How to build up, manage

and leverage Luxury &

Premium brands in the
new 2019-2025
environment ?

LUXURY MARKETING
& PREMIUM
PRODUCTS
@kbouhajeb
Scoop.it : LUXE 2.0
Thursday, February 25th 2020 - Karim BOUHAJEB –
Paper.li : LUXE 2.0
Tumblr : LUXE 2.0
Blog :
ARMANI: a typical example of the
Italian fashion business model
1970
> Licensing
agreements with
clothing
manufacturers for
the production of 1984 1990
1960
own collections. Expansion to Watchmaking 2000
Giorgio Armani starts
of new (partnership with Launch of the
his career as a designer > Partnership with segments Fossil) first shop online
for Nino Cerrutti the businessman (license agreements): Consolidation of the (US market
Sergio Galeotti. perfumery (L'Oréal), volume of business and only)
Armani creates his lunetterie (Luxottica) vertical integration
first creative
workshop

1960 1970 1980 1990 2000

1970-1980
Brand line extension: several sub-brands of Armani
Ready-to-Wear, both in the top and mid-range

Licenses, partnership agreements & progressive internationalization of production were

the center pillar about the strategic expansion of Armani
LUXURY BRAND
MANAGEMENT
MSc BSB LUXURY
karim.bouhajeb@gmail.com
ARMANI pushed the extension of product
segmentation to the extreme
Fossil Inc.

L’Oréal Watchmaking Hotels and villages of

Jewellery EEMAR holidays
Hospitality
Cosmetics Holiday
Perfumery villages
Residences

Safilo, Luxottica
Different providers
Glaces ARMAN Flowers
I

Cellphones Kitchen Dada Spa

Samsung Electronics
(Molteni Group)

Furnishing

An overview of the Armani

licenses with the leading Rubelli Spa
LUXURY BRAND
industry leaders MANAGEMENT
MSc BSB LUXURY
karim.bouhajeb@gmail.com
Q4-2020 Worldwide Luxury
Market at a Glance

LUXURY BRAND
MANAGEMENT MSc BSB
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Worldwide Luxury Report Market 2019

LUXURY BRAND
MANAGEMENT MSc BSB
LUXURY
The Personal Luxury Goods market was
worth €217B in 2020, after a severe decline
The luxury business The luxury business begins increasing the Global Chinese boom Economic Return to CO
establishment with the creation accessibility of its products, widening its financia l torpor & growth VI
of the historical Top luxury client base and thus allowing the market to crisis. political D
conglomerates. grow, with growth having been dampened tension crisi
somewhat between 2000 to 2004 by the s.
recession in the early 2000s.

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MANAGEMENT MSc BSB
Growth of Global Luxury Goods
segments across time

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COVID-19 impact for the Luxury
industry – the different 2020 scenarios

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MANAGEMENT MSc BSB
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There are six consumer trends emerging or solidifying in
response to the crisis.
•More China: Luxury shopping is likely to restart first in China if
COVID-19
the virus remains under control there. Continued restrictions on
travel will mean that many purchases that would have been made
impact
abroad will happen in China.
•Accelerated shift to digital shopping: When safe, consumers on consumption
will return to physical stores (possibly with a renewed passion
for in-real-life experiences), but some digital shopping habits
built during the outbreak will stick—especially if brands raise
trends
their game in online assortment, user experience and digital
marketing.
• Heightened environmental and social
consciousness: Consumer concern about sustainability and social
issues is set to continue, consolidating the importance of
environmental and social governance. Enlightened brands may
rethink the end-to-end product life cycle, supply chain
management and disposal of unsold stock.
•Rise of a post-aspirational mindset: Ethics will become as
important as aesthetics as consumers prioritize purposeful
brands.
•Strengthened local pride: Public opinion during the outbreak
has sometimes stigmatized certain nations, triggering assertive
displays of cultural pride in those territories. Brands need to
avoid inflaming these local sensitivities.
•Expanding need for inclusion: Brands will need to use all their
ingenuity to revamp their offer at accessible price points, reflecting
the reduced spending power of many

LUXURY BRAND
middle-class customers. MANAGEMENT
MSc BSB LUXURY
karim.bouhajeb@gmail.com
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COVID-19 impact on how will Luxury 2025
market look like

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MANAGEMENT MSc BSB
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COVID-19 impact on how will Luxury 2025
market look like

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MANAGEMENT MSc BSB
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International travel to come back strong after Covid-19

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COVID-19 impact on Worldwide
Luxury Consumption

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MANAGEMENT MSc BSB
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COVID-19 impact for the Luxury
industry – the different 2020 scenarios

