What we think
                                                                                                                                                                                                                                                                                                      • Cartier rereleases classic designs
                                                                                                                                                                                                                                                                                                        • Richemont succeeds in its bid for YNAP
                                                                                                                                                                                                                                                                                                          • Chloe and Dunhill welcome new creative directors in 2017
                                                                                                                                                                                                                                                                                                            • A celebration of the life of Alaïa
                                                                                                                                                                                                                                                                                                              • What next
                                                                                                                                                                                                                                                                                                                • Company background
                                                                                                                                                                                                                                                                                                                  • Company performance
                                                                                                                                                                                                                                                                                                                    • Figure 127: Richemont: group financial performance, 2013/14-2017/18
                                                                                                                                                                                                                                                                                                                    • Figure 128: Richemont: revenues by region, 2013/14-2017/18
                                                                                                                                                                                                                                                                                                                    • Figure 129: Richemont: revenues by product, 2013/14-2017/18
                                                                                                                                                                                                                                                                                                                    • Figure 130: Richemont: revenues by maison, 2013/14-2017/18
                                                                                                                                                                                                                                                                                                                    • Figure 131: Richemont Group: outlet numbers and transactional websites, 2016/17-2017/18
                                                                                                                                                                                                                                                                                                                  • YNAP: company performance
                                                                                                                                                                                                                                                                                                                    • Figure 132: YNAP Group: group financial performance, 2014-17
                                                                                                                                                                                                                                                                                                                  • E-commerce
                                                                                                                                                                                                                                                                                                                  • Shiseido

                                                                                                                                                                                                                                                                                                                      • What we think
                                                                                                                                                                                                                                                                                                                        • Luxury brands come first
                                                                                                                                                                                                                                                                                                                          • Shiseido embraces personalisation
                                                                                                                                                                                                                                                                                                                            • Environmental issues come to the fore
                                                                                                                                                                                                                                                                                                                              • Company background
                                                                                                                                                                                                                                                                                                                                • Company performance
                                                                                                                                                                                                                                                                                                                                  • Figure 133: Shiseido: group financial performance, 2012/13-2017
                                                                                                                                                                                                                                                                                                                                  • Figure 134: Shiseido: outlet data, 2012/13-2017
                                                                                                                                                                                                                                                                                                                                • E-commerce
                                                                                                                                                                                                                                                                                                                                • Swatch Group – Luxury

                                                                                                                                                                                                                                                                                                                                    • What we think
                                                                                                                                                                                                                                                                                                                                      • An opportunity to extend personalisation to the luxury range
                                                                                                                                                                                                                                                                                                                                        • Swatch Pay contactless payment taps into growth of contactless payment
                                                                                                                                                                                                                                                                                                                                          • Experimenting with new retail formats
                                                                                                                                                                                                                                                                                                                                            • Move online in the US could signal change of strategy
                                                                                                                                                                                                                                                                                                                                              • Company background
                                                                                                                                                                                                                                                                                                                                                • Company performance
                                                                                                                                                                                                                                                                                                                                                  • Figure 135: Swatch Group: financial performance by brand, 2013-17
                                                                                                                                                                                                                                                                                                                                                  • Figure 136: Swatch Group: net sales by region, 2013-17
                                                                                                                                                                                                                                                                                                                                                  • Figure 137: Swatch Group: watches and jewellery segment financial performance, 2013-17
                                                                                                                                                                                                                                                                                                                                                • Retail operations
                                                                                                                                                                                                                                                                                                                                                  • E-commerce
                                                                                                                                                                                                                                                                                                                                                  • Tapestry

