Editorial Carin Pawlak .............................................2Luxury sector: sparkling prospects ...................2Luxury brands expand ...........................................3Fashion on a rise ......................................................4Fine additions to the outfit: accessories ........4Watches follow the times ......................................5Investing in adornment ..........................................5
target group
Men love luxury .........................................................6Always perfectly turned out .................................7
Personal contacts ................................................. 15
2
06/2013
Luxury is eternal. Luxury offers lasting values.
That is why the crisis has affected this sector only briefly – if you can afford luxury, you can still do so. Short-term consumption is not the issue here. It is pre-cisely younger consumers who nowadays place in-creasing value on unique-ness and on the particular shopping experience to be gained in brand shops; on the other hand, however, e-commerce and outlet sales are increasing. The growth markets are shifting to Asia. The major brands are adapting to reflect these developments – things re-main exciting in the sector.
Carin Pawlak Deputy Editor Arts and Culture
Sparkling prospectsThe market for luxury is growing: despite the crisis, many Germans are indulging in a little luxury; at an international level, Asia is continuing to catch up.
Whether it‘s watches, fragrances, fashion or accessories – the demand for personal luxury goods is con
tinuing, Consultants Bain & Co. expected the worldwide luxury market to see growth of 10 percent in 2012, to some EUR 212 billion. Europe remains the most important market, with 35 percent of sales. The highest growth comes from North and South America and Asia, with growth rates of 13 and 18 percent respectively. Many experts believe, however, that growth will slacken somewhat in 2013.
germany has been one of the winners over the last years. According to the luxury study by Roland Berger, the market here increased by 16 percent in 2011, to EUR 12.9 billion. The study, however, also takes into account luxury cars, furnishings and champagne (amounting to EUR 6.2 billion), plus perfume and cosmetics (EUR 2.8 billion). Fashion and accessories (EUR 1.2 billion), watches (EUR 0.9 billion) and jewellery (EUR 1.7 billion) were a sparking success, with impressive growth rates of over 20 percent each.
wat
ches
leat
her
goo
ds
wom
en‘s
clo
thin
g
men
‘s c
loth
ing
cosm
etic
s
frag
ran
ces
sho
es
jew
elle
ry
The desire for luxury growsEstimated sales world-wide 2012 (in EUR billion/Change from previous year)
+14 %35 billion
30
25
20
15
10
5
0
Source: Bain & Company
+13 % +13 %
+16 %+9 % +10 %
+5 %+4 %
industry report fashion & luxury
3
06/2013industry report fashion & luxury
Luxury brands expandrising sales for the big groups and brands: the sector is on the move, buoyed up by expansion programmes and spectacular takeovers.
the centres of international luxury lie particularly in France and Italy, plus Switzer
land for watches. Many wellknown brands are domiciled in those countries, where there are large groups, bringing some of the leading names under one roof. Once again, in the business year 2012, the four big players increased their sales and performed brilliantly on the stock exchange.
the big players are strengthening their presence in various markets, in new segments and regions through acquisitions. Thus in 2008 LVMH expanded its watch and jewellery segments by purchasing Hublot and in 2011 by taking over Bulgari. In 2011 PPR, the holding company, took over the Italian men‘s tailor Brioni and the Swiss watch manufacturer Sowind (GirardPerregaux and JeanRichard). Richemont turned to less specta cular acquisitions and strengthened its US presence by taking over the luxury garmentmanufacturing brand Peter Millar. As part of a group, smaller brands are benefiting from synergy effects and can try to expand, e.g. in the major Asian market. But there are still a number of independent brands, e.g. Rolex, Hermès and Burberry.
