True-Luxury Global Consumer Insight
Antonio Achille, Partner & Managing Director
Milan, January 22nd, 2015
True-Luxury Global Consumer Insight:
6 "W" questions addressed today
Why now?
What makes our study unique?
Copyright © 2015 by The Boston Consulting Group, Inc. All rights reserved.
Where will growth come from?
What are the consumer trends shaping the industry?
Which segments will drive growth?
What will it take to capture growth in key categories?
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1
Copyright © 2015 by The Boston Consulting Group, Inc. All rights reserved.
Why now?
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Organic growth: 2 / 3 of next decade growth
Last decade growth by component2
Upcoming decade growth by component2
20%
30%
20%
100%
40%
100%
Copyright © 2015 by The Boston Consulting Group, Inc. All rights reserved.
35%
10%
25%
Traditional Emerging
Markets1 markets
20%
Price
- Mix
Volume
Retail expansion Organic growth
(LFL)
60%
40%
Total
growth
Traditional Emerging
markets1 markets
Price
- Mix
Volume
Total
growth
Retail expansion Organic growth
.
(LFL)
30%
70%
1. Europe (Italy, France, UK, Germany, Spain, Nordics), US and Japan; 2. Referrers to personal luxury (apparel, accessories, hard luxury, Perfume & Cosmetics)
Note: Last decade Personal Luxury market CAGR growth ~5%; upcoming decade Personal Luxury market CAGR growth ~4%
Source: Bernstein / BCG analysis
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3
- traffic + rent = decreasing store return
2005
2013
Traffic (#)
~ 57 K
~48 K
Conversion rate (%)
~ 13%
~ 13%
Clients (#)
~8K
~7 K
Average ticket (€)
~500 €
~700 €
Sales / store (M€)
~4.3 M€
~4.9 M€
21 K€ / sqm
25 K€ / sqm
Sales / sqm
x 3,8
Rent / sqm
~5,5 K€ / sqm
Copyright © 2015 by The Boston Consulting Group, Inc. All rights reserved.
Example of a 200 sqm luxury apparel store in Milan, via Montenapoleone
x 2,9
~8,5 K€ / sqm
Note: Analysis performed on a subset of Personal Luxury Brands
Source: Public data, Interviews with experts, Cushman & Wakefield Valuation report, BCG analysis
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4
The CONSUMER era
+Brand
+Retail
'80s
'90s
'00s
• Style & Design for
elites
• Temple of Desire
P-Altagamma-317971-01-22Jan15-AAc-mil.pptx
• The rise of
Global Brands
• Retail as part of
Brand experience
• "Real estate rush"
+Consumer
Copyright © 2015 by The Boston Consulting Group, Inc. All rights reserved.
Design
2015 next decade
• Consumer: engine
of top line and
margin growth
5
Copyright © 2015 by The Boston Consulting Group, Inc. All rights reserved.
What makes our study unique?
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2015 Edition: What's new?
10.000+Top Luxury Consumers analyzed
10 luxury markets deep dived
All luxury categories in scope
Copyright © 2015 by The Boston Consulting Group, Inc. All rights reserved.
Doubled sample yearly average spending: 10K€  20K€
• 2K€  5K€ yearly spend as entry point
• 3.000+ luxury consumers spending yearly on avg. 44K€ in P&E luxury
Consumer Segments as
key lens to read market dynamics
Category breakdowns
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All luxury categories in scope
Luxury market (€B,2014 retail value)
Personal luxury
(290 €B)
Experiential luxury
(465 €B)
Cars &
Yachts
(350€B)
Others
(280 €B)
1,500
154
54
1,385
Arts
Other2
Total
350
P&E 1 Market:
755 €B
1,000
72
500
121
67
41
49
Copyright © 2015 by The Boston Consulting Group, Inc. All rights reserved.
354
62
61
0
Accessories
Apparel Watches Perfumes Furnit&
&
ures
Jewelry Cosmetics
Food
Hotel & Cars & Techno& Wine Exclusive Yachts
logy
vacations
Covered by True-Luxury Global Consumer Insight
1.Personal and Experiential luxury 2. Including Private Jets, Art de la table, etc
Note: Some numbers are rounded.
Source: BCG 2014 specific survey, BCG-IPSOS market research
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Copyright © 2015 by The Boston Consulting Group, Inc. All rights reserved.
Sounding board of WW leading Brands to ensure
robustness and actionability of the insight
2015 additions
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Copyright © 2015 by The Boston Consulting Group, Inc. All rights reserved.
Where will growth come from?
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Short term: Luxury Barometer® indicates
rebound of confidence in 2015 vs. 2014
Short
term
"Do you expect to spend more or less on luxury products in the next 12 months?"
% of respondents
More
(+20%)
33%
23%
37%
Luxury
Barometer®1
Same
43%
Less
(-20%)
24%
29%
24%
2013
2014
2015
9pp
-5pp
13pp
Copyright © 2015 by The Boston Consulting Group, Inc. All rights reserved.
48%
39%
1. Index calculated as percentage of customers who see growth in spend less the percentage who foresee a decrease in spend (Positive – Negative) .
The index represents a proxy of the expected growth of spend in Luxury by Top Luxury consumers
Source: BCG 2014 ad hoc study (10'000 respondents in 10 countries)
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Chinese, Brazilian and Americans luxury
Consumers expecting brighter shopping days
Short
term
2015 Luxury Barometer®1 by Nationality
(pp)
Copyright © 2015 by The Boston Consulting Group, Inc. All rights reserved.
Spend
More
(+20%)
Spend
Less
(-20%)
1. Index calculated percentage of customers who see growth in spend and subtract the percentage who foresee a decrease in spend. The numbers in the graph are in percentage points
Note: Split in the graphic calculated as answer to question "Do you expect to spend more or less on luxury products in the next 12 months?"
Source: BCG 2014 ad hoc study (10'000 respondents in 10 countries)
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Mid
term
Mid term: 390M Luxury Consumers...
Cluster
2014
# (M)
20 k€
10 k€
5 k€
Beyond money
2
Ultra
4
Very high
9
Total Top Luxury
15
Top Aspirational
19
Aspirational
356
Total Luxury
Consumers1
~390
2021
Bn(€)1
# (M)
Bn(€)1
1. Including Experiential and Personal luxury, excluding cars and Yachts
Note: rounded numbers
Source: BCG Analysis
P-Altagamma-317971-01-22Jan15-AAc-mil.pptx
Copyright © 2015 by The Boston Consulting Group, Inc. All rights reserved.
2 k€
13
Mid
term
...to become 465M in 2021
Cluster
2014
# (M)
20 k€
10 k€
5 k€
2021
Bn(€)1
# (M)
Beyond money
2
2
Ultra
4
5
Very high
9
11
Total Top Luxury
15
18
Top Aspirational
19
25
Aspirational
356
422
Total Luxury
Consumers1
~390
~465
Bn(€)1
Copyright © 2015 by The Boston Consulting Group, Inc. All rights reserved.
2 k€
+75
1. Including Experiential and Personal luxury, excluding cars and Yachts
Note: rounded numbers
Source: BCG Analysis
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Personal and Experiential luxury market
today worth 755 Bn€...
