2019全球奢侈品力量（英文版）_44页_5mb

Summary of Global Powers of Luxury Goods 2019

Core Content

The Global Powers of Luxury Goods 2019 report provides an overview of the world's Top 100 luxury goods companies based on their consolidated sales in FY2017 (financial years ending within the 12 months to 30 June 2018). It highlights the key trends and challenges shaping the luxury market, emphasizing the importance of adapting to new consumer behaviors and values.

Main Points

• Market Performance:
  The Top 100 luxury goods companies generated a total of US$247 billion in FY2017, representing a 10.8% annual growth rate (currency-adjusted composite basis), significantly higher than the previous year's 1.0% growth. The average company size was US$2.47 billion, with a minimum revenue threshold of US$218 million for inclusion in the list.

• Consumer Trends:
  The report identifies the HENRYs (High-Earners-Not-Rich-Yet) as a new and important consumer class. These individuals, typically aged 43 with an income of over US$100,000 and investable assets under US$1 million, are becoming a key target for luxury brands. They prefer online shopping, especially via mobile devices, and credit/debit cards with rewards. They also show a preference for loans over savings, indicating a more spendthrift attitude.

• Segmentation and Growth:

  • Clothing and footwear companies dominate the Top 100 list in terms of number of firms.
  • Cosmetics and fragrances witnessed the highest sales growth.
  • The multiple luxury goods sector includes the ten largest companies, with an average size of US$7.59 billion, and accounts for 30.8% of the Top 100 sales.

• Sustainability and Ethics:
  The new generations of consumers are placing greater importance on sustainability, ethics, and transparency. Luxury brands are now expected to demonstrate ethical practices and social responsibility. Examples include:

  • Burberry ending product destruction and promoting recycling and donation.
  • Kering increasing renewable raw material usage and launching the Kering Standards.
  • Prada supporting sustainability initiatives and promoting eco-friendly practices.
  • Rolex and Tiffany focusing on social and environmental impact.

• Social Media as a Marketing Tool:
  Luxury brands are increasingly leveraging social media platforms to engage with Millennials and Gen Z. They focus on personalization, aspirational branding, and influencer collaborations to maintain brand integrity and relevance. Notable examples include:

  • Chanel being the most influential luxury brand on social media.
  • Gucci using campaigns like #GucciGram and #24HourAce.
  • Louis Vuitton offering exclusive content and personalization through social media.
  • Mr. Bags collaborating with brands like Montblanc and Tod's on digital platforms.

• Omni-personal Luxury:
  Brands are shifting from omni-channel to omni-personal strategies, focusing on personalized services and individualized customer experiences. This involves using AI and Big Data for customer segmentation, behavior analysis, and predictive modeling.

• Privacy and Personalization:
  With the implementation of data privacy laws such as the GDPR and the California Consumer Privacy Act, luxury brands are constrained in their ability to collect and use customer data. However, they are adapting by:

  • Training Data Protection Officers.
  • Ensuring data security and transparency.
  • Utilizing real-time data analytics to enhance customer engagement.

• Global Economic Outlook:
  Despite economic slowdowns in key markets like China, the Eurozone, and the US, the luxury market remains positive. Factors influencing the market include:

  • Protectionist policies in the US, which may affect global supply chains and brand competitiveness.
  • The digital revolution, which has led to the rise of e-commerce and the necessity for omnichannel strategies.
  • The growing middle class (projected to be over 50% by 2020), which is driving growth in the luxury sector, especially in emerging markets like China and India.
  • Brexit uncertainty affecting the Eurozone and global markets.

Key Information

• Top 100 Revenue: US$247 billion in FY2017.
• Average Company Size: US$2.47 billion.
• Minimum Revenue for Inclusion: US$218 million.
• Composite Growth Rate: 10.8%.
• Composite Net Profit Margin: 9.8%.
• Compound Annual Growth Rate (2015-2017): 5.3%.
• Return on Assets: 7.6%.
• Economic Concentration: 48.2% of the Top 100 sales come from the top ten companies.
• Social Media Engagement: Chanel, Gucci, and Louis Vuitton are leading in digital marketing strategies.
• Influencer Collaborations: Brands like Montblanc and Tod's are using influencers like Mr. Bags to engage with consumers.
• Sustainability Initiatives: Brands are adopting eco-friendly practices and ethical sourcing to align with consumer values.
• Privacy Regulations: Impact on data collection and personalization, with brands adapting to maintain customer trust.

Conclusion

The luxury market is evolving rapidly, driven by new consumer segments, technological advancements, and a shift towards sustainability and personalization. Brands must balance digital engagement with ethical responsibility, and omni-personal strategies are becoming essential for maintaining relevance and customer loyalty in a competitive and fast-changing environment.