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1、499O Oc ct to ob be er r 2023RXSLXFR23RPFrance LuxuryRetailXIn partnership with:20232|RetailX|October 2023RXSLXFR23RP 2023 SUSTAINABILITY REPORT|INTRODUCTIONFRANCE LUXURY SECTOR|INTRODUCTIONThe French online luxury sector turned over 13.8bn in 2022,up 8.6%on 2021 and significantly ahead of the 11.4b
2、n of revenues generated in 2020.Yet the sector was hard-hit by travel restrictions during the pandemic and has still not matched the pre-pandemic level of 14.1bn seen in 2019.HERES WHAT WE FOUNDAt 4.95bn,the French luxury fashion segment remains the biggest contributor to luxury ecommerce revenues.L
3、uxury leather goods and prestige cosmetics are also large contributors,turning over 3.5bn and 2.58bn in 2022 respectively.Luxury eyewear is the only segment to sit higher than its 2019 pre-pandemic level in 2022.French consumers buy more luxury across all segments than the average in Europe by a sig
4、nificant margin.In luxury fashion,for example,the average spend by French consumers sits at 75 against a European average of 39.In luxury leather goods,it is 54 to 21 while in prestige cosmetics and perfumes,the difference is 39 to 18.Despite French consumers having a growing propensity for online s
5、hopping in all sectors,for luxury goods,the largest single channel(43%)lies in physical stores for purchases.However,online and mobile,while individually less than physical retail,account for 57%of sales 29%online with a computer and 28%on mobile.By revenue,the device split sits at 60:40 in favour o
6、f desktop.IntroductionContentsMarket context 03Market segments 05French luxury consumer:Behaviour 07French luxury consumer:Channels 10French luxury consumer:Sustainability 12Partner Perspective 14Largest 50 16Company Profile:Calvin Klein 18Company Profile:Herms 19Company Profile:Lacoste 20Company Pr
7、ofile:Lancme 21Company Profile:Pandora 22Company Profile:Vestiaire Collective 23Company Snapshots:Cartier,FarFetch,Fendi 24Company Snapshots:Mont Blanc,Ray-Ban,WatchFinder 25The road ahead 26End Matter 29Knowledge Partners 30In terms of why French shoppers buy luxury goods,the largest single cohort(
8、27%)purchased as a gift for someone else.Meanwhile,18%were attracted by instore service,with the same proportion liking a product on social media with 6%actually purchasing an item through social media.French luxury consumers are increasingly aware of the environmental impact of what they buy and,wh
9、en asked,67%say that they are interested in buying sustainable luxury products,with 54%agreeing that they would like to buy more second-hand luxury.Only 22%are interested in renting luxury products,while 63%are interested in luxury repair schemes.17%say that they buy a significant amount of second-h
10、and luxury goods,while 9%say more than half of the luxury goods they buy are second-hand.The European average is 6%.With a raft of luxury brands making forays into the metaverse,interest among French consumers is reasonably high,with 40%saying they are interested in this evolution of the internet.Wh
11、ile the Largest 50 online luxury retailers selling in France features a veritable whos who of luxury brands Lacoste,Louis Vuitton,Herms,Dior and Chanel in the Largest 10 alone the largest retailer by traffic is Vestiaire Collective,a marketplace selling pre-loved luxury fashion.Similarly,the fifth-l
12、argest is FarFetch,a UK-based marketplace selling a rich variety of luxury brands large and small.3|RetailX|October 2023RXSLXFR23RP 2023 The French online luxury sector,like luxury worldwide,was hard-hit by the pandemic in 2020 and 2021,largely as a result of the travel restrictions put in place dur
13、ing those years.While domestic sales held up,the lack of tourists and the money they spent was keenly felt.However,the sector has seen remarkable recovery.In 2022,it turned over 13.8bn,up 8.6%on 2021 and significantly ahead of the 11.4bn sales during the worst of the pandemic in 2020.While the secto
14、r has rallied considerably,it has yet to reach its pre-pandemic,2019 level of 14.1bn itself a record for the sector.There are signs,however,that online French luxury sales could well hit or surpass that figure in 2023.Thats because French consumers are avid luxury buyers,outstripping the level of sp
15、end across all segments of the sector compared to European averages and only lagging behind US,Chinese and Japanese spenders.Revenue growth remains in positive territory following a huge surge in late 2021,with luxury eyewear,fashion and leather goods generating the most revenue growth for the secto
16、r.Watches and jewellery saw less growth during 2022.Although sales were hit by the pandemic,the French luxury sector has seen some remarkable recovery since,with plenty more to comeMarket contextRXSLXFR23-1-v1Annual revenue for the luxury market by segment(bn EUR),France,2018-2022Source:Statista Dig
17、ital Market InsightsRetailX 20235545533334332002Prestige Cosmetics&FragrancesLuxury Watches&JewelryLuxury Leather GoodsLuxury FashionLuxury Eyewear13.214.111.412.713.8RXSLXFR23-2-v2Annual change in revenue for the luxury market by segment(bn EUR),France,2018-2022Source:Statista
18、 Digital Market InsightsRetailX 202312%-20%17%12%6%-15%6%9%8%-21%19%9%6%-25%15%2%6%-19%11%10%7%-19%12%8%20021202220020Luxury EyewearLuxury FashionLuxury Leather GoodsLuxury Watches&JewelryPrestige Cosmetics&FragrancesTotalSUSTAINABILITY REPORT|INTRODUCTIONFRANCE LUXURY SECTOR|MARKET CONTE
19、XT4|RetailX|October 2023RXSLXFR23RP 2023 While the pandemic impacted tourist trade for French luxury throughout 2020 and into 2021,staggered reopening of travel during 2021 and early 2022 saw some of the key spenders from the US,China and Japan return to buy,both in person and online.However,the mar
20、ket then saw some increased drag on its recovery across 2022,with inflation across Europe rising sharply as a result of energy price rises caused by Russias invasion of Ukraine.This saw shoppers in Europe immediately rein in spending across all retail,with a particularly sharp impact on luxury sales
21、.Despite the impact of inflation on consumer prices in France being less than in Europe as a whole,it still slowed luxurys recovery in the country.Late 2022 and the start of 2023 saw inflation in Europe start to ease and the consumer price index in Europe start to fall with a particularly dramatic d
22、rop seen in Western Europe which gives the retail industry as a whole cause to believe that spending will increase.For French luxury,though,the mood is mixed.With domestic French consumer prices continuing to rise albeit from a lower level local luxury purchases may remain slightly suppressed.Yet th
23、e improving situation in Europe,as well as in the US and Japan,is likely to offset this to a large degree,encouraging both tourism and ecommerce and,as a consequence,driving up sales of French luxury.RXSLXFR23-4-v4Luxury goods revenue by country(bn),2022Source:Statista Digital Market InsightsRetailX
24、 202366.046.425.113.813.0United KingdomFranceJapanChinaUnited StatesRXSLXFR23RP-FR-CS-19-v5Annual percentage change in the Consumer Prices Index(CPI),France,2022-2023Figure for Western Europe calculated using the average for countries showcased in this reportSource:Diverse National Institutes of Sta
25、tisticsRetailX 2023Jan 22Feb 22 Mar 22 Apr 22 May 22 Jun 22Jul 22Aug 22 Sep 22Oct 22 Nov 22 Dec 22Jan 23Feb 23 Mar 23510FranceWestern EuropeEuropeSUSTAINABILITY REPORT|INTRODUCTIONFRANCE LUXURY SECTOR|MARKET CONTEXT5|RetailX|October 2023RXSLXFR23RP 2023 French consumers buy more luxury across all se
26、gments than the average in Europe by a significant margin.In luxury fashion,for example,the average spend by French consumers sits at 75 against a European average of 39.In luxury leather goods it is 54 to 21,while in prestige cosmetics and perfumes,average spend sits at 39 to 18.Each segment is a m
27、ajor contributor to the overall European luxury market,with French luxury fashion accounting for 15%of total online European sales of fashion.This is repeated across all segments of the luxury market,with French sales contributing between 14.5%(watches and jewellery)to 20%(luxury leather goods)of to
28、tal online sales.Luxury fashion encompassing apparel,footwear and non-leather accessories is the largest segment of the French online luxury market,accounting for 36%of the market.This is well ahead of the luxury leather goods segment,which is second largest,at 25%.All segments of the market in Fran
