Analysis Of Global Luxury Industry In 2018: Leading Luxury Sales In China And The US

By the end of 2017, the latest statistics of EUROMONITOR INTERNATIONAL showed that the growth of the global luxury market began to slow down in 2011, and even negative growth occurred in 2013 after the global macroeconomic recovery was weak. Subsequently, the signs of recovery began in 2014 and 2015, and continued to 2016.

In 2016, the overall size of the global luxury market grew by 3.32% in real terms and over 389 billion 200 million US dollars.

With the continuous recovery of the global economy, global luxury consumption will reach US $402 billion and US $416 billion in 2017 and 2018 respectively.

2017-2021, global luxury consumption will enter a stage of steady development, and the actual growth will remain at around 3%.

Chart 1:2011-2021 global luxury sales trend chart (unit: $one billion,%)

Source: EUROMONITOR foresight Industry Research Institute

Global regional distribution: luxury sales in China and the US are far ahead.

The latest statistics show that the United States and China are the two largest luxury goods markets in the world, accounting for over 40% of total sales.

In 2016, US luxury sales accounted for 22% of the global market, while the Chinese market was second only to the United States, accounting for 21% of the world's total market share.

Figure 2:2016 annual share of global luxury consumption countries (unit:%)

Source: EUROMONITOR foresight Industry Research Institute

From the incremental comparison of luxury sales in major countries, in the past five years, the US luxury sales have maintained a sustained high growth rate, benefiting from strong economic recovery trend. In 2011-2016 years, it has become the largest global sales growth market, with an absolute growth of 12 billion US dollars, and luxury sales in the Japanese market increased by 7 billion 200 million US dollars, ranking second in the world.

Due to economic slowdown, exchange rate fluctuations and policy implications, China became one of the worst performing markets in 2011-2016 years. During this period, luxury sales growth was negative, which made the United States once again become the first big country in luxury goods sales.

Chart 3:2011-2016 comparison of global luxury sales increments ($one billion)

Source: EUROMONITOR foresight Industry Research Institute

More attention has been paid to the layout of e-commerce channels, and online channel sales have maintained rapid growth.

EUROMONITOR INTERNATIONAL's latest statistics show that traditional luxury retail channels still dominate, but growth momentum is insufficient.

According to the data in 2016, the actual sales volume of the global luxury line has reached 91%, an increase of only 2% over the same period.

Online luxury retail sales accounted for a low proportion, but the growth was bright.

In 2016, online luxury sales accounted for 9% of the global market, with a growth rate of 12%.

Chart 4:2015-2016 global luxury sales distribution channel sales trend change chart (unit:%)

Source: EUROMONITOR foresight Industry Research Institute

Since 2011, the trend of global luxury brands' online and offline consumption accounts for a marked increase in online consumption.

EUROMONITOR believes that the online consumption of luxury goods will continue to rise in the next few years.

By 2021, online consumption will account for about 13%.

Chart 5:2018 first quarter of women's shoes TOP10 brand sales and conversion rate comparison (unit: 10000 pieces,%)

Source: EUROMONITOR foresight Industry Research Institute

From Global Subdivision

As for the development of sales channels, the sales volume of the US online channel is the highest during the 2011-2016 years, while the Chinese luxury online sales are closely followed.

The development of online channels has brought new vitality to luxury goods.

From the global ranking of luxury goods released by DDT, a famous global auditing and business consulting firm (Deloitte), we can see the importance of the layout of e-commerce channels for the development of luxury brands in the 2018.

Facts have proved that the earlier luxury brands who accepted and started the layout of e-commerce channels all gained good results.

Take French Open Cloud group's Gucci as an example, it is understood that the brand chose the focus in the Chinese market and the Middle East market in 2017.

Set up online stores, and redesigned the brand's official website and added visual display and personalized experience service, which also brought a good performance for Gucci. The sales growth of e-commerce channels reached 86%, thus making its parent company's 2016-2017 growth in sales in the financial year 7.7%.