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BY CATEGORY ■

Luxury consumers are expected to increase their spending on fragrances, watches and jewellery.

Tiffany has recently released their first fragrance product in 15 years (manufacturer and marketed by Coty).

Tiffany is rebuilding its watch business after the failed JV with Swatch.

IN A SLOWER PERSONAL LUXURY MARKET, WINNERS AND LOSERS EXPECTED AMONG VARIOUS CATEGORIES

APPETITE DRIVEN BY MILLENNIALS WITH SHOES AND F&C KEY TO RECRUIT THEM - HANDBAGS POLARIZED Net appetite by category1

True Luxury Consumers net appetite by category1 (net appetite = people increasing spend in the future > +20% – people decreasing spend in the future > - 20%)

Overall

Millennials

Gen. X

43%

40% Shoes 33% 40%

21%

33% 21%

15%

10%

0%

15%

-7%

10%

-25%

Shoes

Fragrances & Watches Cosmetics & Jewelry

Handbags Clothing2 Sunglasses

Small leather goods

0%

Silk goods

-7% -25%

1. Index calculated as percentage of customers who see growth in spend less the percentage who foresee a decrease in spend on the category (Positive – Negative). Multiple options answer (up to 5 categories ) 2. Including jeans / pants; shirts / topwear; dresses / suits; coats / outerwear; knitwear Source: BCG 2016 ad hoc study (12,000 luxury consumers in 10 countries)

288

Fragrances & Cosmetics

43%

36%

Watches & Jewelry

24%

Handbags

23%

Clothing2

-3%

-22%

22% 13%

18% 10% 10%

3%

Small leather goods

13%

32%

14%

Sunglasses

Silk goods

Baby B. & Silver

0% -11% -27%

-16% -10% -16% -14% -33%

1. Index calculated as percentage of customers who see growth in spend less the percentage who foresee a decrease in spend on the category (Positive – Negative). Multiple options answer (up to 5 categories ) Source: BCG 2016 ad hoc study (12,000 luxury consumers in 10 countries)

Source: BCG/Altagamma – The True-Luxury Global Consumer Insight – February 2017

Profile for Richard

Elevation Capital Research Annual 2018  

Elevation Capital Research Annual 2018