Luxury Portable Consumer Electronics in Italy

PROSPECTS

Luxury mobile phones is affected by Vertu’s crisis

In July 2017, luxury mobile phones manufacturer Vertu, the absolute leader within luxury portable electronics in Italy, went bankrupt due to a GBP128 million accounting debt. Although in March 2017 Vertu had been acquired by Baferton Trading, the latter could not pay the creditors all the debts owed and, as a result, Vertu announced bankruptcy and shut down its manufacturing site in the UK.

The changing landscape in luxury mobile phones

Vertu’s probable failure is expected to negatively impact current value sales of luxury mobile phones over the forecast period, as the other brands present in the market, such as GoldVish and Tonino Lamborgini, although set to gain share, are not likely to compensate for Vertu’s decline and ensure solid growth for the overall category.

Luxury wearables sees new product launches

The rather new category of luxury wearables is set to give the whole category a boost over the forecast period, due to its particularly strong growth. Although Italians are still trying to understand these products and judge their utility, they are attracting more new users, mainly driven by curiosity.

COMPETITIVE LANDSCAPE

Luxury specialist mobile phones brands lead

Specialist mobile phone brands continued to lead luxury mobile phones in value terms in 2017, followed by technology-driven brands and fashion brands. Despite the announcement of its bankruptcy, specialist mobile phone brand Vertu remained the leader in 2017, thanks to the wide range of products available under the brand and the high number of retail outlets in which its products are available in comparison with its competitors.

TAG Heuer ahead in luxury wearables

Meanwhile, luxury timepieces company TAG Heuer remained the leader within luxury wearables in Italy in value terms in 2017. Before launching its first luxury smartwatch in 2016, TAG Heuer was present within luxury mobile phones, but during the review period it withdrew from this category in order to focus on its main business of watches.

More players are expected to enter luxury wearables

Over the forecast period it is likely that more operators will invest in the dynamic luxury wearables category, following Hublot, which launched its first smartwatch on the occasion of the Russian Football World Cup. However, luxury wearables is expected to remain a niche category in Italy – likely to attract consumers at the beginning, but losing its appeal in the longer-term.

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