True-Luxury Global Consumer Insights
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8 TH E D I T I O N JUNE 2021 True-Luxury Global Consumer Insights
Contents
3
2
1 Introduction
Market overview
Consumer insights
1
Copyright © 2021 by Boston Consulting Group. All rights reserved.
The 8TH True-Luxury Global Consumer Insight: who is talking to you today
~19M True-Luxury Consumers (out of ~435M total consumers)
generating 39% (+8pp vs '19) of global luxury market
Powered by
12,000+
Sixth Ed. €39K+ 10
2,000 in China Average spend2 Markets
2019 Research Partner for
2,000 in US
all 8 editions of the
BCG Altagamma
Copyright © 2021 by Boston Consulting Group. All rights reserved.
Seventh Ed. True-Luxury Global
+1 Arabs market1
2020 (UAE & KSA) Consumer Insights
Eigth Ed. €33K
2021 Average spend
In line with market loss
of 2020 due to COVID
1. Begun monitoring UAE /KSA markets (300 respondents) 2. Includes personal and experiential luxury, excluding cars, yachts, smartphones and smartwatches 2
We bring ALTAGAMMA PARTNERS and members of BCG luxury ecosystem
to the table to generate the best consumers insights
True-luxury
BCG Altagamma
partners Consumer partners
Copyright © 2021 by Boston Consulting Group. All rights reserved.
Insight 2021
Note: List of brands not exhaustive 3
BCG expert network ready to discuss in every large market the outcomes
of True-Luxury Global Consumer Insight 2021
Americas Europe Asia
Brad Christine Kunal Joppe Rene Filippo Sebastian Irene Stephane Guillaume Parul Colin Crystal Jinseok
Baker Barton Bhatia Bijlsma Abate Bianchi Boger Boni Cairole Charlin Bajaj Currie Hao Jang
Thierry Abhishek Pierre Andres Elisa Olof Nicolas Jessica Patrick Volker Yeonhee Vincent Rachit Jun
Chassaing Dalmia Dupreelle Garro Crotti Darpo De Bellefonds Distler Ducasse Haemmerle Kim Lui Mathur Naito
Erin Nicholas Chris John Joël Dominic Asli Francesco Andreas Andreas Rohit Michael Mani Joseph
Copyright © 2021 by Boston Consulting Group. All rights reserved.
George Goad Goodchild Haugh Hazan Klemmer Kurbay Leone Liedtke Malby Ramesh Schniering Singhal Sun
Ganga Bharat Robbin Steve Kirstin Pierre Nicola Stefan Stefan Dan Miki Jeffrey Angela Veronique
Kannan Khandelwal Mitchell Mitchelmore Mennella Mercier Pianon Rasch Rohrhofer Sack Tsusaka Walters Wang Yang
Suchi Jeffrey Jeremy Drake Matthias Javier Joan Luca Lars Emil
Sastri Shaddix Sporn Watten Schuler Seara Sol Solca Sorensen Stamp
Sarah Tiffany Christina Stefano Diederik
Willersdorf Yeh Synnergren Todescan Vismans
4
"New Era" of luxury industry key trends
Who What Where / how
Personal & Experiential Luxury full recovery LG & Accessories and P&C showing high Channel-agnostic customer journeys
expected between 2021 and 2022 resilience to COVID-19 crisis • Offline from self-standing channel to touchpoint
• True-Luxury smart-working helped the top of the
consumer pyramid grow its spend significantly, Brand's values showing a clear polarization Clienteling 2.0: consumers demanding
even in the midst of the pandemic between Western and Eastern styles personalized "touch",
• Chinese consumers increasingly preferring • Crucial for brands in the on-going quest for
Millennial & Gen-Z optimistic future view, Extrovert attributes relevance
making 60+% of market by 2025
Copyright © 2021 by Boston Consulting Group. All rights reserved.
Brand purpose & responsibility non- Social and live commerce (i.e.