High-value brandsTop luxury brands world-wide 2012 (brand value in USD billion)
The 4 biggest European groups
Source: Interbrand
Louis Vuitton (F) 23.6
Gucci (I) 9.4
Hermès (F) 6.2
Cartier (F) 5.5
Tiffany (US) 5.2
Prada (I) 4.3
Ralph Lauren (US) 4.0
Burberry (UK) 4.3
Name Brands include Sales 2012/Change on previous year
LVMH (France)
Louis Vuitton, Fendi, Donna Karan, Kenzo, Givenchy, TAG Heuer, Hublot, Zenith, Dior Watches, Bulgari, Chaumet, De Beers
Cartier, IWC, Jaeger-LeCoultre, Lange & Söhne, Montblanc, Officine Panerai, Van Cleef & Arpels, Vacheron Constantin
EUR 8,87 billion *+29 %
PPR (France)
Gucci, Bottega Veneta, Yves Saint Laurent, Alexander McQueen, Balenciaga, Brioni, Stella McCartney, Boucheron
EUR 6,21 billion **+ 26 %
* Business year to 31 March 2012 / ** Luxury segments, excluding sport and lifestyle
4
06/2013industry report fashion & luxury
Fashion on a rise
Fine additions to the outfit
Luxury fashion made in Germany is a coming force: new designers are storming the catwalks, and the fashion industry here is recording rising sales.
High-quality handbags, belts and other accessories have long been more than just ancillary aspects to real fashion fans.
according to the fashion association GermanFashion, in 2012 the German clothing
industry saw sales revenues of EUR 12 billion, thus posting growth of some 2 percent yearonyear. The most important export destinations in the first halfyear 2012 were the countries of the EU; along with this, German manufacturers expanded their presence in the major Chinese market. Asian countries, plus Turkey and Romania, provided the biggest imports: there are plenty of cheap manufacturers and garment producers in these areas. Italy and France, however, were also
afancy handbag or chic shoes can upgrade an entire outfit. All the more if they come
from the major luxury labels in this segment: shoes from Tod‘s of Italy, bags from Louis Vuitton, or scarves and shawls from Hermès.
the german shoe industry saw sales revenues in the first halfyear 2012 of about EUR 1.21 billion, which was a decline again following two strong years (German Associ ation for the Shoe and Leather Goods Industry – HDS). When it comes to shoes, too, now adays imports from Asia predominate. The higherquality shoes tend to be imported from Europe, though, particularly from Italy. According to the German Association of Shoe Retailers (BDSE), the domestic shoeretail industry was up 1 or 2 percent in the first halfyear 2012. The unusual weather attracted fewer customers to the shops.
Figures for leather goods were likewise on an upward trend over the first three quarters of 2012: the Association of German Leather Retailers reported an excellent market volume for 2011 of EUR 2.3 billion; sales were up again in 2012. Best sellers were fashion handbags, luggage and small leather goods.
among the Top 10 import sources. From these two countries come many wellknown luxury fashion brands: from A for Armani, to Chanel, Dior and Prada, to Z for Zegna.
domestic labels are catching up: the German Top 30 League Table of Luxury Brands from Brand Networks features a number of established fashion brands: Jil Sander, Escada, Baldessarini, Wunderkind, Rena Lange, Bogner, Strenesse, van Laack or Windsor. Newcomers in the luxury segment are young designer brands such as Talbot Runhof, Kaviar Gauche and Lala Berlin.
Latest trends in BerlinFashion Week, from 15 to 20 January, was bigger and longer than ever before. More than a thousand trade fairs and sales shows provided a preview of the coming autumn and winter. Bread & Butter, the street and city fashion fair, alone had almost 600 exhibitors.
5
06/2013industry report fashion & luxury
Watches go with the times
Investing in adornment
High-quality watches continue in popularity: swiss mechanical models, in particular, are an investment even in times of crisis.
