Le diamant le plus gros au monde n’a pas trouvé preneur

By Romain, 15-juillet-2016, Journal du Luxe, Joaillerie & Horlogerie

Le plus gros diamant du monde a été mis aux enchères à Londres le mercredi 29 juin 2016. Il s’agit du Lesedi La Rona, un énorme diamant de 1 109 carats. Il n’a toutefois pas trouvé preneur.

Analysé par des experts de l’Institut américain de gemmologie, la pierre a été qualifiée de « la plus pure jamais trouvée ». Le Lesedi La Rona se démarque également par son ancienneté. On estime que la pierre daterait de 2,5 millions d’années.

Pour cause, son prix de réserve de 70 millions de dollars n’a pas été atteint. « Seulement » 61 millions de dollars ont été proposé lors de cette vente organisée par Sotheby’s.

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Conference « Luxury and China: insights and perspectives for 2016 and beyond » [06/30] Sharing the event’s most important moments [#promiseconsulting @adetem]

On Thursday, June 30, 2016, at the Café l’Adjugé in Paris, Promise Consulting hosted a conference on "Luxury and China: the challenges and perspectives for 2016 and beyond”.

In total 40 people, professionals from top luxury brands, journalists and consultants in the world of luxury, fashion, beauty and tourism, participated in the breakfast conference initiated by Promise Consulting at the prestigious Parisian auctioneers Drouot from 8:30am to 10:30am.

Continuing a series of lectures on trends and perspectives regarding the development of the world luxury market, Philippe Jourdan, founding partner and Chunyan Li, Senior Consultant and China specialist, combined their expertise and presented together a broad overview of the opportunities and challenges of the Chinese luxury market:

- On the one hand, the cyclical factors were isolated from the structural ones to discern the growth opportunities in a certainly more "bumpy" economic context. Additionally, the conference outlined new and interesting opportunities for Western luxury brands.

- On the other hand, the enriching insights of the specialist in Chinese culture took into account the emergence of new expectations, especially of those of younger generations, vs the ones of the luxury goods generations.

THEY ATTENDED THE CONFERENCE AND SHARED THEIR OPINION 

"UN GRAND MERCI POUR LA CONFERENCE CONCERNANT LA CHINE, AS ALWAYS INSIGHTFUL, INTERESTING, IN DEPTH AND EASY TO UNDERSTAND" - BENJAMIN, LUXENDREAM

"MERCI ENCORE POUR HIER. C'ETAIT TRES INTERESSANT, D'AUTANT PLUS QUE LA CHINE REPRESENTE UN DE NOS PLUS GROS MARCHES.  REMERCIEZ POUR MOI CHUNYAN ET PHILIPPE POUR LEUR PARTICIPATION" - LUCAS, LACOSTE

"JE TENAIS EGALEMENT A VOUS REMERCIER POUR L'ORGANISATION DE CETTE BELLE CONFERENCE OU NOUS AVONS APPRIS BEAUCOUP GRACE A UNE PRESENTATION TRES CLAIRE" - CAMILLE, CHANEL

"GRAND MERCI POUR CETTE CONFERENCE TRES INTERESSANTE QUI M'A DONNE UN AUTRE REGARD SUR BIEN DES SUJET. ELLE FUT RICHE EN ENSEIGNEMENTS ET TRES CONVIVIALE. BRAVO POUR LE TIMING CAR LE FAIT QU'IL N'Y AIT PAS EU DE DERAPAGE M'A PERMIS DE PROFITER DES CONCLUSIONS" - VINCENT, KPMG

THE SPEAKERS' POINT OF VIEW ABOUT THE CONFERENCE

 CHUNYAN LI

Philippe Jourdan

CHINA: AN ECONOMY IN TRANSITION

Both speakers started with a reminder of some important economic indicators which are necessary to develop and establish a healthy Chinese economy in the World: a slowing but still positive growth, the recent devaluation of the Yuan but with forecasts that should take into account the political will of the Chinese authorities to reduce their dependence of the dollar (and primarily of the US debt).

Based on this perspective, the Chinese economy is in the transition from a "Made IN China" through a "Made BY China" to a "Made FOR China" culture, although the share of GDP devoted to domestic consumption and expenditure of the Chinese government is still behind compared to those traditionally reserved for investment and net exports.

