Luxury Goods in China

Luxury Goods in China

EXECUTIVE SUMMARY

Strong and growing momentum of luxury goods in China within a healthy macroeconomic context

Millennials are major consumers of Chinese luxury goods

Significant variation across segmented categories

Internet retailing sustains robust growth, catering to digitally aware consumers

Growth momentum is set to continue

MARKET INDICATORS

Table 1 Number of High Net Worth Individuals (HNWI): 2013-2018

MARKET DATA

Table 2 Sales of Luxury Goods by Category: Value 2013-2018
Table 3 Sales of Luxury Goods by Category: % Value Growth 2013-2018
Table 4 Inbound Receipts for Luxury Goods by Country of Origin: Value 2013-2018
Table 5 NBO Company Shares of Luxury Goods: % Value 2013-2017
Table 6 LBN Brand Shares of Luxury Goods: % Value 2014-2017
Table 7 Distribution of Luxury Goods by Format and Category: % Value 2018
Table 8 Forecast Sales of Luxury Goods by Category: Value 2018-2023
Table 9 Forecast Sales of Luxury Goods by Category: % Value Growth 2018-2023

SOURCES

Summary 1 Research Sources

Designer Apparel and Footwear (Ready-To-Wear) in China

HEADLINES

PROSPECTS

Athleisure stirs up the category of designer apparel and footwear (ready-to-wear)

Active lifestyles support sales

Designer childrenswear records the strongest momentum

COMPETITIVE LANDSCAPE

Multinationals dominate, led by LVMH Fashion (Shanghai) Trading Co

Cooperation with young celebrities strongly supports existing brands

CATEGORY DATA

Table 10 Sales of Designer Apparel and Footwear (Ready-to-Wear) by Category: Value 2013-2018
Table 11 Sales of Designer Apparel and Footwear (Ready-to-Wear) by Category: % Value Growth 2013-2018
Table 12 NBO Company Shares of Designer Apparel and Footwear (Ready-to-Wear): % Value 2013-2017
Table 13 LBN Brand Shares of Designer Apparel and Footwear (Ready-to-Wear): % Value 2014-2017
Table 14 Distribution of Designer Apparel and Footwear (Ready-to-Wear) by Format: % Value 2013-2018
Table 15 Forecast Sales of Designer Apparel and Footwear (Ready-to-Wear) by Category: Value 2018-2023
Table 16 Forecast Sales of Designer Apparel and Footwear (Ready-to-Wear) by Category: % Value Growth 2018-2023

Fine Wines/Champagne and Spirits in China

HEADLINES

PROSPECTS

Drinking for its simple enjoyment and experiential pleasures drive growth

Mid-sized cities boom with a rising affluent class fuelling demand

New luxury wine consumption patterns among millennials

COMPETITIVE LANDSCAPE

Other luxury spirits continues to post the fastest growth, powered by high-end baijiu (Chinese liquor)

Luxury wines/champagne and spirits is braced for the impact of the US-China trade war

CATEGORY DATA

Table 17 Sales of Fine Wines/Champagne and Spirits by Category: Value 2013-2018
Table 18 Sales of Fine Wines/Champagne and Spirits by Category: % Value Growth 2013-2018
Table 19 NBO Company Shares of Fine Wines/Champagne and Spirits: % Value 2013-2017
Table 20 LBN Brand Shares of Fine Wines/Champagne and Spirits: % Value 2014-2017
Table 21 Distribution of Fine Wines/Champagne and Spirits by Format: % Value 2013-2018
Table 22 Forecast Sales of Fine Wines/Champagne and Spirits by Category: Value 2018-2023
Table 23 Forecast Sales of Fine Wines/Champagne and Spirits by Category: % Value Growth 2018-2023

Luxury Cars in China

HEADLINES

PROSPECTS

Government incentives boost China’s luxury electric car industry

Policies favour electric cars

Electric cars at the heart of the escalating US-China trade war

COMPETITIVE LANDSCAPE

Competition among the big three has become more intriguing

Audi underperforms

“Second-tier” brands of luxury cars perform well

CATEGORY DATA

Table 24 Sales of Luxury Cars: Value 2013-2018
Table 25 Sales of Luxury Cars: % Value Growth 2013-2018
Table 26 NBO Company Shares of Luxury Cars: % Value 2013-2017
Table 27 LBN Brand Shares of Luxury Cars: % Value 2014-2017
Table 28 Forecast Sales of Luxury Cars: Value 2018-2023
Table 29 Forecast Sales of Luxury Cars: % Value Growth 2018-2023

Luxury Eyewear in China

HEADLINES

PROSPECTS

Luxury sunglasses, the new face jewellery chased by fashion-conscious millennials

Celebrity endorsements of luxury sunglasses work, thus securing ardent customers

Luxury eyewear brands are devoted to strengthening their digital presence

COMPETITIVE LANDSCAPE

Ray-Ban (backed by Luxottica (China) Investment Co) maintains its lead in luxury eyewear

