Asia Luxury & Lifestyle Retail Barometer - 2020 IN REVIEW - Bluebell Group
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Asia Luxury & Lifestyle
Retail Barometer
2020 IN REVIEW
1
This Study
This study is the third in a series of ongoing reports developed by Bluebell Group Market Insights to monitor the impact of
COVID-19 on lifestyle and luxury retail in Asia throughout 2020. Market Insights works with 50 global brands across Asia,
with the aim to gather a good data sample and promote greater sharing amongst retailers in the region.
This third edition provides a full overview of 2020, with new performance trends from July to December 2020.
For insights from January to June, see Parts I and II here.
7 Markets 2 Segments 5 Categories 50 Brands In Focus
• Mainland China • Insights cover both lifestyle • Fashion • Sales performance data
• Hong Kong SAR and luxury segments • Accessories collected from a mix of South Korea
• Taiwan • Footwear global brands who have
• Japan • Beauty & Fragrance opted-in the monitoring. Travel Retail
• Malaysia • F&B • TR Market sales & traffic
• Singapore • Product Category
• South Korea breakdown
2Wrapping up Asian Retail 2020
FOREWORD THE BIG PICTURE
By all measures, 2020 brought unprecedented challenges to brands and retailers From our monitored brands across Asia, we have seen
around the globe. From lockdowns severely limiting physical retail to travel bans three different macro-trends in reaction to the challenging
all but putting a pause on travel retail, never before have brands had to harness environment of 2020:
their agility and creativity more in order to grow – or indeed survive – in an
unpredictable environment. 1. Quick dip, quick rebound
Mainland China and Japan experienced the clearest
In Asia, as in the rest of the world, we have seen marked differences in single dip before returning to more consistent
government measures across countries, adding another layer of complexity to performances in the second half of 2020. Taiwan,
brands’ value chains, from managing stocks to maintaining sales and though it experienced a less severe dip in Q1, also
engagement channels with consumers. experienced a stronger second half of the year.
Bluebell’s retail barometer was created to keep a finger on the pressures felt 2. Slow dip, slow recovery
across markets and product categories throughout the year, and in turn help After bottoming out in April and May, sales in Malaysia
brands better navigate key challenges, such as adapting to restrictions across and Singapore have experienced the slowest
markets, keeping engaging consumers, and striking the right balance between recovery; with Malaysia seeing a clear second-dip in
sales channel. October and November.
3. Ongoing volatility
Sales in Hong Kong SAR saw more peaks and
troughs than any other market throughout 2020.2020: a year shaped by ‘survival mode’
Channels Product Categories Markets Travel retail
‘Phygital’ retail accelerated Focus on self care Consumers go local Travelling domestically
The temporary and intermittent As the most directly associated with With travel bans in place for most of As many national borders shut,
closures of brick and mortar stores self-care, Beauty & Fragrance the year and across the region, all consumers turned to domestic travel
acted as a catalyst for the growth of (including skincare brands) proved the markets experienced a repatriation of wherever restrictions allowed.
‘phygital’ retail: the convenience of most resilient overall across Asia. consumption from otherwise would-be
digital communications with the human travel shoppers. Retailers traditionally geared toward
service experience of physical retail. This resilience was also driven by international shoppers had to rethink
agility: brands in this category were For mainland China, where consumers their offering in order to appeal to
Rather than taking refuge in pure e- pushed to innovate with digital in order only made 27% of their luxury these new domestic travelers. Popular
commerce, many premium and luxury to address “try before you buy” purchases domestically in 2018, a tax-free destinations, such as Hainan
brands recognized the need to consumer habits. near-total repatriation had a boosting in southern China, capitalized on the
maintain relationships between sales effect on domestic sales, making it the sudden rise of domestic travel by
staff and their local communities, and stand-out market of Asia in 2020. increasing their duty-free quotas per
invested in staff trainings on digital person.
messaging platforms (WeChat, In contrast, other markets with strong
Facebook, Line). In China, the most international consumer bases such as
agile brands went one step further Hong Kong and S. Korea suffered from
and put their sales staff in front of the this precipitated return to reliance on
camera to reach and expand on their local consumers.
consumer bases.
