International Luxury Retailing Market Report 2023
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Description
“The luxury sector is in a key position to benefit from growing environmental awareness and consumers adopting more conscientious shopping behaviours, such as buying fewer but better quality items and investment pieces. Amid a raft of proposed legislation on sustainability and supply chain transparency in Europe, luxury companies can benefit from taking early action and prioritising investment in transparency and circularity.”
– Tamara Sender Ceron, Associate Director – Fashion Retail
Key issues covered in this report:
- The impact of rising inflation on the luxury goods market
- The total value of the luxury goods market, the value by product segments and by regions
- Where consumers buy luxury goods and which channels they use
- Shopping behaviours when buying luxury goods by country
- Interest in future innovations when shopping for luxury items
Table of Contents
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Overview
- Key issues covered in this Report
- Products covered in this Report
- Report scope
- Mintel market sizes
- Defining luxury goods
- Product breakdown
- Geographical breakdown
- Company profiles
- Financial definitions
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Executive Summary
- The five-year outlook for luxury goods retailing
- Figure 1: Category outlook, 2023-28
- The market
- Demand for luxury goods normalises after explosion in demand
- Figure 2: Global luxury market: market size, reported and total retail sales and forecasts (excluding VAT), 2018-28
- Watches/jewellery category regains share as investment pieces
- Figure 3: Global luxury market: percentage analysis of sales by product category, 2022
- APAC is the largest luxury market, but Europe is growing
- Figure 4: Global luxury market: percentage analysis of sales by region, 2022
- Companies and brands
- LVMH extends its lead
- Figure 5: Leading luxury goods groups’ shares of all luxury goods sales, 2022
- Tangible sustainable efforts from luxury brands
- Luxury brands continue to strengthen online offer
- The consumer
- Consumer demand for luxury goods driven by young consumers
- Figure 6: Consumers who have bought luxury goods in the last 18 months, 2023
- Beauty most commonly purchased category
- Figure 7: Types of luxury goods bought in the last 18 months, 2023
- In-store shopping boosted
- Figure 8: Where luxury goods were bought in the last 18 months, 2023
- Consumers purchase luxury products to treat themselves
- Figure 9: Luxury goods shopping behaviours, have done in the last 18 months, 2023
- Consumers look for value in price but also customisation, guarantees and exclusivity
- Figure 10: Future interests when shopping for luxury goods, 2023
- Digital authenticity important to Chinee luxury shoppers
- Figure 11: China: future interests when shopping for luxury goods, 2023
- The five-year outlook for luxury goods retailing
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Issues & Insights
- How can luxury brands appeal to aspirational shoppers amid tougher economic times?
- Appealing to digitally minded younger consumers
- Tapping into the treat factor
- Benefiting from more sustainable shopping behaviours
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Market Size and Forecast
- Mintel’s market size methodology
- The impact of the switch to owned retail outlets
- Mintel’s market size and forecast
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- Figure 12: Global luxury market: market size, reported and total retail sales and forecasts (excluding VAT), 2008-28
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Product Segmentation
- Mintel’s segmentation methodology
- Market size breakdown
- Figure 13: Global luxury market: percentage analysis of sales by product category, 2022
- Figure 14: Global luxury market: sales by product, 2012-22
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- Figure 15: Global luxury market: percentage analysis of sales by product, 2012-22
- Fashion and leather goods
- Figure 16: Global luxury market: fashion and leather goods sales, 2017-22
- Perfumes and cosmetics
- Figure 17: Global luxury market: perfumes and cosmetics sales, 2017-22
- Watches and jewellery
- Figure 18: Global luxury market: jewellery and watches sales, 2017-22
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Regional Segmentation
- Mintel’s segmentation methodology
- Market size breakdown
- Figure 19: Global luxury market: percentage analysis of sales by region, 2022
- Figure 20: Global luxury market: sales by region, 2012-22
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- Figure 21: Global luxury market: percentage analysis of sales by region, 2012-22
- Asia Pacific
- Americas
- Europe
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Market Drivers
- Economic background
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- Figure 22: The global economy: forecast GDP percentage growth rates, constant prices US$, 2021-28
- Inflation and the impact of the Ukraine conflict
- The who, where and why of the luxury goods consumer
- Who?
