Global Luxury Retailing

Publication Date	June 2009
Publisher	Verdict
Product Type	Report
Pages	188
ISBN Number	not applicable
Product Code	VDT00270

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Summary

Introduction

This new report provides unique data on the value of consumer expenditure on luxury products globally, by region and by four product sectors for 2003-2008. This is complemented by 2009 forecasts, comprehensive advice on how luxury retailers should negotiate the downturn, a new series of profiles on smaller luxury players and a detailed analysis of regional sales trends.

Scope

Proprietary 2003-2008 market value data with a detailed analysis of regional sales for Europe, America, Japan, Asia Pacific and the Middle East.
Global consumer expenditure on luxury, high-end non-food goods comprising clothing, accessories, jewellery, watches, fragrance and cosmetics.
Comprehensive profiles of Bulgari, Burberry, Christian Dior, Giorgio Armani, Gucci Group, Herm??s, LVMH, Polo Ralph Lauren, Richemont and Valentino.
Five year trading records of each competitor, including growth rates and operating margins, with Verdict's outlook on each business.

Dramatic repercussions from the financial crisis are impacting the real economy and the luxury sector is certainly not immune. Judging by trading updates for Q4 2008 and Q1 2009 demand for certain segments of the luxury goods sector has fallen off a cliff. Luxury retailers are currently facing the toughest market conditions for two decades.

We believe that there will be no significant recovery in the foreseeable future either, with the latter half of 2010 perhaps offering some relief. Generally speaking, an era of consumer frugality has set in and has left its mark on the luxury sector, in sales terms luxury has clearly lost some of its lustre.

Arguably this is the worst environment in decades and forces retailers to innovate. And there are still some growth opportunities open to retailers. Luxury goods retailers should focus on quality, introduce sub brands in a careful manner, try out new routes to market, such as the internet or shopping centres, and cut costs.

Reasons to Purchase

Assess market potential and threats by accessing sector size data and seeing how consumers and retailers have reacted to recent economic turbulence.
Use comprehensive company profiles on business models and financial and operational performance measures to benchmark your company's performance.
Identify opportunities for cost cutting initiatives that will positively impact sales without hurting the unique luxury brand and proposition.