4Asia 2020 snapshot (excluding China)
Markets: Hong Kong SAR, Taiwan, Japan, Malaysia, Singapore
Markets 2020 YoY Product Categories 2020 YoY
Hong Kong SAR -40% Fashion -24%
Taiwan -5% Accessories -34%
Japan -27% Footwear -35%
Malaysia -42% Beauty & Fragrance -20%
Singapore -45% F&B -30%
Note: for categories not covered by the brands monitored in this report, full-year growth figures represent a consensus of official government statistics.China 2020 snapshot
Markets 2020 YoY Product Categories 2020 YoY
China +33% Fashion +24%
Accessories +61%
Footwear +14%
Beauty & Fragrance +30%
F&B +38%
Note: for categories not covered by the brands monitored in this report, full-year growth figures represent a consensus of official government statistics.Retail Barometer
2020 Mainland China Taiwan Japan
Whereas barometers traditionally measure air
pressure, the Bluebell barometer indicates the level of
pressure on luxury and lifestyle retail sales across each
market in 2020. 11% 21% 30%
This pressure is measured by combining quantitative
and qualitative indicators relevant to retail operation,
and the unique environment of 2020, including:
• Extent and length of enforced lockdowns
• Extent and length of social distancing
• Impact of inbound travel bans relative to each Hong Kong Singapore Malaysia
market’s reliance on travel retail
• Mass scale consumption incentivisation programmes
On this retail barometer scale,100% pressure would
predict a complete loss of retail revenue over the
period monitored. 56% 61% 65%
7Mainland China
YOY Total Sales Change Sales Channels
100%
Standalone Digital Channels
75% Mainland China was by far the highest
100% performing luxury and premium lifestyle market
50%
75% in Asia in 2020.
50%
25%
0% While China’s economy grew only by 2.3%,
-25%
25% -50% global research firm Bain estimated in
-75%
-100%
December that its luxury goods market would
1 2 3 4 5 6 7 8 9 10 11 12 1 3 5 7 9 11 likely achieve 48% growth in 2020, nearly
0% doubling China’s domestic market-share from
Shop-in-Shop
11% to 20% of the global luxury market.
-25% 100%
75%
From our own monitoring, this growth was
50% characterized by a ‘shock’ dip in the first
25%
-50% 0%
quarter, followed by a fast recovery from the
-25% second quarter, and an ongoing period of
-50%
-75%
thriving growth driven primarily by the
-75% -100% repatriation of travel consumption which
1 2 3 4 5 6 7 8 9 10 11 12
previously accounted for close to 70% of all
Outlet Store Chinese consumers’ consumption.
-100%
1 2 3 4 5 6 7 8 9 10 11 12
100%
COVID-19 Measures in 2020 75%
50%
• Jan 23 to Apr 4: Wuhan province lockdown 25%
• Feb 10 to Mar 5: Store closures across China (business-led) 0%
• From Mar 5: Introduction of WeChat health tracker -25%
• From Mar 28: Inbound travel ban (global) -50%
-75%
• From Sept. 28: Border opening to eligible foreign nationals -100%
1 2 3 4 5 6 7 8 9 10 11 12
8Hong Kong SAR
YOY Total Sales Change Sales Channels
100%
Standalone Digital Channels
75% According to the Hong Kong Census and
100% Statistics Department, total retail sales by
50%
75% volume fell 25.5%, while the market’s overall
50%
25% economy contracted by a record 6.1%.
0%
-25%
25% -50% Among monitored markets, Hong Kong
-75% experienced the most mixed performance
-100%
1 2 3 4 5 6 7 8 9 10 11 12 1 3 5 7 9 11 across different categories and channels in
0% 2020.
