A flourishing market

Models at a show

67% of luxury industry growth in China is attributed to new young middle class consumers.© AFP Image Forum

Models at a show

67% of luxury industry growth in China is attributed to new young middle class consumers.© AFP Image Forum

Revenues in the luxury industry rose from 192 to more than 212 billion euros in 2012. This is the third year in a row to see a double-digit increase after a leap of 13% in 2010 and 11% in 20111. The majority of luxury brands benefited from this dynamism.

In France, revenues from luxury goods were estimated at 31 billion euros in 2012, with 84% from exports2. These dynamics undeniably mark the luxury industry as a pillar of the French economy on par with the aeronautics and the food industries.

All product categories benefit from this growth, from hotel and restaurant services to personal goods. According to a study by the Boston Consulting Group (BCG) published in spring 2012, the personal luxury goods market – accessories, fashion, fragrance, watches and jewelry – should grow by 3 to 7% by 2014.

The beauty industry is included in this trend. The world cosmetics market continues to record steady growth and single digit growth is expected in 2013. In general, fragrance, skin care products, and make-up attract ever growing numbers of customers around the world.

1 Study elaborated in 2012 by Fondazione Altagamma and Bain & Co Italy
2 Study elaborated in 2012 by Fondazione Altagamma and Bain & Co Italy

Did you know?

 

1/ According to a study published by KPMG in 2011, Chinese consumers associate luxury goods with certain countries and are strongly attached to European brands, especially French brands. In fact, France ranks first for cosmetics and fragrance (mentioned by 76% of respondents), fashion (37%) and handbags (33%).

2/ As the world’s leading luxury consumers, Chinese shoppers alone now purchase 25% of all luxury goods in the world, making them the biggest consumers in this sector, ahead of the Americans (Bain & Company, December 2012).

3/ Chinese shoppers mainly buy their cosmetics in Hong Kong, Taiwan and Macao (60%), then in continental China (51%) and in Europe (20%) – where France is a market reference (KPMG study, March 2013).