BAIN - ALTAGAMMA LUXURY GOODS WORLDWIDE MARKET STUDY FALL 2021 Luxury .
BAIN - ALTAGAMMALUXURY GOODS WORLDWIDE MARKET STUDYFALL 2021 – XX EDITIONLuxury is back to the futureFigures, trends and actionsCLAUDIA D’ARPIZIO FEDERICA LEVATO11TH NOVEMBER 2021
Foreword on content and sourcesContent of this document This document contains an update on the luxury goods market, in particular:– Insight to the performance of the market for the first three quarters of 2021, with expectations for the last quarter– Estimates for how the luxury market will evolve beyond 2021, with related macro-trends emerging– Bain’s recommendations for how luxury players can steer the next phase of growthSources of this document The insights are based on Bain’s triangulation of information and sources, available as of November 5th 2021 and includes:– Data regarding the outbreak of the Covid-19 and consequential lockdown across countries– Macroeconomic data (e.g., GDP, consumer confidence index) and the latest forecasts– Current trading performance from relevant luxury industry players– Annual reports, quarterly results and analyst reports– Consensus of 100 expert interviews The scenarios do not consider disruptive changes in Covid-19 status quo (e.g., potential future waves of Covid-19 related tovariations of the virus)
GLOBAL LUXURY MARKETSGlobal luxury markets: shift from experiences to goods compensateshalf of the gap vs 2019Global luxury markets ( B 2021E)2021 15/17% 13/15%@Kvs. 2020-9/11%vs. 2019Year-over-year (YoY) growth,at current exchange ratesYoY’20-’21EYoY’19-’21E 1% 0/1%-58/62% 0/2%-7/9% 6/8%-6/8%-6/8%-80/85%
LuxurytoysFine art & designfurnitureFood & beverageexperiencesOut-of-homeexperiencesLuxury carsFine artWineLuxury hotels(partially suffering supply scarcity inkey components) experiencingnuanced performance acrossbrands, with newcomers enteringthe gamesustained by reopening of publicauctions and art fairs, withglobal uncertainty favouring midpriced segment over high one,recording increasingparticipation of new (younger)consumers and artists (Women,Afro-American, )brands’ recovery speed driven bybrand awareness and recognitionrecovering through mid-year travelresumption, favouringdigitalization and customization ofexperiences as vital pathways tocapture evermore demandingconsumerLuxury yachtscontinue on positive tailwind ascustomers’ interest for intimateluxury experiences continues tosurgePrivate jetsrebound favoured by perceivedbenefits of safety, convenienceand efficiencyHigh-qualitydesignsustained by new pivotal role ofhome, with intermingling spacesbetween living and working fuelling‘resimercial’ solutionsSpiritsdriving market, favored byincreasing interest for “status”spirit as out-of-home spending turnsat-homeGourmet food andfine restaurantsexperiencing three-shaped forcesat play driving continued resilience:pantry-meals (at home), ghostkitchens rise (from ‘out-of’ to athome) and gradual ease oflockdowns and revengeconvivialityLuxury cruisesjeopardized by forced travel halt forfirst half of year, yet glimmers ofhope for upcoming seasons givenstrong order book
HIGH-LOW BEST PERFORMING LUXURY MARKETS IN 2021Design furniture top performing category due to everything@home trendStrong recovery also for wine and spirits and luxury carsHigh quality designfurniture & homewareFine wine &spiritsLuxurycars Core high quality design market, alreadyshowing stronger-than-forecasted performancein last quarters of 2020, continuing on itsgrowth path sustained by continued refocus ofconsumer spending on home, in particular onLiving& Bedroom, outdoor and lighting ‘Revenge conviviality’ sustaining recoveryacross segments Spirits driving market recovery, mostly onaccount of: Market favored by positive consumptiontailwinds, yet partially slowed-down bydisruption across the supply chain Intermingling of living and working spacesfueling the growth of ‘resimercial’, withconsumers seeking for increased comfort,functionality as well as flexibility in designsolutions– Growth in (local) consumers interest for Asian spirits(mostly baijiu)– Increasing