Content

Chapter 1 Executive Summary
- Key findings
- Main conclusions
Chapter 2 Market Analysis
- Luxury market definition
- Regional summary
- Europe
- Economic overview synchronised downturn
- Luxury
- Americas
- Economic overview negotiating the liquidity trap
- Luxury
- Asia Pacific
- Economic overview the myth of decoupling
- Luxury
- Japan
- Economic overview the threat of a second lost decade
- Luxury
- Middle East & others
- Economic overview dependence on the oil price
- Luxury
- Product trends
Chapter 3 Key Issues & Outlook
- Key issues
- as the economic slowdown shows luxury is not immune
- ... consumers renew their focus on quality
- Sales driver opportunity I: Sub brands and product extension
- Sales driver opportunity II: Licensing into new areas
- Sales driver opportunity III: Diversification into travel and wellness
- Sales driver opportunity IV: Branching into homewares
- Sales driver opportunity V: The changing perception of the Internet, from threat to saviour
- Sales driver opportunity VI: EU shopping centres as new distribution channels, go fishing where the fish are
- Advertising cutting budgets or finding new marketing opportunities?
- Cost cutting has become the major issue facing the industry, the vital question is where?
- Outlook
- Two key drivers reverse as the numbers of millionaires and travel are down
- Currency fluctuations create front and back end havoc
- Attitude change: bling is out
- Influence of department stores a struggling sector, no quick turnaround in sight
- Counterfeiting persists and could get worse in the crisis
- Emerging markets decoupling was a myth
- ... however there remains a long term opportunity, though it will be different from what was previously assumed
- Forecast heading for one of the worst years on record
Chapter 4 Company Comparisons
- Key Operating Statistics
- Market shares
Chapter 5 Bulgari
- Company overview
- Recent key developments
- Trading record
- Store portfolio
- Outlook
Chapter 6 Burberry
- Company overview
- Recent key developments
- Trading record
- Year to end March 2008
- Year to end March 2009
- Store portfolio
- Outlook
Chapter 7 Christian Dior
- Company overview
- Recent key developments
- Trading record
- Store portfolio
- Outlook
Chapter 8 Giorgio Armani Group
- Company overview
- Recent key developments
- Trading record
- Store portfolio
- Outlook
Chapter 9 Gucci Group
- Company overview
- Recent key developments
- Trading record
- PPR
- Gucci Group
- Recent key developments Gucci Group
- Trading record
- Store portfolio
- Outlook
Chapter 10 Herm??s
- Company overview
- Recent key developments
- Trading record
- Store portfolio
- Outlook
Chapter 11 Lvmh
- Company overview
- Recent key developments
- Trading record
- Current trading
- Store portfolio
- Outlook
Chapter 12 Polo Ralph Lauren
- Company overview
- Recent key developments
- Trading record
- Current trading
- Store portfolio
- Outlook
Chapter 13 Richemont
- Company overview
- Recent key developments
- Trading record
- Jewelry maisons
- Specialist watchmakers
- Leather & accessories maisons
- Store portfolio
- Outlook
Chapter 14 Valentino Fashion Group
- Company overview
- Recent key developments
- Store portfolio
- Outlook
Chapter 15 Other Players
- Chanel
- Coach
- Dolce & Gabbana
- Folli Follie
- Jimmy Choo
- Mulberry
- Prada
- Salvatore Ferregamo
- Tiffany & Co
- Versace
Chapter 16 Glossary
- Luxury market definition
- Financial statistics VAT
- Abbreviations
List of Tables
- Table 1: Global consumer spend on luxury branded product 2003-2008
- Table 2: Global luxury expenditure by region 2003-2008
- Table 3: Y-o-Y change % in global luxury spend by region 2004-2008
- Table 4: Euro area economic indicators 2007-2010f
- Table 5: US economic indicators 2007-2010f
- Table 6: Canada economic indicators 2007-2010f
- Table 7: China economic indicators 2007-2010f
- Table 8: Newly industrialized Asian economies economic indicators 2007-2010f
- Table 9: India economic indicators 2007-2010f
- Table 10: Japan economic indicators 2007-2010f
- Table 11: Middle East economic indicators 2007-2010f
- Table 12: Global luxury expenditure by product sector (€bn) 2003-2008
- Table 13: Global luxury expenditure by product sector ($bn) 2003-2008
- Table 16: Global luxury market regional forecast for 2009
- Table 17: Luxury brands key operating statistics in € years ending 08/09
- Table 18: Market shares of 10 key luxury retailers 2003-2008
- Table 19: Bulgari company overview 2009
- Table 20: Bulgari trading record ($) 2003-2008
- Table 21: Bulgari trading record (€) 2003-2008
- Table 22: Bulgari retail stores 2003-2008
- Table 23: Burberry company overview 2009
- Table 24: Burberry trading record in US$ 2003/04-2008/09
- Table 25: Burberry trading record in local currency (??) 2003/04-2008/09
- Table 26: Burberry directly operated retail stores & concessions 2004-2009
- Table 27: Christian Dior company overview 2009
- Table 28: Christian Dior Group consolidated trading record in US $ 2003-2008
- Table 29: Christian Dior Group consolidated trading record in € 2003-2008
- Table 30: Christian Dior Group retail stores 2002-2007
- Table 31: Giorgio Armani company overview 2009
- Table 32: Giorgio Armani trading record in US$ 2003-2008
- Table 33: Giorgio Armani trading record in € 2003-2008
- Table 34: Giorgio Armani brands retail store numbers 2006 & 2008
- Table 35: PPR company overview 2009