29、ce remain below their pre-pandemic levels,with the exceptions of luxury eyewear and leather goods,both of which have managed in 2022 to regain and surpass their 2019 levels.All segments are now ahead of their 2018 revenues.Although luxury fashion leads the way,it is eyewear and leather goods that ha
30、ve surpassed their pre-pandemic peaksMarket segmentsRXSLXFR23-10-v5Average spending of the luxury shopper by segment(),France vs Europe,2022Source:Statista Digital Market InsightsRetailX 202339211618Luxury EyewearLuxury FashionLuxury Leather GoodsLuxury Watches&JewelryPrestige Cosmetics&F
31、ragrancesFranceEuropeRXSLXFR23-6-v3French luxury fashion revenue as share of theEuropean market(%),2022Source:Statista Digital MarketInsightsRetailX 2023Other countries85.1%France14.9%RXSLXFR23-7-v3French luxury leather goods revenue as share of theEuropean market(%),2022Source:Statista Digital Mark
32、etInsightsRetailX 2023Other countries80.1%France19.9%SUSTAINABILITY REPORT|INTRODUCTIONFRANCE LUXURY SECTOR|MARKET SEGMENTS6|RetailX|October 2023RXSLXFR23RP 2023 French brands dominate the prestige cosmetics and fragrances segment,with many such as Chanel synonymous with both luxury and perfume.Fren
33、ch sales account for 17.5%of Europes total.This segment is more reliant than most on sales to tourists through transport hubs and has been one of the slowest to regain its 2019 position in the market.However,strong growth was seen between 2021 and 2022,while summer 2023 is likely to have generated e
34、ven more sales from tourism.Luxury watches and jewellery also lag behind other luxury segments in the French market,with fewer French brands being associated with watches in particular and the fad for collecting designer watches seen during 2019-2020 starting to fade.This latter factor is likely the
35、 result not only of changing trends but also of the designer watch collection and resale market becoming somewhat saturated.Being an investment-led opportunity,it is likely that the rising cost of living has also seen a slowdown in spend on luxury watches.Luxury eyewear,however,is on the up.Accounti
36、ng for the smallest segment of the French luxury market,the move towards buying eye and sunglasses with designer branding and cache continues apace.As a relatively new segment for many luxury brands,eyewear is bucking the overall luxury spend trend in France and worldwide.RXSLXFR23-5-v2French luxury
37、 eyewear revenue as share of theEuropean market(%),2022Source:Statista Digital MarketInsightsRetailX 2023Other countries83.3%France16.7%RXSLXFR23-9-v3French luxury prestige cosmetics and fragrancegoods revenue as share of the European market(%),2022Source:Statista Digital MarketInsightsRetailX 2023O
38、ther countries82.8%France17.2%RXSLXFR23-8-v3French luxury watches and jewellery goods revenueas share of the European market(%),2022Source:Statista Digital MarketInsightsRetailX 2023Other countries85.5%France14.5%SUSTAINABILITY REPORT|INTRODUCTIONFRANCE LUXURY SECTOR|MARKET SEGMENTS7|RetailX|October
39、 2023RXSLXFR23RP 2023 For such a well-developed economy,French consumers are not as drawn to ecommerce generally as other markets in Europe such as the UK.Just 45%of French shoppers shop online more than once a month,with only 13%of these doing so weekly.Typically they say they do so to save time(42
40、%),for direct home delivery(35%),for cheaper prices(34%)and for greater product range(26%).As many as 8%never shop online,with 39%saying they are unfamiliar with online purchases,significantly more than the 19%European average.Conversely,30%avoid online shopping because they like to shop instore,a f
41、igure in line with the European average of 39%.Of those who do shop online,as seen in most markets,they typically spend between 12 and 120 each month.This compares favourably with the European average.Where it gets interesting for the French online luxury sector is that a higher proportion of French
42、 Although French consumers are less drawn to ecommerce,they do tend to spend on luxury due to social media and giftingFrench luxury consumersSUSTAINABILITY REPORT|INTRODUCTIONFRANCE LUXURY SECTOR|FRENCH LUXURY CONSUMERSRXSLXFR23RP-FR-CS-1-v2Frequency of online purchase,France,2023Based on 500 indivi
43、duals in France,aged 16-77,Mar 2023.Question:How often do you shop online?.Results have been strati?ed byage and genderSource:RetailX Consumer ObservatoryRetailX 20231%13%31%16%8%5%8%NeverLess than once a yearMore than once a yearMore than once every three monthsMore than once a monthMore than once
44、a weekMore than once a dayRXSLXFR23RP-FR-CS-16-v5Monthly online shopping expense,France,2023Based on 430 individuals in France and 3210 individuals in Europe,aged 16-77,Mar 2023.Question:In the last 12 months,how muchhave you spent on average per month on online shopping?.Results have been strati?ed
45、 by age and genderSource:RetailX Consumer ObservatoryRetailX 20234%47%28%14%3%4%2%49%26%12%7%4%Less than --1200More than 1200FranceEurope8|RetailX|October 2023RXSLXFR23RP 2023 consumers(42%)spend between 120 and 600 per month online,which is more than the European average(38%
46、).Luxury is a high-value market and while the proportion of the population in France spending at this level is relatively low,it leans them more towards spending on luxury items.LUXURY SPEND TRENDSSpend on luxury is relatively pronounced among French shoppers,with 51%spending between 101 and 500 per
47、 item significantly ahead of the 45%European average.92%of French shoppers spend up to 500 on a single luxury item compared to 87%across the whole of Europe.When looking at data for the whole French ecommerce market,49%of consumers are buying fashion or accessories and 31%beauty and cosmetics.This p
48、oints to these being the prevalent segments for this luxury spend,which is backed up by the data seen on pages 4 and 5.Where luxury shopping in France deviates from general ecommerce is why French consumers say that they engage with luxury brands.The biggest driver for 27%of shoppers is in buying a
49、gift for someone else.The next-most important factor lies in the instore experience offered by these brands.Luxury prides itself not only on the goods it sells but also the theatricality and performance that often accompany the purchase,with one-to-one service,complimentary drinks and other embellis
50、hments.While these are hard to replicate online,the factor still plays a role,with consumers expecting the online RXSLXFR23RP-FR-CS-9-v5Expense per luxury item(),France and Europe,2023Based on 411 individuals in France and 3210 individuals in Europe,aged 16-77,Mar 2023.Question:On average,how much d
51、o youspend on each luxury item you purchase(in GBP,)?.Results have been strati?ed by age and genderSource:RetailX Consumer ObservatoryRetailX 20236%35%51%5%3%4%38%45%6%6%01--10001000FranceEuropeRXSLXFR23RP-FR-CS-4-v2Luxury brand contact in the past year,France,2023Based on 430 individua
52、ls in France,aged 16-77,Mar 2023.Question:In the last 12 months,have you had contact with a luxury brandthrough the following activities?.Results have been strati?ed by age and genderSource:RetailX Consumer ObservatoryRetailX 202327%19%18%15%14%13%7%6%5%4%28%None of the aboveSent a private message t
53、o a brand on social mediaShared a product on social mediaMade a purchase through social mediaReturning an item you boughtRead a newsletter emailClicked on an o?er emailed to meFollowed a brand on social mediaLiked a product on social mediaIn-store serviceBuying a gift for someone else9|RetailX|Octob
54、er 2023RXSLXFR23RP 2023 experience to match an instore purchase,even if its without the drinks.Social media influence either through following a brand or seeing products on these platforms is also proving to be key.However,since its mentioned by just 16%of shoppers,its not as key as you might imagin
55、e and only slightly more compelling than the 14%who say they buy luxury by clicking on an offer in an email.6%have purchased through social media.DRIVERS OF LUXURY PURCHASEDespite many luxury brands having a marked aesthetic,high-quality feel and the attendant luxury shopping experience,these factor
56、s are only somewhat important to French luxury consumers.What drives them to buy luxury is very much what they want from any brand or retailer:reliability.According to data,75%of consumers in France rate the retailers reliability as very or somewhat important as a driver to shop with a luxury brand.