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- Figure 23: HNWIs by level of wealth, 2022
- Figure 24: Share of wealth of HNWIs, 2022
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- Figure 25: World HNWI Population, 2016-22
- Figure 26: World HNWI Financial Wealth, 2016-22
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- Figure 27: Top 10 largest HNWI populations, 2021-22
- Where they shop
- Figure 28: Where luxury goods were bought in the last 18 months, 2023
- Buying outside of the home market
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- Figure 29: International inbound tourism, 2019-22
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Who Buys Luxury Goods
- Consumer demand for luxury goods reaches record highs
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- Figure 30: Consumers who have bought luxury goods in the last 18 months, 2023
- Men are keen luxury shoppers
- Figure 31: Consumers who have bought luxury goods in the last 18 months, by gender, 2023
- Young shoppers key consumer group for luxury
- Figure 32: Consumers who have bought luxury goods in the last 18 months, by age, 2023
- Higher income households continue to drive growth
- Figure 33: European consumers who have bought luxury goods in the last 18 months, by monthly household income,2023
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- Figure 34: UK consumers who have bought luxury goods in the last 18 months, by monthly household income, 2023
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- Figure 35: US consumers who have bought luxury goods in the last 18 months, by monthly household income,2023
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- Figure 36: China: consumers who have bought luxury goods in the last 18 months, by monthly household income and age, 2023
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What They Buy
- Beauty is the most commonly purchased luxury category
- Figure 37: Types of luxury goods bought in the last 18 months, 2023
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- Figure 38: Breakdown of types of luxury goods bought in the last 18 months, 2023
- Luxury beauty and fashion accessories appeal mostly to women
- Figure 39: Consumers who have bought luxury beauty items in the past 18 months, by gender, 2023
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- Figure 40: Consumers who have bought luxury fashion accessory items in the past 18 months, by gender, 2023
- Men drive luxury clothing/footwear and watches & jewellery
- Figure 41: Consumers who have bought luxury clothing items in the past 18 months, by gender, 2023
- Figure 42: Consumers who have bought luxury watches and jewellery items in the past 18 months, by gender, 2023
- Younger generations are big buyers across categories
- Beauty is the most commonly purchased luxury category
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Where They Shop
- In-store in home country is the most popular channel
- Figure 43: Where luxury goods were bought in the last 18 months, 2023
- In-store shopping: store experience where it counts
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- Figure 44: Consumers who bought luxury goods in-store in home country in the last 18 months, 2020-23
- In-store abroad rises across many markets
- Figure 45: Consumers who bought luxury goods in-store abroad in the last 18 months, 2020-23
- Online shopping in China reaches new heights
- Figure 46: Consumers who bought luxury good online in the last 18 months, 2020-23
- In-store in home country is the most popular channel
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Important Factors When Buying Luxury Goods
- Consumers purchase luxury products to treat themselves
- Figure 47: Luxury goods shopping behaviours, have done in the last 18 months, 2023
- Circular economy gains traction
- Rental fits well with luxury sector
- Opportunities in recycling
- Consumers purchase luxury products to treat themselves
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Future interests when shopping for luxury goods
- How luxury brands can maintain appeal in harder economic times
- Customisation presents good opportunities
- Figure 48: Future interests when shopping for luxury goods, 2023
- Digital authenticity certificates come to the fore
- Quiet luxury drives purchasing
- Certificate of authenticity is important to Chinese luxury buyers
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- Figure 49: China: future interests when shopping for luxury goods, 2023
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Company Metrics
- French-headquartered conglomerate LVMH is the world’s largest luxury company
- Figure 50: Leading luxury companies, by net revenues, 2020-22
- Revenue growth rates
- Figure 51: Leading luxury companies, % CAGR in revenues, 2017-22
- Product revenue mix
- Figure 52: Leading luxury companies, revenue by product group, 2022