LUXURY BRAND
MANAGEMENT MSc BSB
LUXURY
COVID-19 impact on Worldwide
Luxury Consumption Trends

LUXURY BRAND
MANAGEMENT MSc BSB
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COVID-19 impact on Worldwide
Luxury Consumption

LUXURY BRAND
MANAGEMENT MSc BSB
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COVID-19 impact on Worldwide
Luxury Consumption

LUXURY BRAND
MANAGEMENT MSc BSB
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COVID-19 impact on Worldwide
Luxury Consumption

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MANAGEMENT MSc BSB
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Coronavirus spells big trouble for luxury goods
market – Bain/BCG

With half the world’s population currently confined to the house, looking fashionable or even just presentable probably isn’t high up on the list
of concerns. More broadly though, a number of the world’s leading strategy and management consulting firms have been sounding the
warning for the global luxury goods industry, with the coronavirus fall-out expected to cost the sector up to $120 billion in revenues, or more
than one third of its $350 billion worth as assessed by BCG.
COVID-19 impact on Personal Luxury
Goods Market 2020

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COVID-19 Mid Term impact on
Personal Luxury Goods Market

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MANAGEMENT MSc BSB
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COVID-19 impact on how will Luxury 2025
market look like

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MANAGEMENT MSc BSB
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The Economic Recovery is unlikely to be V-
Shaped

The decline in the luxury goods market suggests to us that there’s no V-shaped recovery ahead, and it could take
upwards of “four years” for a recovery phase to unfold.
It appears the world could remain in a low-growth, or even negative growth period,
through the mid-point of this decade.
Global Online Personal Luxury Goods
Market Q4-2019

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Worldwide Luxury Report 2020

Global Economy

On high Alert Beyond China

Continued caution is advised for the year ahead

China will continue to provide exciting
as mounting underlying turmoil could disrupt
opportunities and play a leading role in the global
relations among both developed and emerging
fashion industry, but the colossal market is
market economies.
providing to crack than brands anticipated.
Indicators of recession risk are spurring
As some successful players become over- reliant
companies across industries to build a resiliency
on China & others struggle, companies should
playbook and plan for other macro risks such as
consider spreading their risk by expending to
geopolitical instability and the inflammation of
other high- growth geographies.
trade tensions

2019 Forecast: x 2,3

49% 2020 9% 2025
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MANAGEMENT MSc BSB
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Worldwide Luxury Report 2020

Consumer shifts

In their
Next Gen Social Sustainability first
neighbourhood

The global fashion industry is

Consumer demand for convenience
As traditional engagement models extremely energy-consuming,
and immediacy is prompting retailers
struggle on established social media polluting and wasteful. Despite
to complement existing brick-and-
platforms, fashion players will need some modest progress, fashion
smaller format stores that meet
to rethink their strategy and find hasn’t yet taken its environmental
customers wherever they are and
ways to maximize their return on responsibilities seriously enough.
reduce friction in the customer
marketing spend. Attention- grabbing Next year, fashion players need to
journey.
content will be key, deployed on the swap platitudes and
The winning formula will feature
right platform for each market, using promotional noise for meaningful
persuasive calls to action and in-store experiences and action and regulatory compliance
wherever possible, a seamless to localized assortments in while facing up to consumer demand
checkout neighborhoods and suburbs for transformational change
beyond the main shopping
thoroughfares

70% of fashion players Biggest challenge for

believe “increased
exploration” of spend on
social media
55% “sustainability and
industry for 2020 #1
The Luxury Industry covers a wide
range of consumer products

Overview of main categories in the luxury industry

LUXURY INDUSTRY
Watches & Wines &
High-end apparel Food Luxury cars
Jewellery spirits

PERSONA OTHER
Accessories L Leather
Hospitality Jets &
LUXURY goods Yachts
LUXUR
GOODS Y
Perfumes & GOODS
Cosmetics Hard luxury (pens, Other luxury Luxury real Collectibles,
lighters, etc…) services esLUMBA
at XUtESG
ReYBENGALORE
BRAND
karim.bouhajeb@gmail.com
LUXURY BRAND
MANAGEMENT MSc BSB
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MANAGEMENT MSc BSB
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Worldwide Luxury Report 2020

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Worldwide Luxury Report 2020

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Density of Super-Rich Individuals 2019

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Super-Rich Spendings

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Worldwide Luxury Report 2020

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Worldwide Luxury Report 2020

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Worldwide Luxury Report 2020

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Worldwide Luxury Report 2020

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Worldwide Luxury Report 2020

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