                                                                                                                                                                                                                                                                                                                                                      • What we think
                                                                                                                                                                                                                                                                                                                                                        • New name to reflect the group’s brand and product diversity
                                                                                                                                                                                                                                                                                                                                                          • Turnaround plan for Kate Spade
                                                                                                                                                                                                                                                                                                                                                            • Targeting younger shoppers
                                                                                                                                                                                                                                                                                                                                                              • Stuart Weitzman debuts handbag and jewellery collections and new store concept
                                                                                                                                                                                                                                                                                                                                                                • Extending customisation options to more stores and product categories
                                                                                                                                                                                                                                                                                                                                                                  • Handbag specialist expands product offering with touchscreen smartwatch
                                                                                                                                                                                                                                                                                                                                                                    • Company background
                                                                                                                                                                                                                                                                                                                                                                      • Company performance
                                                                                                                                                                                                                                                                                                                                                                          • Figure 138: Coach Inc.: group financial performance, 2012/13-2016/17
                                                                                                                                                                                                                                                                                                                                                                          • Figure 139: Coach Inc.: net sales, by region, 2012/13-2016/17
                                                                                                                                                                                                                                                                                                                                                                          • Figure 140: Coach Inc.: Coach product sales breakdown, 2012/13-2016/17
                                                                                                                                                                                                                                                                                                                                                                          • Figure 141: Coach Inc.: directly-operated store data, 2013/14-2016/17
                                                                                                                                                                                                                                                                                                                                                                        • E-commerce
                                                                                                                                                                                                                                                                                                                                                                        • Tiffany & Co.

                                                                                                                                                                                                                                                                                                                                                                            • What we think
                                                                                                                                                                                                                                                                                                                                                                              • Shop renovation programme helping boost same-store sales growth
                                                                                                                                                                                                                                                                                                                                                                                • Diversifying its product range to appeal to a wider audience
                                                                                                                                                                                                                                                                                                                                                                                  • Celebrity-driven campaigns to appeal to a younger audience
                                                                                                                                                                                                                                                                                                                                                                                    • New ‘everyday luxury’ range a shift away from special occasion jewellery
                                                                                                                                                                                                                                                                                                                                                                                      • Breakfast at Tiffany's
                                                                                                                                                                                                                                                                                                                                                                                        • Company background
                                                                                                                                                                                                                                                                                                                                                                                          • Company performance
                                                                                                                                                                                                                                                                                                                                                                                            • Figure 142: Tiffany & Co.: group financial performance, 2013/14-2017/18
                                                                                                                                                                                                                                                                                                                                                                                            • Figure 143: Tiffany & Co.: company-operated stores and estimated sales per outlet, 2013/14-2017/18
                                                                                                                                                                                                                                                                                                                                                                                          • E-commerce
                                                                                                                                                                                                                                                                                                                                                                                          • Tod’s Group

                                                                                                                                                                                                                                                                                                                                                                                              • What we think
                                                                                                                                                                                                                                                                                                                                                                                                • Multiple collections throughout the year
                                                                                                                                                                                                                                                                                                                                                                                                  • Reaching out to China’s high-end shoppers
                                                                                                                                                                                                                                                                                                                                                                                                    • New ideas and concepts to drive store sales
                                                                                                                                                                                                                                                                                                                                                                                                      • Bespoke upgrade for iconic driving shoe
                                                                                                                                                                                                                                                                                                                                                                                                        • Collaborating with social media celebrities
                                                                                                                                                                                                                                                                                                                                                                                                          • Banking on Kendall Jenner to better engage with a younger audience
                                                                                                                                                                                                                                                                                                                                                                                                            • Company background
                                                                                                                                                                                                                                                                                                                                                                                                              • Company performance
                                                                                                                                                                                                                                                                                                                                                                                                                • Figure 144: Tod’s Group: financial performance, 2013-17
                                                                                                                                                                                                                                                                                                                                                                                                                • Figure 145: Tod’s Group: sales, by region, 2016-17
                                                                                                                                                                                                                                                                                                                                                                                                                • Figure 146: Tod’s Group: sales, by product type, 2016-17
                                                                                                                                                                                                                                                                                                                                                                                                                • Figure 147: Tod’s Group: sales, by brand, 2016-17
                                                                                                                                                                                                                                                                                                                                                                                                              • Breakdown of sales by distribution channel
                                                                                                                                                                                                                                                                                                                                                                                                                • Figure 148: Tod’s Group: sales by distribution channel, 2016-17
                                                                                                                                                                                                                                                                                                                                                                                                              • E-commerce