On the runway to success - MCH Group

PAGE 47
SATURDAY. MARCH 10. 2012
Luxury market is here to stay
Sales of luxury goods have increased worldwide
Many of the major players such as Dior and Chanel have seen double-digit growth in 2011.
After a strong holiday season,
and despite currency concerns
over the falling euro and the
soaring Swiss franc, the economic
recovery has maintained its
momentum. Although growth
overall is predicted to remain
flat in 2012, the luxury industry
continues to boom, despite ris-
ing gold and diamond prices and
the resulting price inflation.
The industry’s major groups have
reported strong sales for 2011.
Revenues were up by 16 percent
to 23.66 billion euros for LVMH.
Swatch Group, meanwhile, posted
a 21.7% increase in sales for
2011 to CHF 143 million.
Holiday sales in the U.S., a
major driver of the world luxury
economy, were positive. On
Thanksgiving weekend (Black
Friday weekend) in the U.S.,
Americans spent a record USD
52.4 billion at retail, with the
average shopper spending nearly
USD 400. Overall, 2011 holiday
retail sales in the U.S. rose 4.1%
to USD 471.5 billion.
Worldwide luxury
Worldwide, according to the
Bain & Company Annual Luxury
Goods Market Study, 2010 and
2011 were two phenomenal years
for personal luxury goods. The
market for 2010 was 173 billion
euros (a 13% increase over 2009)
and 2011 was expected to close at
191 billion euros (a 10% increase
over 2010).
The study also shows that online
shopping for luxury goods has
grown by 25% over the last two
years, and it grew by 20% in both
2008 and 2009. Total online luxury
sales for 2011 were forecast
to hit 5.6 billion euros in 2011.
The total in 2010 was 4.5 billion
euros in 2010. The study says
68% of sales were full price.
Jewellery and watches
The jewellery and watch industry
together represent 22% of the
luxury market. Watches in particular
are enjoying a strong recovery.
After a disastrous year in 2009,
sales have recovered to the point
where Bain declares: “Watches
lead the wave of growth in luxury.”
Swiss exports of watches and
movements finished the year at
+19.2%, an amazing recovery considering
considering exports were
-22 percent in 2009.
“The strong recovery in the watch
industry has certainly occurred,”
comments Jean-Daniel Pasche,
president of the Federation of
the Swiss Watch Industry. He says
investing in new products and new
markets accounts for the industry’s
rebound, following the largest
downturn in 40 years. “The
Swiss watch industry has continued
to invest in new products,” he
says. “Consequently, our industry
could benefit from the strong
recovery, especially in Asia and
Substance to complement your style
INTERNATIONAL MARKETS
excepting Japan. On one side, the
big presence of the Swiss watch
industry in Asia, which shows the
biggest economic increases, can
explain this positive evolution.
On the other side, we note also a
growth of our exports to the U.S.
and Europe which is remarkable in
current times.”
Pasche acknowledges that
“Europe is still a problem, due to
the euro and the European crisis.
We hope that confidence comes
back after the different political
decisions within the European
Union. Even in this difficult
period we are able to improve
our exports and I believe it will
continue this way. We can also
take advantage of the Asian tourists
visiting Europe. They also
buy Swiss watches.”
Some of the jewellery industry’s
growth has stemmed from inflation.
Jewellery prices throughout
2011 were driven higher by
record gold prices and doubledigit
increase for diamonds.
According to a report in Womens
Wear Daily, products from Bulgari,
Chanel and Dior went
Style SUBSTANCE
1 Media Brand Values 2011.
2 BBC Trust Test 2010.
Why do leading luxury brands A trusted environment.
advertise with us? The advertising environment you choose to appear in can have
a considerable impact on your brand.
BBC World News is a trademark of the British Broadcasting Corporation © 1996
Photo: David Gray / Reuters
BBC.com and BBC World News are the online and TV channels
most likely to be considered trustworthy. 1
Reap the benefits of association – brands are considered 28%
more trustworthy when shown on BBC.com. 2
To find out more, contact Laeticia de Belloy on +33 1 44 95 84 06
or laeticia.debelloy@bbc.com
.com
▲