Shop-in-Shop
-25%
Traditionally a strong travel-retail market, Hong
100%
75%
Kong was particularly vulnerable to the global
50% shutdown of international travel early in the
25%
-50% 0%
year. While sales slowly picked-up from April,
-25% tightened controls prompted by a surge in virus
-50%
-75%
cases created another plunge during the end-
-75% -100% of-year holiday season.
1 2 3 4 5 6 7 8 9 10 11 12
Outlet Store Among our monitored categories, F&B has
-100%
1 2 3 4 5 6 7 8 9 10 11 12 fared the best overall, followed by
100% accessories, fashion and footwear.
COVID-19 Measures in 2020 75%
50%
• From Feb 4: Inbound travel ban from Mainland China 25%
• From Mar 25: Inbound travel ban (global) 0%
• From Mar 29: Social distancing measures -25%
• From Dec: HK enters its fourth wave of the pandemic, social -50%
-75%
distancing measures reactivated -100%
1 2 3 4 5 6 7 8 9 10 11 12
9Taiwan
YOY Total Sales Change Sales Channels
100%
Standalone
75% According to advance estimates from Taiwan’s
100% statistics office, the Taiwanese economy grew
50%
75% 2.98% in 2020, outpacing mainland China’s
50%
25% growth for the first time in 30 years.
0%
-25%
25% -50% Taiwan experienced the mildest dip across all
-75% monitored markets, thanks in part to its relative
-100%
1 2 3 4 5 6 7 8 9 10 11 12 success in containing the spread of COVID-19
0% without a strict lockdown.
Shop-in-Shop
-25%
Among monitored categories, fashion enjoyed
100%
75%
the biggest peak, with exceptional growth aided
50% by soaring shop-in-shop sales. Meanwhile
25%
-50% 0%
accessories saw the most stable positive
-25% performance in the second half of the year.
-50%
-75%
-75% -100%
1 2 3 4 5 6 7 8 9 10 11 12
Outlet Store
-100%
1 2 3 4 5 6 7 8 9 10 11 12
100%
COVID-19 Measures in 2020 75%
50%
• From Jan 26: Inbound travel ban (Mainland China) 25%
• From Mar 19: Inbound travel ban (global) 0%
• From July: International students allowed -25%
-50%
-75%
-100%
1 2 3 4 5 6 7 8 9 10 11 12
10Japan
YOY Total Sales Change Sales Channels
100%
Standalone Digital Channels
75% According to Japan’s statistics office, overall
100% retail sales in Japan were down 3.3% in 2020.
75%
50% 50%
25% Despite efforts to avoid a strict lockdown earlier
0% in the year, Japan’s enforced State of
-25%
25% -50% Emergency from April was accompanied by a
-75% near-complete halt of offline retail across our
-100%
1 2 3 4 5 6 7 8 9 10 11 12 1 3 5 7 9 11 monitored brands.
0%
Shop-in-Shop
From May, sales rebounded swiftly and
remained stable - although negative – with only
-25% 100%
75% beauty & fragrance achieving positive growth
50% in October and November.
25%
-50% 0%
-25%
-50%
Notably, outlet stores outperformed other
-75% physical channels in fashion and beauty &
-75% -100%
1 2 3 4 5 6 7 8 9 10 11 12 fragrance.
Outlet Store
-100%
1 2 3 4 5 6 7 8 9 10 11 12
100%
COVID-19 Measures in 2020 75%
50%
• Feb 4: Flight suspensions from Zhejiang and Wuhan. 25%
• From Feb 20 : Social Distancing 0%
• From Mar 27: Inbound travel ban (global) -25%
• From Apr 7: Enforced state of Emergency -50%
-75%
• From May 14: State of Emergency relaxed by district -100%
• From Oct 1: Border opening to intl. visitors with special permits 1 2 3 4 5 6 7 8 9 10 11 12
11Singapore
YOY Total Sales Change Sales Channels
100%
Standalone Digital Channels
75% According to advance estimates by the Trade
100% and Industry Ministry, Singapore’s GDP
50%
75% contracted by 5.8% in 2020.