Rebound effect: repatriation of Personal negotiable anymore (esp. sustainability, livestreaming) boosted
Luxury to stay, experiences to fuel travelling diversity & inclusion / social awareness) • Livestreams highly relevant for US and
Chinese luxury consumers and proving to be
In the quest for engagement relevance in a a high "conversion" tool (about 70% on
US & China Luxury Growth Engines
average)
• US renaissance has begun, with US consumers noisy environment, virtualization is a
recovering the quickest promising and growing reality (e.g. gaming &
New business models continue to accelerate
• Chinese spending repatriation confirmed even Non-Fungible Tokens)
post-COVID (second-hand commerce & rental)
5
Contents
3
2
1 Introduction
Market overview
Consumer insights
6
Copyright © 2021 by Boston Consulting Group. All rights reserved.
Post COVID-19: full recovery expected between 2021 and 2022
Global Luxury Market (Personal & Experiential), €B
CAGR YOY Evol. vs 2019 CAGR
'14-'19 '19-'20 '19-'21 '19-'22 '19-'23 '19-'25
[1090-
[1080-
[1030- 1220]
[960- 1130]
1080]
966 1020]
[820- Luxury -5% +5% +8% +2%
36%
870] 36% Personal +0% +10% +12% +4%
37%
755 +4% 36% -22% 37%
Copyright © 2021 by Boston Consulting Group. All rights reserved.
581 40%
38%
47% Luxury
64% -20% -3% +5% +2%
+6% -50% 63% 64% Experiential
64% 63% -15% +3% +10% +4%
62% 60%
53%
2014 … 2019 2020 2021 2022 2023 2024 2025
Note: Numbers rounded. Personal includes leather goods & accessories, apparel, footwear, watches, jewelry (branded and unbranded) and perfumes & cosmetics; Experiential includes
furniture, food and wine, fine dining & hotel and exclusive vacations
Source: BCG Fashion & Luxury Market Model; BCG Analysis 7
Millennials & Gen Z key engines for growth believe recovery will be fast,
53% compared to ~20% for
older generations
Luxury personal goods market (€B)
390-440
5-10%
349
Baby Boomers 30-35%
23%
and Silvers
Gen. X 38% New Gen influential on overall
Copyright © 2021 by Boston Consulting Group. All rights reserved.
market through trendsetting,
45-50% 60+% digital engagement
of total New Gen share of spend growth
market largely driven by increased
Millennials 35%
average spend per person
Gen. Z1 4% 10-15%
2019 2025 projection
1. Gen Z grouping starts with those who are 18 years old in 2019 as lower limit
Note: Numbers rounded. Personal includes leather accessories, apparel, watches, jewellery, perfumes and cosmetics. Gen Z, 1993-2001; Millennial,
1978-1992; Gen X, 1963-1977; Baby Boomers, 1946-1962; Silvers,
True-Luxury smart-working helped the top of the consumer pyramid
grow its spend significantly, even in the midst of the pandemic
Cluster 2019 2020 2025 In 2020
Pop. Size Pop. Size Pop. Size Of total luxury market made by the 2
(M) (B€) (M) (B€) (M) (B€) wealthiest clusters (Beyond Money & Top
50 k€ Beyond money 0.4 24 0.4 28 0.6 40-45
12% absolute); +6pp vs. 2019 thanks to a 17%
growth in size, showing a total resiliency
20 k€ Top absolute 1.5 36 1.5 42 2.2 55-60 to crisis
Absolute 5.4 111 5.4 75 6.1 135-160 Of total luxury market made by the 19M
10 k€ 39%
True Luxury Consumers (+8pp vs. 19)
Entry absolute 11.8 123 11.8 81 12.4 145-170
5 k€ Total true-luxury 19.1 294 19.1 226 21.3 375-435 Between 2020 and 2025…
Of total luxury market growth driven by
Copyright © 2021 by Boston Consulting Group. All rights reserved.