57、This is matched by 75%who see product availability as a very or somewhat important consideration.The shopping experience registers as very important to just 25%,while the brands feel and aesthetic is valued by 23%.It is interesting to note that when looking at the broader French ecommerce sector and
58、 its consumers,none of these reasons figure as key drivers for shopping online.The main ecommerce market in France,like everywhere else,is driven by convenience and time saving,delivery options and price.RXSLXFR23RP-FR-CS-3-v2Drivers of online luxury purchase,France,2023Based on 430 individuals in F
59、rance,aged 16-77,Mar 2023.Question:How important to you are the following factors whenpurchasing luxury items online?.Results have been strati?ed by age and genderSource:RetailX Consumer ObservatoryRetailX 202354%46%42%41%34%30%25%23%21%29%29%29%35%33%41%36%8%8%10%12%11%17%The brands feel or aesthet
60、icThe shopping experienceThe retailer o?ering my preferred payment methodSpeedy deliveryDiscounts/reduced priceEasy return processProduct availabilityThe retailers reliabilityNot important at allSomewhat unimportantSomewhat importantVery importantLuxury,as a much more considered purchase,is viewed v
61、ery differently by its consumers.Luxury isnt about price,but rather quality and value.It is the reliability of the products and services that sit around the purchase and product that attract shoppers to luxury brands.Even as a small but significant number of consumers turn to luxury brands for one-o
62、ff,long-lasting purchases particularly as an antidote to throw-away fast fashion consumers view luxury brands as something outside the mainstream retail model and are attracted to shop with these brands for very different reasons to how they shop in other sectors.Since the personal touch builds on t
63、he feeling of reliability and quality and for many luxury brands,their focus will remain on the instore experience.However,in the internet age,these brands now face the task of how to blend online and offline to meet these consumer demands,which are different from the mainstream retail market.10|Ret
64、ailX|October 2023RXSLXFR23RP 2023 As seen,the French luxury sector is one that is driven by reliability and customer service and,as a result,is driven by physical retail.For example,according to RetailXs research,43%of French luxury consumers have purchased luxury goods via a physical store.However,
65、online and mobile,while individually less than physical retail,account for 57%of total luxury sales in France,with 29%of sales made online with a computer and 28%on mobile.This points to the growing omnichannel and hybrid nature of luxury retail generally.When the pandemic shuttered physical retail,
66、the relatively un-digital luxury sector was hit hard.However,with deep pockets,many hastened their tentative forays into ecommerce in order to claw back revenue.For most retailers,this move was a success and the impetus needed to add ecommerce options.Post-pandemic,with stores and travel back up and
67、 running,the sector has found itself very much at the forefront of delivering true omnichannel retail,combining the instore,online and mobile facets of their branding to reach an ever more tech-savvy and increasingly younger audience.While dominated by physical retail,French luxury selling is slowly
68、 becoming a beacon of omnichannelChannels and devicesSUSTAINABILITY REPORT|INTRODUCTIONFRANCE LUXURY SECTOR|CHANNELS AND DEVICESRXSLXFR23RP-FR-CS-2-v2Channels used for luxury purchase in the past year,France,2023Based on 430 individuals in France,aged 16-77,Mar 2023.Question:In the last 12 months,th
69、rough which channels have youpurchased luxury brands?.Results have been strati?ed by age and genderSource:RetailX Consumer ObservatoryRetailX 202343%29%28%5%Online-TabletOnline-MobileOnline-ComputerIn a physical storeRXSLXFR23-11-v2Device usage by revenue for luxury shopping(%),France,2018-2022Sourc
70、e:Statista Digital Market InsightsRetailX 202367%64%61%60%59%33%36%39%40%41%2002MobileDesktop100.0100.0100.0100.0100.011|RetailX|October 2023RXSLXFR23RP 2023 The data shows essentially a 50:50 split between instore and some form of digital purchase points,indicating that this m
71、ove to attract a younger,more digital customer base is proceeding successfully.However,in revenue terms,the device split sits at 60:40 in favour of desktop over mobile.This points to luxury shoppers in France not only being drawn to physical stores but also doing so having researched online.When the
72、y come to purchase,it seems shoppers trust the big screen of desktop internet ecommerce over the small screen up-start that is mobile.Additionally,unlike mainstream fashion which is dominated by mobile-first Millennials and Gens Y and Z the luxury sector is more the preserve of slightly older shoppe
73、rs who typically turn to their laptop to research and the store to buy.Where this older cohort does embrace ecommerce,it is again through the more tried and trusted old internet on a desktop.Luxury is a much more considered purchase,so the less immediate world of mobile shopping is replaced by more
74、time taken to view in more detail.Buyers want to know what the luxury items look like,how and where they are made and so on.This again sees desktop gain the edge:the larger screen,often with a much better resolution than a phone or tablet,offers a better online way to explore luxury items in detail.
75、However,as the younger shopping generation comes of age,it brings with it the desire to shop in a new way.Luxury retailers and brands need to be aware that this online/offline split and the accompanying desktop/mobile split are both set to change.RXSLXFR23-12-v2Revenue by channel for luxury multicha
76、nnel shoppers(%),France,2018-2022Source:Statista Digital Market InsightsRetailX 202390%88%85%83%80%20%2002OnlineO?ine100.0100.0100.0100.0100.0Younger shoppers want a more immersive and technology-led experience of the brands they shop with and they want that both online and ins
77、tore.As a result,the use of mobile is set to become more prevalent in luxury,with much of it centred,however,not around m-commerce per se,but around engagement and social within and without the store.Cutting edge tech such as augmented and virtual reality(AR and VR)are also set to play key roles acr
78、oss retail,as is the metaverse.Since luxury retailers are already at the forefront of these shifts,it is likely that we shall see a greater move towards the devices and channels used to shop luxury in France and beyond.SUSTAINABILITY REPORT|INTRODUCTIONFRANCE LUXURY SECTOR|CHANNELS AND DEVICES12|Ret
79、ailX|October 2023RXSLXFR23RP 2023 To a growing number of shoppers worldwide,a draw for buying luxury goods is that they offer timelessness,longevity as an antithesis to ubiquitous fast fashion.Younger consumers in particular look to luxury as a more sustainable option for fashion.This is confirmed b
80、y RetailX survey data,which shows that 67%of French luxury shoppers shop with a sustainable mindset.Of these,68%look for luxury produced within France,thereby cutting down on international shipping and its environmental impact.French consumers are lucky in that many of the worlds luxury goods are pr
81、oduced by French brands and even in-country so it is hard to parse whether they shop locally for sustainability reasons,patriotism or simply because the items they desire just happen to be French.With 53%saying they would pay up to 10%more for sustainable luxury products,it may be that the former is
82、 the case,although 36%would not pay any extra.This is broadly comparable to the European average.63%of French luxury shoppers are also interested in repair schemes to extend the lives of their luxury investments,while 23%are keen to rent luxury.Both figures are further evidence that shoppers look to
83、 luxury for sustainability reasons.Luxury has tapped into the consumer desire to be more sustainable,creating new business models that include a thriving second-hand market Sustainable luxurySUSTAINABILITY REPORT|INTRODUCTIONFRANCE LUXURY SECTOR|SUSTAINABILITY13|RetailX|October 2023RXSLXFR23RP 2023
84、SUSTAINABILITY REPORT|INTRODUCTIONFRANCE LUXURY SECTOR|SUSTAINABILITYSECOND-HAND LUXURY The luxury as an investment approach to shopping is increasingly being validated by the rise in sales of second-hand luxury goods.According to the RetailX consumer survey,54%of French luxury shoppers are interest
85、ed in buying second-hand luxury goods.Compared to the European average,French consumers show a growing propensity for this form of luxury shopping,with 34%buying up to a quarter of their luxury purchases second-hand,while a further 17%buy up to half.This is just ahead of the European averages of 33%
