True-Luxury Global Consumer Insight Antonio Achille, Partner 2. Referred to personal luxury (apparel, accessories, hard luxury, Perfume 4Bn luxury spend at risk Profile Source: BCG 2013 specific survey (10.000 core luxury Consumers in 10 countries) 3 Different WoM influence across markets 9% 8% 9% 11% 9% 26% 17% 38% 26% 12% 38% 22% 15% 40% 28% 12% 43% 32% 44% 35% 45% 37% 46% 29% 17% 48% 39% 61% 48% 14% WoM (physical) Social media “Which of the following has an impact on your purchase decision?“ % of respondentsAverage 44% 25871-01-BCG True-Luxury Global Consumer Insight-11Mar14-AAc-fb-Mil.pptx Copyright © 2014 by The Boston Consulting Group, Inc. All rights reserved. 23 2 out of 3 luxury Consumers are active advocates. Quality and design key to activate them Source: BCG 2013 specific survey (10.000 core luxury Consumers in 10 countries) Luxury consumers 31% 41% 28% Advocates spontaneously Advocates when prompted Non advocates 72% “ Please indicate the reason why you have recommended this brand“ “ Have you recommended a brand in the last 12 months?“ Wide assortment of products 15% Identification with this brand 16% Superior value for money 19% Admired when wearing it 21% Superior style/design 31% Superior quality 1 38% 15% Excellent service % of Advocates respondents3 25871-01-BCG True-Luxury Global Consumer Insight-11Mar14-AAc-fb-Mil.pptx Copyright © 2014 by The Boston Consulting Group, Inc. All rights reserved. 24 What it will take to win Luxury Consumers Intrinsic values rebound 1 2 3 4 5 6 7 “Made In“ still rocks Gifting: a true gift for continued growth The Advocacy era Global Consumer: catch me if you can Digital “physicalization“ DOS is dead, long life to DOS 25871-01-BCG True-Luxury Global Consumer Insight-11Mar14-AAc-fb-Mil.pptx Copyright © 2014 by The Boston Consulting Group, Inc. All rights reserved. 25 Gift represents 30% of core luxury spend: 7 gifts out of 10 made by men Source: BCG 2013 specific survey (10.000 core luxury Consumers in 10 countries) “Who was the recipient of your last purchase?“ Last purchase Gift 28% Self Purchase 72% % of total respondents on last purchase 4 Gift by type Personal 81% Business 19% Women 31% Gift by gender of giver Men 69% 25871-01-BCG True-Luxury Global Consumer Insight-11Mar14-AAc-fb-Mil.pptx Copyright © 2014 by The Boston Consulting Group, Inc. All rights reserved. 26 P&C, Jewelry and Handbags the most gifted categories, with significant differences by country 7 8 8 Sunglasses Watches Shoes Clothing 14 Handbags 19 P&C 19 Jewelry 24 US TotalJapan Brazil Russia China S. Korea EU 4 1% over respondents 8 9 11 13 16 21 23 5 8 3 9 8 11 56 4 6 6 10 10 28 35 6 6 9 20 11 28 20 6 8 6 11 18 29 22 7 6 7 5 14 46 16 8 9 11 14 26 15 17 Source: BCG 2013 specific survey (10.000 core luxury Consumers in 10 countries) Top gifted categories by market 4 25871-01-BCG True-Luxury Global Consumer Insight-11Mar14-AAc-fb-Mil.pptx Copyright © 2014 by The Boston Consulting Group, Inc. All rights reserved. 27 What it will take to win Luxury Consumers Intrinsic values rebound 1 2 3 4 5 6 7 “Made In“ still rocks Gifting: a true gift for continued growth The Advocacy era Global Consumer: catch me if you can Digital “physicalization“ DOS is dead, long life to DOS