2. LUXURYis SOMETHING MEMORABLE which represents FOR
SOMEONE THE BEST from its PERSONAL PERSPECTIVE
and in its PARTICULAR SITUATION.
2
PERSONAL
Apparel, Jewelry & Watches,
Accessories, Cosmetics & Fragrances,
Footwear & Leather Goods
TRANSPORTATION
Automobiles, Marine Aircraft,
Recreational Vehicles,
Professionnal Services
EXPERIENTIAL
Hospitality, Home & Interiors, Travel Activities,
Sports, Collectibles, Real Estate, Charitable Giving
& Involvement, Personal Health Management
I would say that
8 CHARACTERISTICS OF LUXURY PRODUCTS
RARITY EXCELLENCE EXPENSIVENESS TIMELESSNESS HONESTY TAILORED PLEASURABLE EXPERIENCE
Luxury Daily
3. €850 billionAn healthy growth of 7% driven by Cars, Jets & Hospitality
5% online41% of Accessories and 28% of Apparel are purchased online
Market share34% Europe – 32% Americas – 29% Asia
3
LUXURY MARKET
2014
Bain & Company Study
4. €875 billionBetween 2 and 4 % real growth driven by Western Europe
(3-5%), Americas (1-3%) and Japan (7%)
30% retailThe retail channel will continue to grow.
350 millionThe overall number of luxury consumers will be 3x more
than in 2000
4
LUXURY MARKET
2015
Bain & Company Study Estimations
6. Future of the
Global Luxury Market
The buying behaviours of tomorrow’s luxury consumers - who are
increasingly sophisticated, discerning and global – are changing.
6
7. “Luxury companies are highly expansion-oriented,
focusing on internationalization and horizontal
integration. Luxury groups will seek further
opportunities for partnerships and acquisitions to
accelerate their global expansion and portfolio
innovation.”
7
THE LUXURY
COMPANIES
Luxury Groups 2015, Xerfi
They should be careful and not miss to :
▸ SIMPLIFY THEIR BRANDS ARCHITECTURE
because consumers don’t want to deal with
complications of multiple brand identities under a
corporate brand
▸ BUILD NEW ECOSYSTEMS OF PARTNERSHIPS
to control their brand while being more open with
retailers and suppliers
8. Large luxury groups represent more than the half
of the market.
8
THE LUXURY
COMPANIES
Luxury Groups 2015, Xerfi
9. WHICH
COUNTRIES
ARE DRIVING
THE LUXURY
MARKET ?
9 Rank - Country Type of country Size (billion euros)
1 - United States Developed 62,5
2 - Japan Developed 17,3
3 - Italy Developed 16
4 - China Emerging 15,3
5 - France Developed 15,1
6 – United Kingdom Developed 12,1
7 - Germany Developed 9,9
8 – South Korea Developed 8,3
9 – Hong Kong Developed 7,7
10 - Russia Emerging 5,8
Region Size (billion euros) Market share (%)
Europe 74 34 %
Americas 69 32 %
Asia 63 29 %
Rest of the world 11 5 %
The developed countries are still largely
dominating the luxury market. Luxury Groups 2015, Xerfi
10. SALES OF
LUXURY ARE
CONCENTRATED
IN THE LARGEST
CITIES WHERE
MOST WEALTHY
CONSUMERS
LIVE
Leading players in
the luxury industry
concentrate their
sales in large cities,
as consumers with a
higher purchasing
power live there.
Asia is the world’s most
populated region with an
economic dynamism and
an increasing
consumption which makes
it the main priorities for
luxury brands.
10
11. WHERE ARE
THE FUTURE
KEY
MARKETS ?
United
States
11
Brazil
Russia
China
Western
Europe
Japan
Emerging
countries
Developed
countries
India
12. Asia will lead luxury market
growth in the coming years
Together with Latin America, Asia’s High Net Worth
Individuals population will grow 6.5% over the next decade.
Luxury companies will slowly
adapt to a local production
To meet customer needs while controlling an exclusive image.
These customers use to buy luxury overseas while traveling.
Sales of luxury products are
concentrated in the largest cities
Because the wealthy consumers live in these cities like
Tokyo, Shanghai, Deli, Mumbai, Jakarta or Sao Paulo
12
THE ROLE OF
EMERGING
MARKETS
Luxury Groups 2015, Xerfi
13. 57.5% are male52% are single, luxury is not always a present !
42% are graduaded, luxury is not only for the most educated !
Income $125,000$350,000: home market value
$100,000: liquid ressources
98% use Internet
70% use Social Media, what an opportunity !
Women are more likely to engage with brands.