People still love valuable jewellery.
the German watch industry expanded in 2011, posting total sales revenues of some
EUR 581 million, mainly from small watches. In the first halfyear 2012, however, the sector felt the impact of the continuing crisis: sales fell by six percent to EUR 230 million. The German watch industry, too, is placing great expectations on export business; in this area it continued to grow over 2012 (up 8 percent). The most important export destinations are the EU and Asia.
switzerland is predominant in imports to Germany. It is the world‘s biggest manufac
according to the German Watch and Jewellery Association, the German jewellery
sector saw sales rise by 25 percent, to EUR 853 million. Consumers like the way highquality jewellery keeps its value – particularly when gold prices are rising. The biggest names in the German luxury segment include Wellendorf or Wempe Jewellers. But in 2011 Germany also imported jewellery to the value of some EUR 1.4 billion. 55 percent of this comes from Asia; much of it may well be simple costume jewellery. Major import sources are the other European countries: luxury shoppers there favour resonant names such as Bulgari, Cartier or Chopard.
turer of highquality watches. Thus in 2010 and 2011, following the crisis, the Swiss watch industry saw its exports grow at a double digit rate. In 2012, too, exports rose by nearly 11 percent, to CHF 21.4 billion. Asian countries in particular, such as Hong Kong, China, Japan, South Korea and Taiwan, are currently driving growth. Europe likewise remains important: in 2012 exports to Germany, for example, rose by 33 percent to CHF 1.2 billion. Part of this growth, however, is also due to purchases by tourists, especially and including those from Asia.
Every year FOCUS show-cases brands and models in its Readers‘ Watch Survey
AsiaExport 400 Import 595
Switzerland Export 128 Import 985
EU Export 928 Import 102
other countries Export 171, Import 17
Watches to and from GermanyImports and exports 2011 (in EUR million)
Sour
ce: G
erm
an S
tatis
tical
Offi
ce /
BV
Schm
uck
+ U
hren
6
06/2013industry report fashion & luxury
Men love luxury3.66 million men like to indulge in a little luxury. Decision makers, too, place considerable emphasis on how they look when representing their business or company.
despite the continuing crisis and constantly negative headlines about the Eurozone, luxury remains popular. Luxury goods do
not follow the normal rules of consumption. They are both important lifestyle investments, and an investment asset. Many men like to buy expensive goods, for they make their life finer and give everyday existence a certain sparkle.
3.66 million men in Germany belong to these luxury shoppers. That equals almost eleven percent of all men in total. Among professional decision makers, both men and women, who tend to have a high in
come and must frequently represent their business or company, the proportion is even greater, at almost 22 percent.
the demographical statistics of luxury shoppers in general confirms this tendency: like the decision makers, they enjoy
a higher net household income, are educated, and work in responsible jobs. Most luxury shoppers, 1.5 million, are aged between 30 and 49, but affinity with expensive consumer goods is also high among younger people.
some aspects of modern luxury naturally evoke particular interest among women decision makers, e.g. clothing or fragrances. Male decision makers are close behind them, though: today, fashion and style are no longer subjects just for women.
High potential for luxury Luxury shoppers: interest in products(in %)
Men (total)
34.37 million
Decision makers (total)
5.60 million
Luxury shoppers3.66 million
Luxury shoppers Decision makers
1.20 million10.6 %
21.5 %
Luxury shoppers: I like to purchase expensive goods, luxury makes life finer (top 2 boxes)Decision makers: professional decision makersSource: TdW 2013 II Interest in topics or products: top 2 boxes
Fashion Wristwatches Women‘s/men‘s clothing
Perfume/ fragrances
70 %
40 %
30 %
20 %
10 %
50 %
3.66 million 1.20 million 60 %
Luxury shoppers
De
cision
makers 0 %
7
06/2013industry report fashion & luxury
50
100
150
200
250
300
People, fashion and brandsAttitudes to fashion (index)
Always a perfect outfitMen and decision makers who have an affinity with luxury want to look good in every situation.
