FROM EXANE BNP & PROMISE CONSULTING - SEPTEMBER, 07, 2016

Luca SOLCA
Managing Director
Sector Head Global Luxury Goods
Rue du Rhône 80, 1204 Genève, Switzerland
Tel: +44 203 4308503
Mob: + 44 7881249464
luca.solca@exanebnpparibas.com

Luxury goods brand desirability in America shows domestic and aspirational bias
We find a number of surprises and a few confirmations in the results of our extensive consumer investigation in America: 1) Americans like their local champions; 2) Americans seem more attracted by fashion brands; and 3) Our analysis confirms a strong accessible luxury bias among American consumers.

Luxury brand exclusivity perception is also quirky
Prada, Versace, Louis Vuitton, Gucci and Giorgio Armani lead the group - with Hermès coming in only 6th place. Louis Vuitton, Burberry, Prada and Versace look strong, as they boast higher desirability than purchase - a convergent indicator of exclusivity perception.

We are adding 'brand identity' analysis to our desirability and exclusivity research
Louis Vuitton and Gucci rank in the top 5 of all brand identity traits we have investigated, with the exception of 'elegance', in which Chanel and Prada lead.

Investment conclusions
Our analysis of brand desirability and exclusivity in America reminds us of how important mega-brands remain in this industry. Louis Vuitton stands out as the strongest brand by far, followed by Gucci, which seems to have lost some of the vigour of a few years back but is likely benefiting from its successful and thorough turnaround. These results reinforce our positive ratings on both LVMH and Kering.

Ask for the full document : philippe.jourdan@promiseconsultinginc.com