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119 posts categorized "Luxury Goods"

April 15, 2014

Webinar: The Rise of Luxury Spending in Emerging Markets

The-Rise-of-Luxury-Spending-in-Emerging-Markets-Web-BannerDrive Consumer Expenditure by Tapping into Emerging Wealth Markets

April 29, 2014  |  9 a.m. CST/3 p.m. GMT

The global picture of wealth is changing. The number of high-income earners in emerging markets is rising rapidly, yet few companies are taking advantage of this growth to drive profits.

This webinar provides insights into the profiles and spending habits of high income earners and long-term forecasts for wealth distribution, helping you develop a more strategic plan for growth. 

Discover:

  • What markets hold the most opportunities for expansion
  • Pivotal trends shaping the future of the luxury goods market
  • Short and medium term strategies used by the world's most prominent luxury brands for success

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April 9, 2014

Global Luxury Goods: Where Now, Where Next

Fflur_RobertsAnalyst Insight by Fflur Roberts - Head of Luxury Goods Research

View Fflur Roberts's profile on LinkedIn

Euromonitor International’s latest research on the global luxury goods market indicates that luxury companies began 2014 with similar expectations to those in 2013 with regard to the challenges of sourcing and maintaining growth.

Led by Luxe Corp’s team of business experts, Euromonitor International will be joined by leading industry experts, luxury companies and retailers at The Club e-Luxe International Summit on 5 June 2014 to discuss the latest trends in luxury goods and the challenges facing today’s luxury bands and retailers, competing in a world where the line between the virtual and the physical world is becoming increasingly blurred and the one size fits all approach no longer exists.

During this one-day event, presentations, live demonstrations, debates, roundtables and conversations will be made by digital luxury experts, analysts, inventors, developers, designers and executors.

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April 7, 2014

Euromonitor to Speak at Club E-Luxe International Summit 2014

Luxe-corp-large-logo

Date: Thursday June 5, 2014

Location: HotelLe Meurice, Paris, France

The Company: Luxe Corp is the pioneer Strategy & Management Consultancy company and business services provider specializing in the luxury sector. A fully independent company with a worldwide client portfolio, Luxe Corp develops and implements advanced and practice-tested business strategy and operations solutions for companies seeking sustainable growth in the luxury industry.

Club e-Luxe is an executive club created by Luxe Corp for luxury e-business and digital executives in response to the critical need to address the business challenges that luxury companies are facing in the context of the internet, digital media, new technologies and innovation.

The Conference: The Club e-Luxe International Summit will provide luxury companies with advanced digital solutions through in-depth Presentations, Live DEMOs, Panel Debates, CEO Conversations and other interactive sessions by practicing international experts, led by Luxe Corp’s team of expert Luxury Business Analysts. Fflur Roberts, Head of Luxury Goods at Euromonitor International will be part of this luxury panel. The theme of this year’s event is “Virtual + Physical Luxury” and several related topics will be analysed. 

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April 4, 2014

Government Clampdown on Extravagance Leads to Underperforming Luxury Categories in China

Fflur_RobertsWith Fflur Roberts, Global Head of Luxury Goods Research

 The government clampdown on extravagance in China is impacting the luxury market, with luxury accessories, wines and men’s timepieces taking the brunt of the law’s impact. The clampdown is aimed at officials who spend government money lavishly as the new ruling party takes steps to reshape its image. Since most government officials are male, men’s luxury categories are underperforming. However, women’s luxury categories such as beauty and personal care and women’s handbags are still performing well.

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March 27, 2014

More Consumers Buying Luxury Items for Less

image from http://aviary.blob.core.windows.net/k-mr6i2hifk4wxt1dp-14032714/8872e3b6-85ee-4990-8f48-6c44f5782ccf.pngWith Daphne Kasriel - Consumers Editor

The borders of luxury spending are being redrawn with middle class consumers joining high end consumers in living a luxurious lifestyle.  Affordable luxury is becoming commonplace as consumers buy luxury items at discount outlets or second hand stores. Consumers demand luxury in their travel as well, and more budget hotels are upgrading services and design esthetic to cater to these needs. There is a downside to this trend however.  According to a Korean Chamber of Commerce survey of adults aged 20 years or older who recently made luxury purchases, almost 30% of respondents were experiencing difficulties paying off their credit card debt.

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March 8, 2014

Michael Kors and Tory Burch: Darling of Investors and Stock Star in Waiting

Rob WalkerAnalyst Insight by Rob Walker - Contributing Analyst

View Rob Walker's profile on LinkedIn

When luxury retailer Michael Kors listed on the New York Stock Exchange in December 2011, the debut share price was a beefier than expected US$20. Fast forward a little over two years and it is on the verge of hitting US$100. Not a bad return for those who bought early. But then, who would bet against the share price continuing to soar over the next two years? The company seems to have an unflappable knack of getting its growth strategy exactly right, and at a time when rivals are getting it wrong. Now, here is a question to get investors’ pulses racing. Who will be the next Michael Kors?

 

A Class Apart

There is no stopping Michael Kors. In the last quarter, the company’s sales in Europe were up by a jaw-dropping 144%. This is where the brand has muscled in on a growing appetite for affordable luxury, exploiting a gap in the market left by European players either too busy building stronger positions in China or too preoccupied with taking their portfolios upmarket. And the brand’s runaway success does not stop there. In the US, like-for-like sales were up 51% for the same quarter, fuelled by buoyant demand for luxury accessories and timepieces.