Kering partners with JD.com

Access to many more consumers

CATEGORY DATA

Table 30 Sales of Luxury Eyewear by Category: Value 2013-2018
Table 31 Sales of Luxury Eyewear by Category: % Value Growth 2013-2018
Table 32 NBO Company Shares of Luxury Eyewear: % Value 2013-2017
Table 33 LBN Brand Shares of Luxury Eyewear: % Value 2014-2017
Table 34 Distribution of Luxury Eyewear by Format: % Value 2013-2018
Table 35 Forecast Sales of Luxury Eyewear by Category: Value 2018-2023
Table 36 Forecast Sales of Luxury Eyewear by Category: % Value Growth 2018-2023

Luxury Jewellery in China

HEADLINES

PROSPECTS

Reduction in import tariffs stimulates domestic consumption

Diamonds gain in popularity, and not merely for weddings

Digital innovation is on the rise

COMPETITIVE LANDSCAPE

Strong competition within luxury jewellery

Cartier makes an entrance

New entrants are eyeing the category

CATEGORY DATA

Table 37 Sales of Luxury Jewellery by Category: Value 2013-2018
Table 38 Sales of Luxury Jewellery by Category: % Value Growth 2013-2018
Table 39 NBO Company Shares of Luxury Jewellery: % Value 2013-2017
Table 40 LBN Brand Shares of Luxury Jewellery: % Value 2014-2017
Table 41 Distribution of Luxury Jewellery by Format: % Value 2013-2018
Table 42 Forecast Sales of Luxury Jewellery by Category: Value 2018-2023
Table 43 Forecast Sales of Luxury Jewellery by Category: % Value Growth 2018-2023

Luxury Leather Goods in China

HEADLINES

PROSPECTS

Flourishing tourism stimulates demand for luxury leather goods

Women’s luxury bags and small leather goods posts the fastest growth

Ethical concept of sustainability gaining prominence

COMPETITIVE LANDSCAPE

Industry players focus on internet retailing in China

Stella McCartney expands

Unique festival-themed leather goods have strong momentum

CATEGORY DATA

Table 44 Sales of Luxury Leather Goods: Value 2013-2018
Table 45 Sales of Luxury Leather Goods: % Value Growth 2013-2018
Table 46 NBO Company Shares of Luxury Leather Goods: % Value 2013-2017
Table 47 LBN Brand Shares of Luxury Leather Goods: % Value 2014-2017
Table 48 Distribution of Luxury Leather Goods by Format: % Value 2013-2018
Table 49 Forecast Sales of Luxury Leather Goods: Value 2018-2023
Table 50 Forecast Sales of Luxury Leather Goods: % Value Growth 2018-2023

Luxury Portable Consumer Electronics in China

HEADLINES

PROSPECTS

Sales of luxury mobile phones continue to decline in China

Luxury smartwatches with fitness tracking boom in popularity in China, backed by a fitness craze that mainly involves running

Fitness tracker use to extend to other sports

COMPETITIVE LANDSCAPE

Luxury brand Vertu plots a comeback and partners with JD.com to boost sales in China

Top performers launch new eye-catchers

Apple innovates

CATEGORY DATA

Table 51 Sales of Luxury Portable Consumer Electronics by Category: Value 2013-2018
Table 52 Sales of Luxury Portable Consumer Electronics by Category: % Value Growth 2013-2018
Table 53 NBO Company Shares of Luxury Portable Consumer Electronics: % Value 2013-2017
Table 54 LBN Brand Shares of Luxury Portable Consumer Electronics: % Value 2014-2017
Table 55 Distribution of Luxury Portable Consumer Electronics by Format: % Value 2013-2018
Table 56 Forecast Sales of Luxury Portable Consumer Electronics by Category: Value 2018-2023
Table 57 Forecast Sales of Luxury Portable Consumer Electronics by Category: % Value Growth 2018-2023

Luxury Timepieces in China

HEADLINES

PROSPECTS

Overall category is warming up amid reduced import tariffs on luxury timepieces

Personalised products are well perceived among the new generation

Internet retailing acts as a growth engine for Chinese luxury timepieces

COMPETITIVE LANDSCAPE

Customised product design intensifies competition

New products are launched to gain consumer attention and promote sales

CATEGORY DATA

Table 58 Sales of Luxury Timepieces by Category: Value 2013-2018
Table 59 Sales of Luxury Timepieces by Category: % Value Growth 2013-2018
Table 60 NBO Company Shares of Luxury Timepieces: % Value 2013-2017
Table 61 LBN Brand Shares of Luxury Timepieces: % Value 2014-2017
Table 62 Distribution of Luxury Timepieces by Format: % Value 2013-2018
Table 63 Forecast Sales of Luxury Timepieces by Category: Value 2018-2023
Table 64 Forecast Sales of Luxury Timepieces by Category: % Value Growth 2018-2023

Luxury Writing Instruments and Stationery in China

HEADLINES

PROSPECTS

Major players focus on innovation and design to target younger, affluent and technologically aware millennials

Increasing reliance on digital devices results in luxury writing instruments being less in favour

