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GLOBAL LUXURY GOODS: TODAY AND TOMORROW LUXEPACK MONACO FFLUR ROBERTS HEAD OF LUXURY GOODS RESEARCH OCTOBER 21 ST
© Euromonitor International
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GLOBAL LUXURY GOODS: TODAY AND TOMORROW
LUXEPACK MONACO
FFLUR ROBERTS
HEAD OF LUXURY GOODS RESEARCH
OCTOBER 21ST
© Euromonitor International
2
OUTLOOK FOR GLOBAL LUXURY GOODS
OUTLOOK FOR PACKAGING
LUXURY PACKAGING CASE STUDY
SUMMARY AND RECOMMENDATIONS
© Euromonitor International
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WHERE IS THE LUXURY GOODS MARKET HEADING?
INDUSTRY OVERVIEW
-3
-2
-1
0
1
2
3
4
5
6
7
0
50
100
150
200
250
2007 2008 2009 2010 2011 2012 2013 2014 2015%
gro
wth
y-o
-y
US$
bill
ion
Luxury Value US$ bn Growth rates y-o-y %
Global Luxury Goods: Retail Value, 20o7-2015 174
billion US$ Value of Global Luxury
Goods in 2010
207 billion
US$ Value of Global Luxury Goods by 2015
© Euromonitor International
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KEY COUNTRIES CONTRIBUTING TO GROWTH
INDUSTRY OVERVIEW
43%
Global Luxury Goods Markets: Developed vs Emerging
6%
Developed market value growth between
2005 -2010
Emerging market value growth between
2005 - 2010
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2005 2010 2015
% V
alu
e R
SP
US
$
Emerging markets Developed markets
© Euromonitor International
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ASIA PACIFIC LEADS THE GLOBAL RECOVERY
INDUSTRY OVERVIEW
China
37%
Luxury Goods in 2015: Emerging Markets % Share
Developed
Luxury Goods Forecast Growth US$ 2010-2015 (%)
664%
India’s growth rate for Luxury Goods between 2005-2010
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LUXURY GOODS CATEGORIES: 2010-2015 DEVELOPMENT INDUSTRY OVERVIEW
Luxury Goods 2010: Global Retail Sales, % value
Designer Clothing and Footwear
Fine Wines/Champagne and Spirits
Luxury Accessories
Luxury Electronic Gadgets
Luxury Fine China and Crystal Ware
Luxury Jewellery and Timepieces
Luxury Travel Goods
Luxury Tobacco
Luxury Writing Instruments and Stationery
Super Premium Beauty and Personal Care
© Euromonitor International
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CATEGORIES: EMERGING VS DEVELOPED MARKETS
INDUSTRY OVERVIEW
2015
2010
Emerging Markets, 2010-2015
Designer Clothing and Footwear Luxury Jewellery and Timepieces Fine Wines/Champagne and Spirits Luxury Accessories Super Premium Beauty and Personal Care Luxury Fine China and Crystal Ware Luxury Travel Goods Luxury Tobacco Luxury Writing Instruments and Stationery Luxury Electronic Gadgets
2015
2010
Developed Markets, 2010-2015
53% Emerging market value
growth 2010 - 2015 Luxury Jewellery and
Timepieces
18% Developed market value
growth 2010 -2015 Luxury Jewellery and
Timepieces
© Euromonitor International
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KEY CONSUMER TRENDS INDUSTRY OVERVIEW
• Outer-directed and extrovert • Being noticed is a key element of luxury shopping
Blingtastics
• Drawn by one-offs and limited editions • Exclusivity may be more important than price • Raising the price tag adds to the appeal
Exclusivists
• Interested in connoisseurship • Drawn by timeless luxury • Brand heritage and authenticity is key
Old Money
• Focus more on time and experiences • May be more interested in artisan and local products • Drawn towards green luxury /eco-lux
New Ascetics
• Looking for the the new, the different and the constantly changing
• Technology is often a key category Novelty Junkies
© Euromonitor International
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OUTLOOK FOR GLOBAL LUXURY GOODS
OUTLOOK FOR PACKAGING
LUXURY PACKAGING CASE STUDY
SUMMARY AND RECOMMENDATIONS
© Euromonitor International
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PACKAGING OVERVIEW
KEY TRENDS IN LUXURY PACKAGING
0
200
400
600
800
1000
1200
1400
1600
1800
2000
Bill
ion u
nits
Global Retail Packaging Consumption 2010
83bn US$ value of global premium beauty and personal care in
2010
90%
22% Value of premium beauty and personal care as a % of total
beauty and personal care 2010
© Euromonitor International
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KEY TRENDS IN LUXURY PACKAGING