Cluster
20 k€
10 k€
5 k€
2014
Mid
term
2021
# (M)
Bn(€)1
# (M)
Beyond money
2
42
2
Ultra
4
84
5
Very high
9
94
11
Total Top Luxury
15
220
18
Top Aspirational
19
54
25
Aspirational
356
481
422
Total Luxury
Consumers1
~390
~755
~465
Bn(€)1
1. Including Experiential and Personal luxury, excluding cars and Yachts
Note: rounded numbers
Source: BCG Analysis
P-Altagamma-317971-01-22Jan15-AAc-mil.pptx
Copyright © 2015 by The Boston Consulting Group, Inc. All rights reserved.
2 k€
15
Mid
term
...to grow from today 755 to 1015 Bn€ in 2021
Cluster
20 k€
10 k€
5 k€
2014
2021
# (M)
Bn(€)1
# (M)
Bn(€)1
Beyond money
2
42
2
73
Ultra
4
84
5
122
Very high
9
94
11
135
Total Top Luxury
15
220
18
330
Top Aspirational
19
54
25
76
Aspirational
356
481
422
609
Total Luxury
Consumers1
~390
~755
~465
~1015
Copyright © 2015 by The Boston Consulting Group, Inc. All rights reserved.
2 k€
+260
1. Including Experiential and Personal luxury, excluding cars and Yachts
Note: rounded numbers
Source: BCG Analysis
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18M Top Luxury consumers (4% of total)
making 40% of total growth
Cluster
10 k€
5 k€
2021
# (M)
Bn(€)1
# (M)
Bn(€)1
Beyond money
2
42
2
73
Ultra
4
84
5
122
Very high
9
94
11
135
Total Top Luxury
15
220
18
330
2 k€
+110
Top Aspirational
19
54
25
76
Aspirational
356
481
422
609
Total Luxury
Consumers1
~390
~755
~465
~1015
Copyright © 2015 by The Boston Consulting Group, Inc. All rights reserved.
20 k€
2014
Mid
term
+260
1. Including Experiential and Personal luxury, excluding cars and Yachts
Note: rounded numbers
Source: BCG Analysis
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~450M Top Aspirational and Aspirational Lux.
consumers generating remaining 150Bn€
Cluster
10 k€
5 k€
2021
# (M)
Bn(€)1
# (M)
Bn(€)1
Beyond money
2
42
2
73
Ultra
4
84
5
122
Very high
9
94
11
135
Total Top Luxury
15
220
18
330
2 k€
+110
Top Aspirational
19
54
25
76
Aspirational
356
481
422
609
Copyright © 2015 by The Boston Consulting Group, Inc. All rights reserved.
20 k€
2014
Mid
term
+150
Total Luxury
Consumers1
~390
~755
~465
~1015
+260
1. Including Experiential and Personal luxury, excluding cars and Yachts
Note: rounded numbers
Source: BCG Analysis
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US consumers confirmed as the
main contributor to future growth
Mid
term
P&E1 Luxury market growth by Nationality (€Bn)
Top
Luxury
450
+110€B
220
29
20
7
330
Others3
2021
6
Copyright © 2015 by The Boston Consulting Group, Inc. All rights reserved.
300
49
~55%
150
0
2014
Americans Chinese European2 Middle
Eastern
1. Personal & Experiential Luxury market; 2. Italian, French, German, English 3. Including Japanese, S. Korean, Russian, Brazilian and RoW
Source: BCG 2014 ad hoc study (10'000 respondents in 10 countries)
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Copyright © 2015 by The Boston Consulting Group, Inc. All rights reserved.
What are the consumer trends
shaping the industry?
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Global trends confirming their importance
Confirmations
Changes in Trajectory
New Trends
"Made in" still rocks: 80% of consumers actively check where products are "Made-In"
Copyright © 2015 by The Boston Consulting Group, Inc. All rights reserved.
"Made in Italy" still rules: 1st preferred manufacturing country
– Leadership in all categories but cars (1st Germany) and watches (1st Switzerland)
Advocacy era continuing: 80% of consumers willing to become brand ambassador
53% of Luxury consumers spend made out of the home country
– Drivers: convenience key for Emerging Markets; part of the journey experience
for Mature Markets
Exclusivity key for long term creation and not granted: 25% of luxury brands at risk of
loosing exclusivity based on consumer declarations
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Changes in trajectory
Confirmations
Changes in Trajectory
New Trends
Intro values still roaring with selective extro values rebound (from 27% to 34%)
Digital growing importance with online influencing 62% vs. 53% of total luxury purchases
Store windows losing relevance vs. online (from 39% to 32%): is store role changing?
Omnichannel getting momentum, 75% of consumers asking for it
Brands website preferred e-commerce channel: websites quality and customer care
more important than price
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Copyright © 2015 by The Boston Consulting Group, Inc. All rights reserved.
Word of Mouth becoming 1st influence lever and increasingly digitally enhanced
Values
Intro values still roaring
"What is luxury to you?"
% of respondents1
24%
29%
30%
34%
38%
39%
40%
41%
44%
2014: 66%
• Adorned
aesthetics
• Brand visibility
• Customization
• Being Cool/Sexy
Intro
values
76%
2013 Intro
Value Avg.
73%
76%
73%
71%
83%
70%
83%
66%
62%
61%
60%
59%
56%
72%
69%
69%
61%
75%
69%
•
•
•
•
Quality
Exclusivity
Craftsmanship
Timeless
1. Respondents were asked to rank the top 3 values: the graph represent the value ranked as the most important
Source: BCG 2013 and 2014 ad hoc study (10'000 respondents in 10 countries)
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Copyright © 2015 by The Boston Consulting Group, Inc. All rights reserved.
24%
Extro
values
Intro values still roaring
Selective rebound of Extro values?
Values
"What is luxury to you?"
% of respondents1
24%
29%
30%
34%
38%
39%
40%
41%
44%
2014: 66%
• Adorned
aesthetics
• Brand visibility
• Customization
• Being Cool/Sexy
Intro
values
76%
2013 Intro
Value Avg.
73%
76%
73%
71%
83%
70%
83%
66%
62%
61%
60%
59%
56%
72%
69%
69%
61%
75%
69%
•
•
•
•
Quality
Exclusivity
Craftsmanship
Timeless
1. Respondents were asked to rank the top 3 values: the graph represent the value ranked as the most important
Source: BCG 2013 and 2014 ad hoc study (10'000 respondents in 10 countries)
P-Altagamma-317971-01-22Jan15-AAc-mil.pptx
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Copyright © 2015 by The Boston Consulting Group, Inc. All rights reserved.
24%
Extro
values
Extro values rebound stronger for younger
generations
Values
"What is luxury to you?"
40%
60%
Gen. Z & Y
(18-35 yr.)
% of respondents1
29%
71%
Gen. X
(36-50 yr.)
17%
11%
Overall
Avg. 34%
38%
83%
62%
Baby B. & Silver
(51+ yr.)
Gen. Z & Y
(18-35 yr.)
Overall
Avg. 34%
25%
75%
Gen. X
(36-50 yr.)
89%
Baby B. & Silver
(51+ yr.)