Internet retailing of luxury writing instruments posts the strongest performance, but still has just a small base

COMPETITIVE LANDSCAPE

Montblanc continues its unassailable performance in China

Limited marketing activities in China

CATEGORY DATA

Table 65 Sales of Luxury Writing Instruments and Stationery: Value 2013-2018
Table 66 Sales of Luxury Writing Instruments and Stationery: % Value Growth 2013-2018
Table 67 NBO Company Shares of Luxury Writing Instruments and Stationery: % Value 2013-2017
Table 68 LBN Brand Shares of Luxury Writing Instruments and Stationery: % Value 2014-2017
Table 69 Distribution of Luxury Writing Instruments and Stationery by Format: % Value 2013-2018
Table 70 Forecast Sales of Luxury Writing Instruments and Stationery: Value 2018-2023
Table 71 Forecast Sales of Luxury Writing Instruments and Stationery: % Value Growth 2018-2023

Super Premium Beauty and Personal Care in China

HEADLINES

PROSPECTS

Super premium beauty and personal care is supported by a macroeconomic context

New concept of “green” retailing emerges, supported by cross-country partnerships

Innovative products cater to technologically aware consumers in China

COMPETITIVE LANDSCAPE

Luxury brands focus on pop-up stores to increase brand influence

New products are launched to keep up with trends

CATEGORY DATA

Table 72 Sales of Super Premium Beauty and Personal Care by Category: Value 2013-2018
Table 73 Sales of Super Premium Beauty and Personal Care by Category: % Value Growth 2013-2018
Table 74 NBO Company Shares of Super Premium Beauty and Personal Care: % Value 2013-2017
Table 75 LBN Brand Shares of Super Premium Beauty and Personal Care: % Value 2014-2017
Table 76 Distribution of Super Premium Beauty and Personal Care by Format: % Value 2013-2018
Table 77 Forecast Sales of Super Premium Beauty and Personal Care by Category: Value 2018-2023
Table 78 Forecast Sales of Super Premium Beauty and Personal Care by Category: % Value Growth 2018-2023

Luxury Foodservice in China

HEADLINES

PROSPECTS

Retail crosses with foodservice to present luxurious new experiences, thus driving unique branding and differentiation

Mercedes-Benz expands

Luxury foodservice is marketed by food influencers and KOLs in China

COMPETITIVE LANDSCAPE

Chinese luxury foodservice is recognised by awards from Michelin Guide

Multinationals are perceived in China as connoisseurs in terms of taste

CATEGORY DATA

Table 79 Sales in Luxury Foodservice: Value 2013-2018
Table 80 Sales in Luxury Foodservice: % Value Growth 2013-2018
Table 81 NBO Company Shares in Luxury Foodservice: % Value 2013-2017
Table 82 LBN Brand Shares in Luxury Foodservice: % Value 2014-2017
Table 83 Forecast Sales in Luxury Foodservice: Value 2018-2023
Table 84 Forecast Sales in Luxury Foodservice: % Value Growth 2018-2023

Luxury Hotels in China

HEADLINES

PROSPECTS

Wellness, unique services and high-end experiences are the new expectations regarding luxury hotels

The boom in “all-for-one tourism” fuels growth in both occupancy and revenues for luxury hotels

Luxury hotels turn to artificial intelligence upgrades, hoping that this will appeal to millennials

COMPETITIVE LANDSCAPE

Top contenders bet heavily on China’s key second- and third-tier cities

Rapid expansion causes concern

Luxury groups launch new mid-range brands in China

CATEGORY DATA

Table 85 Sales in Luxury Hotels: Value 2013-2018
Table 86 Sales in Luxury Hotels: % Value Growth 2013-2018
Table 87 Sales in Luxury Hotels by Country of Origin: % Value 2013-2017
Table 88 NBO Company Shares in Luxury Hotels: % Value 2013-2017
Table 89 LBN Brand Shares in Luxury Hotels: % Value 2014-2017
Table 90 Forecast Sales in Luxury Hotels: Value 2018-2023
Table 91 Forecast Sales in Luxury Hotels: % Value Growth 2018-2023

Personal Luxury in China

HEADLINES

PROSPECTS

Authenticity identification of personal luxury goods sold via e-commerce is on the way

Rising consumption stems from smaller price gaps within personal luxury goods

Millennials become a significant driving force behind sales of personal luxury goods

COMPETITIVE LANDSCAPE

Cie Financière Richemont SA ranks second within personal luxury in 2017

International players dominate over the review period

Distribution is a focus

CATEGORY DATA

Table 92 Sales of Personal Luxury by Category: Value 2013-2018
Table 93 Sales of Personal Luxury by Category: % Value Growth 2013-2018
Table 94 NBO Company Shares of Personal Luxury: % Value 2013-2017
Table 95 LBN Brand Shares of Personal Luxury: % Value 2014-2017
Table 96 Forecast Sales of Personal Luxury by Category: Value 2018-2023
Table 97 Forecast Sales of Personal Luxury by Category: % Value Growth 2018-2023

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