50%
25%
0% Despite a gradual reopening of its borders from
-25%
25% -50% August, Singapore experienced one of the
-75% lowest performances overall among the
-100%
1 2 3 4 5 6 7 8 9 10 11 12 1 3 5 7 9 11 monitored markets.
0%
Shop-in-Shop
The Singapore government announced the
move to Phase 3 from 28 December 2020.
-25% 100%
75%
50%
25%
-50% 0%
-25%
-50%
-75%
-75% -100%
1 2 3 4 5 6 7 8 9 10 11 12
-100%
1 2 3 4 5 6 7 8 9 10 11 12
COVID-19 Measures in 2020
• From Jan 29: Inbound travel ban (Mainland China)
• From Mar 13: Inbound travel ban (global)
• From Mar 27 to Apr 30: Social distancing measures
• Apr 7 to June 1: Circuit breaker
• June 2 to 18: Phase 1 of “Safe Reopening”
• From June 18: Phase 2 of “Safe Reopening”
• From August: gradual reopening of borders; Reciprocal Green Lane
(RGL) with Malaysia
12Malaysia
YOY Total Sales Change Sales Channels
100%
Standalone Digital Channels
75% From a complete shutdown in April, a pick up
100% in fashion and footwear was observed before
50%
75% dipping again with fashion and footwear
50%
25% achieving near-equal YoY performance in
0% August - only to fall dramatically again in
-25%
25% -50% October, when new Conditional Movement
-75% Control Orders and interstate traveling bans
-100%
1 2 3 4 5 6 7 8 9 10 11 12 1 3 5 7 9 11 were introduced across various states within
0% the country.
Shop-in-Shop
-25% 100%
75%
50%
25%
-50% 0%
-25%
-50%
-75%
-75% -100%
1 2 3 4 5 6 7 8 9 10 11 12
Outlet Store
-100%
1 2 3 4 5 6 7 8 9 10 11 12
100%
COVID-19 Measures in 2020 75%
50%
• Mar 18 to Apr 13: Border closure and partial lockdown 25%
• Apr 1 to May 3: Period of Enhanced Movement Control Order (MCO) 0%
• From May 4: Relaxed lockdown with all sectors reopened -25%
• From June 7: Recovery Movement Control Order (RMCO) -50%
-75%
• From October: Conditional MCO across various states -100%
1 2 3 4 5 6 7 8 9 10 11 12
13In Focus
South Korea Travel Retail
Travel Retail
Year-on-Year Performance
Overall Performance
Korea travel retail market sales plunged by 38% YoY 30%
to US$13.2 billion in 2020 under the sustained
COVID-19 pandemic.
After hitting the bottom in April due to travel
restrictions and quarantine measures which
impacted the travel retail market, KTR market
started to rebound thanks to the continuous -2%
Total (all categories)
government measures to support the duty free Fashion & Accessories
industry and foreigners' sales. Beauty & Fragrance
However, in December, KTR market saw the second
biggest drop vs M-1 since February due to the 3rd
wave of pandemic and the rapid increase in KRW
value. -35%
-68%
-100%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
14In Focus
South Korea Travel Retail
Travel Retail: Beauty & Fragrance
Year-on-Year Performance
Beauty & Fragrance
50%
Overall, sales trend of the skincare category
remained much stronger than any other category,
while the make-up category showed a downward
trend in part because the use of make-up testers
was banned in compliance with government
recommendations for restriction as a part of
13%
Covid-19 preventive measures. Skincare
Make-up
Sales of Korean cosmetics (K-beauty) was mainly K-Beauty
driven by the Chinese demand for Whoo brand Fragrance
products. Others
The fragrance segment slightly recovered thanks to -25%
an increase in demand for niche luxury brands.
-63%
-100%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
15Acknowledgements
We would like to thank the lifestyle and luxury brands, both internal and external to Bluebell Group, that are making this industry analysis possible by sharing their
year-on-year sales performance figures across Asian markets and retail channels.
For more information, contact the Market Insights Team
connect@bluebellgroup.com
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