~30%
2 k€ Top aspirational 22.4 68 20.0 37 24.1 80-95 True Luxury consumers
'20-25 CAGR growth of "Other
Aspirational" cluster driven by the rise of
~16%
Other aspirational 393 603 320 318 420 635-690 Chinese middle class approaching luxury
spending
Of '20-'25 growth delta vs market by
Total Luxury "Aspirational" consumers, that after great
~430 ~970 ~360 ~580 ~465 ~1090/1220
Consumers ~1.5pp suffering in 2020, will outpace in this
period the growth of the overall pyramid
Note: Numbers rounded. Personal includes leather goods & accessories, apparel, watches and jewelry (branded and unbranded) and perfumes and cosmetics; for the first time
Experiential includes furniture, food and wine, fine dining & hotel and exclusive vacations
Source: BCG & Altagamma Market Model; BCG Analysis 9REBOUND EFFECT
In the next 12 months, repatriation of Personal Luxury will stay,
while experiences will fuel travelling
With COVID-19 most likely under control, do you expect to With COVID-19 most likely under control, do you expect to
spend more, less, or about the same on luxury products spend more, less, or about the same on luxury experiences
in the next 12 months compared to before? in the next 12 months compared to before?
Average delta spending
+2.5% -4.7% +2.4% +14.1%
A lot more (+50% or more) 11% 9% A lot more (+50% or more) 12%
20% 42%
A bit more (+20%) 24%
Copyright © 2021 by Boston Consulting Group. All rights reserved.
A bit more (+20%) 24%
35% 10%
About the same 40% About the same 39% 13%
20% 17%
A bit less (-20%) 15% A bit less (-20%) 13%
16% A lot less (-50% or more) 12% 18%
A lot less (-50% or more) 9%
Country of Abroad Country of Abroad
residence residence
Source: BCG-Altagamma True-Luxury Global Consumer Insight Survey Mar/Apr 21 (12K respondents in 12 countries), Expert interviews, BCG estimates 10Contents
3
2
1 Introduction
Market overview
Consumer insights
11
Copyright © 2021 by Boston Consulting Group. All rights reserved.U.S. & China
growth engines
12
Copyright © 2021 by Boston Consulting Group. All rights reserved.U.S. & CHINA GROWTH ENGINES
Americans, bullish both on
domestic and abroad spend, are Do you expect to spend more, less, or about the same on
poised to regain their relevance… luxury products in the next 12 months?
Expected delta in luxury spending, average %
US consumers forecasted
to resume growth at
higher pace vs. pre-
7.7%
pandemic estimates,
resulting in increased US
share of +2-3pp vs pre- 1.4%
covid forecasts, landing
at 19-21% in 2025 Chinese consumers are
expected to accelerate with
6.0%
respect to pre-crisis
China
Copyright © 2021 by Boston Consulting Group. All rights reserved.
estimates, with increase in
-5.6% share of +3-4pp vs pre-
covid, limited by US
consumers’ rebound,
-0.3% landing at 43-45% in 2025
Europe
-7.1%
Country of Residence
Abroad
Note: Europe includes Italy, France, Germany and UK.
Source: BCG-Altagamma True-Luxury Global Consumer Insight Survey Mar/Apr 21 (12K respondents in 12 countries), Expert
interviews, BCG estimates 13U.S. & CHINA GROWTH ENGINES
…Chinese instead, expected to increase their spend, but only domestically:
China repatriation trend to stay
In the 12 months after the crisis has ended, how much
Before COVID-19 hit, 56% of the yearly luxury
of your yearly luxury spend you used to do abroad do
purchases of Chinese consumers were done abroad… you expect to convert to your country of residence?
100%
14% From half to all of it
69%
Share of purchase
57% 56%
abroad
13% 56% 21% 10%
86%
Copyright © 2021 by Boston Consulting Group. All rights reserved.
All of it More than Less than None
Share of purchase half half
43% 44%
in China
-4p.p. Even if pandemic situation is more
relaxed compared to last year, some
2016 2019 2020 vs consumption habits could have
last year 73% changed for the medium term also
Source: BCG-Altagamma True-Luxury Global Consumer Insight Survey Mar/Apr 21 (12K respondents in 12 countries), Expert interviews, BCG estimates 14Virtualization 15 Copyright © 2021 by Boston Consulting Group. All rights reserved.