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A LUXURY ECONOMY WHICH IS VERY (TOO) DEPENDENT OF CHINESE TOURIST PURCHASES

In 2000, 10 million tourists traveled the world. During the year 2020, 200 million Chinese tourists are expected to travel abroad. In 2015, they were nearly 105 million to move beyond the Chinese borders. Of course, the first regional destination remains by far Asia. However, while the movements and trips to Hong Kong have recognized a slow-down (in response to the sinophone manifestation of the residents of Hong Kong), the Chinese tourism presents a good performance in France despite its unfavorable security environment. In the end, nearly 77% of the Chinese luxury goods purchases ("personal luxury goods") are realized abroad (24% in Asian countries nearby and 53% outside this sphere).

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CHINA: "IT IS ALL ABOUT DIGITAL, IDIOT"

With more than half of the connected population (50.3%), nearly 3h45 spent on average per day on digital networks and 594 million Chinese connected to their mobile phones, the Internet plays a vital and inescapable role regarding the Chinese communication and information research methods. And we go even one step further: with an increasing tendency, the Chinese are getting more and more likely to realize online purchases to such an extent, that the online US trade is expected to be exceeded by the end of 2016 (forecast: $ 371 billion of Chinese purchases against $ 326 billion for the US).

The Chinese digital landscape has obviously its specifics and is very different from the one of the Western countries. For each type of digital application developed in the West (search engines, social networks, networks of micro-chats and micro-blogging, etc.) there exists a Chinese version, which is far away from just being a clone of its Western counterpart. In particular, among all social networks, Weibo, the Chinese Twitter, and WeChat, a combination of Facebook, WhatsApp and Skype, have become the companies’ most preferred promotion tools. They have respectively reached the 222 million and 650 million active users in 2015.

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THE CHINESE CULTURE: BETWEEN GUANXI AND MIANZI

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According to a Chinese proverb, “Just as a tree needs bark, someone needs his face". The culture of Mianzi ("face") attaches great importance to the various forms of respect, social acceptance and recognition. Everybody lives in and through the eyes of others: a trend of the Chinese elites is therefore to systematically compare themselves to others in terms of both criteria, professional and personal success. Luxury goods subsequently allow the wealthy Chinese to materialize and demonstrate their social status and financial situation to others and thus shape the image they wish to send to those around them (...).

In China, "the formality must be mutual". Indeed, the Chinese highly value social relationships within their close circle, also known as the famous “Guangxi”. Having a good "Guanxi" allows the Chinese to benefit from mutual support and to proceed or solve problems faster. Finally, the favor – also called "RenQuing" in Chinese - can be a real credit or a true debit. Seen from this perspective, offering a valuable gift, no matter if it is a product or a powerful experience also enhances the "face" ("Mianzi") of the interlocutor (…).

THREE GENERATIONS OF LUXURY BRANDS CLIENTS IN CHINA

Nowadays there are three clearly identified generations of luxury goods consumers in China, which strongly differ in terms of their profile, expectations and their luxury experiences.

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The first generation is the one of the Baby Boomers. Born between 1950 and 1964, they fully lived in the era of President Mao, wherefore their state of mind is marked by nationalism and idealism and their life shaped through the frugality they recognized during their youth. The Cultural Revolution presents for them a strong reminder of the sustainable weakening of traditional and ancestral values ​​of the Chinese society, whereby some of them reminisce still about the great famine of 1958 to 1961. Being in the position to make decisions and confident about their power, they combine both, power and wealth, which enables them to get everything they want, and of which they were deprived in the first part of their lives.

The second generation is the Generation X (1965-1979). The children of the economic reform, initiated in 1978, were educated by MAO and trained by Bill Gates. This high tension has caused confusion and a certain sense of insecurity among them. This fact represents the reason for their opportunistic behavior and their search and need for material security. They were among the first to consume luxury goods, whereby 60% of them purchase these products to increase their self-esteem. Approximately 80 % of the Chinese private companies are run by representatives of this generation.