interest for “status” spirits, as out-ofhome spending is shifted at-home, favoring mostlythose categories traditionally lower penetrated byhigh-end brands (e.g., tequila, rum)– Better ability vs. wine brands in catering interest ofyounger generations, leveraging marketingmessaging centered around key topics of interest(e.g., inclusivity, sustainability) In wine, sparkling (over-impacted in 2020)recovering better than other categories,– Asia outperforming other geographies, partiallyfueled by growth of local premium playersoutpacing traditional European ones in the‘accessible’ segment (Policy-led) shift towards green power-trainscontinues, although its long-term financialsustainability at issue– Niche players looking at potential avenues to poolresources required for investments, today almostfully prerogative of largest groups– Brand awareness and recognition playing centralrole in defining recovery path 4/6% @K 0/2% @K 13/15%20-21: 8/10% @K 12/14% 7/9%‘21E VS. ’19 (%) 45BMarket size 2021E ( B) 77B 551B
HIGH-LOW BEST PERFORMING LUXURY MARKETS IN 2021Luxury toys, fine art and food (at- and out-of-home) on the path torecover to 2019 levels, with different sub-segment trends shaping growthPrivate jets &yachtsFineart Luxury yachts confirming positivemomentum, with growth in deliveries (partiallybenefitting from delays occurred in 2020) pairedwith sharp growth in order books Fine art market rebounding thanks to gradualreopening of public auctions and art fairs– Interest from HNWI surging in response towillingness to secure “intimate” luxury experiencefor upcoming years and suspension of socialactivities– Growth of market niches with focus on sustainablesolutions (among which hybrid propulsion) In Private Jets, demand stable vs. 2020levels, with purchases driven by perceivedbenefits from target customers related withsafety, convenience and efficiency– Slowdown in used market jets, as availability narrowsvs. past yearsGourmet food& fine dining– Greater growth in medium-priced segment favoredby global uncertainty discouraging bids on highpriced items– High-end galleries experiencing progressiveconcentration through M&A, aimed at exploitingscale and scope economies Macro-trends embedded within Zeitgeist oftoday’s consumer (diversity, equity andinclusivity) definitely stepping into fine arts Increasing acknowledgment of NFTs amongyounger gens and segment fanatics, yet stilluncertain potential impact on broader market-6/8% @K20-21: 1/3% Driven by dichotomic impact of pandemicoutbreak in 2020, luxury food market showingsignificant difference in growth rates within itscomponents– Fine restaurants (sharply impacted last year)showing significant rebound as lockdowns eases– Gourmet Food continuing on its mild growth path,although at lower rate vs. previous year “Pantry meals” tapping into the luxuryspace, as consumers familiarity with at-homecooking is raised significantly, with side benefitson specialized appliances Ghost kitchens serving food-delivery marketengaging into the luxury segment-5/7% @K-7/9% @K 18/20% 8/10%‘21E VS. ’19 (%) 22BMarket size 2021E ( B) 34B 49B
HIGH-LOW BEST PERFORMING LUXURY MARKETS IN 2021Experiences still significantly below pre-pandemic levels, jeopardized byrestrictions to international travelLuxuryhospitalityLuxurycruises Luxury Hotel market recovering at good pace starting mid-Q2, favoredby progressive increase in occupancy rates Sharp impact of COVID-19 on cruises market lasting throughout the year,with cruising companies forced to cancel travels until Q3– Chained hotels outpacing independent ones, favored by higher ability to adapt toshifting consumers’ needs– Brand and/or chain-level offer standardization deemed no longer valid as adaptation toconsumers sought for customization and service tailoring proved to be vital to acceleraterecovery Surge in property digitalization to satisfy needs of younger generationsand favor process automation and contactless interactions‘21E VS. ’19 (%)20-21: 79BMarket size 2021E ( B)– Players delaying vessel investment and working at debt restructuring to sustain shortterm cash needs Nonetheless, order book for 2022 is approaching 2019 levels, withconsumers signaling strong interest for luxury experiences that will likelydrive accelerated market recovery in future years– Expedition segment expected to grow above traditional cruises also in future years-56/60% @K-80/85% @K 20/22%-40/42% 0,4B
