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Global Luxury Retailing: Market Size, Retailer Strategies and Competitor Performance Product Image

Global Luxury Retailing: Market Size, Retailer Strategies and Competitor Performance

  • ID: 1555795
  • December 2010
  • Region: Global
  • 220 pages
  • Verdict Research Limited


The global luxury market showed strong growth in 2010 and is poised for further expansion, driven by particular growth in the Asia Pacific region. Global Luxury Retailing outlines the size of the market by region, as well as forecasts to 2015. It also assesses the key issues faced by the sector, the main strategies being implemented and contains chapters on each of the leading luxury brands.

Features and benefits

- Make informed regional investment decisions with forecasted luxury expenditure to 2015 based on inputs including the number of wealthy individuals.
- Benchmark your company's performance by accessing profiles of ten key luxury retailers including key operating details and their global market shares.
- Maximise the effectiveness of product development investments by uncovering the most successful categories for luxury brands.
- Ensure marketing and distribution strategies are up-to-date by uncovering competitor activity in areas such as e-commerce and social networking.
- Make informed pitches to potential luxury partners by gaining insights into their store networks, market shares, current strategies and future plans.



Note: Product cover images may vary from those shown

Market definition and methodology
Categories covered
Regions covered
Players covered
Methodology and currency
The global luxury retail sector made an impressive recovery during 2010
Expenditure in Asia Pacific, excluding Japan, now equals the Americas
The global luxury market is forecast to increase by over 50% by 2015
European operations should not be neglected as consumption is on the rise
Sales have recovered to pre-recessionary levels and Europe will continue to be the hotbed for luxury
Luxury retailers continue to support core European markets including the UK, France, and Italy
Europe is the home of luxury
Tourism has helped the region endure the downturn and will provide a helping hand going forward
The number of wealthy individuals in Western Europe will continue to rise
Central and Eastern European countries can provide luxury retailers with new revenue streams
Asia Pacific, excluding Japan, remains a key growth area for luxury retailers
The luxury retail market in Asia Pacific, excluding Japan, has more than doubled in the last five years
The Chinese economy continues to grow and the number of wealthy individuals is on a sharp rise
China can provide retailers with a growing source of fashion-conscious consumers
International luxury retailers entering China can benefit from the lack of local retailers in the sector
Luxury retailing has a promising future in India; however, it may take a while to reach the desired levels
The Asia Pacific region, excluding Japan, poses a number of region-specific hurdles for luxury retailers
The next two years will be challenging for the Americas, although demand is still growing
The Americas has shown the lowest growth of all the regions over 2010
Luxury sales in the US look set to rise as consumer confidence grows
Brazil is becoming a strong contender for future store expansion
Japan's influence over the luxury market is weakening
Existing Japanese operations should be nurtured, although investment opportunities are riper elsewhere
Japan has suffered a setback in its dominance of the luxury market, with a comeback looking doubtful
Japanese consumers have become more price-conscious and keen to mix luxury with high street items
Middle Eastern luxury consumption is on the rise, and the focus is shifting away from Dubai
In Middle East and Others, spending on luxury goods has bounced back in 2010
Dubai's leadership in luxury goods consumption is challenged by other cities in the region
Retailers are expanding in emerging markets and out of town locations
The Asia Pacific region and Brazil are becoming key focuses for internationalization
While major cities remain key, retailers are also looking to expand to alternative locations
Key distribution channels include department stores, retail stores, and shopping malls
Department stores play a pivotal role in revenue generation
Luxury houses currently focus more on their retail operations
Increasing investment in malls in key regions cannot be ignored by luxury retailers
Discount and outlet malls are on the rise due to consumer demand for lower prices
Duty free is an important channel of distribution for luxury retailers
The online channel is becoming increasingly important for luxury retailers
Luxury houses are latecomers to e-commerce
The success of sites selling a range of luxury labels has encouraged retailers to embark on online delivery
Many major luxury houses now sell at least a limited range of products online
Third-party e-retailers still play a crucial role in the luxury sector
Choosing not to embark on e-retailing could prove dangerous in the long term
Luxury retailers are diversifying into new product categories and focusing on heritage
Luxury retailers are introducing dedicated menswear stores
Luxury houses are keen to further develop their childrenswear offering
Luxury retailers continue to diversify to ensure they target all aspects of consumers' lifestyles
Retailers are creating localized luxury products to better target consumers in specific regions
Heritage is a key trend for luxury retailers in 2011