Extro Values
1. Respondents were asked to rank the top 3 values: the graph represent the value ranked as the most important
Source: BCG 2014 ad hoc study (10'000 respondents in 10 countries)
P-Altagamma-317971-01-22Jan15-AAc-mil.pptx
Intro Values
25
Copyright © 2015 by The Boston Consulting Group, Inc. All rights reserved.
% of respondents1
Values
Are we at the edge of the next value shift?
60's
70's
80's
90's
00's
10's
?
Pop,
beatnick
Disco,
funky
New
wave
R&B,
Rap
People
Electronic
Synth music
?
Music
Jazz,
Pop
Copyright © 2015 by The Boston Consulting Group, Inc. All rights reserved.
Fashion
New
Emancipation Woodstock Eccentricity Eclectic Minimalism Outrageous Elegance
Future
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Word of Mouth: 1st influence lever,
overcoming magazines
WoM
"Which of the following has an impact on your purchase decision?"
% of respondents
2013
50%
Magazines
Different WoM influence across nationalities
2014
WoM
Social Media & Blogs
29% 20% 49%
Physical
58%
Store
windows
Brand
websites
Magazines2
39%
Events
32%
34%
32%
24%
Tailored
offers
31%
Tailored
offers
22%
Brand
websites
30%
Events
20%
TV &
Movies
Seen
Worn
53%
52%
20%
Celebrities
13%
Seen
Wore
52%
49%
17%
18%
Store
windows
TV &
Movies
Celebrities
55%
39%
26%
33%
47%
46%
41%
21%
14%
24%
17%
Avg.
49%
34%
19%
10%
41%
35%
26%
22%
26%
30%
33%
25%
30%
22%
23%
23%
19%
1 Includes WoM, Social Media and Other Social blogs 2. Editorials and Commercial in Magazines
Note: multiple choices possible, out of top 3 ranks
Source: BCG 2014 ad hoc study (10'000 respondents in 10 countries)
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Copyright © 2015 by The Boston Consulting Group, Inc. All rights reserved.
WoM1
11% 43%
32%
Social media and blogs the real engine
of Word of Mouth growth
WoM
"Which of the following has an impact on your purchase decision?"
Δpp '13-'14
+6pp
49%
8%
Blogs
+3pp
6%
12%
Social
Media
+6pp
32%
29%
Physical
(3pp)
2013
2014
0.3
0.7
43%
WoM
digitalization
index1
Copyright © 2015 by The Boston Consulting Group, Inc. All rights reserved.
5%
1. WoM Digitalization index: calculated as Social Media & Blogs influence vs. WoM physical influence
Note: multiple choices possible, out of top 3 ranks
Source: BCG 2014 ad hoc study (10'000 respondents in 10 countries)
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WoM
From "digital native" to "active digital native"?
"Thinking to the communication opportunities offered by digital, which ones do you value the most?"
% of respondents
48%
53%
53%
54%
60%
61%
63%
63%
74%
• Gather product
info
• Access brand
content
• Price & Product
comparison
Two-ways
Avg. 42%
52%
52%
47%
47%
46%
40%
39%
37%
37%
26%
• Opinion sharing
• Feedback
sharing
• Dialogue with
brands
• Influence trends
Note: multiple choices possible
Source: BCG 2014 ad hoc study (10'000 respondents in 10 countries)
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Copyright © 2015 by The Boston Consulting Group, Inc. All rights reserved.
48%
One way
>50% sales digital influenced
already in past year edition...
Digital
"Where have you bought the last item purchased? Where have you researched it?"
% of last purchase
for each respondent
53%
100
7
8
80
38
60
Copyright © 2015 by The Boston Consulting Group, Inc. All rights reserved.
100
40
20
47
0
Pure in Store
Researched Online
Purchased Offline
Showrooming
Pure Online
Total
(viewed in store,
purchased on line)
Omnichannel
Source: BCG 2013 ad hoc study (10'000 respondents in 10 countries)
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...channels are further blurring:
62% of sales digitally influenced in 2014
Digital
"Where have you bought the last item purchased? Where have you researched it?"
% of last purchase
for each respondent
53%  62%
100
8
9
80
45
60
Copyright © 2015 by The Boston Consulting Group, Inc. All rights reserved.
100
40
20
38
0
Pure in Store
Researched Online
Purchased Offline
Showrooming
Pure Online
Total
(viewed in store,
purchased on line)
Omnichannel
Source: BCG 2014 ad hoc study (10'000 respondents in 10 countries)
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Digital
"Pure store" no longer the first channel for sales
"Where have you bought the last item purchased? Where have you researched it?"
% of last purchase
for each respondent
62%
100
7 8
89
80
38  45
60
40
20
47 38
0
Pure in Store
Researched Online
Purchased Offline
Showrooming
Pure Online
Total
(viewed in store,
purchased on line)
Omnichannel
2013  2014
Source: BCG 2013 and 2014 ad hoc study (10'000 respondents in 10 countries)
P-Altagamma-317971-01-22Jan15-AAc-mil.pptx
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Copyright © 2015 by The Boston Consulting Group, Inc. All rights reserved.
100
Store: from "temple of desire"
to "logistic terminal"?
"Do you research product online
before buying them?"
% of positive respondent
Digital
"Do Store Windows & in Store Browsing
have impact on purchase decision?"
% of positive respondent
+7pp
45%
38%
Copyright © 2015 by The Boston Consulting Group, Inc. All rights reserved.
-7pp
39%
32%
2013
2014
2013
2014
Source: BCG 2014 ad hoc study (10'000 respondents in 10 countries)
P-Altagamma-317971-01-22Jan15-AAc-mil.pptx
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Digital
3 out of 4 consumers asking for omnichannel
"How important is for you that a brand can be reached through different channels?"
Omnichannel importance across nationalities
% of respondents
Somehow
important
25%
90%
85%
81% 81% 78% 78%
75%
Avg.
75%
71%
41%
44%
38%
43%
48%
34%
42%
57%
27%
33%
45%
75%
31%
49%
Not negotiable/
Very Important
37%
41%
38%
43%
33%
33%
49%
36%
37%
26%
11%
Total
Source: BCG 2014 ad hoc study (10'000 respondents in 10 countries)
P-Altagamma-317971-01-22Jan15-AAc-mil.pptx
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Copyright © 2015 by The Boston Consulting Group, Inc. All rights reserved.
Not
Important
Is there a killer app for omnichannel?
Delivery service and same promo & rewards key
Digital
"What do you expect when dealing with multiple channels?"
Total
EU 41
32
32
Integrated
delivery service
Americans Japanese S. Korean
30
32
31
Same promotions
& rewards
24
25
24
16
24
Consistend
brand image
21
22
25
21
27
Integrated CRM
13
13
12
14
8
Same product
assortment
10
9
9
16
11
Chinese
31
25
Brazilians Russians
31
35
22
26
18
19
21
17
17
10
10
Copyright © 2015 by The Boston Consulting Group, Inc. All rights reserved.
% of respondents
9
10
1. IT, FR, DE, UK
Source: BCG 2014 specific survey (10.000 core luxury Consumers in 10 countries)
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For online shoppers brands website
1st option; experience more important than price
"Which kind of online store
did you buy the product from?"
