Driven by an increasingly affluent middle class in emerging countries like China, South Africa and Brazil, the luxury industry is prospering, with figures equalling those prior to the financial crisis and has been posting a healthy growth for the last 2 years that contrasts with the difficult world economy.
According to a study by the Boston Consulting Group (BCG) published in spring 2012, the personal luxury goods market in particular, including accessories, fashion, fragrances, watches and jewellery, will grow by 3 to 7% by 2014.
In this context, the L’Oréal Group affirms its leadership with a 8.3% growth on comparable data and even a 16% growth on the basis of its Luxury division published data. This growth is clearly higher than that of the selective cosmetics sector at 6.3%. The reason is our in-depth understanding of consumers and a portfolio of prestigious brands, most of which affirm their “Made in France” attributes, synonymous with luxury around the world.
Did you know?
1/ According to a study conducted in October 2012 by Bain & Company for the Altagamma foundation, one-fourth of the world’s luxury purchases were made by Chinese consumers in 2012. These relatively young Chinese luxury consumers are also eager for cosmetics.
2/ According to Bain & Company, the luxury market could reach 230 billion euros by 2014. Between 1995 and 2011, this market grew from 77 billion to 191 billion euros.
3/ Over 40% of luxury purchases come from tourism. The travel retail industry is in fact, a key growth driver for the L'Oréal Luxe division.