Designers continue to collaborate with high street retailers to get their designs to the masses
Luxury fashion and design is being linked with art and culture
Pricing has been adapted to accommodate lower consumer spending in the downturn
Luxury houses have temporarily lowered prices to maintain aspirational purchases
In 2010 prices in the luxury sector started to pick up again
Luxury retailers are embracing technology to reach new customers
Designers are using the web to stream their catwalk shows
Luxury brands are building their foothold in social media and smartphone apps
Celebrity endorsement plays a key role in promotional activities
Celebrity endorsement remains relevant and sometimes goes beyond simple product promotions
Christian Dior and Chanel have been experimenting with short videos circulated over the Internet
Key operating statistics
Revenue split by geographic region
Market shares
Company overview: Bulgari has become more than just a luxury jewelry retailer
Recent key developments: Bulgari has focused on its CSR policy, with a charity campaign
Bulgari quashed rumors that its business was for sale
Bulgari is stepping up its presence in China with a new strategic partnership
Acquired watch brands have expanded Bulgari's watch portfolio
The new Bulgari Man perfume is endorsed by Clive Owen
Matthew Williamson has designed Bulgari's handbag line
Bulgari has launched a new skincare range called Source Defense
The license agreement with Luxottica has been extended
Bulgari's advertising campaign featuring Julianne Moore was deemed too provocative
Bulgari created a limited edition ring to raise money for the Save the Children charity
Trading record: in 2010, Bulgari will reap the benefits from its recent restructuring
Current trading: Bulgari has seen a number of successful product launches
Store portfolio: Bulgari has slowed down store expansion due to the economic downturn
Outlook: Bulgari needs to continue to control costs and inject creativity into its products
Company overview: the Burberry brand has been revitalized in the last decade
Recent key developments: Burberry has adjusted its geographical focus
Burberry has decided to buy back its Chinese operations
Spanish operations are in the process of restructuring
A joint venture in India was formed with Genesis Colors
Burberry has joined the FTSE100
The retailer has diversified into cosmetics
Capsule collection "April Showers" was launched to respond to higher than expected demand
The company launched the second capsule collection "Winter Storms"
Burberry's casual offering was relabeled as Burberry Brit
The retailer took its women's spring/summer 2010 catwalk show back to London
Burberry streamed its autumn/winter 2010/11 and spring/summer 2011 runway shows live
A new digital platform, Art of the Trench, has been launched
Emma Watson was the face of Burberry's two subsequent advertising campaigns
Trading record: Burberry's financial performance showed a strong rebound in FY2009
Current trading: strong growth continued during the first three months of FY2010
The three months to the end of June 2010
H1 2010 to the end of September 2010
Store portfolio: Burberry store growth has recently been quite conservative
Outlook: Burberry has a positive future given internationalization, especially in Asia Pacific
Company overview: Christian Dior operates a couture label and owns shares in LVMH
Recent key developments: Christian Dior has focused on creative advertising
Dior’s website is revamped to enhance its online proposition
Christian Dior is aggressively expanding its network in growth markets, but keeps focus on existing stores
Natalie Portman announced as the face of Miss Dior Cherie perfume
The company's advertising in its Shanghai store was heavily criticized
Drawings by Dior illustrator shown at exhibition in London
Marion Cotillard featured in a number of Christian Dior advertising campaigns in 2010
Trading record: Christian Dior was not immune to the economic downturn in 2008
Current trading: Christian Dior has bounced back in 2010, driven by LVMH's revenue
January to end of June 2010 - H1
Nine months from January 2010 to end of September 2010, incorporating H1
Store portfolio: Christian Dior focused on expanding its LVMH store numbers in 2009
Outlook: Dior should focus on e-commerce and the continued creativity of its couture arm
Company overview: Giorgio Armani group is tightly controlled by Mr Armani
Recent key developments: Armani has expanded into the travel retail market
Giorgio Armani has launched a website aimed at the Chinese market
Giorgio Armani increased its control of the A/X Armani Exchange brand
The Armani group has expanded into the travel retail marketplace
The first Armani hotel was opened in Dubai
Armani Casa formed a collaboration with Roca to develop a bathroom concept
Rubelli became another partner for Armani Casa
Armani opened two new stores in Hamburg, Germany
The first standalone Emporio Armani store opened its doors in Berlin
The first Emporio Armani store and Armani Caffé were opened in Budapest
Mongolia was another new market for the group in 2010
The first Armani store and café was opened in Vietnam
Armani Casa was launched in Dubai
Giorgio Armani opened a new concept store in New York
Giorgio Armani received the Designer of the Year 2010 award at GQ Awards
Trading record: Armani has experienced a decrease in revenues and operating margin
Store portfolio: Giorgio Armani group continues to open new stores
Outlook: Armani should now focus on improving profitability and more careful expansion
Company overview: French retailer Hermès has its roots in saddlery and leather goods