"Which factors are more important
when buying on line?"
% of respondent
Brand website
Website
navigability
37%
1.9x
Online marketplace
20%
Dept. store website
18%
Luxury-specialized
etailers
16%
Online customer
care quality
Brand
carried
Payments
accepted
Free return
Others kind of websites
(travels, restaurant, ...)
8%
2%
31%
Exclusive
collections
Price discount
29%
Copyright © 2015 by The Boston Consulting Group, Inc. All rights reserved.
% of respondent
Flash sales sites
Digital
25%
24%
22%
21%
20%
Source: BCG 2014 ad hoc study (10'000 respondents in 10 countries)
P-Altagamma-317971-01-22Jan15-AAc-mil.pptx
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New trends
Confirmations
Changes in Trajectory
New Trends
Copyright © 2015 by The Boston Consulting Group, Inc. All rights reserved.
Sustainability is happening, 13% importance as value
– +5 pp vs. 2013 led by Europeans and Americans
Are US and UK self legitimating as "Made" in countries for Luxury?
Dynamism in fashion hubs: New York City growing, Milan fading
– Dubai, Singapore and Los Angels legitimating as fashion hubs?
P-Altagamma-317971-01-22Jan15-AAc-mil.pptx
37
Sustainability is happening: will declared
values impact behaviors?
Sustainability
"What is luxury to you?"
% over respondents
2013
18%
+5pp
2014
15% 15%
13%
13%
10%
9%
8%
Δ 2013-2014
(pp)
8%
6%
5%
Total
10%
Copyright © 2015 by The Boston Consulting Group, Inc. All rights reserved.
13%
4%
Europe
Brazil
US
+13pp
-
+7pp
+4pp
Russia
China
+6pp
-2pp
Multiple answer possible
Source: BCG 2014 ad hoc study (10'000 respondents in 10 countries)
P-Altagamma-317971-01-22Jan15-AAc-mil.pptx
38
Sustainability
Still a long way to go but gap is closing
"What is luxury to you?"
% of respondents
Δ 2013-2014
48%
Exclusivity
32%
Crasftsmanship
26%
Timeless
24%
Brand visibility
21%
Cool & Sexy
+1pp
13%
+5pp
Sustainability (2013)
-
+1pp
15%
Sustainability (2014)
+2pp
+3pp
16%
Adorned Aesthetics
-
+4pp
17%
Customization
-4pp
Copyright © 2015 by The Boston Consulting Group, Inc. All rights reserved.
Craftsmanship/quality
8%
+5pp
Multiple answer possible
Source: BCG 2014 ad hoc study (10'000 respondents in 10 countries)
P-Altagamma-317971-01-22Jan15-AAc-mil.pptx
39
Are US and UK self legitimating
as "Made in" countries?
"Which country of manufacturing do you
consider the best for Luxury?"
% of respondents selecting US
Made in
Who is
saying that?
On which
categories?
~33%
Apparel
~25%
~17%
Jewelry
~17%
~10%
Handbags
~13%
~25%
Apparel
~22%
~12%
Handbags
~18%
~12%
Jewelry
~16%
+3pp
2013
Copyright © 2015 by The Boston Consulting Group, Inc. All rights reserved.
10%
7%
2014
% of respondents selecting UK
+3pp
4%
2013
7%
2014
Source: BCG 2014 ad hoc study (10'000 respondents in 10 countries)
P-Altagamma-317971-01-22Jan15-AAc-mil.pptx
40
Spend
Abroad
Dynamism in fashion hubs with New York
rising and Milan fading
"In which cities have you bought luxury products in the past 12 months?
In which ones do you plan to buy in the next 12 months1?"
2014
2015
Paris
1
Paris
1
Paris
1
Milan
2
New-York
2
New-York
2
London
3
London
3
London
3
New-York
4
Hong-Kong
4
Milan
4
Hong-Kong
5
Milan
5
Hong-Kong
5
Copyright © 2015 by The Boston Consulting Group, Inc. All rights reserved.
2013
1. The calculations excludes consumers in their home country
Source: BCG 2013 and 2014 ad hoc study (10'000 respondents in 10 countries)
P-Altagamma-317971-01-22Jan15-AAc-mil.pptx
41
Spend
Abroad
Dynamism in fashion hubs with New York
rising and Milan fading
"In which cities have you bought luxury products in the past 12 months?
In which ones do you plan to buy in the next 12 months1?"
2014
2015
Paris
1
Paris
1
Paris
1
Milan
2
New-York
2
New-York
2
London
3
London
3
London
3
New-York
4
Hong-Kong
4
Milan
4
Hong-Kong
5
Milan
5
Hong-Kong
5
Copyright © 2015 by The Boston Consulting Group, Inc. All rights reserved.
2013
1. The calculations excludes consumers in their home country
Source: BCG 2013 and 2014 ad hoc study (10'000 respondents in 10 countries)
P-Altagamma-317971-01-22Jan15-AAc-mil.pptx
42
Spend
Abroad
Dynamism in fashion hubs with New York
rising and Milan fading
"In which cities have you bought luxury products in the past 12 months?
In which ones do you plan to buy in the next 12 months1?"
2014
2015
Paris
1
Paris
1
Paris
1
Milan
2
New-York
2
New-York
2
London
3
London
3
London
3
Copyright © 2015 by The Boston Consulting Group, Inc. All rights reserved.
2013
Expo effect?
New-York
4
Hong-Kong
4
Milan
4
Hong-Kong
5
Milan
5
Hong-Kong
5
1. The calculations excludes consumers in their home country
Source: BCG 2013 and 2014 ad hoc study (10'000 respondents in 10 countries)
P-Altagamma-317971-01-22Jan15-AAc-mil.pptx
43
Among the group of followers Dubai,
Singapore and Los Angels gaining momentum...
Spend
Abroad
"In which cities have you bought luxury products in the past 12 months?
In which ones do you plan to buy in the next 12 months1?"
2014
2015
Rome
6
Dubai
6
Dubai
6
Dubai
7
Los
Angeles
7
Los
Angeles
7
Miami
8
Rome
8
Rome
8
Los
Angeles
9
Singapore
9
Singapore
9
Singapore
10
Miami
10
Miami
10
Copyright © 2015 by The Boston Consulting Group, Inc. All rights reserved.
2013
1. The calculations excludes consumers in their home country
Source: BCG 2013 and 2014 ad hoc study (10'000 respondents in 10 countries)
P-Altagamma-317971-01-22Jan15-AAc-mil.pptx
44
Among the group of followers Dubai,
Singapore and Los Angels gaining momentum...
Spend
Abroad
"In which cities have you bought luxury products in the past 12 months?
In which ones do you plan to buy in the next 12 months1?"
2014
2015
Rome
6
Dubai
6
Dubai
6
Dubai
7
Los
Angeles
7
Los
Angeles
7
Miami
8
Rome
8
Rome
8
Los
Angeles
9
Singapore
9
Singapore
9
Singapore
10
Miami
10
Miami
10
Copyright © 2015 by The Boston Consulting Group, Inc. All rights reserved.
