Personal Luxury in Singapore

PROSPECTS

Rising consumer confidence and spending power result in continued improvement in performance in 2019

The personal luxury category saw continued improvement in growth rates in 2019. At the end of the review period Singapore saw healthy GDP growth, with a low unemployment rate and growth in exports – a key component of the country’s economy.

Grey market, non-branded competition and US/China trade war threaten future development

Personal luxury faces several challenges that may limit its future growth potential. For example, the grey market remains a key concern for luxury leather goods and timepieces.

Bricks and mortar outlets still preferred for personal luxury items

The bulk of sales of personal luxury continue to stem from store-based retailing, including non-grocery specialists and mixed retailers. When it comes to luxury goods, consumers still prefer to visit bricks and mortar outlets in order to personally experience a product prior to making a purchasing decision.

COMPETITIVE LANDSCAPE

Richemont Luxury maintains lead, Hermès and Rolex utilise celebrity endorsements

Richemont Luxury (S) Pte Ltd remained the leading player in the personal luxury category in 2018, due to the wide variety of brands it offers, including Cartier, Van Cleef & Arpels, IWC Schaffhausen and Jaeger-LeCoultre. However, the leading brands in the category were Hermès and Rolex.

Recent new appointments at Gucci show continued results

Gucci Singapore Pte Ltd was one of the most dynamic players in the category in 2018, with a notable value share gain. This was largely due to the company bringing Gucci eyewear back in house in 2017 after Safilo’s license ended.

Kate Spade acquisition may result in shift in competitive landscape

2018 saw Tapestry Inc (owner of Valiram Group in Singapore) acquire Kate Spade’s operations, in a bid to assume greater control over its international distribution. Following this acquisition, it started to revamp its retail stores to enhance the customer shopping experience.

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