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    [#LUXURYLAB] [SALES] | #Sales of #prestige #beauty #products up #4% in the #UK | @FASHIONNETWORK

    DE FASHION NETWORK | http://bit.ly/2DK0KpU

    #Sales of #prestige #beauty #products up #4% in the #UK 

    Despite economic and political uncertainties, the UK prestige beauty market has grown by a steady 4% in 2017, according to The NPD Group. Makeup was the most dynamic category, followed by skincare and fragrance. Purchases from overseas visitors might explain a large part of the growth.

    Sales of luxury beauty products in the UK reported an increase of 4% in 2017, hitting the £3 billion mark (EUR 3.4 billion), unveiled The NPD Group. According to the market research firm, the growth was largely driven by strong performance in fragrance, make-up and skincare and by the interest from overseas shoppers.

    “The growth we have seen in the UK prestige beauty market is impressive, given the uncertainty with Brexit and the weak pound. British customers continue to purchase prestige beauty with great passion, and we also believe that an increase in global shoppers is a contributing factor to this growth, especially in super premium skincare and fragrance,” commented Helen Duxbury, Senior Account Manager, NPD UK Beauty.

    Healthy fragrance sales

    The prestige fragrance market was valued at £1 billion in 2017. Fragrance ended the year with a solid performance, increasing 3%, with both classic and new launches contributing to this growth. Consumers continue to choose juices over gift sets with the sale of gift sets remaining flat in 2017, with juices growing 4%.

    Skincare and makeup

    Skincare grew 6% in 2017 and this growth has been driven by classic and super premium brands. Although small at present, natural and vegan brands are demonstrating their importance to the skincare market’s growth.

    As far as make-up are concerned, sales increased by 6% compared to last year, but this slowed from the double-digit growth of 10% reported in 2016. Within the make-up sector, foundation and lip colour remain the star performing categories reporting healthy growth throughout 2017.

    “From the figures we have seen in 2017 there is a definite boom in the prestige beauty market. Make-up and super premium skincare are a real attraction for overseas visitors as they include many designer brands. Retailers confirm they have seen an increase in global shoppers in store. Whilst the weak pound confirms our thoughts that the global shopper is boosting the prestige beauty market, UK shoppers continue their love affair with prestige beauty in all categories,” concluded Helen Duxbury.


     

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    [Figure You Should Know] - $253 Billions [#luxury #expenditures #world #promiseconsulting @BainAlerts]

    This is the amount associated to the worldwide personal luxury goods market for the last year and estimated by Bain & Co. It was expected to grow – from 2014 to 2015 – only at 1 to 2 % at constant exchange rates and 13% at current exchange rates. This market should weigh for 24% of the total amount accounted of 1 044 billions €.

    Personal luxury goods includes fashion, cosmetics and jewellery amongst others.

    Slowing down little by little over the years even though they are still among the top in this segment, China seems to suffer from this impact on its economy.

    Chinese’s preferences now went to a less materialistic way of living and are favoring traveling or spas, purchases that influences their well-being. Also, Chinese prefer to shop abroad, as the consumption tax and import tariff impede their spending and since they are willing to buy original and authentic goods that they are most likely to find outside their country.

    Source : Bain & Co, Global Luxury Report, 2015

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    Can Sales and Personal Luxury Goods work together?

    paris sales, luxury, personal luxury gods

     

     

    CLIQUER ICI POUR LE LIRE EN FRANCAIS

    BY PHILIPPE JOURDAN, CEO PROMISE CONSULTING, ASSOCIATE PROFESSOR, IAE GUSTAVE EIFFEL, UNIVERSITY EAST PARIS

     

    The period for summer sales is over.  

    sales, paris, lur, personal luxury goodsThat’s the occasion for merchants to potentially compensate the disappointing first part of the year. Luxury ready-to-wear manufacturers also consider adopting that demarche. Still, at first, sales and luxury don’t look compatible. Besides the potential negative impact of systematic sold off prices, luxury brands are subject to several typical issues. Let’s select three of these to keep it simple.  

    Firstly, sales are meant to effuse products at the end of a season for a certain period. 

    The aim is to effuse in order to facilitate the start of the new collection and thus constantly renew trends in ready-to-wear. Marketing horizon is used to distinguish three cycles in accordance with their duration:

    1: Trend is based on short-term and aims – through a muse or an event - to engender attraction for a haircut, a design, a look, a specific color for ready-to-wear items.

    2: Fashion is based on longer cycles that are commended by the rhythm of fashion parades / collections.

    3: Style (very important for Coco Chanel) is timeless, continuously revisited but timeless as independent from fashion/trends.

    A real luxury brand is naturally attached to style or even fashion, but always refuses to follow ephemeral trends. Sales should logically avoid it. At the same time, luxury ready-to-wear consists in renewing collections and wardrobes... but above all, shouldn’t a luxury ready-to-wear item be timeless? Thus, we should logically think that a timeless clothes, i.e. the reflect of a style, shouldn’t be subject to sales. Hence for handbags, items like Kelly or Birkin by Hermès is not supposed to be sold off... especially considering the fact that its (more) expensive price is justified by the brand’s heritage and history. Some brands understand this and systematically refuse sales for that precise reason.

    Secondly, sales lead to the threat of price control on the luxury worldwide market.

    For several years, luxury brands try to control their selling prices by selling each product at the same price everywhere in the world. A real difficulty if we take into account the different exchange rates and duties that may justify consequent gaps on prices. Such gaps can hardly be justified when clients mostly consists in men or women who are used to travel and visit the same brands’ boutiques – even abroad. Today, that situation is better handled vs. the recent time when Japanese tourists were rushing in Louis Vuitton’s French boutiques to buy many handbags before redistributing these once back in Japan! Now, sales may not be compatible with harmonization efforts by recreating that price gap during limited but unavoidable periods. American specialists in ready-to-wear for instance propose discounts that can equal 50 or 60% while in Europe, private sales for last year’s collection don’t exceed -30%. That literally leads to real speculative bubbles: sales are expected somewhere in the world with the possibility to discreetly pre-reserve items that are displayed on fashion parades by privileged clients. Such gaps on prices wouldn’t matter if flows were marginal. That’s not always the case and many items are then available on EBay, which confirms that purchase is speculation.

    Thirdly, the evolution of the profile of luxury brands’ clients leads to questions concerning the interest of sales.

    Main department stores in Paris illustrate the deep evolution of main brands’ clients. The weight of touristic/temporary clients   has significantly progressed to the detriment of national clients. For some part of the day, boutiques are mostly filled with tourists including a strong proportion of Asian visitors. Tour operators have understood the opportunity for themselves: nowadays, their catalogues and websites propose a selection of towns and dates in accordance with sales periods! That demarche is not likely to be benefic for luxury brands: on short-term, they may improve their turnover but on a longer term, their image may be eroded and may lose their historical national clients’ loyalty. Besides, sold off luxury clothes for tourists constitute a loss in opportunities: some would buy the items without sales, whether because they can’t find it in their country or because they just want it (after all, shopping is also a pleasure for touristic journeys).

    Let’s end with that quote from François Gaston de Lévis: "past is sold, present escapes you, think about the future”. All marketers should be inspired.