VIRTUALIZATION
Quest for engagement relevance in a noisy environment:
Virtualization a promising and growing reality
New inspiration New revenue New product
channels streams & technology
Global video game industry to Selling skins, team/individual World's first global luxury
increase to $178B in 2020, sponsorships blockchain launched; more to
surpassing film industry come
Capsule collections, limited
Copyright © 2021 by Boston Consulting Group. All rights reserved.
4 of every 5 U.S. consumers edition products & Luxury brands poised to jump
have played a video game in partnerships in on NFT market, following
the past 6 months success in art world
Virtual product "labs"
About 1/3 of gamers are aged
21-35
16VIRTUALIZATION
1 out of 2 true luxury consumers, among the 39% aware, has bought luxury in-
game items and, out of them, 86% purchased the corresponding physical version
[Of those aware] Have you ever been [Of those who bought in-game
Are you aware of luxury brands that lately have
part of a virtual online game that items] Afterwards, did you also
been interacting with their customers using
involved a luxury brand and/or bought buy the corresponding physical
virtual online games?
in-game items? version of the item?
US 53% 47%
39%
Yes, and I bought
China 51% 49% in-game items 55%
Yes, then bought
Yes, but I didn’t buy corresponding
RoW 31% 69%
in-game items physical version 86%
Copyright © 2021 by Boston Consulting Group. All rights reserved.
61% No, but I would
consider playing 33%
No, but I would
be interested
No, and I would not No, and I would not
Europe 28% 72% 9% 1%
be interested
2%
be interested 13%
Yes No Average
Effective both as alternative stream of income and
Relevant for Chinese marketing tool to feed traditional products sales
and US consumers
Note: Europe includes Italy, France, Germany and UK; RoW includes Japan, South Korea, UAE, KSA, Russia and Brazil
Source: BCG-Altagamma True-Luxury Global Consumer Insight Survey Mar/Apr 21 (12K respondents in 12 countries), Expert interviews, BCG estimates 17clienteling 2.0
& personalized
Channel-agnostic
customer journeys
18
Copyright © 2021 by Boston Consulting Group. All rights reserved.The path ahead for Offline: from self-standing channel to touchpoint
Luxury market1 Luxury market1 growth by channel, 2019-2023e (B€)
Channel mix (%) Channel mix and contribution to market growth (%, B€)
+~10-15%; i.e. +30/50 B€
~+60 (~80)
~380/400
100% 100% 100% ~350 ~+35
+5pp vs. Brand.com ~+25 ~11%
Brand.com ~6%~5% ~9% ~11% ~5%
~11%
Pre-COVID Multi-brand ~6% ~14%
Multi-brand ~14% estimate platforms
platforms
~50% Omni-channel
Copyright © 2021 by Boston Consulting Group. All rights reserved.
~50%
Omni-channel incl. ROPO2
~55% ~60%
incl. ROPO2 ~60%
Offline ~39% Offline ~39%
~25% ~15%
~15%
2019 2023e 2023e Luxury Brand. Multi-brand Omni- Pure Offline Luxury
Pre-COVID Post-COVID market com platforms channel market
2019 2023e
1. Personal luxury market only (excluding experiential luxury), including true luxury, affordable luxury, and premium segments.; 2. Research Online Purchase Offline
Source: Future of Distribution consumer survey, Post-COVID Luxury scenarios (BCG Lighthouse), expert interviews, BCG analyses and estimates 19Clients become channel agnostic, expecting consistency…
Brands increasingly communicate and sell using different
What would you expect when interacting with your preferred luxury
channels. How much important is it for you that a brand is
brand through multiple channels?
multi-channel?
~90% % of respondents mentioning feature
(only respondents selecting "Important" or "Not negotiable")
Not negotiable 9% 5% 11%
13% 10% Consistent brand image 44%
~50%
Int. delivery services anywhere 42%
Important 38% 48% 34%
42% 39% Same promotions on all channels 37%
Copyright © 2021 by Boston Consulting Group. All rights reserved.