86、and 15%respectively.Even the 39%of French consumers who buy no second-hand items at all is better than the 44%European average.Conversely,while only a tiny proportion of French shoppers 0.9%buy all of their luxury goods second-hand,they are still far more common than across Europe(0.5%).The move tow
87、ards second-hand luxury is not peculiar to France since it has become a global phenomenon,with second-hand moving from 3%of the total luxury market in 2019 globally to almost 4%by the close of 20221.Initially driven by sustainability concerns and the hunt for vintage items,second-hand luxury has sin
88、ce seen a boost from the cost-of-living crisis that has swept across Europe in 2022 and into 2023.While the vast majority of shoppers using the luxury sector are relatively high net worth individuals who are seeking new and unique items,so who dont need the economic advantage of buying second-hand,t
89、here is a growing cohort of younger consumers that see the value in buying and indeed then selling on unique luxury items.This segment of the market is set to grow slowly and steadily.The market for second-hand luxury is also focused at the more affordable but trendy end of the market.Rare Adidas an
90、d Nike items are among the most popular on second-hand luxury sites in Europe generally,although French luxury brands Louis Vuitton and Chanel are also in the top 101.The burgeoning luxury repair sector is also entwined in the second-hand market.64%of European consumers say that they are interested
91、in luxury repair schemes,with many seeing this as a means to extend the lives of their items thus protecting their initial investment in the goods as well as using such schemes to repair second-hand goods,either on purchase or as part of resale2.1 https:/ https:/ 2023RXSLXFR23RP 2023 Im sure it come
92、s as no surprise to anyone to hear that France continues to lead the way in the purchase of luxury goods.Indeed,as a Frenchman,I must be responsible for at least some of those purchases myself.The YoY increase of luxury sector turnover is heartening,albeit still some margin behind its pre-pandemic l
93、evels.Its worth considering that the majority of luxury purchases were,and indeed still are,conducted in physical stores.Theres something to be said for the physical interaction and inspection of purchases,especially at this price point.As we all remember,the pandemic pushed us all to become online
94、shoppers and this is still reflected in the slowly increasing number of shoppers willing to buy their luxury goods online.Indeed,with the increasing popularity of second-hand luxury purchases through sites like Vestiaire,online purchases are the only option since there are no physical stores to visi
95、t.Stphane Dehoche,CEO,imaginoMaking it personalSUSTAINABILITY REPORT|INTRODUCTIONFRANCE LUXURY SECTOR|PARTNER PERSPECTIVEWith the increasing number of shoppers engaging and purchasing through multiple devices and channels,the work for the luxury retailers marketing teams becomes ever more complex.Th
96、ese are customers who expect a level of care,personalisation and individualisation in their brand interactions that far surpass what we may expect from a high-street retailer.Where poor personalisation is likely to be forgiven or ignored from day-to-day brands,it is likely to have a far greater nega
97、tive impact in the luxury sector.We also cant confine this detailed personalisation to digital-only channels.In no other sector is the combination of online and instore customer data so pivotal.In this sector,its simply unacceptable to send someone an email or target them through social media with a
98、n item theyve previously bought instore.So my advice to luxury brands is to invest in that marketing stack.But most importantly,make sure youve sensibly invested in a solution that can align and make all your customer data accessible,across all channels,ready for use in the moment that you need it.T
99、he number of channels that customers will expect to be able to interact with,and receive beautifully curated messaging through,is not going to decrease.The future is coming and luxury brands,above all others,must be ready.Who is imagino?imagino provides a composable Customer Marketing Platform,which
100、 allows companies to connect,unify and activate their customer data,providing wonderful customer experiences.Data is essential.It serves your entire organisation.All functions.All teams.We dont believe you should create another database of customer data to get value from it.You already have all the
101、data you need.Leave it where it is.Draw on it when its required for the specific use case,then write it back to where it came from when youve used it,with the appropriate updates.Its about access to everything you need and nothing that you dont.These factors add up to a greatly reduced time to value
102、,a lower initial investment and faster returns.We firmly believe that software should serve customers,not vendors.For marketers who think big but need to act fast.Any industry.Any journey.Any 15|RetailX|October 2023RXSLXFR23RP 2023 Here to Slay.the CDP MonsterThe only composable Customer Marketing P
103、latform brings marketing flexibility,agility,and a ROI in 12 weeks.Scan me to find out more.16|RetailX|October 2023RXSLXFR23RP 2023 The dominance of French luxury brands in the French luxury market can be clearly seen in the 50 Largest sites shopped in the country,where 18 are French,reading like a
104、veritable whos who of internationally renowned luxury.This makes French luxury a very local affair,with a further ten of the Largest 50 based in neighbouring Italy and nine just across the Channel in the UK.Only three are based outside of Europe US mega-brands Calvin Klein,Michael Kors and Coach.As
105、earlier data shows,the list is dominated by apparel and accessory brands,augmented by a host of jewellers and cosmetics sellers.However,this is somewhat misleading.Many of the Largest 50 are owned by just two parent companies.LVMH Mot Hennessy Louis Vuitton owns 75 houses including Tiffany&Co,Christ
106、ian Dior,Fendi,Givenchy,Marc Jacobs,Stella McCartney,Loewe,Kenzo,Celine,Sephora,Princess Yachts,TAG Heuer and Bulgari.Similarly,Richemont is owner of,among others,Cartier,Chlo,Dunhill,Jaeger-LeCoultre,Montblanc,Van Cleef&Arpels and Delvaux.LVMH is Paris-based,while Richemont is Swiss.In a list domin
107、ated by French brands,the top site for luxury in France is actually a marketplaceLargest 50SUSTAINABILITY REPORT|INTRODUCTIONFRANCE LUXURY SECTOR|LARGEST 50 COMPANYVESTIAIRE COLLECTIVEPANDORA(JEWELLERY)LACOSTEFARFETCHLOUIS VUITTONHERMESDIORLYSTCHANELMYTHERESAHUGO BOSSGUCCICALVIN KLEINSWAROVSKILONGCH
108、AMPCARTIERMICHAEL KORSRAY-BANMATCHES FASHIONTISSOTOMEGAYVES SAINT LAURENTLANCMEGUERLAINCELINE BURBERRY HEADQUARTERSFRANCEDENMARKFRANCEUKFRANCEFRANCEFRANCEUKUKGERMANYGERMANYITALYUSAAUSTRIAFRANCEFRANCEUSAITALYUKSWITZERLANDSWITZERLANDFRANCEFRANCEFRANCEFRANCEUKDOMAINVESTIAIRECOLLECTIVE.COMPANDORA.NETLAC
109、OSTE.COMFARFETCH.COMLOUISVUITTON.COMHERMES.COMDIOR.COMLYST.COMCHANEL.COMMYTHERESA.COMHUGOBOSS.COMGUCCI.COMCALVINKLEIN.FRSWAROVSKI.COMLONGCHAMP.COMCARTIER.COMMICHAELKORS.FRRAY-BAN.COMMATCHESFASHION.COMTISSOTWATCHES.COMOMEGAWATCHES.COMYSL.COMLANCOME.FRGUERLAIN.COMCELINE.COMBURBERRY.COMTRAFFIC4,714,507
110、3,436,6363,372,7053,271,0302,681,8872,404,0402,249,4581,747,0621,468,0721,236,2911,128,1611,051,460923,894851,525833,831816,175748,820740,733711,635679,825664,657638,720611,055539,088471,775454,894 SEGMENTAPPAREL&ACCESSORIES JEWELLERAPPAREL&ACCESSORIES APPAREL&ACCESSORIES APPAREL&ACCESSORIES APPAREL
111、&ACCESSORIES APPAREL&ACCESSORIES APPAREL&ACCESSORIES APPAREL&ACCESSORIES APPAREL&ACCESSORIES APPAREL&ACCESSORIES APPAREL&ACCESSORIES APPAREL&ACCESSORIES JEWELLERAPPAREL&ACCESSORIES JEWELLERAPPAREL&ACCESSORIES APPAREL&ACCESSORIES APPAREL&ACCESSORIES JEWELLERJEWELLERAPPAREL&ACCESSORIES COSMETICSCOSMET
112、ICSAPPAREL&ACCESSORIES APPAREL&ACCESSORIES Largest 5017|RetailX|October 2023RXSLXFR23RP 2023 Yet despite this,the leading luxury site by traffic in France isnt one of the world-renowned luxury brands at all but is actually a marketplace.Vestiaire Collective tops the chart by traffic with 4.7mn visit
113、s.The rise of this site,which connects buyers and sellers of second-hand luxury items,goes to the heart of a new market for luxury that is attracting an increasingly young audience looking for unique luxury design at a more affordable price that,through better reuse of fashion items,is also more sus