GLOBAL LUXURY MARKETSConsumers overindulged on products, but the willingness to goback to experiences is at an all-time highGlobal Luxury markets (Index 2010 2010-2025F)Expected year of recovery topre-covid level (e.g. 2019)*ExperiencesExperience-basedgoodsLuxury productsExperiences disproportionatelyimpacted, will be last to recover asstrongly dependent on revamp of touristicflows and business travelExperience-based goods almost fullyrecovering to 2019 levels, favored bypositive consumer traction acrosscategoriesProducts first to recover 2019 levels,driven by earlier onset of ease ofrestrictionsNote: At current exchange rates; Personal goods include High-quality design furniture and Personal luxury goods; Experience-based goods include Fine Art, Luxury cars, Private Jets and Yachts, Fine Wines & Spirits and Gourmet Food; Experiencesinclude Luxury hospitality, Cruises and Fine dining; (*) 2023 acceleration driven by (hoped) end of supply chain disruption in cars market
THE PERSONAL LUXURY GOODS MARKETAfter its worst dip in history, the personal luxury goods marketexperienced a V-shaped rebound in 2021“Sortie du temple”DemocratizationCrisisChinese AccelerationRebootNewNormalCovid ReCrisis boundBack to2019'19 – ‘21E YoY'20 – ‘21E YoY'96 – ’19 CAGR 6% 29% 31%Currentexch. ratesConstantexch. rates 1% 4%Currentexch. ratesConstantexch. rates
THE PERSONAL LUXURY GOODS MARKETMarket constantly improving from Q3 20;Some uncertainty on next holiday season remainsPersonal luxury goods market evolution by Q (% vs 2019)2020Q1Q2Q3 4%vs@Kvs. 5%2019@K2019:2021Q4Q1Q2Q3Q4BEST CASE 3% China sustaining growth Strong holiday season inUS and EU Continued fast-pacedvaccination in Japan Sustained macroeconomicsand ease of restrictions(e.g. intraregional flights,limited lockdowns)WORST CASE -5% 2% 1%-1%Full-year market growth (2021E vs. 2019)Timelineof the yearNote:@K: growth at constant exchange ratesDeveloped countriesvaccination campaignDec ‘20–Present50% US adultsfully vaccinatedMay ‘2158% EU citizens Xi Jinping “Commonwith 1 shotProsperity” speechJul ‘21Aug ‘21 Softening in China (consumerconfidence, real estatefinancial tensions, potentialfurther lockdowns) Winding down of US publicrelief programsEnd of US “stimuluschecks”Sep ‘21
THE PERSONAL LUXURY GOODS MARKETEventhough times are troubled, the luxury market will flourish again as companies2021reboundas a strongthepredictorhealthygrowthof the luxury@graphicstakea frontseat in transformingindustry onofbehalfof thecustomermarket in the midtermPersonal luxury goods market evolution ( B AGR4/5%10/12%6/8%
2021the first year ofthe new Luxury mapLocal as newnormalNextgen isnowMultifacetedbehaviorsAfter 20 years of largeexpansion and deepevolution, Covid-19 hasfast forwarded andanticipated some of thekey changes for thenext 20 years ofglobal luxury marketCustomerof thefutureTo u c h p o i n t soverchannelsNew cycleof aroverperformancedriversConsolidatinguniverse, yet withsmall rising starsFull recoveryof profitability
2021the first year ofthe new luxury“twentennial”After 20 years of largeexpansion and deepevolution, Covid-19 hasfast forwarded andanticipated some of thekey changes for thenext 20 years ofglobal luxury marketChangedfundamentalsMorphingLuxury mapLocal as newnormalNextgen isnowChina and Americas lungs ofthe market, ramifying into manynew alveoli/luxury locationsLuxury gone local, with bigopportunities to accelerate/recovery aheadStrong demographic shiftleading to renewedcustomer baseMultifacetedbehaviorsCustomerof thefutureTo u c h p o i n t soverchannelsNew cycleof desireExtendedproductlifetimeNew personas,updated values,proactive engagementsDistributionecosystem at apoint of no returnProduct winning overbrands winning overcategoriesBoom of secondhand sConsolidatinguniverse, yet withsmall rising starsFull recoveryof profitabilityLong standing focus on localcustomer globally, presence inAsia, multi-touch and pricevalue propositionIncreasing market concentration,yet with small players explosionthanks to new values andconsumption patternsEBIT % back to 2019 thanksto 2020 efficiencies andsales rebound
