Luxury insightSmall research of overall marketRomanian market reviewNew business opportunities
What LUXURY is?• DESIGN• QUALITY• CRAFTMANSHIP• SERVICE“To build reputation it takes decades”
Luxury Market Summary• Most important brand owners and distributor in the luxury  market:    – LVHM (double digit growth i...
Luxury Market Summary• China is the 2nd largest consuming group of luxury goods  after USA while Europe is struggling with...
Local Luxury Market• Local luxury market are divided by:   – Products       • Watches & Jewelry       • Fashion       • Co...
Local Luxury Market• Most of the luxury brands are present in the market• Hermes, Chanel and Prada are not yet locally bas...
Local Luxury Market• 2010 luxury market of fashion and accessories goods  was nearly 50 million Euro (including counterfei...
Local Luxury Market• First half of 2012 reported a decrease of 30% of sold  luxury goods comparing 2011 same period• Gucci...
Romanian customer profile of luxurygoods• Billionaire or Millionaire    – Having more then 40 million Euro wealth    – Buy...
Romanian customer profile of luxurygoods• Online luxury customers are seeking:    – Fashion & shoes – 60%    – Cosmetics &...
Romanian customer profile of luxurygoods• 37% of them are between 18 to 31 years old   – Technological addicted   – Self f...
Local luxury reports
Local luxury reports
Conclusions & Opportunities• Luxury market in Romania after a period of decrease  started to gain more value. Specialists ...
Business Concept Online Luxury Store that will sell fashion, jewelry, consuming goods, IT & Gadgets luxury brands
Competition• For the online segment there are couple of websites  which sells luxury goods but there is not a dominant  pl...
Risks• Even the luxury market stabilized a little and in some  areas a growth took place there are a few risks due to  the...
Thank you!              • LESS IS MORE             • MORE IS BETTER             • KEEP IT SIMPLE
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Luxury insight

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Luxury insight

  1. 1. Luxury insightSmall research of overall marketRomanian market reviewNew business opportunities
  2. 2. What LUXURY is?• DESIGN• QUALITY• CRAFTMANSHIP• SERVICE“To build reputation it takes decades”
  3. 3. Luxury Market Summary• Most important brand owners and distributor in the luxury market: – LVHM (double digit growth in 2012) (Louis Vuitton, Moet, Hennessey) – PPR (double digit growth in 2012) (Gucci, YSL) – Richemont (double digit growth in 2012) (Dunhill, Cartier, Chloe) – Hermes (double digit growth in 2012)• Fast growing emergent markets (ASIA – China)• UBS report in 2010 says: – 50% of world luxury revenue comes from Asia – 50% of Europe luxury revenue are Asian tourists
  4. 4. Luxury Market Summary• China is the 2nd largest consuming group of luxury goods after USA while Europe is struggling with an organic growth of 1 digit last year• Biggest growth by gender is made by men’s luxur. Top 5 Brands of men luxury: E. Zegna, Hugo Boss, Dunhill, Armani, Burberry• Many luxury companies are going online – Armani.com – delivers in 27 European countries – Escada to open e-shop in 2013 – PPR opened Stella McCarthy E-store last year – Ittiere opened E-commerce business line for 35 countries – Zalando open Emeza, luxury discounted E-store
  5. 5. Local Luxury Market• Local luxury market are divided by: – Products • Watches & Jewelry • Fashion • Cosmetics and Fragrances – Investments • Real Estates • Art – Way of life • Cars, Airplanes, Tourism • Home decorations, Alcohol, Cigars
  6. 6. Local Luxury Market• Most of the luxury brands are present in the market• Hermes, Chanel and Prada are not yet locally based• Local luxury market decreased in the area of luxury cars, watches and accessories over the crisis period• Fashion, accessories and cosmetics reported 20% decrease in 2008 at the beginning of crisis• Meanwhile brands like Max Mara, La Perla, Pal Zileri, Canali reported constant growth of 20-30% in 2008• In 2009 7 branded fashion stores were closed• In 2009, 9000 people were clients of luxury products, while in 2008 were 11,000 (CPP Management)
  7. 7. Local Luxury Market• 2010 luxury market of fashion and accessories goods was nearly 50 million Euro (including counterfeit products)• Louis Vuitton Romania reports 4.5 million Euro sales in 2010• Arts sales decrease to 8 million Euro after 2008 of 31 million Euro sales. For 2013 it is said to be up to 25-30 million Euro.• 2011 reports a general growth of luxury products up to 500 million Euro• 50-60% of total sales represent cars luxury industry• 30% of the market is represented by fashion luxury
  8. 8. Local Luxury Market• First half of 2012 reported a decrease of 30% of sold luxury goods comparing 2011 same period• Gucci, Moschino, Dunhill, Valentino, Emporio Armeni, Hugo Boss, Burberry decrease in sales based of cost cut optimization of global strategy• Luxury cars industry grew with 39% in the first half of 2012.• Real estate industry double the revenue comparing same period of last year• Roberto Cavalli, Porsche Design and Montegrappa opens first monobrand store in Bucharest• Frey Wille reported more then 1 million Euro revenue for a newly brands in the market
  9. 9. Romanian customer profile of luxurygoods• Billionaire or Millionaire – Having more then 40 million Euro wealth – Buying most exclusivist brands like: Hermes, L. Vuitton, Moet & Chandon, Rolex, Gucci, Prada• Top Managers and business owners – Aspirants of luxury lifestyle – Expensive cars and watches – Expensive travelers – Luxury consuming goods• Woman are more attracted by fashion while man by cars
  10. 10. Romanian customer profile of luxurygoods• Online luxury customers are seeking: – Fashion & shoes – 60% – Cosmetics & fragrances – 46% – Food & Alcohol – 26%• 31% of urban inhabitants will buy a luxury product next year – 47% of them are 32-47 y.o. • Active professionals and married • Daily usage of internet with high education • Analytical and pragmatic
  11. 11. Romanian customer profile of luxurygoods• 37% of them are between 18 to 31 years old – Technological addicted – Self focused and self inventive – Appreciate variety – Unmarried with middle – high education• 16% of them are between 48 to 64 years old and married
  12. 12. Local luxury reports
  13. 13. Local luxury reports
  14. 14. Conclusions & Opportunities• Luxury market in Romania after a period of decrease started to gain more value. Specialists reported growth for 2013 in most of the luxury segments• New fashion brands established monobrand store and other are to come in 2013 and 2014 as luxury fashion will increase this year• Cars luxury is to growth in exclusivist segment and to stabilize on the other with perspective to grow• Online luxury is the new trend in business• Romanian luxury customers will be more interested in high services in order to gain loyalty• 2013 to pass half a billion Euro market value in Romania
  15. 15. Business Concept Online Luxury Store that will sell fashion, jewelry, consuming goods, IT & Gadgets luxury brands
  16. 16. Competition• For the online segment there are couple of websites which sells luxury goods but there is not a dominant player
  17. 17. Risks• Even the luxury market stabilized a little and in some areas a growth took place there are a few risks due to the instable economical situation – The Romanian millionaires power of purchase decreased with 30% over the last year – Big counterfeit market and no clear strategy to avoid the phenomenon over the local authorities – Many international brands opened online stores with delivery to Romanian market
  18. 18. Thank you! • LESS IS MORE • MORE IS BETTER • KEEP IT SIMPLE

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