Luxury & Lifestyle

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Furniture & accessories

Market Overview

Global luxury goods market registered 2-4% real growth in 2015, mainly supported by developed market recovery (US, Europe, Japan)

Personnal Luxury Goods Market by Country in 2014e

Source: Bain Personal Luxury Goods Market Report 2014

  • Wealth of HNWI in Growing Asia* = +33% between 2012 and 2015 (from USD 12T to 16T).
  • The slowdown in China is caused by the anticorruption regulations & consumption pattern shift from local consumption to overseas touristic spending driven by the Euro devaluation & travel frequency.
  • Asian tourists account for ~50% of luxury sales in Europe.

Opportunities & Trends

Consolidation trend: Individual brands are bought up by large luxury groups

  • Growing Asia is expected to surpass North America as the world’s wealthiest region (USD 57T) in 2016 and account for 34% of global wealth in 2019.
  • Emerging Chinese luxury brands: Among the top 75 luxury brands, 7 are Chinese in 2013, compared to 1 in 2012; 5 out of the 20 fastest growing (2011-13 CAGR) luxury companies are Chinese.
  • Growing affordable luxury segment: Less established & younger brands endeared themselves to the growing upper middle class and are expected to x2 their turnover by 2017.
  • Cosmetics, perfume & personal care remains the largest segment (30% market share), while watches (2011-14 CAGR 12%) & accessories (2011-14 CAGR 11%) are the fastest growing segments.

*Growing Asia means ASEAN, India and China

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Fashion

Market Overview

Growth is still heavily dependent on the mature market, where 80 % of top growth cities are located.

But emerging markets are increasing their weight especially in the affordable fashion segment since 7 top growth cities are located in growing Asia*.

Luxury & Lifestyle

Opportunities & Trends

  • Global apparel and footwear sales is expected to hit USD 2T by 2018.
  • China is to account for 50% of absolute growth over 2014-2018. It is estimated to reach USD 470B & overtake the US to become the world’s largest apparel and footwear market in 2017.

*Growing Asia means ASEAN, India and China

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Wine & Spirits

Market Overview

  • The growth of global wine market is expected to be stable 2015-2020: 3% CAGR in terms of wine market revenue & 1.4% in production.
  • European countries are producing less wine (60% 2015 vs 73% 2000), as a result of EU’s Common Agricultural Policy, which has led to the uprooting of entire vineyards to make way for other produces.
  • Growing Asia* will drive the growth in the wine industry and will account for 11% of global value in 2016 (vs 8% in 2013)

Opportunities & Trends

  • >100 French Chateaux acquired by Chinese investors since 2008 & ~ 20 deals in the pipeline.
  • In terms of vine area, China overtook France in 2014 & is 2nd to Spain.
  • Premium French vineyard value increased by >100% in 20 years. The average price for AOP** wines is now EUR 100K/ha!
Luxury & Lifestyle

Source: SAFER

*Growing Asia means ASEAN, India and China
**AOP = Appellation d’Origine Protégée (Protected Geographical Indication = PGI)

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Food Service

Market Overview

Growing Asia* accounts for 33% of the Global Foodservice Market in 2016

Luxury & Lifestyle

Source: GCF Research & Analysis, Euromonitor

Drivers for Growing Asia Foodservice Market:

  • Rising disposable income levels – expanding middle class
  • Increasing consumer expenditure & tourism receipts
  • Busier lifestyles driving greater demand for speed, convenience and experience
  • Consumers pursuing Western trends and lifestyles, preferring restaurants & cafes

*Growing Asia means ASEAN, India and China

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Jewelry & Timepieces

Market Overview

In 2017, Global Jewelry & Timepieces is forecasted to reach USD 43B (+5% vs 2016).

31 out of the top 100 luxury companies are Jewelry & Timepieces companies. They represent the best performance in 2013, growing at 13.5% vs the top 100 average of 8.2%.

  • Western Europe & North America combined: USD 41B in 2021 (50% market share).
  • Growing Asia* is the N1 region for growth (+12,5% CAGR 2016-2021) & will reach USD 47B by 2018.
Luxury & Lifestyle

Source: GCF Research & Analysis, Euromonitor, ChannelNewsAsia

China market remains resilient despite the economic slowdown & government’s crackdown on gifting, accounting for ~67% of Growing Asia’s Jewelry & Timepieces Market.

Women’s Luxury jewelry saw the best performance in 2013.

  • Driven mainly by the wedding boom in China.
  • Customary for parents in China to give newly wedded couples jewelry.

Opportunities & Trends

  • The 10 largest Jewelry retailers in the world only account for 12% of the global market.
  • They will x2 their market share by 2020 through acquisitions of small & mid, local & regional players.
  • Affordable Luxury emerges as a new segment bridging mass market and high-end luxury markets.

*Growing Asia means ASEAN, India and China

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