13
THE LUXURY
SHOPPER
The new face of luxury 2014, Epsilon
14. Omnigifter
All they want is to take
care of their relatives
Absolute
luxurer
Luxury is their commodity
Mega citier
World is their city. City is
their world
For them luxury is about
making their loved ones
happy and gifting is their
natural approach to the
luxury world. They are
mainly men aged
between 45 and 55 years
old with a strong
presence in mature
markets. They buy
jewelry, vacations and
food. When buying gifts,
superior quality and
customer experiences are
essential to them.
They grew up in luxury.
For them, compromising
is not an option and
exclusivity is
fundamental. This is the
European elite and a
happy few in emerging
markets aged between 35
and 45. They buy both
Personal and Experiential
luxury mainly leather
goods, clothing, jewelry
and watches and
exclusive vacations with a
special emphasis on
everything that is unique
and customized.
Whether they live in New
York, London, Paris, Rio,
Moscow or Shanghai,
they only enjoy the same
tastes and holiday
destinations. They
transform local trends in
global phenomenons.
They are concentrated in
Brazil and China, New
York or in the European
capitals, aged between
30 and 35 years old. They
concentrate their luxury
spend on lether goods,
closing, hotels and
exclusive vacations.
WHO ARE THE
NEW TYPES OF
CUSTOMERS ?
14
15. Experiencer
Luxury is real only when
shared
Fashionista
In fashion, they trust
Little Prince
Luxury is their fun
WHO ARE THE
NEW TYPES OF
CUSTOMERS ?
15
They share luxury
moment. This consumer
has risen from the ashes
of luxury in Japan,
Europe and the US, is
aged between 45 and 50.
They invest more on
holidays, food and hotels
spending abroad in
Personal luxury.
She always knows what's
going on. She loves
design and shopping is
her passport to the
magical kingdom of
luxury. They are mostly
women aged between 35
and 40 well-represented
in China, Russia and the
US. She knows
everything from the most
famous brands to the
latest star discovery. She
buys mainly Personal
luxury items : leather
goods, clothing, perfumes
and cosmetics.
This is a generation
whose parents were
wealthy. They connected
and hungry for the new
and colorful. They are
aged between 18 and 25
and come mostly from
emerging markets. They
mainly buy leather goods
clothes, perfumes and
cosmetics for which brand
and design are essential
elements.
16. Social Wearer
Luxury should drive a
better world
Status seeker
Theu show then they
exist
Classpirational
They saw it on their boss
WHO ARE THE
NEW TYPES OF
CUSTOMERS ?
16
They believe that luxury is
the green carpet to a
better world. They are
aged between 35 and 40
mainly from France,
Germany and Brazil. The
mainly shop for leather
goods, travels and
furniture. For them
quality, sustainability and
made in are essential.
They live under the
spotlight with logos in full
view. They always wear a
known watch or
accessory. They don't like
experimenting and follow
trends and well-known
brands in this world. They
are aged between 35 and
40, mainly Asian but also
American. They love to
shop for leather goods,
clothing usually in large
flagship stores with an
immersive digital
experience. Celebrities
and ads on TV can
strongly influence them.
Their greatest fear is
looking bad in front of
their boss. For them
affordable luxury is the
best way to be accepted
by their community
especially at work. They
are men and women
aged between 30 and 35
years old with a strong
presence in South Korea,
Germany, France and
Russia. They prefer
classic clothes, perfumes,
cosmetics and bags that
offer and good value for
money. They compare
prices online.
17. Timeless
Proper
Fashion passes, style
remains
Luxe Immune
They can afford it but do
they want
Rich upstarter
Luxury, they are coming
WHO ARE THE
NEW TYPES OF
CUSTOMERS ?
17
Coco Chanel is their
myth. These ladies are
classic, proper, mostly
Americans, English and
Japanese between 40
and 45 years. They
usually purchase
handbags, shoes, food
and wine. These women
usually shop in a few
trusted stores located in
exclusive areas with
limited digital presence.
They belong to the richest
part of the population but
seemed to be immune or
disillusioned to the
temptation of the luxury
world. They are only
present in Japan, US and
Europe, aged between 50
and 55 years old, are
usually not price-sensitive
and they buy leather
goods and clothing. They
choose what to buy
based on advice received
in stores or from their
friends.
The newcomers have
luxury from emerging
markets. After years of
hard work they finally won
a place in the luxury
world. They are aged
between 35 and 40 years
old. They are
unsophisticated
customers who buy
leather goods, perfumes
and cosmetics from well-
known brands. Social
media have a strong
influence in driving their
choices.
18. INNOVATION:
A CHALLENGE
FOR LUXURY
Being innovative
creates demand,
drive store traffic and
exclusivity while
sustaining the
distance between a
luxury brand and a
mass brand.
The challenges consist in
production line
extension and renewal,
local adaptation of
products and services.
18
19. Co-Creation with the community
to engage with product design
Creating a customer-centric offer in-store or online is the
best way to serve and reward a community of cnsumers.