Luxury shoppers are very interested in highquality fashion and fine accessories; they
look for tasteful and fashionable styling. With this in mind, men in particular are attracted by solid workmanship – and wellknown brands. Then they are sure that they are getting the best quality, while showing exclusive taste. Accessories and watches also enjoy their particular favour: they round off the outfit and give it an individual touch. Women particularly head for the latest trends; men, in comparison, are more reticent.
decision makers are careful always to be appropriately dressed: in their job they need to make a good impression and represent their firm. Exclusive brands and fine watches help them to do just that. 47 percent of them expect the same standard in their leisure time. But the group of men and women decision makers do not follow trends so quickly; they look for lasting values. Conservative styling finds a better response in many companies, and particularly in responsible jobs.
I mainly buy exclusive brands
In my job it is important always to be appropriately dressed
I spend quite a lot of money on fashionable clothing
Watches are an important part of my outfit
I often buy clothing directly
at the start of the season when new goods come
into the shops
Statements: top 2 boxesIndex: overall population aged 14 and above = 100Decision makers: professional decision makers overall (5.60 million); luxury shoppers: I enjoy buying expensive goods; luxury makes life finer (men 3.66 million, women 4.07 million)Source: TdW 2013 II
Whether in trend guide or tradefair report, as a topic of contemporary consumption or
a factor in the economic situation: fashion, watches and luxury are regular features of FOCUS journalism. It keeps its readers up to date with reportage and news, looks behind the scenes of the business world, and showcases the latest musthaves. FOCUS takes these highquality environments and encourages its readers to enjoy luxury – and to want your brand!
Quality environments
9
06/2013industry report fashion & luxury
Thoroughly informed through topic specialstrend guides, trade-fair reports, background features – FOCUS specials provide the essential information about relevant topics
regular topic specials home in on selected aspects of the luxury sector. Across several
pages, with their own lead story, FOCUS spotlights news, highlights and trends, e.g. from the world of watches and manufactures or men‘s style. Fashion and luxury advertising gain a direct benefit in these attractive singletopic environments.
mann!OKTOBER 2012Männer, Mode & Stil
Der neue TV-Kommissar Til Schweiger über wahre Helden und Frauen an der Front
»Tatort? Das mache ichauf der linkenArschbacke!«
OUTDOOR HERBST-LOOKS
KLASSIKER CHELSEA-BOOTS
IM TREND NASSRASUR
Im Interview: Uhren-Legende
Jack Heuer
Hart, aber leicht:Aktuelle Materialien
verbessern Zeitmesser
Rolex-Rekord:Deepsea Challenge – keine taucht tiefer
Exklusiv:
Besuch in OmegasWeltIm Schweizer Grenchen entstehen in einer neuen High-Tech-Produktion edle Zeitmesser mit den berühmten Co-Axial-Werken
Helden-Jubiläum„James Bond“-Filme
gibt es seit 50 Jahren – hier Darsteller Daniel Craig mit Omega-Uhr
uhren!Special NOVEMBER 2012
No. Goes on sale Advertising deadline
Advertising dead-line Ad Specials
Topic special
9 25.02.13 04.02.13 28.01.13 Luxury
17 22.04.13 28.03.13 Thu. 25.03.13 Fashion special „mann!“
25 17.06.13 27.05.13 17.05.13 Fri. Golf
40 30.09.13 09.09.13 02.09.13 Fashion special „mann!“
45 04.11.13 14.10.13 07.10.13 Watch special
Topic specials 2013
The editorial department reserves the right to alter the publication date and design of topic specials as a result of current events.
10
06/2013industry report fashion & luxury
Brilliant brand impactrolex chose the FOCUS Tablet App for a compelling presentation
the FOCUS Tablet App offers all the contents of the printed issue, optimised for
iPads and their equivalents: pictures show more brilliantly and more lavishly, interactive user management is easily available, moving images and internet information can be directly incorporated.
rolex used all these facilities for its brand presentation: the advertisement appeared in a prominent placing as the opening page in issue 47/12; here, with video, 3D animation and interactive elements, users can discover all the exciting models of Rolex watch.
through its tablet app, FOCUS brings to its advertisers a further media channel for their crossmedia communication. And gives luxury suppliers space for their brilliant brand presentations.
strong perfor-manceOpening Page in #47/12
video integration 360 degree view day and night mode
11
06/2013industry report fashion & luxury
Creativity and innovationad specials from FOCUS showcase brands, fashion and models in an excitingly different way.