114、tainable.This is driving the huge success of the site not only in France but also worldwide.This is further exemplified by the Largest 10 luxury sellers in France also including FarFetch and Lyst,both of which offer pre-loved garments and which act as marketplaces for smaller boutiques and brands.Se
115、cond place in the list is also something of an outlier Denmark-based jeweller Pandora.Being neither French,nor apparel-related,it sits outside Frances broader luxury trends due to its affordable luxury approach.Pandora has pioneered mass production of personalised jewellery with its charm bracelet t
116、hat allows owners to add charms to suit their mood.This,combined with an affordable price,sees it outstrip traffic to the more niche and exclusive sites that make up the bulk of the Largest 50 in France.The rest of the Largest 50 list features many of the brands that are more commonly considered lux
117、ury,with the likes of Lacoste,Louis Vuitton,Herms,Dior and Chanel completing the Largest 10.All these have HQs in France,bar Chanel,which manages to ooze French charm despite being based in the UK.COMPANYBALENCIAGAPRADAMONT BLANCVERSACEWATCHFINDER&CO.MONCLERARMANIJIMMY CHOOCHLOETAG HEUERCHRISTIAN LO
118、UBOUTINKENZOVALENTINOCOACHFENDIVANCLEEF&ARPELSGIVENCHYJAEGER-LECOULTRETED BAKERPAUL SMITHBALMAINBVLGARILOEWEBOTTEGA VENETA HEADQUARTERSFRANCEITALYGERMANYITALYUKITALYITALYUKFRANCESWITZERLANDFRANCEFRANCEITALYUSAITALYFRANCEFRANCESWITZERLANDUKUKFRANCEITALYSPAINITALYDOMAINBALENCIAGA.COMPRADA.COMMONTBLANC
119、.COMVERSACE.COMWATCHFINDER.FRMONCLER.COMARMANI.COMJIMMYCHOO.COMCHLOE.COMTAGHEUER.COMCHRISTIANLOUBOUTIN.COMKENZO.COMVALENTINO.COMCOACH.COMFENDI.COMVANCLEEFARPELS.COMGIVENCHY.COMJAEGER-LECOULTRE.COMTEDBAKER.COMPAULSMITH.COMBALMAIN.COMBULGARI.COMLOEWE.COMBOTTEGAVENETA.COMTRAFFIC389,559385,039369,110326
120、,189292,637292,308272,029265,953241,057240,106206,941202,869199,486180,202179,574177,717163,947152,299148,843145,625140,160129,681124,248121,326 SEGMENTAPPAREL&ACCESSORIES APPAREL&ACCESSORIES JEWELLERAPPAREL&ACCESSORIES JEWELLERAPPAREL&ACCESSORIES APPAREL&ACCESSORIES APPAREL&ACCESSORIES APPAREL&ACCE
121、SSORIES JEWELLERAPPAREL&ACCESSORIES APPAREL&ACCESSORIES APPAREL&ACCESSORIES APPAREL&ACCESSORIESAPPAREL&ACCESSORIES JEWELLERAPPAREL&ACCESSORIES JEWELLERAPPAREL&ACCESSORIES APPAREL&ACCESSORIES APPAREL&ACCESSORIES JEWELLERAPPAREL&ACCESSORIES APPAREL&ACCESSORIES Largest 5018|RetailX|October 2023RXSLXFR2
122、3RP 2023 Calvin Klein With its HQ in the US,Calvin Klein in one of only three brands in Frances Largest 50 luxury sellers that isnt European.Yet it warrants a mention because this US behemoths biggest market lies in France.The brand is globally recognised particularly for its signature monochromatic
123、 underwear and this chic styling aesthetic has long proved attractive to style conscious French shoppers.The brand grew its popularity in France during the 1980s and 1990s,a time when US fashion became a byword for style among that eras youth market.While this has maintained Calvin Kleins position i
124、n the French luxury apparel market for almost 30 years,it does mean that todays youth market does not imbue the brand with the same fashion and cultural significance,so sales were starting to slow.Web traffic,revenues and profits hit a nadir in 2020 and 2021,with the pandemic closing stores and onli
125、ne shoppers turning away from the brand.This was followed by something of a renaissance starting in 2022,as the now retro chic nature of Calvin Klein has started to appeal to a whole new generation of younger shoppers.Part of this has centred on how Calvin Kleins new CMO Jonathan Bottomley,who took
126、up the post in May 2022,has reinvented the brands reach by recruiting a range of new ambassadors for the brand.The global approach is using youth favourites Alexa Demie,Kid Cudi,Kendall Jenner and K-pops Jennie and Jungkook to model the latest ranges in a campaign shot by in-demand creators Inez&Vin
127、oodh.The company has sought to focus on underwear,jeans and basic apparel to create a range of essentials.This is hoped to see sales increase worldwide as shoppers look to the brand for luxury basics to complement their existing wardrobes.The use of these social media savvy ambassadors is also likel
128、y to help tip sales once again towards the affluent youth market and continue to revive Calvin Kleins fortunes in France and beyond.Calvin Klein SUSTAINABILITY REPORT|INTRODUCTIONFRANCE LUXURY SECTOR|COMPANY PROFILE19|RetailX|October 2023RXSLXFR23RP 2023 SUSTAINABILITY REPORT|INTRODUCTIONFRANCE LUXU
129、RY SECTOR|COMPANY PROFILERetailX 2023HermsFeatures in:Europe Brand Index Top500,Europe Top1000,Global Elite Top1000,UKGrowth 2000Retail website:Most signi?cant retail market:FranceRetail HQ:FranceCorporation:Hermes International SCA,PA:RMSTwitter:hermes_parisWebtra?c(visits):11.2mn5.0mnShareprice:13
130、01.1426.0Revenue:11.6bn6.0bnPro?t:8.2bn4.2bn20182022Researched 14-08-2017 to 08-06-2023Sources:RetailX,SimilarWeb(web tra?c),Yahoo Finance(?nancial records).Green andred dots represent the highest and lowestrecorded data point respectivelyHermsHermsAs with many luxury brands,Herms took a hit during
131、the early days of the pandemic in 2020 and 2021.Sales slumped,revenues declined and even web traffic dropped.Again,like many luxury brands,the retailer managed to salvage the situation rapidly,deploying a state-of-the-art transactional website and starting to grow orders even before the all-importan
132、t travel sector reopened to once again allow physical retail.Sales then rocketed across 2022,while the first quarter data for 2023 shows no sign of them slowing down,rising 23%by March 2023.With physical retail worldwide now fully re-opened,the super-rich appear unperturbed by the cost-of-living cri
133、sis gripping most markets and have,in fact,upped their spending.Much of the companys growth has come from Asia,with the Chinese New Year the first since lockdown ended driving especially high growth.The company is also seeing growing sales in France,Italy and the UK,driven by the influx of Asian and
134、 US tourists to these countries.This is expected to generate even more growth for full year 2023 figures.As a result,the companys share price hit an all-time high in 2023,with the company currently valued at some 200bn.Not bad for a business that started life in rural France in 1837 making horse har
135、nesses.While the brand is now synonymous with highly decorative scarves,it is its leather handbags that have seen the most growth,with its Kelly and Birkin models inspired by Grace Kelly and Jane Birkin respectively generating such increased sales that the company has had to open a string of artisan
136、 factories to ramp up production.The most recent addition was a new facility in Louviers,Normandy,which employs 140 leather workers.The company is also building new factories at Sormonne,in the north-east,and Riom,central France,which are slated to open next year in a bid to increase leather goods p
137、roduction by 7%.It has even opened a leather working school to train the next generation of leather workers in order to sate what it sees as an ongoing global demand from high-end customers.20|RetailX|October 2023RXSLXFR23RP 2023 SUSTAINABILITY REPORT|INTRODUCTIONFRANCE LUXURY SECTOR|COMPANY PROFILE
138、RetailX 2023LacosteFeatures in:Europe Brand Index Top500,Europe Top1000,Global Elite Top1000,UKTop500Retail website:Most signi?cant retail market:FranceRetail HQ:FranceCorporation:Twitter:lacosteWebtra?c(visits):19.6mn14.1mn20182022Researched 02-09-2015 to 03-07-2023Sources:RetailX,SimilarWeb(web tr
139、a?c),Yahoo Finance(?nancial records).Green andred dots represent the highest and lowestrecorded data point respectivelyLacosteLacosteFounded by former tennis champion Ren Lacoste,the brand with the distinctive crocodile logo has long been a staple for high-end sportswear,in tennis,unsurprisingly,as
140、well as in Rens other passion,golf.However,the high-quality products,air of exclusivity and price all mark Lacoste out as more than just a sportswear brand,sitting it firmly in the world of luxury.Spilling out into leather goods,accessories and even luggage,Lacoste is now a staple of the affordable
141、luxury market and generates significant sales,with revenues hitting 2.6bn in 2022.A refresh under French designer Christophe Lemaire,along with tie-ups with tennis stars Andy Roddick,John Isner and Stanislas Wawrinka,reinvigorated the brand.2017 saw Novak Djokovic become its brand ambassador and Lac
142、oste collaborated with popular streetwear brand Supreme until 2019 to bring its wares to a younger,more fashionable audience.Like all luxury brands,Lacoste saw sales drop during the pandemic years of 2020 and 2021,although it has returned to strong growth in 2021.Since then,web traffic has dipped as
