The True-Luxury Global Consumer Insight 4th Edition Milan, February 16th, 2017 BCG Altagamma True-Luxury Global Cons Insight 2017 Ed v69 14feb17 Final No BUP.pptx 1 Draftfor discussion only Copyright© 2016 byThe Boston Consulting Group, Inc. All rights reserved.The True-Luxury Global Consumer Insight panel Source: BCG-Altagamma True-Luxury Consumer Insight 10 Nationalities 36 k Avg. luxury spend 12 000+ Consumers Vs. 2016 Ed. 1 +1 000 in China +1 000 in US +15 k BCG Altagamma True-Luxury Global Cons Insight 2017 Ed v69 14feb17 Final No BUP.pptx 2 Draftfor discussion only Copyright© 2016 byThe Boston Consulting Group, Inc. All rights reserved.We push to be relevant on the highest segments of the luxury consumers Luxury yearly spend1 (k per consumer) > 100 k 50 - 100 k 20 - 50 k 10 - 20 k 5 - 10 k Average Spend for overall sample 3rd edition 1 % 6 % 28 % 35 % 30 % 21 k 1. Expenditure includes personal luxury (e.g. handbags, shoes, sunglasses and other accessories, clothing) and experiential luxury (e.g. hotels, wine and spirits, exclusive vacations). Excluded cars, yachts, smartphones BCG Minimum spent 5 k in the past year on personal luxury goods Threshold Price Category vs. '16 vs. '16 Personal Luxury Goods Experiential Luxury Goods 3 Other Luxury Goods Threshold Price Category vs. '16 BCG Altagamma True-Luxury Global Cons Insight 2017 Ed v69 14feb17 Final No BUP.pptx 4 Draftfor discussion only Copyright© 2016 byThe Boston Consulting Group, Inc. All rights reserved.The True-Luxury Global Consumer Insight 4th Edition Main Outcomes Steady market, True luxury consumers growing A rising perception of price-value misalignment More casual, more customized! True luxury consumers buying more at home Luxury goes omnichannel Monobrand at the heart of an omnichannel experience #Luxurygoessocial Behavioral consumer segment evolution 4 BCG Altagamma True-Luxury Global Cons Insight 2017 Ed v69 14feb17 Final No BUP.pptx 5 Draftfor discussion only Copyright© 2016 byThe Boston Consulting Group, Inc. All rights reserved.Steady market, True-Luxury Consumers growing primocapitolo.pptx 6 Draftfor discussion only Copyright© 2016 byThe Boston Consulting Group, Inc. All rights reserved.The global luxury market worth 860Bn in 2016, experiential growing faster than personal luxury 1. Personal goods include accessories, apparel, watches & jewelry, fragrances & cosmetics Source: BCG Luxury Market model Global luxury goods market (B) 305 317366412 445464522 542807207233257280285291322 3183802010 551 511 2009 1 187 2023F 623 2011 860 2016 9.3% 5.6% 844 2015 755 2014 730 2013 692 2012 Retail value 09-13 6 Personal1 Experiential 13-16 16-23F CAGR 8.3% 9.9% 3.8% 2-3% 6.8% 5-6% 4-5% primocapitolo.pptx 7 Draftfor discussion only Copyright© 2016 byThe Boston Consulting Group, Inc. All rights reserved.Out of 400 Mn Luxury Consumers only 17Mn identified as “True-Luxury Consumers“ Absolute Top Absolute Entry Absolute 4.5 1.3 11 6 2.0 14 Total True-Luxury 17 22 CLUSTER 2016 # (M) Bn() Bn() # (M) 2023 Top Aspirational 21 28 Other Aspirational 375 440 415 490 Total Luxury Consumers +5 +72 +75 2 k 5 k 20 k 10 k Note: rounded numbers Source: BCG Luxury Market model 7 50 k Beyond money 0.4 0.5 primocapitolo.pptx 8 Draftfor discussion only Copyright© 2016 byThe Boston Consulting Group, Inc. All rights reserved.A further polarizing pyramid ahead: True-Luxury Consumers up from 29% to 32% of global market 4.5 1.3 11 6 2.0 14 17 22 2016 # (M) Bn()1 Bn()1 2023 93 30 107 250 141 53 147 381 21 28 61 92 375 549 715 +131 +196 415 860 1185 +325 Total Luxury Consumers # (M) 490 440 1. Including Experiential and Personal luxury, excluding cars and Yachts Note: rounded numbers Source: BCG Luxury Market model 8 CLUSTER 2 k 5 k 20 k 10 k 50 k 0.4 0.5 20 40 Absolute Top Absolute Entry Absolute Top Aspirational Other Aspirational Beyond money Total True-Luxury primocapitolo.pptx 9 Draftfor discussion only Copyright© 2016 byThe Boston Consulting Group, Inc. All rights reserved.True-Luxury Consumers maintaining a healthier and steadier growth for the future Note: rounded numbers Source: BCG Luxury Market model 9 2 k 5 k 20 k 10 k 50 k Personal Experiential True Luxury CAGR 2016 - 2023 2-3% 5-6% 6-7% 4% 7-8% 5-6% 4-5% 1-2% Aspirational 4-5% Total