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- Figure 53: Leading luxury companies, percentage point change in product mix by product group revenue, 2017-22
- Sales across all regions up year-on-year, albeit at a slower rate than 2021
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- Figure 54: Leading luxury companies, total revenue by region, 2018-22
- Store numbers
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- Figure 55: Selected leading luxury retailers, store numbers, 2022
- Brand ownership
- Figure 56: Brand ownership, by leading luxury companies, 2023
- French-headquartered conglomerate LVMH is the world’s largest luxury company
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Market Shares
- LVMH gaining market share and extending its lead
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- Figure 57: Leading luxury goods groups’ shares of all luxury goods sales, 2022
- Figure 58: Leading luxury goods groups, share of all luxury goods sales, 2020-22
- Product market shares
- Figure 59: Leading luxury goods groups’ shares of all luxury fashion/leather goods sales, 2022
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- Figure 60: Leading luxury goods groups’ shares of all luxury perfumes/cosmetics goods sales, 2022
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- Figure 61: Leading luxury goods groups, share of all luxury watches/jewellery goods sales, 2022
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Launch activity and innovation
- Tangible sustainable efforts from luxury brands
- Versace launches eco-conscious capsule collection for children
- Farfetch launches online hub to help brands improve sustainability performance
- Koio launches 99% biodegradable trainer for spring summer 2023
- Figure 62: Koio’s 99% biodegradable trainer, 2023
- Prada enters the fine jewellery market with its 100% recycled gold collection
- Hublot and Nespresso collaborate to launch watch made from coffee pods
- Figure 63: Hublot and Nespresso watch, 2023
- LVMH collaborates with research labs to develop ‘lab-grown’ fur
- Luxury brands form partnerships to launch resell and rental initiatives
- Covett and Front Row launch a Circular Luxury Club
- Jimmy Choo offers resale through The RealReal partnership
- Rolex launches certified pre-owned programme
- Tommy Hilfiger launches on My Wardrobe HQ
- Balenciaga partners with Reflaunt enabling customers to sell pre-loved items
- Help consumers make informed decisions
- Hugo Boss makes online purchasing easier with the launch of its virtual dressing room
- Chloé launches digital ID for its Spring/Summer 2023 collection
- Store launches and pop-ups
- Prada Beauty launches its first Lunar New Year-themed pop-up
- Gucci Vault ventures into offline pop-ups for Palace Gucci collection
- eBay launches pop-up Luxury Exchange store in New York
- Brands and diversity
- L’Oréal unveils plans to launch a lipstick applicator for users with limited hand and arm mobility
- Estée Lauder Companies launches app for visually impaired makeup users
- Digital launches
- Farfetch offers cryptocurrency payment option to customers
- Consumers can discover Bulgari’s new fragrance through immersive experience
- Decentraland hosts first ever Metaverse Fashion Week
- Hugo explores the Metaverse with launch of NFT collection
- Phillip Plein launches ‘crypto concept’ within London flagship store
- Shiseido launches NFT based community programme offering exclusive rewards
- Collaborations
- Burberry x Minecraft
- Balmain partners with Barbie to launch capsule collection
- Nike and Jacquemus collaborate to launch Spring/Summer collection
- Gucci collaborates with Harry Styles to launch Menswear fashion collection
- Barbour collaborates for the first time to launch the ‘Barbour x Chloé’ collection
- H&M x Mugler
- Enhancing the luxury brand experience through personalisation
- Prada Group partners with Adobe to elevate customer experience
- Shiseido launches digital makeup advisor
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Online and Social Media
- The market
- The outlook
- Luxury brands continue to strengthen online offer
- Moda Operandi expands into beauty
- Yoox adds home decor to its marketplace
- Mainstream retailers also grow their online luxury offerings
- Amazon launches more ‘Luxury Stores at Amazon’
- Debenhams boasts new online division for premium brands
- Sustainability comes to the fore for online luxury retail
- Yoox Net-a-Porter launches a pre-owned category
- Farfetch unveils its 3rd annual ‘Conscious Luxury Trends’ report
- Flannels launches rental platform
- Valentino to quantify the carbon footprint of its website in new tie-up
- New collaborations, new opportunities
- YOOX X Aries celebrate gender inclusivity
- Mytheresa and Dolce & Gabbana team up for an exclusive collection
- 8 by YOOX partners with Coco Capitán
- Consolidation in the market as acquisitions gain pace
- Frasers Group buys Amara.com
