Luxury Portable Consumer Electronics in France

PROSPECTS

Increasing threat to future growth of luxury mobile phones

Luxury mobile phones was not a dynamic category in France during the review period. This is not expected to change in the short term following the announcement of category leader Vertu’s bankruptcy in July 2017.

Lack of autonomy and planned obsolescence

According to experts, luxury portable consumer electronics has boundaries that will limit its future growth. To unlock the potential of luxury wearables, one solution could be to launch a new generation of autonomous smartwatch, which is the aim of Apple and TAG Heuer (LVMH) for 2018 or 2019.

Luxury wearables’ popularity grows

Consumers are now looking at smart wearables as a substitute for activity bands. As fitness tracker sales are slowing, the more elaborate and sophisticated smartwatches are predicted to power the wearables industry’s long-term growth.

COMPETITIVE LANDSCAPE

Luxury mobile phone leader Vertu collapses

Vertu, the leading brand in luxury portable electronics, was declared bankrupt in July 2017. Vertu became famous in the marketplace by selling smartphones at mind-blowing prices.

Growing number of players in luxury wearables

Although the size of this emerging niche is still extremely limited, numerous new players entered luxury wearables at the end of the review period. Each novelty generates excitement.

Innovation is the engine that fuels the consumer electronics market

Today’s successful brands are those that have been able to renew their offer or offer real breakthrough innovations. This is the case with Tag Heuer, owned by LVMH, which has successfully emerged in the connected watch spectrum, in which its sales have soared.

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