2013
1. The calculations excludes consumers in their home country
Source: BCG 2013 and 2014 ad hoc study (10'000 respondents in 10 countries)
P-Altagamma-317971-01-22Jan15-AAc-mil.pptx
45
Spend
Abroad
... Rome and Miami losing grip?
"In which cities have you bought luxury products in the past 12 months?
In which ones do you plan to buy in the next 12 months1?"
2014
2015
Rome
6
Dubai
6
Dubai
6
Dubai
7
Los
Angeles
7
Los
Angeles
7
Miami
8
Rome
8
Rome
8
Los
Angeles
9
Singapore
9
Singapore
9
Singapore
10
Miami
10
Miami
10
Copyright © 2015 by The Boston Consulting Group, Inc. All rights reserved.
2013
1. The calculations excludes consumers in their home country
Source: BCG 2013 and 2014 ad hoc study (10'000 respondents in 10 countries)
P-Altagamma-317971-01-22Jan15-AAc-mil.pptx
46
Copyright © 2015 by The Boston Consulting Group, Inc. All rights reserved.
Which Segments will drive growth?
P-Altagamma-317971-01-22Jan15-AAc-mil.pptx
47
8 Global segments, 3 of them counting for ~50%
Current
value
Avg.
Segment
1
Spend
size
Absolute
Luxurer
Mega
citier
Experien
cer
Fashioni
sta
#Little
Prince
Social
Wearer
Status
Seeker
Classpira Timeless
tional
Proper
Omni
Gifter
Country
specific
Luxe
Rich
Immune Upstarter
(M)
2.2
2.5
2.8
2.8
1.6
1.8
2.1
3.0
2.3
2.2
1.5
1.2
(%)
9%
10%
11%
11%
6%
7%
8%
11%
9%
8%
6%
5%
(K€)
30
17
13
8
10
10
7
3
9
10
4
4
(Bn€)
67
41
35
22
17
17
14
8
21
21
6
5
24%
15%
13%
8%
6%
6%
5%
3%
8%
8%
2%
2%
(%)
counting for ~50%
of lux. market
Note: This table represent Luxury Consumer of Beyond Money, Very High, High and a projection proxy of Top Aspirational consumers 1. Not including Cars & Yachts
Source: BCG 2014 ad hoc study (10'000 respondents in 10 countries)
P-Altagamma-317971-01-22Jan15-AAc-mil.pptx
48
Copyright © 2015 by The Boston Consulting Group, Inc. All rights reserved.
Gender
specific
Global segments (gender / geography balanced)
Social Wearer more than doubled. Status Seeker
and Classpirational slightly shrinking
Absolute
Luxurer
Mega
citier
Experien
cer
Fashioni
sta
#Little
Prince
Social
Wearer
Status
Seeker
2013
2.1
2.3
2.7
2.7
1.5
0.7
2.2
3.1
2014
2.2
2.5
2.8
2.8
1.6
1.8
2.1
+ 0.2
+0.1
+0.1
+ 0.1
+1.1
9%
4%
4%
7%
157%
Δ13-14 +0.1
Δ%
5%
Country
specific
Gender
specific
Classpira Timeless
tional
Proper
Omni
Gifter
Luxe
Rich
Immune Upstarter
2.5
2.0
1.5
1.3
3.0
2.3
2.2
1.5
1.2
-0.1
-0.1
-0.2
+0.2
-
-0.1
-5%
-3%
-8%
10%
-
-8%
Note: This table represent Luxury Consumer of Beyond Money, Very High, High and a projection proxy of Top Aspirational consumers. Rounded numbers
Source: BCG 2014 ad hoc study (10'000 respondents in 10 countries)
P-Altagamma-317971-01-22Jan15-AAc-mil.pptx
49
Copyright © 2015 by The Boston Consulting Group, Inc. All rights reserved.
Segment size
Global segments (gender / geography balanced)
Megacitier, Absolute Luxurer and #Little Prince
expecting brighter shopping days
2015 Luxury Barometer®1 by Consumer Segment
(pp)
Copyright © 2015 by The Boston Consulting Group, Inc. All rights reserved.
Spend
More
(+20%)
Spend
Less
(-20%)
Luxury
Market (%)
Mega Absolute #Little Luxe Fashioni Status
Rich ExperienTimeless Social
citier Luxurer Prince Immune sta
Seeker Upstarter cer
Proper Wearer
Omni Classpira
Gifter tional
15%
8%
24%
6%
2%
8%
5%
2%
13%
8%
6%
3%
1. Index calculated as percentage of customers who see growth in spend and subtract the percentage who foresee a decrease in spend. The numbers in the graph are in percentage points
Note: Split in the segments calculated as answer to question "Do you expect to spend more or less on luxury products in the next 12 months?"
Source: BCG 2014 ad hoc study (10'000 respondents in 10 countries)
P-Altagamma-317971-01-22Jan15-AAc-mil.pptx
50
Absolute Luxurer, Megacitier and Experiencer
driving ~65% of future value growth
P&E1 Luxury market growth by Consumer Segment (€Bn)
Top
Luxury
450
+110B€
300
220
31
26
16
10
Expe
riencer
#Little
Prince
5.9%
8.4%
6
21
330
Copyright © 2015 by The Boston Consulting Group, Inc. All rights reserved.
~65%
150
0
2014 Absolute Mega
Luxurer citier
2014-2021
P&E Market
CAGR (%)
8.0%
8.9%
Fashio Others1
nista
4.6%
3.3%
2021
4.3%
1. Personal & Experiential Luxury market; 2. All other consumer segments: Social Wearer, Status Seeker, Rich Upstarter, Luxe-Immune, Classpirational, OmniGifter, Timeless Proper
Source: BCG 2014 ad hoc study (10'000 respondents in 10 countries)
P-Altagamma-317971-01-22Jan15-AAc-mil.pptx
51
Megacitier driving the transition from a luxury
world made of nations to one made of cities
Weight of Megacities on
total luxury market (%)
Established
Mature
•
•
•
•
New York
Tokyo
London
....
•
•
•
•
Shanghai
Rio de Janeiro
Mumbai
...
Established
Emerging
~20
Rising Stars
~100
Copyright © 2015 by The Boston Consulting Group, Inc. All rights reserved.
~10
+4pp
•
•
•
•
•
Chengdu (China)
Hangzhou (China)
Jakarta (Indonesia)
Busan (S.Korea)
...
26%
30%
2014
2021
# of cities
Source: BCG data, BCG expertise
P-Altagamma-317971-01-22Jan15-AAc-mil.pptx
52
Different Segments driving growth by market:
Absolute Luxurer in US, Megacitier in China
Americans Top Luxury market
future growth by Consumer segment
€B 120
Chinese Top Luxury market
future growth by Consumer segment
€B 120
+29B€
52
6
4
5
81
3
+20B€
80
9
48
40
5
2
2
68
Copyright © 2015 by The Boston Consulting Group, Inc. All rights reserved.