The third generation is the Generation Y (1980-1995).  Since their early childhood, people of this generation benefited enormously from the economic reform, without having gone through very difficult times. Generation Y is confronted with a wide variety of consumer choices, wherefore their behavior and habits westernize, although they kept their Chinese roots. Ordering a Big Mac at McDonalds' or a coffee at Starbucks, using the iPhone or iPad to connect themselves to the Internet and chat with strangers, or buying products on WeChat or e-commerce websites, became part of their daily lives.

 THE FRENCH LUXURY BRANDS THAT REMAIN VERY APPRECIATED

The Conference concluded with the presentation of the results of the Barometer Front Row, jointly conducted by Promise Consulting and Exane BNP. This barometer measures for different countries the Exclusivity and Desirability of Luxury Brands in the world of fashion (ready-to-wear, bags and shoes) as well as for the domain of Cosmetics (perfumes, skincare and makeup).

 [TO VISUALIZE THE COMPLETE RESULTS CLICK HERE]

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Do you want to know more? Do you have a project on China? Do you want to know our offer on international studies in the segments luxury brands, beauty and selective distribution?

ABOUT PROMISE CONSULTING

Promise Consulting is a company specialized in marketing studies and consultancy, issued from the merge of Promise Consulting Inc., JPL Consulting and Panel on the Web.

Promise Consulting integrates services of market research and marketing consultancy delivered with a high added value. We created an innovative measuring methodology of a brand’s performance and its return on investments (ROI): the “Monitoring Brand Assets ©”. This methodology, deployed in nearly 50 countries, has surveyed 250 brands in multiple sectors, totaling over 1,5 millions questionnaires. 

Established in Paris, New-York and Casablanca, Promise Consulting conducts studies and services of consultancy in the whole world. Promise Consulting is mostly known for its expertise in measuring a brand’s value from the clients’ perspective.

Promise Consulting has developed innovative techniques and models, was awarded 7 times in 10 years, by its Peers nationally and internationally. It provides insights and recommendations to the most notorious brands in luxury, cosmetics and retailing sectors, helping them develop on national and foreign markets. It is also active in several sectors of the industry, every time the brands are looking for an effective growth strategy in order to better understand the market, to reach their customers, attract them and, finally, keep them.

Pr Philippe Jourdan, CEO of Promise Consulting, is the editor-in-chief of Adetem’s journal, the French Journal of Marketing (Revue Française de Marketing, RFM), since 2011. He publishes in academic journals internationally on the problems of the valuation of the brands in luxury, beauty and selective distribution. He also publishes in the economic press and news media (such as Le Monde, les Echos, le Figaro, l’Opinion, la Revue des Marques, etc.). Philippe is a university professor, researcher at the IRG (CNRS) and laureate of the Best Article of Research AFM 2000. He holds a certification in social media.

The Indian luxury market is expected to cross that amount during this year.

According to a research report by Euromonitor, India merely contributes 1-2% to the global luxury trade. However, despite this insignificant percentage, the market is growing at a compounded annual growth rate (CAGR) of about 25%. Indian luxury market is expected to cross $18.3 billion by 2016 from the current $14.7 billion.

As per a study by Assocham , in 2015, luxury jewellery, electronics, SUV cars and fine dining have grown immensely. Apparel, accessories, wines and spirits are growing as strongly as in the past. Consumption of branded wine is also likely to register a over 30% increase in the metro cities.

Indian brands are starting to be well-known, with Gitanjali Group (jewellery retailers), Titan Company (5^th largest manufacturer of wrist watch in the world) and PC Jeweller Limited (jewellery retailers) now accessing the top 50 luxury brands worldwide.

Finally, it is to be noted that cosmetics and beauty products markets are highly lucrative in India, since women’s purchasing power is greater.

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SOURCE HUFFPOST MAROC- Zoubida Senoussi et Abdessamad Moustaid - MAI 2016

MODE - Pour la majorité des femmes marocaines, le luxe évoque "l'esthétique, la beauté et l'élégance", selon une étude réalisée par le cabinet Marketing B. Voilà pour la théorie, car dans les faits, la récente fermeture des Galeries Lafayette à Casablanca et leur remplacement par des marques low cost interroge sur la maturité du marché marocain du prêt-à-porter de luxe.

