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Strategy Briefing

Competitor Strategies in Luxury Goods

May 2021

US$1,325

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About This Report

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If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extract FREE!

Competitor strategies across the luxury goods landscape have been evolving in recent years under the impact of digitalisation and changing consumer values. The impact of the global coronavirus pandemic however has weighed heavily on luxury corporates and the lack of certainty accompanied by a recessionary consumer mindset threatens to delay any glimpse of full recovery in the short ti medium term. This report analyses business strategies and explores key opportunities in the luxury goods space.

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Overview

Why buy this report?

Gain competitive intelligence about market leaders. Track key industry trends, opportunities and threats. Inform your marketing, brand, strategy and market development, sales and supply functions.

Key findings

Competitive environment remains hugely challenged by COVID-19

The COVID-19 pandemic continues to have an unprecedented impact on the competitive landscape in luxury goods. The main challenge for many remains the lack of certainty regarding the length of lockdowns across different markets, and the social distancing measures that have been imposed, accompanied by a recessionary luxury consumer mindset, which will delay any glimpse of full recovery well beyond 2021.

Asia Pacific continues to drive corporate sales

Latest company results show that Asia Pacific continues to drive sales for key players in luxury goods and remains the most important region overall making up almost half of all spending. Much of this revenue has been driven by China’s growing wealthy populations.

Digital innovation accelerates and sparks corporate partnerships

Digitalisation will benefit from social distancing. and further e-commerce penetration, virtual catwalks and customer engagement are likely to become mainstream. Backed by innovations and rising access to technology, COVID-19 has changed the way luxury businesses deliver products and services, and how consumers live, work, shop and play for life. Both physical and digital players will need to go above and beyond to create new bonds and partnerships, and build loyalty with customers who will be looking to be entertained, rewarded and valued.

Local shopping drives repatriated spending as revenues shift East

The pandemic has driven luxury customers to shop locally. With international travel having ground to a halt, much of consumer spending on luxury goods is now taking place at home as opposed to abroad, and is giving rise to repatriated spending and the birth of the new “locavore” luxury consumers. Luxury companies are now investing in their “glocals”.

Purpose-driven luxury more important than ever

Luxury companies and brands are being forced to look beyond revenue and can no longer perceive good business purely as profit-driven entities. Protecting the health and interest of society and the planet is the new expectation in order to build back but above all to build back better, while also turning the tide on social inequity and environmental damage.

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Introduction

Scope

Key findings

State of Play in Luxury Goods

COVID-19 poses huge threat to competitors across the luxury landscape

Luxury sales take a tumble in key markets impacting competitor sales

Luxury goods players among hardest hit across all FMCG markets

Prolonged uncertainty creates fear as consumers are saving not spending

Players in experiential luxury witnessed the deepest contraction

Makers of luxury cars navigate through a tough period of change

Personal luxury adversely impacted by discretionary spending decline

Luxury drinks companies shielded marginally by niche consumer base

Asia Pacific leads in sales with China at the helm

North America’s luxury spending contracts by nearly a fifth

Western Europe in the eye of the COVID-19 storm

Brighter outlook expected for 2021 led by Asia Pacific

China first major economy to show signs of full recovery in luxury goods

China’s economic activity and consumer spending shows full recovery

Corporate response to COVID-19

Competitor Landscape Overview

Leading luxury companies at a glance

Competitive environment remains highly concentrated

Leading competitors fight for share of wallet due to high concentration

Top 10 luxury companies clear determinants of 2021 outlook

Future business strategies challenged further by market-driven approach

Luxury car manufacturers continue to dominate total luxury sales

Daimler Group remains optimistic for a better 2021

Powerhouses in personal luxury pivot to digital channels amid pandemic

LVMH’s latest results signpost Asia-led recovery trend

LVMH exceeds pre-pandemic sales with strong Q1 2021 results

LVMH finally completes acquisition of Tiffany & Co in biggest deal ever

LVMH shows off its muscle as a leading contender in all categories

Encouraging sales momentum from Kering and Richemont

Pandemic woes in luxury hospitality continue to constrain recovery

Consolidation and restructuring take place across luxury hotels

Premiumisation and a desire for indulgence help luxury drinks players

Luxury drinks adapt to the rise of e-commerce and hometainment

High-value acquisitions and diversification in luxury drinks category

Key Trends Impacting Competitors

COVID-19 a catalyst for change across the competitive luxury landscape

Key strategic themes impacting competitive luxury landscape (1)

Key strategic themes impacting competitive luxury landscape (2)