11
80
2
40
60%
55%
0
0
Others1 2021
2014
Absolute Experien Timeless Fashioni
Luxurer
cer
Proper
sta
Others2 2021
2014
Mega
citier
Fashioni Absolute #Little
sta
Luxurer Prince
1. All other consumer segments: Megacitier, Social Wearer, Status Seeker, Rich Upstarter, Classpirational, OmniGifter, Timeless Proper, #Littleprince
2. All other consumer segments: Experiencer, Social Wearer, Absolute Luxurer, #Littleprince, Luxe Immune, Classpirational, Omnigifter, Timeless Proper
Source: BCG 2014 ad hoc study (10'000 respondents in 10 countries)
P-Altagamma-317971-01-22Jan15-AAc-mil.pptx
53
Copyright © 2015 by The Boston Consulting Group, Inc. All rights reserved.
What will it take to capture growth
in key categories?
P-Altagamma-317971-01-22Jan15-AAc-mil.pptx
54
Absolute
Luxurer
• 22% of 2014
Leather Goods
market
• First contributor
to long term
growth (+3B€)
P-Altagamma-317971-01-22Jan15-AAc-mil.pptx
Megacitier
• 16% of 2014
Apparel market
• First contributor
to long term
growth (+1.2B€)
Omni Gifter &
Timeless Proper
• 15% of 2014
Hard Luxury
market
• First contributors
to long term
growth (+2.2B€)
#Little Prince
Experiencer
• 11% of 2014
P&C Luxury
Market
• Fast growing
segment
(CAGR +6.1%)
• 17% of 2014
Experiential
Luxury Market
• 46% share of
wallet (1st
category)
Copyright © 2015 by The Boston Consulting Group, Inc. All rights reserved.
Product category insight through the eyes
of most relevant consumer segment
55
Absolute
Luxurer
• 22% of 2014
Leather Goods
market
• First contributor
to long term
growth (+3B€)
P-Altagamma-317971-01-22Jan15-AAc-mil.pptx
Megacitier
• 16% of 2014
Apparel market
• First contributor
to long term
growth (+1.2B€)
Omni Gifter &
Timeless Proper
• 15% of 2014
Hard Luxury
market
• First contributors
to long term
growth (+2.2B€)
#Little Prince
Experiencer
• 11% of 2014
P&C Luxury
Market
• Fast growing
segment
(CAGR +6.1%)
• 17% of 2014
Experiential
Luxury Market
• 46% share of
wallet (1st
category)
Copyright © 2015 by The Boston Consulting Group, Inc. All rights reserved.
Leather Goods  Absolute Luxurer
56
Leather Goods: Absolute Luxurer
1st contributor to long term growth
Absolute Luxurer
Total size #: 2.2M
Spend/head: 30K€
Total spend: 67B€
Leather Goods Top luxury market growth by Segment
Life stage: 35-45 yr.
Gender: 55% W
€B
40
3
29
#Little
Prince
Others1
2021
9%
5%
49%
5.9%
8.1%
3.5%
2
1
1
Absolute
luxurer
Mega
citier
Fashioni
sta
2014 Market
(%)
22%
15%
14-21 CAGR
(%)
7.4%
7.7%
20
20
3
Copyright © 2015 by The Boston Consulting Group, Inc. All rights reserved.
+9B€
0
2014
Rounded numbers
Source: BCG 2014 specific survey (10.000 Top luxury Consumers in 10 countries)
P-Altagamma-317971-01-22Jan15-AAc-mil.pptx
57
Quality and exclusivity not negotiable,
off price and low entry price disaffection triggers
Disaffection triggers
26
Craftsmanship/quality
Too much off-price
Exclusivity
23
Low entry price
Customization
23
Fake copies
30
27
25
Shopping experience
22
Poor distribution
Value for money
21
Owned by
majority of friends
19
Brand visibility (logo)
21
Too many categories
18
Stores too Large
18
Customer care
Adorned aesthetics
20
18
Production outside
home country
Copyright © 2015 by The Boston Consulting Group, Inc. All rights reserved.
Purchase Enablers
22
17
Source: BCG 2014 specific survey (10.000 Top luxury Consumers in 10 countries)
P-Altagamma-317971-01-22Jan15-AAc-mil.pptx
58
Handbags: 67% of Absolute Luxurer
researching online
"Where did you buy handbags?
Where did you researched them?"
"Why did you researched online for handbags?"
% of respondents
Gathering information
on product
Interaction with brand
32%
27%
Opinion & Feedback Sharing
Copyright © 2015 by The Boston Consulting Group, Inc. All rights reserved.
23%
42%
100%
67%
Access to
brand content
Price and product comparison
7%
Total
Overall
Avg.
Pure in
store
2%
Follow/influence trends
23%
17%
14%
Researched Show
Pure online
1
Online
rooming
Purchased
Offline
38%
45%
9%
8%
1. viewed in store, purchased on line
Source: BCG 2014 specific survey (10.000 Top luxury Consumers in 10 countries)
P-Altagamma-317971-01-22Jan15-AAc-mil.pptx
59
Brand polarization: 70-80% of Absolute
Luxurer prefers specialist brands
"Which type of brand do you prefer?"
% of respondents
% of respondents
22%
100%
80%
Core Leather
Goods
brands
Copyright © 2015 by The Boston Consulting Group, Inc. All rights reserved.
25%
100%
71%
Lifestyle
brands
Total
Handgabs
Core Leather
Goods
brands
Lifestyle
brands
Total
Shoes
Source: BCG 2014 specific survey (10.000 Top luxury Consumers in 10 countries)
P-Altagamma-317971-01-22Jan15-AAc-mil.pptx
60
Absolute
Luxurer
• 22% of 2014
Leather Goods
market
• First contributor
to long term
growth (+3B€)
P-Altagamma-317971-01-22Jan15-AAc-mil.pptx
Megacitier
• 16% of 2014
Apparel market
• First contributor
to long term
growth (+1.2B€)
Omni Gifter &
Timeless Proper
• 15% of 2014
Hard Luxury
market
• First contributors
to long term
growth (+2.2B€)
#Little Prince
Experiencer
• 11% of 2014
P&C Luxury
Market
• Fast growing
segment
(CAGR +6.1%)
• 17% of 2014
Experiential
Luxury Market
• 46% share of
wallet (1st
category)
Copyright © 2015 by The Boston Consulting Group, Inc. All rights reserved.
Apparel  Megacitier
61
Apparel: Megacitier
1st contributor to long term growth
Megacitier
Total size #: 2.5M
Spend/head: 17K€
Total spend: 41B€
Apparel Top luxury market growth by Segment
Life stage: 25-35 yr.
Gender: 55% W
€B 40
+6B€
18
1
2014
Mega
citier
1
1
3
24
Copyright © 2015 by The Boston Consulting Group, Inc. All rights reserved.
20
1
0
Absolute Timeless Fashioni Others1
Luxurer Proper
sta
14-21 CAGR
(%)
5.1%
3.8%
5.1%
5.1%
4.5%
2014 Market
(%)
16%
21%
9%
9%
45%
2021
Rounded numbers
Source: BCG 2014 specific survey (10.000 Top luxury Consumers in 10 countries)
P-Altagamma-317971-01-22Jan15-AAc-mil.pptx
62
Megacitier belief:
"suits are boring, casualwear is fun"
Formal Wear
Casual Wear
Megacitier
Women
Men
2.9x
Spend Split / head
(%)
1.9x
1.8x
74%
2.3x
70%
35%
64%
36%
34%
26%
30%
Formal
wear
66%
65%
Copyright © 2015 by The Boston Consulting Group, Inc. All rights reserved.
