Louis Vuitton Japan

Topics: Luxury good, Gucci, Luxury vehicle Pages: 20 (2543 words) Published: July 30, 2013
Worldwide Luxury Markets Monitor
Spring 2012 Update
Milan, 7th May 2012

This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent

2011: a new peak for luxury goods consumption
WORLDWIDE PERSONAL LUXURY MARKET EVOLUTION (1995-2011E, €B) Sept 11 SARS $/€ Subprime & Japan financial crisis earthquake Socio-Economic Turbulence

191 170 159 147 128 108 77 85 92 96 133 133 128 136 167 153 173

+10% +13%

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011E

2

Holiday season confirmed strong
PERSONAL LUXURY GOODS MARKET BY QUARTER HOLIDAY SEASON • Another strong holiday season

€173B

4,8

4,8

3,5

4,7 €191B

- Shoppers have been lured with doorbuster deals weeks in advance - High footfall in department stores

• Asian market driving growth, especially China and Hong Kong

+10%

• Mature markets keeping pace
- US positive results, record of Black Friday retail sales - First signals of slow down in Italy and Spain

2010 Q1
QoQ 12% growth

Q2
12%

Q3
8%

Q4 2011E
10%

• Boom of on-line sales starting from November

3

2011: No signs of slow down for the booming Asian market, and mature markets showing real strength WORLDWIDE PERSONAL LUXURY GOODS MARKET BY AREA YoY ‘10 vs ‘09 YoY ‘11E vs ‘10 @K @K

+13%

+8%

+10% +10% +27% +2%

+13%

Rest of World Asia-Pacific Japan

+16% +28% ±0%

+9%

+11%

+21%

+29%

-6%

+4%

Americas

+16%

+10%

+9%

+12%

Europe

+10%

+4%

+7%

+10%

4

2011: The rebound of hard luxury is the key contributor to market growth WORLDWIDE PERSONAL LUXURY GOODS MARKET BY CATEGORY
YoY ‘10 vs ‘09
+13%

YoY ‘11E vs ‘10
+10% +3% +19%

Art de la table Hard Luxury Perfume and Cosmetics

+2% +23%

+6%

+4%

Accessories

+17%

+13%

Apparel

+12%

+8%

5

2012: Market outlook is very positive despite socioeconomic turmoil 2012 GROWTH RATES BY REGION WORLDWIDE MARKET TRENDS • In 2012, market will keep growing, driven by emerging markets -Not only China but also Latin America, especially Brazil and Mexico

Europe Americas Japan
ex China

+2+2- 4% +5+5- 7% +0+0 -2%

Asia Pacific +14-16% +14China ROW +18+18-22% +5+5- 7% +6+6- 7% @K

• Question mark on European local consumption, especially in Italy and Spain • Retail remains key, although perimeter growth will slow down • Hard Luxury and Accessories outperforming other categories

6

Key drivers of luxury goods market growth in 2012

•Product categories Product
-Hard and soft accessories Hard winning categories -Apparel under pressure Apparel nonfrom non-luxury segments

•Geographies Geographies
-Italy, Japan: local Italy, consumption suffering across the board -Europe, US: strong Europe, momentum -China: still engine of the China: growth, but ongoing market maturation -India: new acceleration India:

•Luxury segments Luxury
-Absolute Absolute -Absolute Absolute -Absolute! Absolute!

7

Dichotomic performance in mature markets
SELL-OUT RETAIL SPRING/SUMMER ‘12 SELL-IN FALL/WINTER ‘12 • Double-digit negative sales campaign for wholesale channel in all categories, deeply impacted by overall macroeconomic crisis

Italy

• Strong signals of slow down in local consumption in particular in the wholesale channel (Multi-brand specialty retailers) • Chinese and Asian flows maintaining momentum in key touristic cities

Japan

• Flat performance of department stores in January and February • Bullish retail performance in March vs. last year when Tokyo stores were partially closed after the earthquake

• Sell-in campaign aligned with market trend • Male market gaining share across categories

Europe, US

• Strong sell-out trend for US luxury department stores: +8% Jan-March vs 2011 • Positive results of European stores thanks to strong affluence of...
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