143、 sales shift back to stores,driven by Lacostes focus on selling through franchises in high-end stores such as Saks Fifth Avenue,Neiman Marcus and Bloomingdales in America,and JD Sports and John Lewis Partnership in the UK.It continues to produce casual wear,sportswear and leather goods,as well as br
144、anching out into watches,footwear and eyewear in an attempt to corner more of the market.Across all these ranges,the brand targets the affordable luxury end of the market and,as such,is carving out in impressive,international niche for itself among a new,young audience alongside its older and more e
145、stablished customer base.This niche,however,is increasingly attractive,so Lacoste is facing increasing competition from brands such as Calvin Klein and Michael Kors.Both of these are US luxury brands yet both have become increasingly popular in France.21|RetailX|October 2023RXSLXFR23RP 2023 SUSTAINA
146、BILITY REPORT|INTRODUCTIONFRANCE LUXURY SECTOR|COMPANY PROFILERetailX 2023LancmeFeatures in:Europe Growth 3000,UK Growth2000Retail website:lancome.frMost signi?cant retail market:FranceRetail HQ:FranceCorporation:LOreal SA,PA:OROther brands in the group:Stylenanda,LOreal Paris,Kiehls,NYX Professiona
147、l Makeup,UrbanDecay,It Cosmetics,MaybellineTwitter:lancomeukWebtra?c(visits):1.4mn0.9mnShareprice:361.2162.5Revenue:38.2bn26.9bnPro?t:27.7bn19.6bn20182022Researched 07-05-2015 to 04-07-2023Sources:RetailX,SimilarWeb(web tra?c),Yahoo Finance(?nancial records).Green andred dots represent the highest a
148、nd lowestrecorded data point respectivelyLancmeLancmeFrench cosmetics company Lancme was established in 1936 and has been an innovator in luxury skincare products and make-up since its inception so much so that it featured at the Brussels World Fair that year.In 1955,Lancme created a skincare line c
149、alled the Ocane with seaweed ingredients and today,its skincare,make-up and fragrances are sold in more than 140 countries,across Europe,Asia,and America.Owned by LOral Corporate since 1964,Lancme shared in its parents stellar growth in 2022 and 2023,which the company says came across all regions an
150、d all products.Asia,Latin America and Europe have all proved particularly strong markets for Lancme growing 20%or above in each while sales growth has been slowed in the US.Lancmes fortunes are closely linked to it brand name,which is known as one of the most popular luxury cosmetics brands.However,
151、it is the companys close links to anti-ageing skincare products that acts as one of the biggest sales drivers.Who doesnt want to look younger other than my 15-year-old daughter?Its Rnergie Lift Multi-Action Night Cream Skin Rejuvenating Treatment is one of the most popular,addressing multiple ageing
152、 concerns in tests and being of the most recognised brand names in anti-ageing one that has also defied the whiff of quackery that often accompanies such products.This has helped the brand to corner the market in anti-ageing luxury cosmetics and taps into an elderly,but often wealthy,customer base.A
153、side from these cosmetic products,Lancme is also a perfumier.Its fragrance,La Vie Est Belle,is the best-selling fragrance in Lancmes historic market,France.Lancme is a key part of LOrals Luxury Division,which also includes Armani and Yves Saint Laurent.With over 20%year-on-year growth,this is edging
154、 out the consumer goods division,which includes cosmetics brands Garnier and Maybelline,the latter growing by 5.6%.Post-pandemic,LOrals recovery has largely been driven by the exceptional bounce back from its luxury products.22|RetailX|October 2023RXSLXFR23RP 2023 SUSTAINABILITY REPORT|INTRODUCTIONF
155、RANCE LUXURY SECTOR|COMPANY PROFILERetailX 2023PandoraFeatures in:Europe Brand Index Top500,Europe Top1000,Global Elite Top1000,UKTop500Retail websites:,Most signi?cant retail market:FranceRetail HQ:DenmarkCorporation:PANDORA A/S,CPH:PNDORATwitter:pandora_naWebtra?c(visits):11.7mn8.4mnShareprice:90.
156、932.9Revenue:3.6bn2.5bnPro?t:2.7bn1.9bn20182022Researched 02-09-2015 to 19-06-2023Sources:RetailX,SimilarWeb(web tra?c),Yahoo Finance(?nancial records).Green andred dots represent the highest and lowestrecorded data point respectivelyPandoraPandoraPandora is one of the few luxury brands in the Retai
157、lX Largest 50 in France that isnt based in France.However,it is one of the biggest-selling luxury brands in that market a position mirrored worldwide,where Pandora sits as the third-largest jewellery company,behind Cartier and Tiffany&Co.The key to Pandoras success is its positioning in the affordab
158、le luxury end of the luxury jewellery market.Its patented charm bracelet design allows users to add a range of charms to their bracelet,marking it out as both a unique and high-quality gift,but also one that offers an affordable way for shoppers to stay engaged long after their initial purchase.The
159、brand has come out of the pandemic with strong growth and its model appears to still be attracting new users,with revenues and profits continuing to grow.As of 2022,21%of the brands revenues came from its online presence,just shy of the 28%garnered from third-party and wholesale distribution.The com
160、panys 6,500 stores worldwide bring in the remaining 51%of sales.Launching into ecommerce in 2011,Pandora has more recently instigated a company-wide programme its so-called Phoenix Strategy thats built around the four pillars of brand,design,personalisation and core markets.This will offer customers
161、 around the world an omnichannel experience in which they move seamlessly between online and instore as they both research and purchase.What marks the company out as a business is its extremely cost-efficient design and production model.With low production costs and an efficient supply chain.This is
162、 centred around a production facility in Gemopolis in Thailand which employs 13,200 of the companys 26,000 employees.With this in place,Pandora has been able to expand to sell in more than 100 countries on six continents.In May 2021,Pandora announced it would phase out mined diamonds in favour of ge
163、ms manufactured in a laboratory.Its new diamond jewellery was first sold in the UK in 2022,before being rolled-out for sale globally in 2023.23|RetailX|October 2023RXSLXFR23RP 2023 SUSTAINABILITY REPORT|INTRODUCTIONFRANCE LUXURY SECTOR|COMPANY PROFILERetailX 2023Vestiaire CollectiveFeatures in:Europ
164、e Top1000,Global EliteTop1000,UK Growth 2000,UK Top500Retail website:Most signi?cant retail market:FranceRetail HQ:FranceCorporation:Twitter:vestiairecoWebtra?c(visits):25.2mn17.6mn20182022Researched 26-01-2016 to 25-06-2023Sources:RetailX,SimilarWeb(web tra?c),Yahoo Finance(?nancial records).Green
165、andred dots represent the highest and lowestrecorded data point respectivelyVestiaire CollectiveVestiaire CollectiveVestiaire Collective is part of a new breed of pureplay online luxury sellers which are,in essence,marketplaces.What sets Vestiaire apart is that its mainly a purveyor of second-hand l
166、uxury goods.Launched in Paris in October 2009,V now has more than 7mn members across 50 countries,with offices in Paris,London,New York,Milan,Berlin and Hong Kong.More than 30,000 new items are submitted by its community of sellers every week,which enables buyers to access around 3,500 luxury items
167、every day.This places the company at the vanguard of a wave of consumer interest in pre-loved fashion.Vestiaire Collective raised 178mn in new financing in 2021,backed by global French luxury group Kering and US investment firm Tiger Global Management.Through investment and by being represented on t
168、he companys board of directors,Kering is hoping to add the kudos of selling second-hand luxury to its vast empire.While Vestiaire Collective only have generated a little more than$210mn in revenues in 2021,this belies its growing popularity.In recent years,it has grown at an accelerated pace in Nort
169、h America,which has become its largest market,growing its US GMV at a 75%year-on-year rate since 2022.It has achieved this partly by partnering with US fashion resale site Tradesy.To best serve its expanded customer base and cement trust at the core of its business model,Vestiaire Collective has ope
170、ned a new authentication centre in Los Angeles its fifth such authentication centre globally and the second in the US.With this strategic scale and operational setup,the combined company will be very well positioned to grow its share of environmentally friendly local-to-local transactions in the US.
