Luxury and cosmetic for Ernst & Young
Luxury and cosmetics in the annual relationship The luxury and cosmetics financial factbook of the famous society of consultation Ernst & Young. The delineated scenery contains analysis and statistics on the principal societies rated of the sector luxury and cosmetics, on the principal parameters of performance and appraised you and on the trends of the market Merge & Acquisition.
In 2015, the luxury goods industry felt the impact of global socioeconomic and political instability. We believe that a confluence of events — political disorder in many countries, terrorist threats and attacks, as well as slowdown in economic growth rate in China — contributed to a decline across the sector. Uncertainty can have an impact on the mood of any consumer, none more so than when a significant spend is required, such as with luxury goods. As a result, although the industry reached a total market value of €253b, currency fluctuations were the main contributor of this growth. Real growth was reported at 1%, lower than in 2014.
Against this backdrop, how should luxury players act to help gain consumer attention and spend? Will a quick reaction suffice, or do brands need to review their entire business model? Our Luxury and cosmetics financial factbook, 2016 edition seeks to answer these questions by providing a situational analysis, investigating the trends that are shaping the sector and highlighting the challenges and opportunities facing luxury and cosmetics brands.
New mandates for luxury sector success
Our factbook explores three main objectives that luxury brands must achieve to keep pace with a changing competitive landscape:
1. Increase digital effort Luxury companies are lagging in an increasingly digital world — and traditional companies risk losing ground to more dynamic, digitally savvy players. To succeed, luxury brands must maintain their heritage and create long-term value while responding to consumers’ expectations and offering unique products that offer instant gratification.
2. Hold the positioning A new category of players is threatening the balance of luxury fashion houses: the affordable luxury segment. This segment is gaining market share by continuously offering new products that are both fashionable and competitively priced. Top end luxury companies must emphasize the quality and rarity of their offerings to encourage their clients to spend more and reduce the risk of cannibalization by more nimble competitors.
3. Defend the luxury experience During the luxury journey, a consumer is surrounded by opportunities that may not always be characterized by material, long-term purchases; instead, they may have intangible or more ephemeral benefits, such as travel, art, or epicurean gastronomy. In such an environment, personal luxury goods companies must demonstrate that they can offer the same level of experience and customer satisfaction. To that end, companies should focus on improving service and quality — not only in retail stores but also across every single customer touch point.
The study also contains close examinations on the principal thematic financial, operational, strategic and of market: him and-commerce in China, M&A in the sector of the perfumes, the role of the millennialses in the future market of the luxury, the evolution of the sector of the clocks of luxury and the so-called hard luxury, the optimization of the management of the shops and the store, the growth of the online marketplace, the investments in the sector of the beauty.