MORPHING LUXURY MAPChina doubling and Americas booming; Europe and Japan still inrecovery modeM. ChinaAmericasRoWJapanEuropeAsia Strong crosscategory, generationand price growth Solid rebound,polarized betweenentry prices and topitems Middle East verystrong throughoutmarkets (with Dubaiand Saudi Arabialeading growth) Localconsumptionsimpacted by theslow vaccineadoption Localconsumptionsstrong everywhere Weak Hong Kong(ongoing networkreview) vs. mixedplay in Taiwan andMacau StrugglingAustralia which onlyrecently reopened(after months oflockdowns) Fukuoka emergingas rising star After softening inAug-Sept,consumption restarted strong inOctober despitescattered lockdowns Hainan the keytouristic luxury hub Strong market shareshift towards Europeanbrands Evolving luxury map:new cities emerging,large cities back andpersisting suburbanareas Blasting Brazil Continued focusfor largeestablished brands,with few exceptionsintercepting the nextgen of customers Some touristbounce back overthe summer (i.e.Middle-Eastern andAmerican) London (and UK)suffering the most,while Russiachampioningthanks to strongrepatriation S. Korea back to2019 levels: fullrepatriation of localcustomers overcompensate lack oftourism SEA still sufferinglack of tourism20-21: 36% 41% 34% 10% 20% 19%Growth atconstantexchangerates 97% 13% @K 11% @K-12% @K-19% @K-25% @K'21E VS. '19 (%) 60BMarket size 2021E ( B) 89BNote: RoW Rest of the World 12B@K: Growth at constant exchange rates 20B 71B 32B
LOCAL AS NEW NORMALThe market is local, locally driven and increasingly sub-urban in 2021Personal luxury goods – Growth in luxury spending by nationalityTop 10 cities relevance(% 2019 – 2021E)(% 2019 – 2021E)TotalJapaneseTotalEuropeans-15/20%J A P A N E S EI N J A P A N 15/20%TotalAmericans’19 – ’21EE U R O P E A N SI N E U R O P ETotalChinese 30/35%-20/25%A M E R I C A N SI N A M E R I C ASC H I N E S EI N M . C H I N ALocals 50/60%Tourists-80/90%25-30%TotalRoW0/ 5%R O WR O W35%I NTotalRest of Asians0/-5%O T H E R A S I A N SI N A S I A20192021E
LOCAL AS NEW NORMALAwaited great recoveries: Chinese customers will be back by 202223; Japan by 2023 and Europe in 2024Recovery Curves(marketEurope Regionvalue indexed2019 Japan Region2019-2025F)Chinese Customers worldwideLocals:To u r i s t f l o w s :(expected resume)Within AsiaREAL TERM TREND '19-'25FGlobal:
LOCAL AS NEW NORMALSome of the consumption fundamentals of China will go through changeCommon prosperity potential impacts on luxuryTA I LW I N D SQUESTIONMARKSAcceleration of middle class andconsumption upgradeShowing status (role of logo andaesthetic in product, role of KOL)Persistent strong demandConsumption localization (local orabroad)HEADWINDSPressure on uber-wealthDelayed spending given currentuncertaintyThe policy hasthe goal to buildan olive-shapedsocietyNote: KOL Key Opinion LeaderLuxury brands can secure (common) prosperity, but they will need tochallenge (and adapt) their strategy
LOCAL AS NEW NORMAL2021 confirms China’s growing importance in luxury;bright evolution for European and American customersPersonal luxury goods market( B 2019-2025F)By customer nationalityBy geography'21E vs. '19 '25F vs. '19Note: RoW Rest of the WorldREAL TERM TREND '19-’21E & '19-'25F'21E vs. '19'25F vs. '19
NEXT GEN IS NOWSustainedacceleration of“under 40” in 2021,still main drivers forgrowth up to 2025Personal luxury goods( B 2019–2025F)marketbygeneration'21Evs. '19GenY and GenZexpected to contribute 180%of the total growthfrom 2019 to 2025FREAL TERM TREND '19-’21E & '19-'25F'25Fvs. '19