171、In Europe in 2022,the company signed a 75mn sustainability linked revolving credit facility with Crdit Agricole CIB,Socit Gnrale,HSBC Continental Europe,Bank of America and Goldman Sachs.This new type of loan sees businesses secure interest rate discounts for credit based on environmental performanc
172、e.Money raised will be used to continue expansion in Europe and make deeper inroads in Asia,where it has recently launched in South Korea.24|RetailX|October 2023RXSLXFR23RP 2023 SUSTAINABILITY REPORT|INTRODUCTIONFRANCE LUXURY SECTOR|MARKET CONTEXTFRANCE LUXURY SECTOR|COMPANY SNAPSHOTSOne of the worl
173、ds best known jewellery brands,Cartier is currently part of the Richemont Group of luxury brands and sells high-end jewellery,watches and leather goods.It turned over around 6bn in 2022,its highest ever.Employing around 650 people,Cartier operates more than 200 stores across 125 countries and has a
174、long history of supplying watches and jewellery to royalty,with King Edward VII referring to Cartier as“the jewellery of kings and king of jewellers”.For his 1902 coronation,he ordered 27 tiaras from the company and issued it a Royal Warrant in 1904.Cartier is also a favourite of the courts of Spain
175、,Portugal,Serbia and Russia,while its biggest single order was from the Maharaja of Patiala for the Patiala Necklace worth 2.6bn in todays money.Royalty aside,Cartier is increasingly seen by consumers as investment luxury,with many of its pieces costing a lot to purchase but often increasing in valu
176、e with age.The brand has seen strong,continued growth and,in 2018,was ranked second out of 15 Swiss watchmakers for its environmental performance,making it one of the first high-end jewellers to seriously address its environmental footprint.Current owner Richemont retains Elle Pagels,the great-grand
177、daughter of founder Louis-Francois Cartier,on its board.Founded in 2007 by the Portuguese entrepreneur Jos Neves and headquartered in London,FarFetch is one of the growing crop of marketplaces dedicated to servicing the luxury sector.It has also opened a series of stores across the globe to tap into
178、 the luxury shoppers penchant for physical retail.The retailers unique selling point is that it aggregates the wares of more than 1,400 brands,boutiques and department stores across 190 countries,creating a single platform for shoppers to buy luxury goods anywhere in the world.Increasingly popular w
179、ith French consumers and sitting within the Largest 50 luxury sites by traffic in the country FarFetch hit a record turnover in 2022 of 2.5bn,up 3%on the previous year,which itself was a record.The results could well have been higher,with the company seeing online sales decrease slightly due to macr
180、oeconomic headwinds impacting its sales at the tail end of 2022.A strategic review and rationalisation has positioned the company well for growth in 2023,a year in which Neves sees as the execution phase of his vision to make FarFetch the luxury ecommerce platform of choice for consumers.Fendi is on
181、e of the most popular non-French luxury brands in France,with the Italian company trading in fur,ready-to-wear,leather goods,shoes,fragrances,eyewear,timepieces and accessories.Part of its attraction to French shoppers is that,although it was founded in Rome in 1925,since 2001 it has been part of th
182、e distinctly French luxury conglomerate LVMH Mot Hennessy Louis Vuitton Group.While rooted in the traditional world of furriery,Fendi is something of an outlier for using technology and new business models.In 2014,for example,it used drones at a fashion show,while in 2016,it signed a 2.8mn per annum
183、 lease on modernist architectural marvel Palazzo della Civilt Italiana also known as the Square Colosseum.Here,it not only set up its new global HQ,but also turned part of the building into a luxury,Fendi-branded five star hotel.In 2017,it partnered with online luxury marketplace FarFetch to offer u
184、sers a made-to-order handbag design service.To meet the growing interest in sustainability among its younger clientele,Fendi now champions the fact that all its products have always been made from natural products typically leather and fur which are ethically sourced.It also remodels up to 50 fur pi
185、eces each year,while much of the material leftovers from garment production are upcycled into the next years collections.25|RetailX|October 2023RXSLXFR23RP 2023 SUSTAINABILITY REPORT|INTRODUCTIONFRANCE LUXURY SECTOR|MARKET CONTEXTFRANCE LUXURY SECTOR|COMPANY SNAPSHOTSBest known for its luxury pens,M
186、ontblanc also designs and sells bags,leather goods and watches.Although HQ-ed in Hamburg,Germany,the company is owned by Richemont Group.In 2022,it turned over 106mn.Montblanc makes several models of pens,with the Meisterstck,or fountain pen,its key model.Each Montblanc pen is slightly different and
187、 unique,with Meisterstck models created after 1990 having a serial number located on the ring at the top of the clip.Under the clip had been engraved“Pix”,although this has been phased out in recent production and replaced with“Made in Germany METAL”.The black resin from which the pens are made also
188、 glows red under very strong light a trait that channels its first ever pen,the Rouge et Noir,and which can be used to check whether a Montblanc is genuine or not.In 2014,in an attempt to create a more contemporary feel,Montblanc teamed up with actor Hugh Jackman,who acted as a brand ambassador outs
189、ide the US market.In 2022,it also collaborated with streetwear brand BAPE and lifestyle brand Maison Kitsun to broaden its leather goods portfolio and attract a younger audience.At the time,CEO Nicolas Baretzki told Vogue Business that he believes leather goods will become one of the companys bigges
190、t categories,possibly even eventually overtaking pens.Popularised by Peter Fonda in the 1969 movie Easy Rider,Ray-Ban Wayfarer sunglasses are the epitome of studied cool.So too are the firms Aviators,worn by countless movie stars including Tom Cruise in Top Gun and sported by WWII General Douglas Ma
191、cArthur.Ray-Ban hit its fashion zenith in the 1980s and was sold to Italian eyewear company Luxottica in 2010,which itself was bought by French lens maker Essilor in 2017 for 22.8bn,creating one of Europes largest eyewear makers.Yet the group was dogged by problems,with much of the management,R&D an
192、d marketing of Essilor and Luxottica operating in parallel,leading to conflicting marketing and huge operating costs.It wasnt until 2021,when Luxottica founder Leonardo Del Vecchio agreed to share power with the Essilor board,that some 300mn of annual cost savings were unlocked,setting the company u
193、p to grab 20%of the global eyewear business.For Ray-Ban,this has seen a shift to incorporate smart glasses technology into its range of luxury eyewear.New models,based on existing frame styles,feature dual cameras for hands-free photography,discreet speakers mounted in the arms,voice and touch contr
194、ol and a charging case.These glasses sync with Facebook and use Meta technology to sync with the users phone.One of luxurys newest growth areas,pre-owned watches have attracted many buyers looking for not just a nice timepiece,but also an investment.During the pandemic,sales increased considerably a
195、nd the crop of second-hand luxury watch sites did booming business.One of the standout players has been the UKs Watchfinder&Co,which has seen turnovers as high as 200mn,with almost 7mn unique visitors hitting the site.Set up in 2002,the company was the UKs first online second-hand watch marketplace,
196、offering a unique guarantee where it would buy back used watches after two years if they were in good condition.This not only encourages repeated reuse but also demonstrates its commitment to the investment potential of luxury watches.The company grew strongly and was purchased by Richemont in 2018,
197、which tapped into the burgeoning second-hand luxury market in the pandemic.By 2023,however,the bottom has fallen out of the luxury watch resale market,with prices for Rolex,Patek Philippe and Audemars Piguet falling by some 31%between March 2022s peak and March 2023.It has since invested in physical
198、 stores and continues to operate a lucrative repair service,yet turnover has dropped under 100mn.26|RetailX|October 2023RXSLXFR23RP 2023 CHANGING HABITSLuxury sales worldwide have seen remarkable growth post-pandemic.While the sector was growing strongly before,it has emerged from the dramatic falls
199、 in sales of 2020 and 2021 to be almost as strong as it was before Covid-19 struck.Older,entrenched luxury shoppers many of them well off and immune to the cost-of-living crisis continue to shop the luxury brands and products that they always have,while well-heeled tourists continue to service the s
200、ector in droves.These are the lifeblood of the sector.Younger shoppers who have increasingly looked to luxury as an antidote to rapacious fast fashion and its inherent environmental impact,as well as looking for something unique and not from the high street,have continued to add to the sectors growt
201、h.However,in France at least,could this post-pandemic surge be coming to an end?Data from RetailXs consumer survey suggests that 61%of French consumers questioned about their luxury shopping habits say that they plan to buy less luxury in 2024.Only 5%intend to buy more.This places the sector in Fran