Fast delivery services 36%
38%
Somewhat important 37% 39% Exchange anywhere 36%
34%
40% All channels recognizability 35%
13%
Not important 16% 13% 16% Same assortment in all channels 35%
4%
Average Reward across all channels 35%
Europe US China RoW
Note: Europe includes Italy, France, Germany and UK; RoW includes Japan, South Korea, UAE, KSA, Russia and Brazil
Source: BCG-Altagamma True-Luxury Global Consumer Insight Survey Mar/Apr 21 (12K respondents in 12 countries), Expert interviews, BCG estimates 20…and demanding personalized "touch": crucial for brands in the on-going quest
for relevance
What are the elements that you appreciate the most when the brand interacts with you / takes care of you?
Greatest demand exists for
… through both digital and physical avenues
personalization services …
Responses (%) Responses within personalization (%)
Personalization 72 Personalised
39%
Treatment In-store
Exclusive access
58
to events and contents1
Targeted
26%
Exclusive access to store / recommendations
56
Copyright © 2021 by Boston Consulting Group. All rights reserved.
products and promos2 Digital and
omnichannel
n.a.4 Engagement on news, novelties Recognised as same
43 23%
and products manufacturing customer across channels
Special product services3 16
Physical and
Personal shopper 12% in-person
n.a.4 Delivery services anywhere 12
Decreased Increased vs
vs last year last year Personalized in-store treatments are most popular with Baby Boomers
~45% of those surveyed ranking it in their top 3 perf. services
1. Special glamorous events (parties, fashion shows), access to special brand content, invitation to runways, backstage photos, VIP events and other external events; 2. Special promotions (e.g.
pre-sales, loyalty program, birthday gift) and exclusive shopping areas or hours in store; 3. Ability to have products refurbished by brands; 4. Not available due to change in cluster methodology
Source: BCG-Altagamma True-Luxury Global Consumer Insight Survey Mar/Apr 21 (12K respondents in 12 countries), Expert interviews, BCG estimates 21Social and live
commerce (i.e.
livestreaming) boosted
22
Copyright © 2021 by Boston Consulting Group. All rights reserved.Livestreams highly relevant for US and Chinese luxury consumers
and proving to be a high "conversion" tool (about 70% on average)
Are you aware of online shopping platforms or physical stores that [Of those aware] Have you ever bought luxury goods during or immediately after a
lately have started offering livestream sessions for shopping? livestream session with a brand, an online shopping platform or a physical store?
China 73% 27% Yes, 43%
36% 43% 40%
during
53%
US 55% 45%
46% 27%
Yes, immediately
after 34% 20% 30%
RoW 37% 63% 24%
No, would
Copyright © 2021 by Boston Consulting Group. All rights reserved.
27%
54% consider
30%
22% 26%
Europe 30% 70% No, would not 14% 6%
consider 8% 7%
5% 5%
Yes No Average Europe US China Row Average
Virtual livestream are very popular in China and to a … however, on average they prove to have high potential in terms of
lesser extent in U.S., with Europe lagging behind … conversion, with 70% of respondents that have already purchased
during or after them and no groups below the 60% threshold
Note: Europe includes Italy, France, Germany and UK; RoW includes Japan, South Korea, UAE, KSA, Russia and Brazil
Source: BCG-Altagamma True-Luxury Global Consumer Insight Survey Mar/Apr 21 (12K respondents in 12 countries), Expert interviews, BCG estimates 23Altagamma & BCG Team for the 8th edition of the study
Stefania Nicola Javier Filippo Sarah Guia Filippo
Lazzaroni Pianon Seara Bianchi Willersdorf Ricci Prini
Copyright © 2021 by Boston Consulting Group. All rights reserved.
General Manager Managing Managing Managing Managing Principal Project
Altagamma Director Director Director Director Leader
& & & &
Senior Senior Partner Partner
Partner Partner
24Thank you! 25 Copyright © 2021 by Boston Consulting Group. All rights reserved.
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