2. What LUXURY is?
• DESIGN
• QUALITY
• CRAFTMANSHIP
• SERVICE
“To build reputation it takes decades”
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. 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. 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. 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. 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. 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. Romanian customer profile of luxury
goods
• 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. Romanian customer profile of luxury
goods
• 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. Romanian customer profile of luxury
goods
• 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
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. Business Concept
Online Luxury Store that will sell
fashion, jewelry, consuming goods, IT & Gadgets luxury
brands
16. Competition
• For the online segment there are couple of websites
which sells luxury goods but there is not a dominant
player
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. Thank you!
• LESS IS MORE
• MORE IS BETTER
• KEEP IT SIMPLE