Key strategic themes impacting competitive luxury landscape (3)

Competitor Response to Key Trends

Competitors forced to future-proof their businesses and mitigate risks

Gucci partners with Wanna to introduce its first NFT virtual sneakers

Competitors forced to review outlook for long-term shopping trends

LVMH praises its e-commerce capabilities in upbeat Q1 2021 reporting

Competition intensifies as more global luxury brands flood into Asia Pacific

Domestic “revenge shopping” helps Hermès offset revenue losses

Purpose-driven luxury and ESG gains momentum in the boardroom

Louis Vuitton Singapore offers a greener last-mile “white glove” service

Competitors meet the new “locavore” luxury consumers

Why Singles’ Day should matter to every luxury goods company

Redefining value and affordability without becoming ubiquitous

Gucci and Saint Laurent move to launch a luxury consignment boutique

Key trends and the long-term implications for leading luxury competitors

Appendix

Definitions

Why buy this report?

Want to find out more about this report?

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Megatrends

Strategy Briefing

Competitor Strategies in Luxury Goods

New Report Guarantee

About This Report

New Report Guarantee

Overview

Why buy this report?

Key findings

Competitive environment remains hugely challenged by COVID-19

Asia Pacific continues to drive corporate sales

Digital innovation accelerates and sparks corporate partnerships

Local shopping drives repatriated spending as revenues shift East

Purpose-driven luxury more important than ever

Want to find out more about this report?

Table of Contents

Introduction

Scope

Key findings

State of Play in Luxury Goods

COVID-19 poses huge threat to competitors across the luxury landscape

Luxury sales take a tumble in key markets impacting competitor sales

Luxury goods players among hardest hit across all FMCG markets

Prolonged uncertainty creates fear as consumers are saving not spending

Players in experiential luxury witnessed the deepest contraction

Makers of luxury cars navigate through a tough period of change

Personal luxury adversely impacted by discretionary spending decline

Luxury drinks companies shielded marginally by niche consumer base

Asia Pacific leads in sales with China at the helm

North America’s luxury spending contracts by nearly a fifth

Western Europe in the eye of the COVID-19 storm

Brighter outlook expected for 2021 led by Asia Pacific

China first major economy to show signs of full recovery in luxury goods

China’s economic activity and consumer spending shows full recovery

Corporate response to COVID-19

Competitor Landscape Overview

Leading luxury companies at a glance

Competitive environment remains highly concentrated

Leading competitors fight for share of wallet due to high concentration

Top 10 luxury companies clear determinants of 2021 outlook

Future business strategies challenged further by market-driven approach

Luxury car manufacturers continue to dominate total luxury sales

Daimler Group remains optimistic for a better 2021

Powerhouses in personal luxury pivot to digital channels amid pandemic

LVMH’s latest results signpost Asia-led recovery trend

LVMH exceeds pre-pandemic sales with strong Q1 2021 results

LVMH finally completes acquisition of Tiffany & Co in biggest deal ever

LVMH shows off its muscle as a leading contender in all categories

Encouraging sales momentum from Kering and Richemont

Pandemic woes in luxury hospitality continue to constrain recovery

Consolidation and restructuring take place across luxury hotels

Premiumisation and a desire for indulgence help luxury drinks players

Luxury drinks adapt to the rise of e-commerce and hometainment

High-value acquisitions and diversification in luxury drinks category

Key Trends Impacting Competitors

COVID-19 a catalyst for change across the competitive luxury landscape

Key strategic themes impacting competitive luxury landscape (1)

Key strategic themes impacting competitive luxury landscape (2)

Key strategic themes impacting competitive luxury landscape (3)

Competitor Response to Key Trends

Competitors forced to future-proof their businesses and mitigate risks

Gucci partners with Wanna to introduce its first NFT virtual sneakers

Competitors forced to review outlook for long-term shopping trends

LVMH praises its e-commerce capabilities in upbeat Q1 2021 reporting

Competition intensifies as more global luxury brands flood into Asia Pacific

Domestic “revenge shopping” helps Hermès offset revenue losses

Purpose-driven luxury and ESG gains momentum in the boardroom

Louis Vuitton Singapore offers a greener last-mile “white glove” service

Competitors meet the new “locavore” luxury consumers

Why Singles’ Day should matter to every luxury goods company

Redefining value and affordability without becoming ubiquitous

Gucci and Saint Laurent move to launch a luxury consignment boutique

Key trends and the long-term implications for leading luxury competitors

Appendix

Definitions

Why buy this report?

Want to find out more about this report?

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