FOCUS is always open to new ideas – including special forms of advertising. Print
itself offers an infinite number of possibilities of playing with the medium, extending it, or even surpassing it. Almost more than any other form of advertising, new Ad Specials bring real gain to a brand image: they are lavish, innovative, creative, exciting and exclusive. They are „of high quality and thus boost both the brand and the product advertised“ – this was the result of an Ad Special study by the BURDA COMMUNITY NETWORK.
We shall be glad to advise you on every aspect of Ad Specials in FOCUS and to work with you in developing new realisations.
Mix-and-match inserts: discover and combineSeveral pages are subdivided into indi-vidual strands through perforation, and these strands can be leafed through separately. Thus the observer discovers the range in a playful way and can put his or her own styles together.
Catwalk inserts: bigger on every page These are inserts folded several times inside one another.
Readers must unravel the motif, discovering
page after new page in an advertisement
seemingly without end.
Fold-out advertising page: making you curious for more
In the centre of the issue comes a double page which can be folded out downwards. The teaser leads the reader to
uncover the new motif and to get a surprise.Perforated inserts:
fascinating insightsThe perforation, together with the page behind it, provides a coherent
image – and, when you open it up, you are surprised by new
„accessories.“ The quality of the insert can in addition be improved with glaze etc.
Second cover for in-flight edition: the special „banderole“
The in-flight edition of FOCUS has a second cover, depicting a model in
actual size. It gives the impression of being wrapped round the printed
copy. The rear of the cover is also available for clients.
This pre sen ta tion catches the eye at first glance.
12
06/2013industry report fashion & luxury
people receptive to luxury concentrate on the essential. They always want the best
and latest. That is why they read FOCUS: here they find the most important news, uptodate reports and detailed background articles. Among brand and quality aware luxury shoppers in particular, this news magazine is number one, outpacing not just its direct competitors, Spiegel and Stern, but also out
The vital thing for fans of luxuryLuxury shoppers in many markets have a high affinity with FOCUS.
stripping the opinionforming press, the business press and the lifestyle magazines.
in the sub-segments of the luxury sector FOCUS is the required publication both for luxury shoppers and for decision makers: brand aware fashion shoppers, businessmen and businesswomen, and lovers of watches all prefer FOCUS over its direct competitors “Der Spiegel” and “Stern”.
240 250 260 270 280 290230
240
250
260
270
Weekly cross-regional newspapers1)
Business press2)
Lifestyle press3)
Fans of luxury with high brand and quality awareness (index)
Brand awarenessBrand products must be a bit more expensive; the quality is better, too
Quality awarenessWhen I am shopping, quality is more impor-tant for me than price
1) Frankfurter Allgemeine Sonntagszeitung, Welt am Sonntag, Die Zeit2) FOCUS-MONEY, Wirtschaftswoche, Capital, Guter Rat, Manager Magazin3) Playboy, Cinema, GQ, Fit for Fun, Men‘s Health, Neon Target group: men, I am glad to spend money on expensive goods, luxury makes life finer (top 2 boxes, 3.66 million);Index: overall population aged 14 and above = 100; Source: TdW 2013 II
The fascination of fashion and accessoriesAttitudes to fashion (affinity /index)
1) Frankfurter Allgemeine Sonntagszeitung, Welt am Sonntag, Die Zeit; decision makers: professional decision makers (total: 5.60 million); luxury shoppers: I am glad to spend money on expensive goods, luxury makes life finer (men 3.66 million); index: overall population aged 14 + = 100; source: TdW 2013 II