Management by Design is
required to stay competitive
Brand loyalty, equity and values are the result of the consumer
behaviors and the market. Business Design thinking pays off !
Remain inspirational for the
customers and other industries
A lot of global trends are starting with luxury products which
need to remain innovative. Sustainability is the future.
19
INNOVATION:
A CHALLENGE
FOR LUXURY
20. DEVELOPMENT
OF NEW SALES
CHANNELS:
A CHALLENGE
FOR LUXURY
A luxury brand
strategy that
encompasses the
omnichannel
holistically has
more chance to be
successful
generating interest,
brand affiliation,
and more sales.
20
21. Online luxury sales – which still account share of total luxury
market – a growing at a faster peace.
Customers are demanding to buy luxury online so the
companies should go for it !
5.4% of the luxury
sales are online
Technological innovations,
shorten delivery times and online
customer habits are increasing
the digital competitiveness versus
brick and mortars.
The customers from
developed countries
are the most active
online shoppers
E-Commerce has became for the
luxury industry a complementary
distribution channel to offer more than
juste the face-to-face customer
experiences.
21
DEVELOPMENT
OF NEW SALES
CHANNELS:
A CHALLENGE
FOR LUXURY
22. To stay competitive, brands must focus on 360° omnichannel
strategies and integrate e-commerce and offline retail.
Why? Omnichannel consumers are more engaged spend 2x more.
Technology in-
store provides a
better experience
Physical and digital experiences
can no longer be seperate
because the mobility is part of the
luxury journey, big data provides
a personalized interaction that will
drive to higher frequency and
basket size. An innovative retail
experience is a must for an
innovative brand, augmented
reality is the future !
Luxury ecommerce
is also a content
and a community !
It is important to have a greate site to
see the products and that offers an
exclusive experience. Moreover, it is
necessary to provide a unique and
rich content on it. Finally, it is critical
to build a strong customer social
community which will master the
brand image and increase the
profitability.
22
DEVELOPMENT
OF NEW SALES
CHANNELS:
A CHALLENGE
FOR LUXURY
Worldwide IDC Retail Insights 2015 Predictions, IDC
23. 23
SOCIAL MEDIA MARKETING:
A CHALLENGE FOR LUXURY
Consumers have a new voice, increasing their individual and
collective power, and communities of both brand advocates and
critics sprang up. While this erodes message control for luxury
brands, social media, along with mobility and e-commerce, is one
of the most effective means to introduce new products globally and
provide instant gratification to shoppers in any part of the world.
Moreover, social media can be used effectively as a vibrant and
cheap storytelling medium for luxury brands, communicating brand
heritage and iconography to a new audience of potential clients.
Social media Marketing has to generate a positive « word of
mouth » by leveraging close relationships with key influencers.
« From communication
to conversion »
24. A CLEAR
TOURIST AND
TRAVEL
STRATEGY:
A CHALLENGE
FOR LUXURY
With the exception of
Japan, China an South
America, all markets are
maily driven by touristic
spending.
The local marketing has to
adapt its organization for a
tourist-and-travel retail
distribution, promote
significantly the brand in
tourists’ home countries
and customized retail
experiences in the holiday
destinations.
24
Luxury Groups 2015, Xerfi
25. TALENTThe luxury industry is changing, the human ressources have
to adapt. The new leaders need some new specific skills.
25
11% of luxury CEOs are female
While the average for other industries is 1.3%
10% of luxury CEOs have MBAs
While the average for other industries is 23%.
The average age of luxury CEOs is 51
While the average for other industries is 55 years old.
Leadership in the Luxury Industry 2014, Spencer Stuart
26. Ability to
understand the
brand DNA
Sensitive to the
creative
elements
Respect the
company
culture
26
WHICH SKILLS
NEED THE
NEW LUXURY
MANAGER ?
Global view of
the business
An ambassador
for the brand
Diversivied
experience
Adaptable in
new
environments
Intellectually
mature
Strong culture
of the luxury
industry
Flexible,
humble and
team player
Dedicated to
build a strong
business
THE NEW LUXURY
MANAGER IS AN
ENTREPRENEUR !
27. THE LUXURY I
AM INTERESTED
IN
SECTOR :
PERSONNAL
LUXURY
INDUSTRY:
WATCHES &
JEWELRY
27
28. Past
Store Assistant Intern for
a Luxury Multibrand
Jewelry in France (Cartier,
Omega, Officine Panerai,
Chopard, Boucheron)
E-Marketing Coordinator
for the France Tourism
Development Agency in
America (Production,
Tracking, Development of
online communications
campaigns)
RELATED
EXPERIENCES
Present
Entrepreneur creating an
innovative Luxury Watch
brand with my former
manager from the Luxury
Multibrand Jewelry
28