CORE DRIVERS FOR NEW PACKAGING LAUNCHES
Value
Health and Wellbeing
Functionality
Sustainability
Premiumisation
Differentiation
Convenience
New Technology
© Euromonitor International
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KEY TRENDS IN LUXURY PACKAGING
LUXURY PRODUCTS REQUIRE LUXURY PACKAGING
Core Growth Categories in Luxury Goods 2010-2015
Global Sales RSP Fine
Wines/Champagne/Spirits
US$ billion
2005
US$15bn
2010
US$19bn
2015
US$23bn
0
500
1,000
1,500
2,000
2,500
0
1
2
3
4
5
6
Super PremiumFragrances
Super PremiumHaircare
Super PremiumSkin Care
Luxury Spirits
Absolu
te g
row
th 2
010-2
015
% C
AG
R 2
010-2
015
% CAGR 2010-2015 Absolute value growth 2010-2015
© Euromonitor International
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PACKAGING DIFFERENTIATION
KEY TRENDS IN LUXURY PACKAGING
Global Premium Fragrance US$ million 2008-2013
2005
Premium
Mass
2010
Premium
Mass
0
5
10
15
20
25
30
0
200
400
600
800
1,000
1,200
1,400
2008 2009 2010 2011 2012 2013
% g
row
th
US
$ b
illio
n
China India Russia World
China India Russia
Global Fragrances by Value: Premium vs Mass
© Euromonitor International
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CONVENIENCE: A BIG PUSH FOR PUMP CLOSURES
KEY TRENDS IN LUXURY PACKAGING
Top 5 Growth Countries
2005-10% growth US$
Venezuela 273
Ukraine 152
Azerbaijan 148
Belarus 145
Argentina 142
Female Annual Disposable Income:
Five Year Growth
0
2
4
6
8
10
12
14
16
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
2005 2006 2007 2008 2009 2010 2011
y-o
-y G
row
th
Unit V
olu
me s
ale
s -
bn u
nits
Anti-agers Packaging Unit Volume Lotion Pumps - Beauty Care
Global Pump Closure Volume Sales 2005-2011
© Euromonitor International
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INTERNET CONTINUES TO RESHAPE THE WORLD
KEY TRENDS IN LUXURY PACKAGING
711mn Chinese
Internet users in 2020
281mn US
Internet users in 2020
0
5
10
15
20
25
30
35
40
45
2000 2010 2020
% o
f w
orl
d p
op
ula
tio
n
More than 40% of the world’s population
will be on the Internet in 2020
11.8
21.3
36.5
55.2
81.5
120.0
0
20
40
60
80
100
120
140
2005 2006 2007 2008 2009 2010
Val
ue
£ m
illi
on
Net-A-Porter Annual Sales, 2005-2010
Sales (£ million)
© Euromonitor International
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PACKAGING AS A ROUTE TO SOCIAL NETWORKING
KEY TRENDS IN LUXURY PACKAGING
0
10
20
30
40
50
60
70
80
90
-
10
20
30
40
50
60
70
80
90
2005 2006 2007 2008 2009 2010
% g
row
th
Reta
il S
ale
s R
SP
US
$ b
illio
n
value sales US$ billion % growth 2005/2010
Smartphones: Global Sales RSP US$ billion 20o5-201o 21% of the worlds population in 2010
is generation Z
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OUTLOOK FOR GLOBAL LUXURY GOODS
OUTLOOK FOR PACKAGING
LUXURY PACKAGING CASE STUDY
SUMMARY AND RECOMMENDATIONS
© Euromonitor International
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CASE STUDY: PATRON
LUXURY PACKAGING CASE STUDY
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
2005 2010 2015
US
$ m
illi
on
Tequila Value Sales: Luxury vs Mass
Luxury Tequila Mass Tequila
© Euromonitor International
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OUTLOOK FOR GLOBAL LUXURY GOODS
OUTLOOK FOR PACKAGING
LUXURY PACKAGING CASE STUDY
SUMMARY AND RECOMMENDATIONS
© Euromonitor International
20
SUMMARY AND RECOMMENDATIONS
RECOMMENDATIONS FOR LUXURY PACKAGING PLAYERS
• Strong growth in emerging markets
• Bulk of sales in developed markets
• Largest luxury goods value sales in US
• Slowest regional growth from Western Europe
• Global recovery lead by Asia-Pacific
• Designer clothing and footwear remains the biggest category to 2015
Global Luxury Goods
• Convenience: consumers will increasingly be on-the-go
• Differentiation: no ‘one-size-fits-all’ approach in luxury
• New Technology: as technology changes the retailing environment companies must to fully leverage consumers’ online space
Key Packaging Trends
© Euromonitor International
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THANK YOU FOR LISTENING Fflur Roberts| Head of Luxury Goods Research
Euromonitor International
60-61 Britton Street
London
EC1M 5UX
Telephone: +44 (0) 207 251 8024