I spend quite a lot of money on fashionable clothing
FOCUS
In my job it is important to be suitably dressed at all times
I change my watches to match the occasion and my outfit
Der Spiegel
Stern
decision makers (total) Luxury shoppers (men)
Weekly cross-regional newspapers1)
206170
165181
211167175174
265243242
261
235196
171234
204188189
263
183168
120257
13
06/2013industry report fashion & luxury
Top 10 publications in attractive luxury target groups
Basis: News and current-affairs magazines, business press, lifestyle press; magazines 1/1 p. 4c, newspapers 1/2 p. 4c; prices 2013 grossSource: TdW 2013 II
Readership in % CPT/Euro CPT/Euro
FOCUS
Stern
Der Spiegel
Bild am Sonntag
Men‘s Health
WirtschaftsWoche
FOCUS-MONEY
Capital
Welt am Sonntag
GQ
115
118
122
157
161
176
176
198
221
Exclusive shopsTarget group: men, I enjoy going to exclusive shops(top 2 boxes, 3.38 million)
Luxury-led decision makersTarget group: decision makers, I enjoy spending money on expensive goods; luxury makes life finer (top 2 boxes, 1.20 million)
11.4
18.4
6.0
22.1
19.4
8.9
6.3
7.5
7.2
5.5
232
Stern
FOCUS
Der Spiegel
Men‘s Health
FOCUS-MONEY
Bild am Sonntag
Capital
Guter Rat
WirtschaftsWoche
Playboy
187
206
216
243
244
286
296
321
341
Fashionable accessoriesTarget group: men, I place great value on fashionable accessories(top 2 boxes, 2.06 million)
15.5
11.7
13.9
4.6
3.2
16.1
5.0
2.6
4.2
3.7
237
FOCUS is a highquality medium for communication with target groups interested in
luxury in the segments of news and currentaffairs magazines, the business and lifestyle press. This news magazine addresses top potential customers in a precisely targeted way. With a wide readership and good terms and conditions, FOCUS reaches, for instance: • fashion fans who look particularly for qual
ity in their clothing,• decision makers who like to enjoy a little
luxury – and can afford it,• shoppers with high standards and expect
ations who look for particular shopping experiences in exclusive outlets, and
• men with a weakness for interesting accessories.
Focus-MoneY is also highly suitable for targeted communication with these luxuryoriented, wellearning target groups who are interested in business.
Economy is no luxuryFOCUS has outstanding economic advantages compared with its competitors.
CPT/Euro CPT/Euro
Readership in %
Readership in % Readership in %
14
06/2013industry report fashion & luxury
cool outfits, popular designers, elegant accessories, highquality chronometers:
the publications of the BURDA NEWS GROUP show styleconscious people the „inproducts“ of today in fashion, luxury and watches. Thus these publications provide style environments for your brand presentation to a lifestyleaware public. Set some trends in the BURDA NEWS GROUP‘s publications!
You will find here an overview of the attractive topic highlights and specials offered this year. Moreover, other publications by the Group regularly offer environments with affinity: e.g. GRIP, the motor magazine for male car enthusiasts, or TV SPIELFILM Plus for fans of select entertainment.
More in German at www.burda-news-group.de
Communicating across publicationsFashion and luxury for men are also topics in other publications of the BURDA NEWS GROUP.
No. Goes on sale Advertising deadline Topic
Fit For Fun
08/13 24.07.13 24.06.13 Men special
Focus-MoneY
10/13 27.02.13 11.02.13 Luxury is worth it
17/31 17.04.13 28.03.13 Thur. Watches
18/13 24.04.13 08.04.13 Business style
19/13 30.04.13 Tues. 15.04.13 Material values
44/13 23.10.13 07.10.13 Luxury is worth it
46/13 06.11.13 21.10.13 Watches
pLaYBoY
03/13 14.02.13 07.01.13 Style special: business style
04/13 14.03.13 04.02.13 Grooming special: care for men
