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

  1. 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
  2. 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
  3. 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
  4. Market Size and Forecast

    • Mintel’s market size methodology
    • The impact of the switch to owned retail outlets
    • Mintel’s market size and forecast
      • Figure 12: Global luxury market: market size, reported and total retail sales and forecasts (excluding VAT), 2008-28
  5. 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
      • 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
  6. 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
      • Figure 21: Global luxury market: percentage analysis of sales by region, 2012-22
    • Asia Pacific
    • Americas
    • Europe
  7. Market Drivers

    • Economic background
      • 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?
      • Figure 23: HNWIs by level of wealth, 2022
      • Figure 24: Share of wealth of HNWIs, 2022
      • Figure 25: World HNWI Population, 2016-22
      • Figure 26: World HNWI Financial Wealth, 2016-22
      • 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
      • Figure 29: International inbound tourism, 2019-22
  8. Who Buys Luxury Goods

    • Consumer demand for luxury goods reaches record highs
      • 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
      • Figure 34: UK consumers who have bought luxury goods in the last 18 months, by monthly household income, 2023
      • Figure 35: US consumers who have bought luxury goods in the last 18 months, by monthly household income,2023
      • Figure 36: China: consumers who have bought luxury goods in the last 18 months, by monthly household income and age, 2023
  9. What They Buy

    • Beauty is the most commonly purchased luxury category
      • Figure 37: Types of luxury goods bought in the last 18 months, 2023
      • 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
      • 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
  10. 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
      • 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
  11. 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
  12. 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
      • Figure 49: China: future interests when shopping for luxury goods, 2023
  13. 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
      • 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
      • Figure 54: Leading luxury companies, total revenue by region, 2018-22
    • Store numbers
      • Figure 55: Selected leading luxury retailers, store numbers, 2022
    • Brand ownership
      • Figure 56: Brand ownership, by leading luxury companies, 2023
  14. Market Shares

    • LVMH gaining market share and extending its lead
      • 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
      • Figure 60: Leading luxury goods groups’ shares of all luxury perfumes/cosmetics goods sales, 2022
      • Figure 61: Leading luxury goods groups, share of all luxury watches/jewellery goods sales, 2022
  15. 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
  16. 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
      • 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
  17. 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
      • 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
  18. 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
      • Figure 71: Estée Lauder Companies: group financial performance, 2017/18-2021/22
      • Figure 72: Estée Lauder Companies: group financial performance, 2017/18-2021/22
    • Ecommerce
  19. 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
      • Figure 74: Hermès: group sales, by region, 2018-22
      • Figure 75: Hermès: group sales by product category, 2018-22
    • Ecommerce
  20. 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
      • Figure 77: Kering: breakdown of revenue by region, 2018-22
      • Figure 78: Kering: Directly-operated stores, 2021 and 2022
    • Ecommerce
  21. 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
      • Figure 80: Ralph Lauren Corporation: Global directly-operated stores and concessions, 2018/19-2022/23
    • Ecommerce
  22. 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
  23. 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
      • Figure 84: Total luxury goods revenue, by product category and region, 2018-22
      • Figure 85: LVMH: outlet data, 2021 and 2022
      • Figure 86: LVMH: Luxury goods ‘maisons’ by division, 2022
    • Ecommerce
  24. 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
      • Figure 88: Prada Group: net sales, by brand, 2018-22
      • Figure 89: Prada Group: net sales, by region, 2018-22
      • Figure 90: Prada Group: net sales by product line, 2018-22
      • Figure 91: Prada Group: directly-operated stores, 2018-22
    • Ecommerce
  25. 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
      • Figure 94: Richemont: revenues by product, 2018/19-2022/23
      • Figure 95: Richemont: revenues by maison, 2018/19-2022/23
    • Ecommerce
  26. 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
      • Figure 97: Shiseido: group sales performance, by region, 2018-22
    • Ecommerce
  27. 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
      • Figure 99: Swatch Group: net sales by region, 2018-22
      • Figure 100: Swatch Group: watches and jewellery segment financial performance, 2018-22
    • Ecommerce
  28. 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
      • Figure 102: Tapestry Inc.: net sales, by region, 2017/18-2021/22
      • Figure 103: Tapestry Inc.: product sales breakdown, 2017/18-2021/22
      • Figure 104: Tapestry Inc.: directly-operated stores, 2017/18-2021/22
    • Ecommerce
  29. 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
      • Figure 106: Tod’s Group: sales, by region, 2021 and 2022
      • Figure 107: Tod’s Group: sales by product type, 2021 and 2022
      • Figure 108: Tod’s Group: sales, by brand, 2021-22
      • Figure 109: Tod’s group: sales by distribution channel, 2021-22
    • Ecommerce

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