20141230-Bain-Luxury_Goods_Worldwide_Market_Study_Fall-Winter_2014_The_Rise_of_the_Borderless_Consumer_36页_22mb

LUXURY GOODS MARKET ANALYSIS (FW 2014)

Key Highlights

• Overall Market Growth: Global luxury market reached €850B in 2014 (7% growth), driven by luxury cars (10%) and hospitality (9%). Slower growth projected for 2017-2017F (4-6%).
• Personal Luxury Goods (PLG): Dominant segment, €223B in 2014 (highest since 2007); growth slowed from >5% to 5% (constant rates), reflecting maturing market.

Regional Trends

• Americas: Steadfast growth (+6% at constant rates); US remains largest market (> Japan, France, Italy).
• Europe: Slower recovery (+2%); tourism-dependent.
• Japan: Strong growth (+10% at constant rates); resilient despite economic challenges.
• China: Declining growth (-1% at constant rates in 2014); Chinese consumers spend significantly abroad.

Distribution Shifts

• Retail vs. Wholesale: Retail channels gained share (+5% in 2014); monobrand stores (52% market) and airport channels (+11% CAGR) growing.
• Online: 5% of PLG sales (€12.2B), strongest in Americas; accessories (41%) and apparel (28%) dominate online.

Category Performance

• PLG Breakdown: Accessories largest category (29%), followed by apparel (25%), hard luxury (22%), beauty (20%).
• Performance: Accessories (4% YoY growth), shoes, and leather goods underperforming. Watches hit by Asia’s downturn.

Consumer Shift

• Touristic spending drives 30-50% of PLG market in most regions.
• Cross-border shopping reshapes branding: “new normal” requires global perspective over local trends.

Future Outlook

• Growth Horizon: Mature phase (4-6% CAGR from 2014-2017F) with less volatility.
• Disruptive Tech: Cashless payments, 3D printing, and facial recognition transforming experiences.
• Consumer-Centricity: Brands must prioritize client experience, omnichannel integration, and flexible retail management by 2025.

Luxury 2.0 Imperatives

1. Superior Customer Experience: Omnichannel integration and hospitality culture.
2. Flawless Retail Management: Assortment tailoring and capital optimization.
3. People Excellence: Talent management and frontline focus.