NEXT GEN IS NOW Two complementary forces fueling luxury during Covid:strong renewal of customer base and top customer growthRenewed customer base 2019-2021LostconsumersNewconsumersTop customer base 2019-2021UHNWI* incidence on totalmarket( B 2019–2021E)Mostly in 2020 dueto COVID crisisMostly younger gens(Gen Y and Gen Z)Older genspermanentlyleaving the luxurymarketNote: *UHNWI Ultra-High-Net-Worth IndividualIn 2021 30%of new customers thatentered the market since 2019TREND ‘19-’21Accounting for#UHNWI 25%Avg. spendingof the PersonalLuxury Goods market
CUSTOMER OF THE FUTUREWithin this shift,new luxuryrelevant personasare establishing askey targets forthe industryNOTEXHAUSTIVEYoung urbanChineseHistoricallyexcludedAmericannext genEqualitywarriorChinese FemaleleaderNewpersonas“Modest”womanHigh TechWorthInvestor/resellerEver more complexcustomer map calling forproactive managementCollector ofcollectibles
CUSTOMER OF THE FUTURECultural relevance and evolving values ask for new value-creation modelin customer engagementNew value creation modelNew KPIs to track and clear positive resultsHigh tech & high touchEarned growth rateChurn rate reductionEarned growth rate Y1Digital(engaged vs. non-engaged customers withpersonalization and human touch)20%HumanLower spenders&Net RevenueRetention (NRR)Earned NewCustomers (ENC)30%Mid spendersEmotionalRetained Y0 customersReferred new customersTop spendersLost Y0 customersBought new customers80%Customer value growth(engaged vs. non-engaged customers withpersonalization and human touch)FunctionalInspiringup toTotal growth rate Y13xmore likely to increasespending level (by 50%)
Even though times are troubled, the luxury market will flourish again as channelstake a frontin transformingindustryon behalf of the customerTOUCHPOINTS OVER CHANNELSfor 2021 recovery, will lead the mid termgrowth of the industryPersonal luxury goods market by channel( B 2019–2025F)Delta’19 – 21ETravel 1 Jump of directly operated channels, withonline and monobrand positively growingCAGR‘19 – ‘25F Outlets recovering (eased restrictions) butstill lagging Department and specialty stores regaining(local) footfall yet behind 2019 levels-16% and beyond Further focus on retail across channelsMonobrand 6% Online on track to be #1 channel (also withvirtuous omnichannel circle) Monobrand still key, yet to be rethought inphygital ecosystem (format / size / location)Online 89% Outlets relevant for value-driven purchasesand Chinese middle class Survival of the fittest for department andspecialty stores Travel retail back to historical levels
TOUCHPOINTS OVER CHANNELSOnline alone almost doubling its size in 2 years;overinvestments in brand.com paying offOnline personal luxury goods market( B 2015–2021E) 27%Online with dual role of wideningreach (e.g. to 3rd tier cities /suburban areas) and supportingcross-channel salesYoY 50%YoY 16B 16B 13BOver-investments in Brand.compaying off, together withcapitalized omnichannel andtech-enabled sales 2,5XMarket value2019Accelerated adoption with newonline customers acrossgenerations (previously would nothave considered)Increasing e-concessionadoptionMarket sharein luxuryLeather goods, sneakers andskin care still top categories
TOUCHPOINTS OVER CHANNELSFrom channel to touchpoint ecosystem: redefining role of channelsthrough upgraded competences and KPIsYESTERDAY’S ROLETOMORROW’SProximityBrand boosterTouchpoint as a point ofsaleTouchpoint as mediainvestmentKPIROLEOmni EnablerTouchpoint as a commercialfacilitatorCustomer explorerTouchpoint as service to acatchment areaCustomer funnelSales / POSAwareness /considerationConversionLoyaltySales /SQM(digital) TrafficTransactionsEngagement85% Online influencedpurchases50% 10% Digitally enabledpurchases30% Up toStore-enabledonline purchasesNew capabilities, competences and talents required to provide seamlesslyintegrated experience across touchpointsRemote selling in2021