Such results would be impressive in boom times, but keep in mind that the final quarter of last year was a period when many high-profile luxury retailers struggled. Coach, a US rival in affordable luxury, reported a sales decline of 6%, for example, blaming weak demand for women’s handbags and accessories. UK luxury retailer Mulberry – not so long ago a stock market star itself - issued a profit warning in January on the back of a 3% slide in sales for the 17 weeks to 25 January. LVMH, Tod’s and Prada also reported disappointing end of year results. So, how is it that Michael Kors is succeeding where others are failing?

Continue reading "Michael Kors and Tory Burch: Darling of Investors and Stock Star in Waiting" »

February 24, 2014

Signet’s Acquisition of Zale Alters the Jewellery Landscape

Sulabh MadhwalAnalyst Insight by Sulabh Madhwal - Personal Accessories and Eyewear Analyst

View Sulabh Madhwal's profile on LinkedIn

Although Facebook’s purchase of WhatsApp has dominated the business headlines over the past week, Signet Jewelers’ imminent acquisition of close competitor Zale Corp will be a much larger transaction in terms of the acquired company’s revenues. The latter also represents the most significant shift in global jewellery competition since brand Bvlgari was acquired in 2011. Apart from changing the global hierarchy, I expect this acquisition to prompt strategy reforms for leading players across North America. In this opinion piece, I evaluate the development’s effect on three distinct geographical levels.

Global Leadership Race

As of 2012, Chow Tai Fook and Richemont were the two largest jewellery players in the world, with Signet ranked a distant third. However, Signet and Zale combined accounted for a 2% retail value share of global jewellery sales in 2012, propelling the alliance above Richemont into second place.

Even though Signet may not retain its global ranking by value sales in calendar year 2013, it now enjoys an extremely developed distribution network in three substantial jewellery markets (the US, Canada and the UK) as its total number of retail outlets exceeded 3,000 in December 2013. This gives Signet a distinct advantage over several brands, such as Bvlgari and Pandora, which are trying to reduce their dependence on third-party retailers.

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February 20, 2014

Changing Dynamics of Precious Metals in Real Jewellery

Datagraphic illustrating the Changing Dynamics of Precious Metals in Real Jewelry

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Fluctuation in unit price of precious metals is one of the primary drivers of jewellery value sales. Gold jewellery accounts for 60% of real jewellery value sales in 2013, and is thus key to the precious metals trade. As gold and platinum further their influence over real jewellery in emerging markets, costume jewellery partnerships will become vital for silver producers over 2014-2018.

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In Search of New Markets for Luxury Jewellery and Timepieces

Rob WalkerAnalyst Insight by Rob Walker - Contributing Analyst

View Rob Walker's profile on LinkedIn

Total retail sales of luxury jewellery and timepieces - in the 32 markets tracked by Euromonitor – increased 6% last year, at fixed US dollar prices. It was a resilient performance given firstly, the crackdown on gift giving in China – the category’s primary growth engine of the last decade – and, secondly, the economic headwinds buffeting much of Western Europe.

It was still the category’s weakest global performance in four years, however, and a warning that manufacturers and retailers needs to unlock new markets – especially if they are to capitalise on the current period of lower raw material costs.

Untapped markets to watch

Indonesia

Indonesia looks promising. Annual sales of luxury jewellery and timepieces sum under US$100 million, but there is evidence of a growing appetite for prestige necklaces, earrings and bracelets as well as men’s high-end watches. Leading brands Cartier and Rolex have cottoned on, with both building stronger distribution positions last year. It could be the start of a much bigger wave of investment this year.

One of the barriers, however, is legislation that requires foreign brands to sign up with a local business partner. This has held back global brands in the past. The difference now is that the opportunity is looking too good to miss.

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February 16, 2014

Diversification Key to the Future of LVMH

Sulabh MadhwalAnalyst Insight by Sulabh Madhwal - Personal Accessories and Eyewear Analyst

View Sulabh Madhwal's profile on LinkedIn

Recently released financial results for the 2013 calendar year highlight some of the major strategic issues facing LVMH. Overall company revenues rose by 4% compared to 2012 and the biggest business group, ‘Fashion & Leather Goods’, registered contracting sales over the year. While the company profile LVMH Moët Hennessy Louis Vuitton SA carries a detailed account of possible strategies, we discuss some underlying causes of the company’s weak performance as well as suggestions to counter them.

The Golden Egg Undergoing a Revamp

Flagship brand Louis Vuitton not only accounts for more than a third of LVMH’s personal accessories sales but is historically one of the company’s most profitable brands. As such, a slowdown in its global sales growth has affected the outlook for the entire company. Louis Vuitton’s strategy to return to high single-digit to double-digit growth includes an ongoing change in leadership, restricted outlet expansion and a focus on high-end luxury.

 Brand LV.png

Continue reading "Diversification Key to the Future of LVMH" »

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Recent Posts

Webinar: The Rise of Luxury Spending in Emerging Markets

Global Luxury Goods: Where Now, Where Next

Euromonitor to Speak at Club E-Luxe International Summit 2014

Government Clampdown on Extravagance Leads to Underperforming Luxury Categories in China

More Consumers Buying Luxury Items for Less

Michael Kors and Tory Burch: Darling of Investors and Stock Star in Waiting

Signet’s Acquisition of Zale Alters the Jewellery Landscape

Changing Dynamics of Precious Metals in Real Jewellery

In Search of New Markets for Luxury Jewellery and Timepieces

Diversification Key to the Future of LVMH