- Goat confirms acquisition of resale site Grailed
- Online players experiment with brick-and-mortar
- Mytheresa revamps its Munich store
- Social media and the metaverse
- Printemps reveals first metaverse store
- NFTs present good prospects to tap into
- Figure 64: Gucci provides exclusivity for NFT holders
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- Figure 65: Ralph Lauren lets consumers express their identity in the video game Fortnite
- Tiffany & Co launches a hybrid piece of jewellery and NFT
- Figure 66: Tiffany & Co’s NFT campaign
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Burberry
- What we think
- Reopens global flagship store with a focus on customer experience
- Augmented reality-enhanced online shopping bringing products to life
- Limited editions can forge stronger connections with luxury consumers
- Tapping into consumers’ hankering for the comfort of halcyon days
- Expanded aftercare services to keep products in use for longer
- Company background
- Company performance
- Figure 67: Burberry Group Plc: group financial performance, 2018/19-2022/23
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- Figure 68: Burberry Group Plc: revenue by product division, 2018/19-2022/23
- Figure 69: Burberry Group Plc: outlet data, 2018/19-2022/23
- Ecommerce
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Estée Lauder
- What we think
- New opportunities with Tom Ford acquisition and Balmain licence
- Lower environmental impact store initiative
- Pioneering AI-powered makeup app for the visually impaired
- Longer-lasting lipstick
- Opens biggest travel retail store in the Haikou duty-free complex
- Company background
- Company performance
- Figure 70: Estée Lauder Companies: group financial performance, 2017/18-2021/22
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- Figure 71: Estée Lauder Companies: group financial performance, 2017/18-2021/22
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- Figure 72: Estée Lauder Companies: group financial performance, 2017/18-2021/22
- Ecommerce
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Hermès
- What we think
- Betting big on beauty
- No plans to expand into the second-hand luxury market, yet
- Fitness pop-up offering goes global
- Company background
- Company performance
- Figure 73: Hermès: financial performance, 2018-22
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- Figure 74: Hermès: group sales, by region, 2018-22
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- Figure 75: Hermès: group sales by product category, 2018-22
- Ecommerce
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Kering
- What we think
- Gucci targeting wealthier consumers with ultra-high-end store concept
- New home, pet and fine jewellery collections
- Ramping up its business in the beauty space
- Tapping into the experience-focused mindset
- Making strides to reduce its environmental impact
- Revamped proposition to soften the blow of increased prices
- Company background
- Company performance
- Figure 76: Kering: financial performance, 2018-22
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- Figure 77: Kering: breakdown of revenue by region, 2018-22
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- Figure 78: Kering: Directly-operated stores, 2021 and 2022
- Ecommerce
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Ralph Lauren
- What we think
- New luxury focused store combining digital innovation and experiences
- Expanding into ‘everyday essentials’
- Phygital apparel and accessories
- A more sustainable wardrobe
- Company background
- Company performance
- Figure 79: Ralph Lauren Corporation: Group financial performance, 2018/19-2022/23
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- Figure 80: Ralph Lauren Corporation: Global directly-operated stores and concessions, 2018/19-2022/23
- Ecommerce
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L’Oréal Luxe
- What we think
- Aesop acquisition strengthens luxury brand portfolio
- Pushing the boundaries of luxury beauty shopping
- Physical presence sits well with UK consumers’ prestige beauty buying
- New luxury K-beauty brand
- Embracing inclusivity with personalised beauty products
- Some influencers are more influential than others
- Company background
- Company performance
- Figure 81: L’Oréal Luxe: financial performance, 2018-22
- Ecommerce
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LVMH
- What we think
- Reopening of one of the largest single-brand luxury stores in the world
- Frictionless payment stores
- New e-boutique offering one-of-a-kind items and experiences
- Bespoke jewellery
- Regenerative solutions to reduce waste
- Olympic Games deal an opportunity to boost awareness of sportswear
- Company background
- Company performance
- Figure 82: LVMH: Group financial performance, 2018-22
- Figure 83: LVMH: Total luxury goods revenue, by region, 2018-22