NEW CYCLE OF DESIREBest-performing categories of 2020 are already beyond 2019 in 2021,watches and beauty on par, apparel still laggingShoesLeatherJewelryWatchesBeautyApparel Cross-geographyoverperformance Iconic modelsand new heroes,ruling, especiallyin young gen Branded luxuryjewelry culturegrowing intraditionally noncore markets Solid demand forUber-lux andiconic pieces Continued selfindulgence trenddriving skincare Genderlesswatches growing Make-up andfragrances stillaffected Womenswearfaster thanmenswear, alsopushed by recentacceleration ofoccasionwear Continued tilt tocasual (i.e.sneakers, bootsvs. formal),impacted by “newnormal” habitsespecially for men Women occasionshoes accelerating‘20-21 Belt as new/oldobject of desire Logo is back yetin connectionwith brandheritage 25% Unisex jewelsencounteringsuccess Ecommercerelevant for entryprices andcostume pieces 32% New digitalrelevance(especially forAsia andNextGen) Weak travel retailstill impactingentire category Comfortwear nownormalized vsformalwear notrecovering Logo is back alsoin apparel 24% 32% 26% 26%'21E VS. ’19 (%) 23BMarket size 2021E ( B) 62B 22B 40B 60B 57B
NEW CYCLE OF DESIRENew cycle of desire: luxury post-consumerism?Wa te r fa ll“I aspire to become”Osmosis“I express to be(long)”Brands before iconsIcons (and heroes) beforebrandsBrand obsession, purchasingwidth and fragmentationRecognizability obsession, purchasingpolarization & concentrationHigh vs. LowHigh to lowExclusive creativity,simplification in the entry offerInclusive creativity regardlessof price positioningLogo as badge of wealthLogo as badge of valuesAchievement and success in lifeSelf expression, Sustainability, DEI**,ways of looking at the worldBRANDSWITH ATIMELESSICON*In 2021overperformreference market by2x in leather goods and watches2018UBERLUXURY 15%ENTRYPRICE 25%LOGOITEMS2021EIn 2021overperformreference market byNote: *icons based on leather goods and watches markets; **DEI Diversity, Equity, Inclusion; Entry price and uber luxury excludes beauty and eyewear; Logo based on soft luxury goods market excluding shoes, eyewear and silk20% 30% 3x
NEW CYCLE OF DESIRENEW CYCLE OF DESIREIn the renewed digital disruption, an even larger role for luxury into thenext frontiers for socio-cultural relevanceDigitalas strategic channel and opportunity, yet under new forms:Data strategy, NFT, metaverse, network and connection economiesSocioculturalactorCultural value Expanded value proposition (contribution to generation of“meaning”) New marketing frontier (from “persuasion” to co-creation ofcultural value)Social valuePublisherRetailerManufacturerFromproducersto distributorsFromcommunicationto conversationaccelerated bydigitalPlatformTapping into thenetwork economythrough connectionbased business andoperating modelExpanding themission fromeconomic valueeconomic, socialand cultural valuecreationEnvironmentalsustainabilityDiversity equityand inclusion Demanded by consumers,especially new generations Demanded by consumers Progressively, neededcondition for the right tooperate (e.g. regulatory, ) A proven source ofcompetitive advantage(business effectiveness,creativity, ) A driven to attract andretain best talent
NEW ROLE OF BRANDSTraditional market segmentation lost relevance: now brands aremulti-price point to answer to different customer (needs)Sortie du temple &democratizationThe originsPersonal luxury goodsmarket growthCrisisChineseaccelerationReboot & �16 7%-4% ’21E 5%-22% 29%AbsoluteAspirationalAccessiblePricing pyramidInflux frombelowThe Logo phaseThe polarizationBlurring thelinesCross boundariesConsumers 2025
EXTENDED PRODUCT LIFETIMEBooming secondhand market, to extend lifetime of luxury productsSecondhand vs. first-hand luxurygoods market (indexed 2017 100)A growing opportunity for B R A N D SSecond-handI N V E S T O R SEnter a growing market33B of market valuein 2021EF A S H I O NP L A T F O R M SDevelop a network-based business modelShow commitment to sustainabilityGather data on customersAdd a distribution channelDriven by anexpandingdemand(customer tivearena)Boost hype andtighten control with few points to solveUnderstand the winning value propositionCrack operational complexity (e.g. authentication, start up stock, margins)Define logo and (re) branding strategyManage customer cannibalizationValue (re)appraisaland management
