millennials seen as new luxury targets – wwd€¦ · wwd business news designer luxury february...
TRANSCRIPT
2/16/16, 3:10 PMMillennials Seen as New Luxury Targets – WWD
Page 1 of 4http://wwd.com/business-news/designer-luxury/millennials-new-luxury-consumers-10344559/
SECTIONSCAREERS CLASSIFIEDS H G I 6 L 4 3 M
FINANCIAL GOVERNMENT / TRADE MERGERS / ACQUISITIONS LEGAL FORECASTS / ANALYSIS STOCK TRACKER
MARKETING / PROMOTION HUMAN RESOURCES BUSINESS FEATURES TECHNOLOGY REAL ESTATEBUSINESS z
wwd business news designer luxury
February 10, 2016
By Luisa Zargani
PRINTA- A A+
LATEST DESIGNER AND LUXURY ARTICLES
Fendi Pre-Fall 2016Courtesy Photo
e email H facebook twitter
Millennials Seen as New Luxury TargetsMILAN — The Millennialsare the new luxury goodstargets and the Chinese remain the topspenders.
These were two of the highlights of thethird edition of the Altagamma Consumerand Retail Insight study presented inMilan on Wednesday and including theassociation’s True Luxury GlobalConsumer Insight 2016 study with TheBoston Consulting Group and the LuxuryRetail Evolution 2016 with Exane BNPParibas.
The True Luxury Global Consumer Insightreport noted that luxury consumers in2015 totaled 400 million, who spent 845billion euros, or $938 billion at averageexchange rates. The number of totalconsumers is expected to grow to 480million in 2022, when they will spend 1.13trillion euros, or $1.27 trillion at currentexchange. “Everything starts and ends withthe consumer,” said Andrea Illy, presidentof Fondazione Altagamma.
Antonio Achille, partner and managingdirector of The Boston Consulting Group,
G
LATEST ISSUE VIEW/ DOWNLOAD
FRENCH ATTACKS CURB TOURIST SPENDING INEUROPE
MORE
JUST IN
2/16/16, 3:10 PMMillennials Seen as New Luxury Targets – WWD
Page 2 of 4http://wwd.com/business-news/designer-luxury/millennials-new-luxury-consumers-10344559/
DESIGNER AND LUXURY
Stella for Him: McCartneyPlots Men’s Wear Move
DESIGNER AND LUXURY
Moynat Readies FirstTokyo Boutique
DESIGNER AND LUXURY
Michael Kors to IncludeBuy-Now Capsule onRunway
MORE ARTICLES BY Luisa Zargani
said quality, exclusivity, craftsmanshipand, for the first time, sustainability arefundamental to consumers today. “For twoout of three consumers, exclusivity isincreasingly more important, as issustainability, a determining factor for 17percent of those interviewed.” Achille saidaround 28 percent of brands are seen at arisk of losing exclusivity.
Millennials, a group of 2.3 billionconsumers aged between 18 and 34 are the“future of the market.” They are “globalconsumers, highly digital, optimistic, opento suggestions and exchanging products, sensitive to sustainability and not inclinedto be indulgent with cosmetic, facade operations from big brands,” said Achille.
Around 28 percent of consumers, especially Baby Boomers, are tired of personalluxury goods, fueling the phenomenon of swapping and “experiencing,” such astraveling. China represents 7 percent of the luxury-goods market, but Chineseconsumers account for 30 percent of the total. The Chinese spent 100 billion euros,or $111 billion, in luxury goods last year, up 43 percent compared with 2012. Morethan 70 percent of spending by Chinese in luxury is done abroad and Milan isincreasingly on top of the list of luxury capitals, he added. Compared with 2014,Seoul and Macau exited the top five list for the Chinese, replaced by New York andMilan.
The Altagamma Retail Evolution study highlighted that luxury brands haveincreasingly morphed into retailers. From 2004 to 2014, 73 percent of sales tookplace in monobrand stores. However, the retail expansion will in the future no longerbe a significant driver of growth for brands, as alternative niche or accessible luxuryplayers have emerged, said Luca Solca, managing director of global luxury goods atExane BNP Paribas. Solca also observed that an increase in prices “does not seem tobe a leverage. Pricing power is less important. Companies must focus on tighteningcapital allocation, improve cost efficiency, focus on space productivity and inventory,boost desirability of brands and products, as well as the digital [component].”
Armando Branchini, vice president of Fondazione Altagamma, said the accelerationof the sector will have an impact on the distribution system. “The Millennials arestimulating a change, and digitization as well as the behavior of Chinese consumersare all key,” he said.
