Exclusive extracts from this 108-page-long report:
- What is the business?
The market for personal luxury goods includes a wide range of products, including “soft luxury” goods (high-end apparel, leather goods and accessories) and “hard luxury goods” (watches, jewellery, pens, etc.). Perfumes and cosmetics can also be included, although the distinction between luxury and mass consumption is more blurred for this product category. Typically, larger luxury groups also market a wide range of other products (wines & spirits, food, collectibles, automobiles, yachts, luxury real estate, etc.) and services (hotels, catering, tourism). Luxury goods and services are characterised, in particular, by their exclusive nature and superior customer experience.
- What are the main markets?
Europe, the Americas and Asia are equals when it comes to luxury revenues: each region generates slightly under one-third of world luxury sales. However, when it comes to recent growth, Asia has easily outpaced all other geographical zones, with China leading the pack, having seen growth of 20% at constant exchange rates in 2018. Europe saw moderate albeit positive growth of 3% in 2018, while the Americas grew by 5%.
- Who are the key players?
The global luxury market is dominated by a handful of multinational conglomerates with large portfolios of specialised luxury brands. The majority of leading luxury groups and brands are concentrated in Western Europe, particularly in France, Italy, Switzerland and the UK.
- How intense is competition?
Rivalry among leading luxury groups is primarily based on brand value, retail location and customer experience, all of which are underscored by exclusivity and high-quality. Price can play a role in the accessible segment, but it is less of a factor in the upper echelons of the industry.