POLARIZATION AND PROFITABILITY2021, polarized growth back to “new normal”Sortie du ationRebootNew normalCovid crisisReboundFull 0202020-2021E2019-2021E 50% 60% 10% 100%40-45%PositiveCAGRNegativeCAGR% winners 85%Globalpersonalluxury goodsmarket CAGR 7% 35%-5% 95% 9%-1% 5%-22% 29% 1%
OVERPERFORMANCE DRIVERSClear overperformance drivers: focus on local customer, exposure toChina, multi-touch and price value propositionTo p d r i v e r s o f r e s i l i e n c eNot-drivers of resilience01020304Exposure toAsia (China)Focus on localcustomerseverywhereHigh-low valuepropositionMulti-touchpointsengagementmodelNo matter what, butmake it rightProduct categories not a top driverof the over/underperformanceA world for (scale)insurgentsBoth big and small players were able tosucceedScale is a competitive advantage, stillinsurgency remains the fundamentalsuccess factor for players of any size
CONSOLIDATING STRENGHTSIncreasing market concentration, yet with highdynamism from rising starsTo p b r a n d sRising starsMarket share in soft hard luxury market* (% 2000-2021E) 2%of LuxurymarketSmall / new-born( 200M @RTL)Fast growing(2x market CAGR)Avg. size vs.other players 7xNote: (*) excl. Beauty 11x 15x 17x17-18xIntercepting theZeitgeist
PROFITABILITY FULL RECOVERYIn 2021, profits are already back at 2019 levelsEBIT of selected personal luxury goodsbrands by era (% 2007 – 2021E)CrisisChinese accelerationReboot & NewNormalCovid Crisis& g trend per key bucket(% revenues 2021E vs 2019)GrossmarginShift to directchannelsMarketingexpensesIncrease in spending(shifted to digital andclienteling)OtherOpexOptimized expenses(occurred in 2020)Digital Opex& CapExInvestments in systemsand digital done in 2020CapEx (B&Mand HQ)Resume of selective storeopenings in 2021Prompt profit hunt run during 2020 and immediate market rebound led bydirect channels driving up industry profitability
RECAPThe growth drivers are Chinese consumers (in China),online channel and younger generationsPersonal luxury goods market main breakdowns ( B 2019 –2025F)Nationality‘19-25F CAGRRegion 4/5%ChannelGeneration
Luxury market has been deeply changed in last 20 years,with evolving keywords and macro-trendsCHANNELECO-SYSTEMDTCOFF-PRICECASUALD I G I TA LEEXCELLENCE2 nd H AN D(CULTURAL AND CREATIVE)ALWAYS OND ATAEPISODICAGILEP E R S O N A L I Z AT I O ILIENCESPEEDENTRY ITEMS & TOP ITEMSHERO-PRODUCTTOURISM2020 - 21PURPOSEETHICS & AESTHETICVA L U E SWINNER &LOSERSGEN-XSTATUSFASTCURATION &POINT OF VIEWEXPERIENCEBABYBOOMERSINSURGENCY*LESS (*season,gender, )STORY TELLINGACCESSORIESP H Y- G I TA YWHERERADICALT R AN S PAR E N C Y
2020-21turning point forestablishing thekeywords for thenext 20 years ofluxuryexpanded MISSIONContribute toCULTURAL developmentDigitalenabledPlatformbasedInsurgentat scaleConnectionsSustainabilityResilient Value creationfocusAgile/ Adaptable(product, service, tal sustainability, DEI (diversity-equity-inclusion)(the business of) excellence, network economyDiversityCreativityCultureMath & magicGenerateECONOMIC growth(top customers,personalization at scale)ExcellenceTech-stackCreativity, meaningFoster & role modelSOCIAL progressCustomer scalePeople
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Partner Bain & CompanyClaudia has spent more than 25 years advisingmultinational luxury and fashion clients oneverything from strategy and new productdevelopment to innovation and organizationalchange.Leader Global FashionLuxury Goods verticalShe is the lead author of the Bain Luxury Study,one of the most cited sources of marketinformation in the luxury industry.Claudia D’Arpizio,In 2009, Claudia was also recognized as one ofthe Top 25 Consultants in the World by ConsultingMagazine.Federica Levato,Partner Bain & CompanyLeader EMEA FashionLuxury Goods verticalOver the last 17 years, Federica has led more than200 assignments in the fashion and luxury industryon issues relating to corporate and brand strategy,portfolio management, merchandising, retail andwholesale excellence, digital acceleration,millennial strategies, marketing andcommunication, and more.Alongside Claudia D’Arpizio, Federica is the coauthor of the Bain Luxury Study, one of the mostcited sources of market information in the luxuryindustry.