H Share this article G Tweet this article Comment Now
LATESTBUSINESS ARTICLES
BUSINESS FEATURES
French Attacks CurbTourist Spending in Europe
FINANCIAL
European Stock Markets Uneven in Mid-Morning Trading
FINANCIAL
Asian Shares Recover
FINANCIAL
Furla Revenues Climb 30% in 2015
FINANCIAL
Amazon’s Fashion Frontier: Private Label
FINANCIAL
European Stock Markets Rally onChina’s Yuan Moves
FINANCIAL
H&M Sales Rise 7% in January
GOVERNMENT AND TRADE
China’s Import/Export Trade Slides inJanuary
RETAIL
Real Estate Investment in Asia SeenSolid
They Are Wearing: 080Barcelona
They Are Wearing: Copenhagen
They Are Wearing: New YorkFashion Week Fall 2016
2/16/16, 3:10 PMMillennials Seen as New Luxury Targets – WWD
Page 3 of 4http://wwd.com/business-news/designer-luxury/millennials-new-luxury-consumers-10344559/
MOSTPOPULARCOMMENTED
Douglas Names Isabelle Parize CEO
Florence Welch on Alessandro Michele,Grammys and Fashion Faux Pas
Irina Shayk Talks 10 Years of SportsIllustrated Swimsuit Issues and Yeezy
Steve Harvey on the Fashion System
Five Minutes With Brandon Flowers
LATESTPUBLICATIONS
WWD02/16/2016READ NOW
DOWNLOAD THE PDF
Beauty Inc02/16/2016READ NOW
DOWNLOAD THE PDF
VIEW ALL PUBLICATIONS
ADD A COMMENT Sign in using your Facebook or Twitter account, or simply type your comment below asa guest by entering your email and name. Your email address will not be shared.Please note that WWD reserves the right to remove profane, distasteful or otherwiseinappropriate language.
0 Comments WWD Login!1
Share⤤ Sort by Newest
Start the discussion…
Be the first to comment.
Subscribe✉ Add Disqus to your site Add Disqus Addd Privacy%
Recommend♥
blog comments powered by Disqus
MORE STREET
Fashion Week
NEXT STORYARIANA ROCKEFELLER LAUNCHES HANDBAG LINE
1
PREVIOUS STORYHOLLISTER PARTNERS WITH SNAPCHAT ON SELFIES USINGANIMATED LENS
1
2/16/16, 3:10 PMMillennials Seen as New Luxury Targets – WWD
Page 4 of 4http://wwd.com/business-news/designer-luxury/millennials-new-luxury-consumers-10344559/
fFAIRCHILDFASHIONMEDIA
2/16/2016 Tuesday 2/15/2016 Monday 2/13/2016 Saturday 2/12/2016 Friday 2/11/2016 Thursday2/10/2016 Wednesday 2/3/2016 Wednesday 2/3/2016 Wednesday 1/27/2016 Wednesday 1/22/2016 Friday
RECENT WWD ISSUES
FAIRCHILD FASHION MEDIAWWD · Footwear News · Beauty Inc · M · Fairchild Summits · WWD Magic · FN Platform
FEATUREDSTORIES
WWD.com is the authority for news and trends in the worlds of fashion, beauty and retail. Featuring daily headlines and breaking news from all Women's Wear Daily publications, WWD.comprovides the most comprehensive coverage anywhere of fashion, beauty and retail news and is the leading destination for all fashion week updates and show reviews from New York, Paris,Milan and London.
© 2016 Fairchild Publishing, LLC, a subsidiary of Penske Business Media, LLC. All rights reserved. Use of this Site constitutes acceptance of our Terms and Conditions and Privacy Policy. The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of Penske Business Media, LLC.
Powered by WordPress.com VIP
RETAIL FEATURES
WWD Apparel &Retail CEO Summit2015
FASHION FEATURES
NYFW: 2016 SpringReady-to-WearCollections
FASHION FEATURES
Paris FashionWeek: 2016 SpringCollections
FASHION FEATURES
Tokyo FashionWeek Spring 2016
FASHION FEATURES
Men’s Spring 2016Collections
FASHION FEATURES
Resort 2016#WWD Social:Follow Us
ABOUT US SITE MAP ADVERTISING SUBSCRIBE MANAGE SUBSCRIPTIONS FAQ CONTACT US NEWSLETTERS RSS CLASSIFIEDS ADVERTISE