1.8x
Casual
wear
Mature Market is the average of Italy, Germany, France, UK , US and Japan
Emerging Markets is the average of Brazil, South Korea, China and Russia
Source: BCG 2014 specific survey (10.000 Top luxury Consumers in 10 countries)
P-Altagamma-317971-01-22Jan15-AAc-mil.pptx
63
Megacitier, especially women,
looking for playful and colorful style
Adorned Aesthetic importance in Apparel
% of respondents
% of Megacitier respondents
+6pp
+12pp
28%
Copyright © 2015 by The Boston Consulting Group, Inc. All rights reserved.
31%
25%
16%
Other
Megacitier
Segments
Men
Women
Source: BCG 2014 specific survey (10.000 Top luxury Consumers in 10 countries)
P-Altagamma-317971-01-22Jan15-AAc-mil.pptx
64
Megacitier shops mainly in Shopping Malls
and Dept. Stores; brand selection key
"Where have you mainly purchased Apparel
in the past 12 months?"
"What is relevant for you when choosing
where to shop?"
% of respondents
23
Shopping malls
21
High end department store
13
Mono-brand
11
Downtown duty free
10
Travel Retail duty free
Right brands in store
20%
Relaxed Environment
14%
Knoledgeable sales staff
13%
Signature collection
10%
Great deals
8%
8%
Multi-brand
8
Focus on clothing
Online websites
8
Product Customization
7%
Store appearance
7%
Off-price and factory outlet
5
Copyright © 2015 by The Boston Consulting Group, Inc. All rights reserved.
% of respondents
Source: BCG 2014 specific survey (10.000 Top luxury Consumers in 10 countries)
P-Altagamma-317971-01-22Jan15-AAc-mil.pptx
65
Absolute
Luxurer
• 22% of 2014
Leather Goods
market
• First contributor
to long term
growth (+3B€)
P-Altagamma-317971-01-22Jan15-AAc-mil.pptx
Megacitier
• 16% of 2014
Apparel market
• First contributor
to long term
growth (+1.2B€)
Omni Gifter &
Timeless Proper
• 15% of 2014
Hard Luxury
market
• First contributors
to long term
growth (+2.2B€)
#Little Prince
Experiencer
• 11% of 2014
P&C Luxury
Market
• Fast growing
segment
(CAGR +6.1%)
• 17% of 2014
Experiential
Luxury Market
• 46% share of
wallet (1st
category)
Copyright © 2015 by The Boston Consulting Group, Inc. All rights reserved.
Hard Luxury  Omni Gifter and Timeless Proper
66
Hard Luxury: Omni Gifter and Timeless
Proper 1st contributor to long term growth
Omni Gifter
Total size #: 2.2M
Spend/head: 10K€
Total spend: 21B€
Hard Luxury Top luxury market growth by Segment
Life stage: 45-55 yr.
Gender: 85% M
€B
+13B€
Timeless Proper
Total size #: 2.3M
Spend/head: 9K€
Total spend: 21B€
Life stage: 40-45 yr.
40
35
2
2
2
Absolute
luxurer
Mega
citier
2
4
48
Copyright © 2015 by The Boston Consulting Group, Inc. All rights reserved.
60
20
Gender: 90% W
0
2014
Experien Others1
cer
14-21 CAGR
(%)
4.9%
4.3%
4.5%
4.5%
4.0%
2014 Market
(%)
15%
18%
15%
15%
37%
2021
Rounded numbers
Source: BCG 2014 specific survey (10.000 Top luxury Consumers in 10 countries)
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67
Omni Gifter: 2 out of 3 looking for
craftsmanship and quality when gifting
"Who was the recipient of your
last jewelry purchase?"
% of respondents
4%
Myselft
77%
96%
Craftsmanship/quality
Value for money
29%
Intrinsic Value
29%
Customer care
Exclusivity
Others Gift
Customization
23%
Brand Visibility
Other
Segments
64%
Copyright © 2015 by The Boston Consulting Group, Inc. All rights reserved.
% of respondents
"Which are the key elements that you value the
most when gifting jewelry?"
26%
22%
20%
18%
Omni Gifter
Source: BCG 2014 specific survey (10.000 Top luxury Consumers in 10 countries)
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Omni Gifter: looking for pure jewelry
brands focused on core business
"Which brand do you prefer?"
% of respondents
"What will stop you from buying
a jewelry brand?"
% of respondents
Fake copies
39%
24%
33%
Sold too often off-price
Copyright © 2015 by The Boston Consulting Group, Inc. All rights reserved.
Poor distribution
32%
100%
Extended into
too many categories
76%
Low entry prices
Core Jewelry
brands
Not core
Jewelry
brands
Total Jewelry
Owned by celebrities
that do not embody
brand spirits
23%
20%
19%
Source: BCG 2014 specific survey (10.000 Top luxury Consumers in 10 countries)
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Timeless Proper: 89% self-purchase
in watches, growing along consumer life
"Who was the recipient of your
last watches purchase?"
% of female respondents
71%
% of respondents
73%
89%
Others Gift
29%
100%
100%
6%
0%
0%
27%
11%
Other
Segments
94%
Copyright © 2015 by The Boston Consulting Group, Inc. All rights reserved.
Myselft
"Which are the key elements that you value the
most when gifting watches?"
Timeless
Proper
Gen. Z & Y
(18-35 yr.)
Gen. X
Baby Boom.
(36-50 yr.)
(51-67 yr.)
Silver
(67+ yr.)
Source: BCG 2014 specific survey (10.000 Top luxury Consumers in 10 countries)
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Timeless Proper: online not a channel for sale
but for research; "pure store" the first
"Where did you buy watches?
Where did you researched them?"
"In which type of physical retail store
did you buy it?"
% of respondents
45%
Dept. store
38%
Mono-brand
38%
13%
100%
38%
44%
9%
Total
Overall
Avg.
2%
Pure Store Researched
Show
Pure Online
1
online
rooming
Purchesed
in store
38%
45%
9%
Shop. Mall
13%
Multi-brand
13%
6%
44%
8%
1. viewed in store, purchased on line
Source: BCG 2014 specific survey (10.000 Top luxury Consumers in 10 countries)
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Copyright © 2015 by The Boston Consulting Group, Inc. All rights reserved.
% of respondents
Absolute
Luxurer
• 22% of 2014
Leather Goods
market
• First contributor
to long term
growth (+3B€)
P-Altagamma-317971-01-22Jan15-AAc-mil.pptx
Megacitier
• 16% of 2014
Apparel market
• First contributor
to long term
growth (+1.2B€)
Omni Gifter &
Timeless Proper
• 15% of 2014
Hard Luxury
market
• First contributors
to long term
growth (+2.2B€)
#Little Prince
Experiencer
• 11% of 2014
P&C Luxury
Market
• Fast growing
segment
(CAGR +6.1%)
• 17% of 2014
Experiential
Luxury Market
• 46% share of
wallet (1st
category)
Copyright © 2015 by The Boston Consulting Group, Inc. All rights reserved.