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- Figure 84: Total luxury goods revenue, by product category and region, 2018-22
- Figure 85: LVMH: outlet data, 2021 and 2022
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- Figure 86: LVMH: Luxury goods ‘maisons’ by division, 2022
- Ecommerce
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Prada
- What we think
- Expanding production capacity and craftsmanship expertise
- 100% recycled gold jewellery collection
- Generating buzz with foodservice experiences
- High-performance sport couture collaboration with Adidas
- Launches premium makeup and skincare line
- Prada looking to take personalisation to a new level
- Company background
- Company performance
- Figure 87: Prada Group: financial performance, 2018-22
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- Figure 88: Prada Group: net sales, by brand, 2018-22
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- Figure 89: Prada Group: net sales, by region, 2018-22
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- Figure 90: Prada Group: net sales by product line, 2018-22
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- Figure 91: Prada Group: directly-operated stores, 2018-22
- Ecommerce
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Richemont
- What we think
- Empowering customers to make informed sustainable purchase choices
- Luxury watches multi-brand concept debuts in cruise retail
- Making it more difficult to resell and buy stolen watches and jewellery
- Access to an even wider selection of pre-owned luxury watches
- Company background
- Company performance
- Figure 92: Richemont: group financial performance, 2018/19-2022/23
- Figure 93: Richemont: revenues by region, 2018/19-2022/23
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- Figure 94: Richemont: revenues by product, 2018/19-2022/23
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- Figure 95: Richemont: revenues by maison, 2018/19-2022/23
- Ecommerce
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Shiseido
- What we think
- ‘Hands-on’ Shiseido Beauty Planet experience
- Pop-ups re-engage with consumers in-person
- Amps up duty free business as pandemic travel restrictions ease
- NFT-based customer loyalty scheme
- Strengthens brand portfolio in growing UK and French beauty market
- Revolutionary new multifunctional sunscreen product
- Reducing its environmental impact and building a circular economy
- Company background
- Company performance
- Figure 96: Shiseido: group financial performance, 2018-22
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- Figure 97: Shiseido: group sales performance, by region, 2018-22
- Ecommerce
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Swatch Group
- What we think
- A taste of luxury at an affordable price during the cost-of-living crisis
- Rising direct-to-consumer, through boutiques and ecommerce
- Company background
- Company performance
- Figure 98: Swatch Group: financial performance by brand, 2018-22
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- Figure 99: Swatch Group: net sales by region, 2018-22
- Figure 100: Swatch Group: watches and jewellery segment financial performance, 2018-22
- Ecommerce
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Tapestry
- What we think
- Capri Holdings acquisition will more than double annual revenue
- Reaching out to younger, digital-first luxury shoppers
- New brick-and-mortar concepts
- Reaping the benefits of expanded lifestyles offering
- Products that are better for the planet
- Pre-loved goods a cost-effective way to access the luxury market for price-sensitive consumers
- Company background
- Company performance
- Figure 101: Tapestry Inc.: group financial performance, 2017/18-2021/22
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- Figure 102: Tapestry Inc.: net sales, by region, 2017/18-2021/22
- Figure 103: Tapestry Inc.: product sales breakdown, 2017/18-2021/22
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- Figure 104: Tapestry Inc.: directly-operated stores, 2017/18-2021/22
- Ecommerce
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Tod’s Group
- What we think
- Tie-ups to increase brand awareness among a wider audience
- New exclusive customisation service
- Century-old brand trying to resonate more with younger people
- Discounts will resonate with cautious consumers
- Company background
- Company performance
- Figure 105: Tod’s Group: group financial performance, 2018-22
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- Figure 106: Tod’s Group: sales, by region, 2021 and 2022
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- Figure 107: Tod’s Group: sales by product type, 2021 and 2022
- Figure 108: Tod’s Group: sales, by brand, 2021-22
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- Figure 109: Tod’s group: sales by distribution channel, 2021-22
- Ecommerce
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