Recent key developments: Hermès has focused on store expansion in key growth markets
LVMH has acquired a 20% stake in Hermès
Hermès has bought a building in London's New Bond Street
Jean-Paul Gaultier has stepped down as Hermès creative director
A new flagship store opened in Paris
Hermès opened a store for men in New York
Hermès launched two pop-up stores in London
14 new Hermès stores were opened in 2009
Hermès launched a silk scarf for London's Liberty
Hermès had a pop-up store in East Hampton
Trading record: Hermès performed strongly in FY2009, with sales of nearly €2bn
Current trading: Hermès has performed strongly in FY2010 to the end of September
Store portfolio: Hermès has continued to expand, even during the economic downturn
Outlook: future growth will be achieved through store rollout in Asia Pacific
Company overview: LVMH is the world's largest luxury group
Recent key developments: LVMH has expanded its retail network
A key stake in Hermès now belongs to LVMH
LVMH has acquired a leading online cosmetics retailer in Brazil
LVMH is set to expand into the luxury hotels segment
Louis Vuitton Maison has opened its doors in London
Two Louis Vuitton boutiques opened in Shanghai on one day
Nowness.com is an online magazine that belongs to LVMH
eBay has lost a court case against LVMH for selling counterfeit products
Trading record: LVMH sales plummeted in the last financial year but recovered in H1 2010
Current trading: in 2010 LVMH has posted increasing revenues and improving margin
H1 2010 to the end of June
Nine months to the end of September 2010
Store portfolio: LVMH slowed down the rate of new store openings in 2009
Outlook: strong rebound is likely to lead to more acquisitions and fierce rivalry with PPR
Company overview: Gucci group is the key revenue driver for PPR
Recent key developments: Gucci has focused on online sales and timeless pieces
Gucci has launched its updated online shop
Gucci has developed a limited range of trainers with Mark Ronson
Gucci has reintroduced its timeless product lines
Gucci's new childrenswear line is endorsed by Jennifer Lopez's children
Gucci has signed a partnership with The Recording Academy
Sarah Burton became the new creative director following the death of Alexander McQueen
Bottega Veneta is to launch its first timepiece
Bottega Veneta has opened a new store in Dubai
Yves Saint Laurent has launched a capsule collection, Edition Unisex
The Balenciaga brand has launched a perfume
Trading record: while PPR's revenues fell, Gucci group's revenues were resistant in 2009
In the year to December 31, 2009, the PPR group's revenues fell; however, at a slower rate than in 2008
In the year to December 31, 2009, Gucci group's revenues marginally increased
Leather goods are a key revenue generator for the Gucci brand
In FY2009 the Asia Pacific region delivered 43.3% of Gucci group's revenues, followed closely by Europe
Current trading: PPR experienced strong growth, particularly driven by luxury brands
PPR financial performance showed sustained growth in H1 2010
Boosted by a strong Q3 2010, PPR reported a stronger revenue growth for the nine months of 2010
Store portfolio: Gucci group continues expanding its directly owned store network
Outlook: Gucci group has maintained high margins allowing it to fund future growth
Company overview: Polo Ralph Lauren is a leading luxury retailer in the US
Recent key developments: Polo Ralph Lauren is taking control of its overseas licensing
Polo Ralph Lauren is to take direct control of its business operations in South Korea
Polo Ralph Lauren has taken full control of its operations in China, Hong Kong, and Taiwan
Mark Daley is the new president of Asia Pacific
The company has launched a UK version of its e-retail website
The first Rugby store outside the US was opened in Tokyo
The retailer has launched a range of Lauren handbags
Polo Ralph Lauren has launched a new fragrance
Ralph Lauren continues to increase its store numbers with a number of new openings
Ralph Lauren staged an impressive 4D fashion show in two cities
An iPhone App for the Rugby brand has been launched
Polo Ralph Lauren remains the official outfitter of the US Olympic and Paralympic Teams
Ralph Lauren has received a number of awards
Trading record: FY2010 was a strong year for Polo Ralph Lauren
Current trading: FY2011 has got off to a promising start
Store portfolio: the retailer has a strong store presence in the US, driven by factory outlets
Outlook: Polo Ralph Lauren must reduce its dependence on the US
Company overview: Richemont is the owner of many esteemed luxury companies
Recent key developments: Richemont has added Net-A-Porter to its portfolio
Richemont acquired a majority stake in Net-A-Porter Limited
A new Piaget flagship store opened in London
There have been a number of changes in management within Richemont's companies
Trading record: Richemont saw a drop in sales in FY2010
Current trading: the first six months of FY2011 have proven to be extremely successful
Store portfolio: the luxury goods group has seen store growth drop off in recent years
Outlook: Richemont's future looks positive with its focus on new channels and Asia Pacific
Dolce & Gabbana
Folli Follie
Jimmy Choo
Salvatore Ferragamo
Tiffany & Co.
Market definition and methodology
Categories covered
Regions covered
Players covered
Methodology and currency
Exchange Rates
Datamonitor’s wealth data
Global Wealth Model methodology
Further reading
Ask the analyst
Global Retail FreeView
Verdict consulting

Note: Product cover images may vary from those shown
Note: Product cover images may vary from those shown


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