Pour Éléonore Bénit, rédactrice en chef du magazine Icônes (Groupe Telquel), "le marché du luxe, comme tous les marchés de niche, a ses limites et n’est pas extensible à merci. Le départ successif de marques comme Miu Miu ou Prada il y a quelques mois indiquait déjà que le marché du retail de luxe au Maroc était – et est toujours – loin d’être mature. À l’inverse, une marque comme Tati répond de façon bien plus cohérente à la réalité du pouvoir d’achat de la majorité des habitants des grandes villes de notre pays".

Loin d'être mature, ce marché pourrait également être impacté par les habitudes d'achat et les comportements des consommateurs aisés, qui préfèrent faire leurs emplettes à l'étranger dans les capitales du luxe comme Milan, Paris ou encore Dubai, "où l'on dispose de plus de choix et de.... discrétion", estime Sofia Benbrahim, fondatrice de Shoelifer, média marocain axé sur le luxe et l’art de vivre.

"Consommer du luxe, c'est vivre une expérience"

Pour Meryame Mellouk, professeur en marketing de luxe à l'Université Hassan II à Casablanca, "la mobilité à l’international fait que les achats se font en général dans d’autres pays où l'on pense bénéficier du produit global offert par le luxe (évènements privés, accueil personnalisé, collections privées…) bref, tout ce qu’offrent les maison de luxe à leurs clientèles qu’on ne trouve pas forcement au Maroc. Ajouter à cela l’exclusivité, un plus grand choix et les avantages fiscaux (même si cela changera bientôt)".

Pour la rédactrice en chef du magazine Icône, il s'agit même d'une "évidence, non pas qu’ils (les consommateurs) le 'préfèrent' mais que les habitudes de consommation prennent parfois du temps à se modifier". Selon elle, "pendant des années, certaines marques n’étaient pas distribuées au Maroc. La clientèle marocaine habituée à la consommation de produits de luxe est très exigeante et voyage beaucoup, ce qui continue de favoriser l’achat à l’étranger. Consommer du luxe, ce n’est pas seulement acquérir un produit, mais c’est aussi - et peut-être surtout - vivre une 'expérience' hors norme, composée d’une multitude de codes qui entourent l’acte d’achat", explique-t-elle.

"Lorsqu’on est en vacances, loin de chez soi ou dans une capitale mondiale réputée pour son élégance, son savoir-faire ou son expertise 'shopping', l’achat est alors entouré d’un aura ou d’un supplément d’âme qu’on ne peut pas acquérir à deux pas de chez soi. La possibilité de bénéficier de la détaxe entre aussi évidemment en ligne de compte".

La guerre sans fin contre le faux

Et la contrefaçon dans tout ça? "Le marché du luxe est destiné à une clientèle particulière, une personne qui peut se permettre un sac à 30.000 dirhams n'ira jamais acheter de la contrefaçon", tranche Sofia benbrahim.

Même son de cloche chez Éléonore Bénit: "La circulation de faux existe au Maroc depuis des décennies et répond essentiellement au besoin d’une population (locale ou étrangère) qui n’aurait pas forcément les moyens d’accéder aux produits de luxe authentiques d’assouvir son désir. Pour autant, la contrefaçon demeure un enjeu majeur pour les géants du secteur, non tant pour l’aspect financier que pour une question d’image. Et c’est une guerre sans fin: plus un produit a du succès, plus il sera copié".

Reste enfin le rapport si particulier qu'entretiennent les consommateurs marocains avec les produits de luxe. Il est de notoriété publique que les Marocains investissent beaucoup dans l'or, cette "valeur sûre, contrairement à un sac X ou Y qui fait son temps", estime Sofia Benbrahim.

Pour Meryame Mellouk, les consommateurs marocains "font des achats 'investissement' dont ils savent impertinemment la valeur, et peuvent aller jusqu’à s’endetter pour acquérir un bien durable qui entre dans le patrimoine familial comme la joaillerie, les pièces de collection ou l'horlogerie".