- Table 36: PPR trading record ($) 2003-2008
- Table 37: PPR trading record (€) 2003-2008
- Table 38: Gucci Group company overview 2009
- Table 39: Gucci Group trading record ($) 2003-2008
- Table 40: Gucci Group trading record (€) 2003-2008
- Table 41: Gucci Group number of company owned stores 2003-2008
- Table 42: Herm??s company overview 2009
- Table 43: Herm??s trading record in US$ 2003-2008
- Table 44: Herm??s trading record in € 2003-2008
- Table 45: Herm??s number of retail outlets 2003-2008
- Table 46: LVMH Group company overview 2009
- Table 47: LVMH Group trading record in US$ 2003-2008
- Table 48: LVMH Group trading record in € 2003-2008
- Table 49: LVMH luxury* trading record in US$ 2003-2008
- Table 50: LVMH luxury* trading record in € 2003-2008
- Table 51: LMVH luxury division trading record 2003-2008
- Table 52: LVMH retail stores 2003-2008
- Table 53: LVMH Group retail stores by region 2003-2008
- Table 54: Polo Ralph Lauren company overview 2009
- Table 55: Polo Ralph Lauren trading record in US$ 2002/03-2007/08
- Table 56: Polo Ralph Lauren regional net revenues in US$ 2005/06-2007/08
- Table 57: Polo Ralph Lauren retail outlets 2008
- Table 58: Richemont company overview 2009
- Table 59: Richemont trading record 2003/04-2008/09
- Table 60: Richemont brands number of retail stores 2002/03-2007/08
- Table 61: Valentino Fashion Group company overview 2009
- Table 62: Valentino Division and Fashion Group trading record ($) 2003-2008
- Table 63: Valentino Division and Fashion Group trading record (€) 2003-2008
- Table 64: Valentino Division store portfolio 2004-2008
- Table 14: Global luxury spend growth by product sector (€%) 2004-2008
- Table 15: Global luxury spend growth by product sector ($%) 2004-2008
List of Figures
- Figure 1: Global luxury expenditure (€bn) per region 2003 and 2008
- Figure 2: Global luxury expenditure ($bn) per region 2003 and 2008
- Figure 3: Global luxury regional expenditure split (€%) 2008
- Figure 4: European luxury retail spend (€) and growth 2003-2008
- Figure 5: European luxury retail spend ($) and growth 2003-2008
- Figure 6: Tsum Moscow 2008
- Figure 7: Gum Moscow 2008
- Figure 8: Americas luxury retail spend (€) and growth 2003-2008
- Figure 9: Americas luxury retail spend ($) and growth 2003-2008
- Figure 10: Gucci Las Vegas 2008
- Figure 11: Asia Pacific luxury retail spend (€) and growth 2003-2008
- Figure 12: Asia Pacific luxury retail spend ($) and growth 2003-2008
- Figure 13: Japan luxury retail spend (€) and growth 2003-2008
- Figure 14: Japan luxury retail spend ($) and growth 2003-2008
- Figure 15: Middle East luxury retail spend (€) and growth 2003-2008
- Figure 16: Middle East luxury retail spend ($) and growth 2003-2008
- Figure 17: Global luxury expenditure by product sector (€bn) 2003 & 2008
- Figure 18: Product share of global luxury expenditure 2008
- Figure 19: Burj Dubai (under construction) Dubai 2009
- Figure 20: Armani Priv?(C) Milan
- Figure 21: Armani Ristorante New York
- Figure 22: Armani Casa Bond Street, London 2009
- Figure 23: Westfield London 2008
- Figure 24: The Village, Westfield London 2008
- Figure 25: The Village, Westfield London 2008
- Figure 26: The Village, Westfield London 2008
- Figure 27: Chanel mobile art exhibition New York 2008
- Figure 28: Chanel iPhone haute couture app
- Figure 29: House of Fraser, Westfield London 2008
- Figure 30: House of Fraser, Westfield London 2008
- Figure 31: Christian Louboutin counterfeit goods warning online
- Figure 32: Global luxury market (€bn) forecast for 2009
- Figure 33: Luxury brands regional sales split (%) 2008
- Figure 34: Operating margins of luxury brands 2008/09
- Figure 35: Bulgari product sales split 2007 & 2008
- Figure 36: Bulgari regional sales split 2008
- Figure 37: Burberry product sales split as at March 2003 & 2008
- Figure 38: Burberry regional sales split 2008
- Figure 39: Burberry stores by region including franchises as at March 2009
- Figure 40: Christian Dior Group incl LVMH product sales split 2003 & 2008
- Figure 41: Christian Dior Group brands regional sales split 2008
- Figure 42: Armani label sales incl licensed products by brand 2005 & 2008e
- Figure 43: Giorgio Armani brands regional sales split 2008
- Figure 44: Armani label sales incl licensed sales by product 2003 & 2008
- Figure 45: Gucci Group brands sales split 2008
- Figure 46: Gucci Group brands regional sales % 2008
- Figure 47: Herm??s product sales split 2003 & 2008
- Figure 48: Herm??s brands regional sales split 2008
- Figure 49: LVMH fashion & leather goods regional sales split 2008
- Figure 50: LVMH perfume & cosmetics regional sales split 2008
- Figure 51: LVMH watches & jewelry regional sales split 2008
- Figure 52: LVMH regional store estate 2008
- Figure 53: Polo Ralph Lauren product sales split 2003/04 & 2007/08
- Figure 54: Polo Ralph Lauren brands regional sales split 2008
- Figure 55: Polo Ralph Lauren regional store estate as at March 2008
- Figure 56: Richemont product sales split as at March 2007& 2008
- Figure 57: Richemont brands regional sales split 2008
- Figure 58: Valentino Fashion Group regional sales split 2008
- Figure 59: Dolce & Gabbana Bond Street, London 2009
- Figure 60: Prada Bond Street, London 2009
- Figure 61: Salvatore Ferregamo 2009
- Figure 62: Tiffany & Co Madrid 2008
- Figure 63: Tiffany & Co Westfield, London 2008