Event Description: LUXE PACK MONACO, the premier show for creative packaging offers to luxury brands decision makers, the major advantage to be comprehensive in providing packaging: glass, plastic, cardboard, metal… The selectivity of exhibitors, combined with their expertise remain essential for this exclusive show dedicated to packaging professionals. LUXE PACK MONACO will be the obliged and privileged way to discover the latest packaging.
Luggage, mid-priced watches and real jewellery will be the highest growing personal accessories categories in 2014, which positions companies such as Pandora, Samsonite and Chow Tai Fook for ongoing success in the coming years. Chinese jewellery manufacturer Chow Thai Fook will fair the best, with sales expected to cross the US$ 10 billion dollar mark in 2014. Leading luxury brands such as Louis Vuitton, Gucci and Coach suffered in 2013 and will continue to suffer in 2014 due to consumer's reluctance to spend on big ticket items.
Analyst Insight by Sulabh Madhwal - Personal Accessories and Eyewear Analyst
LVMH, Richemont and Swatch Group continue to lead overall personal accessories, but the dynamics are changing in individual categories. We discuss the state of global competition as seen through the new edition of personal accessories published on 11 August 2014.
Top Three Lose Ground in Bags and Luggage
The respective market shares for LVMH, Kering (formerly PPR) and Coach all declined between 2012 and 2013. This was not only due to the slowing demand for luxury brands across the world, but also the rise of leading competitors such as Michael Kors, Samsonite and Prada Group.
Global value sales for bags and luggage will grow at a CAGR of 4% over 2014-2019, with luggage and business bags spearheading growth. Although handbags will remain by far the biggest category in 2019, the growth potential for luggage and business bags is likely to inspire several marketing efforts targeted at the male population.
With Wee Tek Loo, Head of Consumer Electronics and May Ling Tham - Head of Personal Accessories and Eyewear
Moderated by Yvonne Kok, Head of Industry Research
Wearable devices, such as the Nike Fuel Band and the Samsung Galaxy Gear are manufacturer driven products that do not yet address any major functions better than a smartphone. So far, only fitness tracking devices are driving sales in the category as they serve a practical and motivational purpose. Other devices such as the Galaxy Gear suffer from poor aesthetics and bulky design. Until Apple releases its highly anticipated watch, which has the potential to disrupt the industry in the same way that the iPhone did, many manufacturers of electronics and watches are adapting a wait-and-see approach to wearable devices.
With Chloe Wu, Personal Accessories & Eyewear Industry Analyst
Michael Kors is investing heavily in marketing its new diffusion line and as a result, consumers are associating the company as a lifestyle brand in line with Coach and Tory Birch. The company is also using social media as a way to use consumers to market its brands. It has a blog site called MK Timeless where consumers can upload pictures of their Michael Kors watches and a campaign called Watch Hunger Stop where the company donates money to the World Food Program for every 100 series timepiece purchased. These marketing strategies have paid off for the company with strong brand equity.
Event Description: LUXURYLAB.MX is the most important market intelligence event for the luxury market in Latin America. Founded in 2011 by LoveBrand Comunicación.
Speaker: Fflur Roberts, Head of Luxury Goods
Presentation Title: “The Rise of Global Wealth and Luxury Spending in Emerging and Developed Markets”
Presentation Descripton: The global picture of wealth is changing, with the number of high-income earners in emerging and developing countries rising rapidly. Are luxury brands taking sufficient advantage of this growth to drive profits? Insights into the profile and spending habits of high income earners and long-term forecasts on the wealth shift towards emerging markets can help luxury brands plan strategically. This presentation will focus on this consumer group and their impacting on expenditure across a wide range of high-end goods and services in both Latin America and other chore regions.
Analyst Insight by Rob Walker - Contributing Analyst
When a luxury brand renowned for high-end products takes a big chunk of its portfolio downmarket, there are risks. The biggest is that its prestigious image becomes diluted and affluent consumers drift away. Tough times call for bold decisions, though. Rewind a year and a half and US luxury jeweller Tiffany & Co found itself in choppy waters. Sales were sinking like a stone in its core home market, and in its New York flagship especially. Revenue in Europe and Asia Pacific was in freefall too.
In a bid to turn things around, Tiffany ramped up its participation in affordable luxury. At its famous New York flagship on Fifth Avenue, well-heeled shoppers could still spend upwards of US$50,000 on a piece of statement jewellery, or US$5-10,000 on a piece of fine jewellery. But, low-priced silver jewellery, typically costing less than US$500 a piece – and led by a new range branded as the Atlas collection – began to grow in visibility. Few retailers anywhere in the world offered products covering such a cavernous price spectrum.
Tiffany & Co: Global Net Sales
Source: Euromonitor International from company press release
Latin America is one of the fastest growing regions in the world for internet users, and luxury brands looking to target consumers in the region should use social media for interaction. Countries like Brazil and Mexico offer the largest opportunities for luxury players, but e-commerce is on the rise in smaller countries such as Chile, Peru and Colombia, all of which are showing demand for luxury goods.
Analyst Insight by Warangkana Anuwong - Senior Personal Accessories and Eyewear Analyst
Men remain the core target audience for luxury watches, particularly in the mechanical and digital categories. Globally in 2013, men’s luxury timepieces accounted for a 64% share of sales of overall luxury timepieces, with women’s luxury timepieces accounting for the remaining 36%.
However, women are assuming greater importance in this category for several reasons. The female population has been growing for several years. Over 2008-2013, the world’s female population grew by 6.5%, slightly higher than the male population. This growth trend is expected to continue over the next five years, with women set to account for close to half the world’s total population by 2018.