Personal Luxury in Canada

PROSPECTS

Asian visitors and tourists fuel designer apparel and footwear (ready-to-wear)

Designer apparel and footwear (ready-to-wear), the largest personal luxury category by value and volume, also recorded among the highest current value growth rates in 2019. Men’s designer footwear drove this performance, followed by women’s designer footwear and men’s designer apparel.

Luxury eyewear benefits from deteriorating eye-health in Canada

Sunglasses are viewed as fashion accessories by women, who may own multiple pairs to complement different outfits. Women also replace their sunglasses more frequently than men.

Luxury brands may target the renewal cycle

Luxury eyewear is expected to record a current value CAGR that exceeds the average for personal luxury over the forecast period, led by women’s luxury sunglasses. Opportunities exist for luxury brands to grow their sales by increasing renewal rates.

COMPETITIVE LANDSCAPE

Michael Kors remains the height of personal luxury, while Canada Goose sales fly

In 2018, the Michael Kors brand continued to lead personal luxury in value terms, due to its lead in luxury leather goods and fourth position in designer apparel and footwear (ready-to-wear). Michael Kors maintained its lead despite a decline in its share towards the end of the review period.

Brands want their own space

Personal luxury remains fragmented and competitive. The four largest luxury department store retailers in Canada – Holt Renfrew, menswear retailer Harry Rosen, Saks Fifth Avenue and Nordstrom – continued to be the prime distribution channels for designer apparel and footwear (ready-to-wear), the largest category in personal luxury in value terms.

The ubiquity of social media leaves no hiding place for brands

The age of 24-hour global social media enables stories to go viral in minutes, increasing the impact of mistakes in marketing and advertising campaigns. For example, in late 2018 Dolce & Gabbana was accused of racist advertising in China when it ran an advert featuring a Chinese model trying to eat an outsized cannolo (Italian pastry) with chopsticks.

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