202、ce in a delicate spot.Post-pandemic recovery was rapid but it was from a nadir.It also has yet to reach the level the sector Changing shopper habits and the march of technology are reshaping French luxuryThe road aheadwas at just before the pandemic struck locally in France,in Europe,or anywhere els
203、e in the world.With the cost-of-living crisis still dogging Europes economies,domestic spending is weak,particularly on high-cost items.This is likely to have shaped French consumers attitudes to luxury spending in the year ahead.There is also the possibility that the younger shoppers attracted to l
204、uxury as a green and hip alternative to mainstream fashion may have moved on not least to buying their luxury fashion second-hand and vintage.For the French luxury market,however,this drop in confidence among French shoppers is of little concern.Their main trade is from the entrenched luxury buyers
205、and the tourist trade,both of which are going strong and continuing to deliver high revenues for brands.Even the rise of new businesses in the sector such as Vestiaire Collective and FarFetch is unlikely to dent sales.They may attract more traffic than many well-known French luxury brands,yet neithe
206、r can operate without these same,well-known brands.FarFetch sells many of them on its site,while Vestiaire relies on them selling the original,new items into the market so they can then become second-hand.So,while some consumer segments may be changing their luxury shopping habits,the sector is stil
207、l in robust health.LUXURY BUILDS THE METAVERSEWhile the metaverse has garnered many column inches it has so far failed to make any inroads into mainstream use apart from in the luxury sector.SUSTAINABILITY REPORT|INTRODUCTIONFRANCE LUXURY SECTOR|THE ROAD AHEAD27|RetailX|October 2023RXSLXFR23RP 2023
208、There are two ways in which luxury brands or any brand or retailer come to that can tap into the metaverse:selling virtual goods and selling real goods.The former has so far been the limit of brand involvement in the metaverse,with luxury brands looking to sell virtual designer outfits and goods for
209、 their characters to wear within VR games.The model works pretty much as it would in real life:the luxury brand releases a limited number of outfits or items as non fungible tokens(NFTs)on the blockchain.These can then be bought and either worn or traded(creating a new second-hand market in virtual
210、luxury goods,but thats another story).Luxury brands were quick to jump on this virtual world,with brands including Gucci,Louis Vuitton,Prada,Tommy Hilfiger,Burberry,Balenciaga and Dolce&Gabbana all doing something in the space in 2021,at the start of interest in the metaverse.French consumers have p
211、rodded at this nascent metaverse,with 39%claiming to be familiar with it.7%claim to be using it for retail purposes more than once a week.While 56%never use it,a growing number clearly are so those early adopter brands within the luxury sector must be reaping the rewards.The next stage in metaverse
212、development will involve using the virtual world as a more realistic and interactive ecommerce platform.Here,brands will aim to create rich and immersive experiences that lead directly to sales of goods,factoring in virtual try-ons and more.SUSTAINABILITY REPORT|INTRODUCTIONFRANCE LUXURY SECTOR|THE
213、ROAD AHEAD28|RetailX|October 2023RXSLXFR23RP 2023 LUXURY BRANDS WORKING IN THE METAVERSEGucci A pop-up on Roblox allows users to explore Guccis mythical Gucci Gardens immersive themed rooms,try on and purchase Gucci NFTs to be worn inside the game and even sold a single bag for more than$4,000 in re
214、al-world money.Louis Vuitton Celebrating what would have been founder Louis Vuittons 200th birthday,the French fashion house released a mobile game in partnership with digital artists Beeple.It featured seven different virtual worlds inspired by famous fashion capitals.Burberry A string of playable
215、NFT creations called Sharky B live in Blankos Block Party from Mythical Games.The characters included accessories such as armbands,jetpacks and pool shoes a collection that sold out quickly for almost$400,000.Prada One of the more creative takes on the metaverse was Pradas team-up with Adidas Origin
216、als to task 3,000 creatives from across fashion,design and the world of cryptocurrency to create individual NFT tiles.After minting,these tiles were compiled into one NFT world by digital artist Zach Lieberman,before then being auctioned.Balenciaga A fashion collection of clothes was sold for charac
217、ters within the popular online shooter Fortnite.While these outfits were purchased using V-Bucks,the Fortnite in-game currency,V-Bucks themselves are purchased with real money.Dolce&Gabbana A nine-piece Collezione Genesi collection on the digital luxury marketplace UNXD sold for$5.7mn.MARKETPLACES,S
218、OCIAL AND SUPER APPSConsumers are increasingly shopping for everything they want on marketplace sites from Amazon through to specialised luxury marketplaces such as FarFetch and Secret Sales.This is forcing luxury brands to not only embrace ecommerce but to look at how to take the leap into not nece
219、ssarily owning the customer themselves.While this comes with a range of brand identity challenges not least diluting in some instances literally hundreds of years of heritage it is increasingly the place that younger shoppers are heading to buy luxury.Some brands,such as Kurt Geiger,have approached
220、the issue by creating their own marketplace ranges,while others use them more judiciously to clear the previous years stock.While marketplaces may be a problem they are working on,social media sites morphing into quasi-marketplaces perhaps presents an even bigger iteration of the same problem.Gen Al
221、pha may well be the future of luxury sales,yet they are very much social media animals.They are going to want to buy their luxury goods and talk about them on social media.For example,TikToks 1.2bn active users are 70%Gen Z.This age range has$143bn in total spending power and,by 2025,Millennials and
222、 Gen Z will contribute 130%of the growth in the personal luxury goods market.This move towards social media and marketplaces along with the growing sales of luxury in China also puts super apps on the radar.A prime example is Chinas WeChat.Ostensibly a social media and messaging platform,WeChat also
223、 now allows users to shop and pay for things,as well as communicate with brands.Over the Chinese New Year in January 2023,WeChat saw sales of travel,catering,retail and movies increase 76%,40%,32%and 27%respectively,compared to 2022.This,coupled with the rise of Conversational Commerce where brands
224、use the messaging elements of platforms such as WeChat to engage consumers in a conversation that leads to a sale is going to be a strong presence across all ecommerce in 2023 and beyond.With luxury users often at the cutting edge of tech uptake,it follows that luxury brands will not only have to ta
225、ke on marketplaces and social media,but must also adapt their operations and attitude towards this new world of engagement-led selling.SUSTAINABILITY REPORT|INTRODUCTIONFRANCE LUXURY SECTOR|THE ROAD AHEAD29|RetailX|October 2023RXSLXFR23RP 2023 End MatterSUSTAINABILITY REPORT|INTRODUCTIONFRANCE LUXUR
226、Y SECTOR|END MATTERThis report may not be stored in a retrieval system,distributed or sold in whole or in part without the publishers express permission.Fair quotation is encouraged,with a link to the reports URL on RetailX.net.All charts and figures marked with RetailX 2023 are provided under the A
227、ttribution-NoDerivatives 4.0 International(CC BY-ND 4.0)license(https:creativecommons.org/licenses/by-nd/4.0/).You are welcome to use these in full with a link to this report,retaining the copyright notice This report is based upon our reasonable efforts to compile and analyse the best sources avail
228、able to us at any given time.Opinions reflect judgment at the time and are subject to change.RetailX at InternetRetailing Media Services Ltd27 Clements LaneLondon,EC4N 7AETel:+44(0)20 7062 2525 Printed in Great B RetailX 2023RESEARCH:Researcher Anna Segarra FasFor questions about our research and to
229、 send feedback,please email the team via:Research Director Martin ShawCEO Ian JindalEDITORIAL:Editor Paul SkeldonProduction Editor CamWinstanleyManaging Editor Jonathan WrightDESIGN:Art Editor Laura RossCover Design Freny AntonyMARKETING:Marketing and Circulation Addison Southam SALES:Commercial Dir
230、ector Andy James Group Creative Solutions Director Marvin Roberts We hope you have found our research and analysis to be of interest and value.We would be very pleased to hear from you with questions,suggestions or comments.In particular,do let us know of any areas of research that you would like us
231、 to investigate for possible inclusion in the 2024 report.Please get in touch via 30|RetailX|October 2023RXSLXFR23RP 2023 SUSTAINABILITY REPORT|INTRODUCTIONFRANCE LUXURY SECTOR|KNOWLEDGE PARTNERSTHANK YOUOur thanks go to our title sponsor Imagino for helping us to bring our insights and findings in this report to professionals working in ecommerce and