Qu'en est-il des autres secteurs du luxe? "Il me semble que celui de l’automobile au Maroc se porte extrêmement bien, et ce malgré la taxe de luxe créée il y a deux ans. Celui de l’horlogerie aussi, notamment pour certaines très grandes maisons comme Cartier ou Rolex. Avec la montre, la voiture est l’un des premiers marqueurs sociaux pour une population. Dans un pays comme le Maroc où l’hétérogénéité sociale est aussi forte, dire au monde combien l’on vaut équivaut à dire qui l’on est", conclut Éléonore Bénit.

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The number of African millionaires might be higher by 2024, numbering around 258,000 millionaires, which equates to a rise of 53%. Africa is still largely underestimated and is slowly gaining ground on that market: 80% of luxury monobrand stores are operating in Morocco and South Africa.

Also, KPMG states that the ultra-wealthy individuals are mostly going to South Africa (Cape Town and Johannesburg) or to Morocco in Marrakech – which is attracting luxury hotel investors, as noted by CPP Luxury – and Casablanca.

Luxury goods for men, such as men’s clothing, watches, accessories, jewellery, etc., play a major role as they still have a higher income than women and are popular amongst wealthy men of power.

Source: Bloomberg - KPMG - CPP Luxury

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FROM THE JING DAILY - APRIL, 20, 2016 - JENIIFER JAPP

Recent consumer surveys show that Chinese shoppers are more focused on premium everyday necessities, which is influencing how they make purchasing decisions abroad. A survey conducted by the FTConfidential Research unit at the Financial Times found that Chinese shoppers are more likely to avoid discretionary spending, especially when it comes to high-end fashion accessories like handbags, jewelry, and watches. This marks what the FT calls an “upheaval” in consumer spending patterns overseas, which is happening in tandem with changing habits at home.

According to an article published in FT last month, there was “a 10.2 per cent year-on-year growth in retail sales in the first two months of the year, down from a full-year 10.7 per cent in 2015 and 12 per cent in 2014.” Their survey asked 1,318 overseas Chinese tourists about their spending habits, and while they reported “they were less likely than previously to buy big-ticket items such as luxury handbags, jewelry and watches while traveling abroad,” they expressed interest in spending on cosmetics, clothing, electronics, and souvenirs, similar to results from a year before.

FT’s explanation for the reduced discretionary spending on high-end items like jewelry, watches, and handbags abroad is, in part, the rising reliance on cross-border e-commerce coupled with the fact that domestic prices for these goods are not as high as before. But the playing field is ever-changing—tax hikes on cross-border e-commerce announced early this month have thrown luxury industry professionals and shoppers for a loop.

Still, when Chinese shop abroad, they are increasingly focused on a different type of shopping spree. This includes an emphasis on looking for homegrown luxury brands, such as Coach in the United States, according to a recent survey. But with a bigger focus on health and quality products domestically, Chinese shoppers are also searching out more premium everyday necessities that are difficult to come by at home, and some of these shopping patterns are also molded by the latest safety concerns and unmet demands for new lifestyle trends.

After Chinese New Year, Xinhua reported on some of the most coveted items for Chinese consumers, broken down according to the various regions they were traveling to. To mitigate safety concerns, Chinese shoppers were buying items like high-end rice and sanitary pads in Japan—many consumers don’t trust the ones at home, as reports surfaced two years ago that some pads made in China contained a chemical that causes cancer. Chinese shoppers also bought condoms manufactured by the leading Japanese brand Okamoto, dodging the fakes pervading the market in China.

Meanwhile, Chinese consumers are seeking out products that will meet heightened standards for health and wellness, like protein powder from the United States. The Wall Street Journal said GNC’s sales rose almost 43 percent last year as an interest in hitting the gym swept Chinese shoppers. Chinese consumers are also buying more electric toothbrushes—a favorite purchase in Europe according to the Xinhua survey—and taking advantage of access to basic over-the-counter health care products like painkillers and vitamins in Japan. In Australia, a Chinese firm acquired supplement maker Swisse Wellness in part due to huge demand from overseas Chinese travelers.

These shifting shopping strategies are propelled by a group of outbound tourists whose spending outside of China is quickly rising (they spent $215 billion last year, up from $140 billion the year before), and overseas brands are clearly taking note.

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