Market Navigator: Global Luxury Retailing—Ultra Luxe and the China Market Stand Out as High-End Hitters

Published – May 2024

Each Market Navigator report offers an in-depth, data-rich view of a retail, consumer or technology sector and is packed with data on sectors, segments, companies and consumers. Our analysts discuss at greater length the sector themes they are observing and the insights they are forming on their markets. We intend these definitive guides to serve as points of reference to those in the retail ecosystem, guiding readers’ strategic decision-making and assisting them in tapping opportunities and navigating disruption in retail and adjacent industries.

In this Market Navigator, Coresight Research explores the global luxury market. Dive in today to gain insights into emerging ideas and opportunities, understand the growth trajectory of the market and explore the competitive landscape. You will also discover key insights about market factors and consumer behavior and preferences, based on proprietary survey findings. We also discuss key themes we are watching in the global luxury market, aligning with our RESET framework. Key topics covered in this report include industry consolidation in the luxury market, the strength of the premium luxury segment and the Chinese luxury market, increased mergers and acquisitions activity, and generative artificial intelligence (GenAI), among others.

Included with this Market Navigator: 

• Grab quick access to charts, data points and conclusions in the presentation download
• Access the data behind key charts and tables in the Excel download

Data in this research report include:

• Total and online market sizes and year-over-year growth rates, 2018–2028E
• Market breakdowns by geography and segment, 2018–2028E
• Savings rates for China, the UK and the US, 2019–2023
• Revenues, operating margins and store counts of leading companies from across the global luxury market
• Proprietary survey data on where US and Chinese consumers are shopping for luxury goods, as well as what channels they are using to shop for luxury goods

Introduction

What We Think

• Coresight View on Global Luxury
• Premium Luxury’s Growing Market Share
• China—The Largest Personal Luxury Market
• Experiential Retail To Drive Sales
• Emerging Tech To Combat Counterfeiting
• The Rise of “Fast Luxury”
• Strategic Partnerships To Drive Hype

Blue-Sky Thinking

• Industry Consolidation and a Strengthening Premium Luxury Segment
• China Will Become The Largest Personal Luxury Market
• AI and Blockchain To Fight Counterfeiting
• Generative AI

The Global Luxury Market

• Market Scale and Opportunity
• Geography Breakdown
• Segment Breakdown
• Online Market
• Market Factors
• Savings Rates
• Inflation

The Companies

• Competitive Landscape
• Operating Margins
• Store Numbers and Changes
• Store Traffic

Survey Analysis: Where Consumers in the US and China Are Shopping and What They Are Buying

• The US
• China

Themes We Are Watching

• Responsive
• Engaging
• Socially Responsible
• Expansive
• China
• India
• Tech-Enabled

Global Observations and Learnings

• Product Localization Strategies
• More Mature Social Commerce in China
• Greater Emphasis on Sustainability in Europe and the US

Technologies with Potential

• Technology in the Luxury Sector
• Warehouse Management Platforms
• Blockchain
• Loss-Prevention Technology
• Cloud Computing
• Associate-Enablement Technologies
• CRM Software

Real Estate and Store Openings/Closures

Retail Innovators

• 3DLOOK
• Bambuser
• Obsess

Notes and Methodology

Appendix

• Company Profiles

Appendix: About the Coresight Research RESET Framework

Appendix: About the Coresight Research EnCORE Framework

77-page PDF report

Burberry, Canada Goose, Capri Holdings, Chow Tai Fook Jewellery, The Estée Lauder Companies, Hermès, Kering, L’Oréal, LVMH, Moncler, Prada, Ralph Lauren, Richemont, Tapestry

1. Sales of Premium Luxury Businesses (Left Axis; USD Bil.) and Share of Total Market (Right Axis; %)
2. China Personal Luxury Goods Market: Share of Global Market (Right Axis; %)
3. Global Personal Luxury Goods Market Size (Left Axis; USD Bil.) and YoY Change (Right Axis; %)
4. Global Luxury: Share of Total Sales (%; Top) and Total Sales USD (Bil.; Bottom), By Geography
5. Global Luxury: Segment Breakdowns (% of Total Sales Top; Total Sales USD Bil., Bottom)
6. Global Personal Luxury Goods Market Online Sales (Left Axis; USD Bil.) and YoY Change (Right Axis; %)
7. Global Luxury E-Commerce Penetration (Online Sector Sales as % of Total Sales)
8. Number of HNWIs in Selected Countries, 2019—2022, Ranked by 2022 Numbers (Mil.)
9. YoY Change in Personal Savings (Left Axis; %) and China Personal Savings as a Proportion of Disposable Income (Right Axis; %)
10. YoY Change in Personal Savings (Left Axis; %) and UK Personal Savings as a Proportion of Disposable Income (Right Axis; %)
11. YoY Change in Personal Savings (Left Axis; %) and US Personal Savings as a Proportion of Disposable Income (Right Axis; %)
12. YoY Change in CPI in China (%)
13. YoY Change in CPI in the UK (%)
14. US: Consumer Price Index by Selected Expenditure Category, YoY % Changes (Unadjusted)
15. International Tourist Arrivals (YoY Growth, %)
16. Number of Internet Users Worldwide (Billion)
17. Major Luxury Brands and Brand Owners Revenues, Ranked by 2022 Revenues (USD Bil.)
18. Key Information of Major Luxury Brands and Brand Owners
19. Key Information of Selected Luxury Retailers (Ordered Alphabetically)
20. Total Operating Margins of Selected Luxury Brands and Brand Owners, Ranked by 2022 Operating Margin (%)
21. Selected Luxury Brands and Brand Owners Store Numbers, Ranked by 2022 Store Count
22. US Store Traffic at Selected Luxury Brands and Brand Owners: YoY % Change (Ranked by 2023 Total Absolute Traffic Count)
23. US Consumers: Whether They Purchased Luxury Products in the Past Three Months (Left; % of All Respondents) and How Much They Spent in USD (Right; % of Luxury Shoppers)
24. US Luxury Shoppers: Luxury Product Categories They Have Purchased in the Past Three Months (% of Respondents)
25. US Luxury Shoppers: Product Categories They Have Purchased in the Past Three Months (% of Respondents)
26. US Luxury Shoppers: Brands They Have Shopped in the Past Three Months (% of Respondents)
27. US Luxury Shoppers: Brands They Have Shopped in the Past Three Months (% of Respondents)
28. US Luxury Shoppers: Channels They Have Shopped in the Past Three Months (% of Respondents)
29. US Luxury Shoppers: Reasons for Purchasing Luxury Products in the Past Three Months (% of Respondents)
30. Chinese Consumers: Whether They Purchased Luxury Products in the Past 12 Months (Left, % of All Respondents) and How Much They Spent, RMB (Right; % of Luxury Shoppers)
31. Chinese Luxury Shoppers: Luxury Categories They Have Shopped in the Past 12 Months (% of Respondents)
32. Chinese Luxury Shoppers: Luxury Brands They Have Shopped in the Past 12 Months (% of Respondents)
33. Chinese Luxury Shoppers: Channels They Have Shopped in the Past 12 Months (% of Respondents)
34. Chinese Luxury Shoppers: Purposes of Shopping Luxury Products in the Past 12 Months (% of Respondents)
35. Selected 2023 M&A Activity in the Global Luxury Market
36. The Coresight Research “Fast Luxury” Model
37. The EnCORE Framework
38. Identified Technologies with Relevance and Potential in the Luxury Sector
39. Store Opening/Closure of Selected Luxury Brands in 2023