Bain contactsFor any questions or further discussion,please contact:For a copy of the study,please contact:Claudia D’ArpizioInternational press– Partner (Milan)– Email: claudia.darpizio@bain.com– Aliza Medina (EMEA)aliza.medina@bain.com
This document contains an update on the luxury goods market, in particular: - Insight to the performance of the market for the first three quarters of 2021, with expectations for the last quarter - Estimates for how the luxury market will evolve beyond 2021, with related macro-trends emerging - Bain's recommendations for how luxury players can steer the next phase of growth
5 RESILIENT GROWING INDUSTRY WITH STRONG TAILWIND TOWARDS ONLINE Source: Bain & Company and Altagamma: "The Future of Luxury: A Look Into Tomorrow to Understand Today (November 2018)", Bain Altagamma "Luxury Goods Worldwide Market Study, Spring 2020" (May 2020) and Bain Altagamma "Luxury Goods Worldwide
luxury hospitality and personal luxury goods, which together account for 80% of the total market. The indus-try surpassed 1 trillion in retail sales value in 2015 and delivered healthy growth of 5% year over year (at constant exchange rates), driven primarily by luxury cars (8%), luxury hospitality (7%) and fi ne arts (6%).
Figure 4: Online and monobrand stores will be the two largest channels for luxury sales by 2025 Source: Bain Luxury Goods Worldwide Market Study, Fall Winter 2016 2016E 30% 23% 22% 12% 8% 6% 2025F 25% 13% 17% 13% 25% 7% Monobrand stores Department stores Specialty stores Off-price stores Online Airports Global personal luxury goods .
THE NEWS LEADER IN LUXURY MARKETING. PAGE 3 CONTENTS EDITOR’S NOTE: Focused marketing continues to . Luxury Daily is the world’s leading luxury marketing and retail publication. The Napean-owned franchise comprises Luxury Daily, LuxuryDaily.com, the Luxury Daily newsletter, Luxury FirstLook, Luxury . A big thank-you to industry experts .
Subject matter of contract of sale-Goods. Goods may be classified as :-2. Existing Goods- a) specific goods, b) ascertained goods, c) unascertained goods. 3. Future goods- which do not exist with the seller at the time of sale. the contract thus is an agreement to sell. 4. Contingent goods - a type of future goods, the acquisition of which .
The world’s 100 largest luxury goods companies generated sales of 222 billion in financial year 2014, 3.6 percent higher year-on-year. The average luxury goods annual sales for a Top 100 company is now 2.2 billion. The global luxury goods sector is expected to grow more slowly in 2016, at a rate many retailers may find disappointing. The growth
luxury goods and is expected to be the top personal luxury goods market in 2019. With a brand value of almost 47.2 billion dollars in 2019, Louis Vuitton was the most valuable luxury brand in the world. The overall revenue of the LVMH Group for the upcoming financial year was around 46.83 billion euros. Post-pandemic luxury market
Bab 14. Pasar Uang amanitanovi@uny.ac.id BANK DAN LEMBAGA KEUANGAN LAIN 182 A. PENGERTIAN Pasar uang (money market) merupakan pasar yang menyediakan sarana pengalokasian dan pinjaman dana jangka pendek. Jangka waktu surat berharga yang diperjualbelikan biasanya kurang dari satu tahun. Karena itu pasar uang merupakan pasar likuiditas primer. Pelaku utama dalam pasar uang: 1. Lembaga-lembaga .
