The luxury industry takes the opposite road from today’s economically difficult times to record healthy, continuous growth. Revenues rose from 192 to over 212 billion euros in 2012. This is the third year in a row we see a double-digit increase after a leap of 13% in 2010 and 11% in 2011. All product categories contribute to this growth, from personal goods such as services like hotels and restaurants, to jewellery and cosmetics. The world selective cosmetics market performed especially well with growth of about 6.3% in 2012. The L’Oréal Group luxury division out-performed even this market with 2012 growth of 8.3%.
In France, revenues from luxury goods are estimated at 31 billion euros for 2012, with 84% from exports. These dynamics undeniably mark the luxury industry as a pillar of the French economy. This success also impacts foreign trade with luxury accounting for a growing share of the country’s trade balance. Today, luxury is one of France’s flagship industries, on par with aeronautics and the food sector.
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.