Perfumes & Cosmetics  #Little Prince
72
Perfumes & Cosmetics: #Little Prince
2nd contributor to long term growth
#Little Prince
Total size #: 1.6M
Spend/head: 10K€
Total spend: 17B€
Life stage: 18-25 yr.
Gender: 60% M
Perfumes & Cosmetics Top luxury market growth by Segment
€B 30
12
1
1
1
0
1
16
Others1
2021
Copyright © 2015 by The Boston Consulting Group, Inc. All rights reserved.
+4B€
0
2014
Absolute #Little Megacitier Omni
luxurer Prince
Gifter
14-21 CAGR
(%)
4.8%
6.1%
3.5%
4.0%
3.4%
2014 Market
(%)
24%
11%
15%
8%
43%
Rounded numbers
Source: BCG 2014 specific survey (10.000 Top luxury Consumers in 10 countries)
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30% of #Little Prince buying P&C online;
willingness to buy online 2x actual purchases
"Which online store did you buy P&C from? Which is your willingness to buy P&C online?"
2.2x
% of respondents
Copyright © 2015 by The Boston Consulting Group, Inc. All rights reserved.
40
74%
11%
7%
33%
12%
Brand website
Online marketplace
Others
Total online
Willingness
to buy online
Source: BCG 2014 specific survey (10.000 Top luxury Consumers in 10 countries)
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Brand websites 1st e-commerce choice;
navigability of websites key driver
"Which kind of online store
did you buy P&C from?"
" Which factors would you consider more
important when buying on line?"
% of respondent
% of respondents
41%
Online marketplace
23%
Flash sales sites
14%
Luxury-specialized
etailers
14%
Dept. store website
9%
32%
Same day
delivery
23%
Quality of online
customer care
23%
Payments
accepted
23%
Price
discount
18%
Free
shipping
18%
Copyright © 2015 by The Boston Consulting Group, Inc. All rights reserved.
Brand website
Navigability
of website
Source: BCG 2014 specific survey (10.000 Top luxury Consumers in 10 countries)
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#Little Prince strongly influenced by
both physical and digital Word of Mouth
Relevance of Physical and Digital Word of Mouth
% of respondents
34%
Copyright © 2015 by The Boston Consulting Group, Inc. All rights reserved.
22%
56%
16%
6%
Overall
Avg.
Physical &
Digital WoM
Physical
Social Media
Blogs
49%
29%
12%
8%
Source: BCG 2014 specific survey (10.000 Top luxury Consumers in 10 countries)
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The CONSUMER era: key takeaways (I)
2 / 3 of the next decade's growth will be organic
Growth to continue...:
....but at multiple speeds:
– Consumers: Top Luxury (4% of total) making 40% of growth alone
– Geographies: US, China, EU and ME accounting for 55% of total growth
– Sectors: Experiential luxury growing faster than Personal luxury
– Categories: Jewelry & Watches and Leather 1st contributors to growth in Personal
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Copyright © 2015 by The Boston Consulting Group, Inc. All rights reserved.
– Short term (2015): rebound in luxury confidence already in 2015
– Mid term (2021): 390M consumers to become 465; market to increase by 260€Bn
The CONSUMER era: key takeaways (II)
Consumer: Confirmations and new realities
– Made in still rules, but not granted
– Digital influence reaching new heights
– Omnichannel from buzzword to reality
– Sustainability is happening
12 unique segments entering your stores with different expectations
Copyright © 2015 by The Boston Consulting Group, Inc. All rights reserved.
– Absolute Luxurer, Megacitier and Experiencer representing 65% of future growth
Consumer lens the only way to capture future growth
– Leather: Absolute Luxurer looking for craftsmanship and brand specialization...
– Apparel: Casualization led by Megacitier,..
– Jewelry: Omni Gifter picking pure jewelry brands only,...
– ...
Consumer Insight
next competitive
advantage: there will be winners and losers
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Antonio Achille
Partner and Managing Director - Milan
Antonio Achille is a Partner and Managing Director in the Milan office. He is a senior leader of the
Consumer & Retail team and he co-leads globally Luxury practice for the firm.
For 20 years, he has been advising National and International Groups on issues that include corporate
strategy, growth acceleration, clients strategic segmentation, organization redesign and Post Merger
Integration. In the Luxury and Fashion sector his experience includes apparel, eyewear, accessories,
selective fragrances, jewelry/hard luxury and experiential luxury. The geographical scope of his work
includes most of the developed and emerging luxury markets (EU, North America, China, Turkey,
Korea, Middle East ….).
Copyright © 2015 by The Boston Consulting Group, Inc. All rights reserved.
He has developed an extensive knowledge on the Global Luxury Consumer and he is responsible for
the database that includes a comprehensive view on over 40.000 consumers from 20 countries,
developed in cooperation with Altagamma, the trade association for the Italian luxury industry.
The actionable insights of the study are presented at the yearly event “True-Luxury Global Consumer
Insight”.
In addition he contributes to the annual Luxury Summit, one of the most valued discussion forum for
the sector. He is also member of the Scientific Committee of one the first Italian master on Luxury.
He is author and co-author of most of the recent BCG publication on Luxury such as "Luxury
ecosystem advantage", "Shock of the New chic", ... Antonio is extensively quoted, as Luxury and
Consumer expert, in Italian and International media, such as FT, WWAD, Bloomberg, CNBC,
FashionIllustrated, Il sole 24 ore, Il Corriere della Sera,...
Prior to joining BCG he worked for Arthur D. Little. He graduated magna cum laude from the
“Università L. Bocconi” of Milan where he holds a degree in Business Administration.
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About BCG and its Luxury practice
The Boston Consulting Group (BCG) is a global management consulting firm and the world’s
leading advisor on business strategy. We partner with clients from the private, public, and notfor-profit sectors in all regions to identify their highest-value opportunities, address their most
critical challenges, and transform their enterprises.
Copyright © 2015 by The Boston Consulting Group, Inc. All rights reserved.
Our customized approach combines deep insight into the dynamics of companies and markets
with close collaboration at all levels of the client organization. This ensures that our clients
achieve sustainable competitive advantage, build more capable organizations, and secure
lasting results. Founded in 1963, BCG is a private company with 81 offices in 45 countries.
Within the Firm, The Luxury practice, with more that 200 experts worldwide, advises Brands
and Retail bringing together the experience of its centres of competence located in all key
must be geographies for the sector: Milan, Ney York, Paris, Shanghai, Hong Kong and Tokyo.
BCG Luxury team has a deep and relevant experience driving profitable growth with leading
Brands and Retail companies, from strategy to marketing and operations, and a unique point of
view on consumer segmentation.
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BCG contacts
For a copy of BCG "True-Luxury Global Consumer Insight" or to schedule an interview with Antonio
Achille, please contact:
• Lisa Trunfio
email: [email protected]
or +39.02.65599242
email: [email protected]
email: [email protected]
or +39.02.65599704
or +39.02.65599328
Copyright © 2015 by The Boston Consulting Group, Inc. All rights reserved.
INTERNATIONAL PRESS:
ITALIAN PRESS:
• Francesco Guidara
• Francesca Prosperi
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Thank you
bcg.com | bcgperspectives.com