TRUE-LUXURY GLOBAL CONSUMER INSIGHTS
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TRUE-LUXURY GLOBAL
CONSUMER INSIGHTS
June 2 0 2 0
7 TH E D I T I O N
THE 7 TH TRUE-LUXURY GLOBAL CONSUMER INSIGHT EDITION CONDUCTED IN TWO
FIELD MOMENTS: PRE-COVID (JANUARY 2020) AND POST-COVID (JUNE 2020)
~19M True-Luxury Consumers (out of ~435M total consumers) generating 31% of global luxury market
12,000+ €37K+ 10
Fifth Ed. 2018
Respondents Average spend2 Markets1
Powered by
12,000+
€39K+
Sixth Ed. 2019 • 2,000 in China Average spend Research Partner for
• 2,000 in US the all 7 editions of
the BCG Altagamma
True-Luxury Global
Seventh Ed. 2020 Consumer Insights
Arabs market1
Pre Covid-19 (Jan 2020) +1 (UAE & KSA)
Post Covid-19 (June 2020) 2000
1. BegunBCG
Source: monitoring UAE /KSA
Knowledge market (300 respondents) 2. Includes personal and experiential luxury, excluding cars, yachts, smartphones and smartwatches
& Analysis 1
WE BRING ALTAGAMMA PARTNERS AND MEMBERS OF BCG LUXURY ECOSYSTEM
TO THE TABLE TO GENERATE THE BEST CONSUMERS INSIGHTS
True-
luxury
BCG Altagamma
partners Consumer partners
Insight
2020
Source:
Note: ListBCG
of brands
Knowledge
not exhaustive
& Analysis 2
BCG EXPERT NETWORK READY TO DISCUSS IN EVERY LARGE MARKET THE
OUTCOMES OF TRUE-LUXURY GLOBAL CONSUMER INSIGHT 2020
AMERICAS EUROPE ASIA
Christine Kunal Jim Javier Filippo Sebastian Stephane Olof Jessica Crystal Vincent
Barton Bhatia Brennan Anta Bianchi Boger Cairole Darpo Distler Hao Lui
Thierry Pierre Nicholas Nicolas Patrick Joël Francesco Andreas Nicola Miki Veronique
Chassaing Dupreelle Goad De Bellefonds Ducasse Hazan Leone Malby Pianon Tsusaka Yang
Hemant Bharat Robbin Javier Stefan Stefan Diederik
Kalbag Khandelwal Mitchell Seara Rasch Rohrhofer Vismans
Jeffrey Mario Drake
Shaddix Simon Watten
Sarah
Willersdorf
Source: BCG Knowledge & Analysis 3
1. COVID-19 IMPACT
June 2 0 2 0
2. TRUE-LUXURY CONSUMER INSIGHTS
3. NEW REALITY & IMPLICATIONS FOR
BUSINESSES
SEVERE IMPACT OF COVID -19 ON LUXURY MARKET,
WITH EXPERIENTIAL LUXURY FACING THE BIGGEST DROP
Global Luxury Market (Personal & Experiential), % of total
Pre Covid-19 Projections
Personal Luxury
CAGR YOY CAGR
Experiential Luxury ‘13-‘19 ‘19-‘20 ‘20-‘22
36 % +3.4%
37 % +21.2%
39 %
-25
42 %
to -45%
64 % +5.6% +32.7%
63 %
61 % -40
58 %
to -60%
2013 2019 2020 2022
Note: Numbers rounded. Personal includes leather accessories, apparel, watches and jewelry (branded and unbranded) and
perfumes and cosmetics; Experiential includes furniture, food and wine, fine dining & hotel and exclusive vacations
Source: BCG & Altagamma Market Model, BCG Analysis 5
THE CRISIS IMPACTED EVEN TRUE -LUXURY CONSUMERS, WITH 57% REFRAIN ING
FROM MAKING PURCHASES AND INVESTMENTS THEY HAD PLANNED
I will continue making the purchases and investments I had planned before
% of respondents
14% 15% 12% 17%
20% 24% 20% 22% 22%
33% 28%
21% 20% 32% 16%
22% 15% 26% 18%
27%
20% 27%
61% 65% 64% 60% 67%
57% 53% 51% 56%
47% 45% Strongly Agree & Agree
Neither agree nor disagree
Strongly Disagree & Agree
All
Countries
Surveyed
Note: % represents share of respondents
Source: Proprietary BCG-Altagamma True-Luxury Global Consumer Insight Survey & Analysis in two field moments: Pre-Covid (Dec-Jan 2020; 12K+ respondents in 10
countries)
Source: BCG& Post-Covid
Knowledge(June 2020; ~2000 in 10 countries)
& Analysis 6
SENTIMENT TOWARDS THE RECOVERY IS MITIGATED, WITH ONLY CHINESE
EMERGING AS THE MOST CONFIDENT, AS THEY ARE AHEAD IN THE VIRUS CYCLE
I believe that the recovery after the crisis will be fast
% of respondents
26% 20% 23%
36% 30% 36% 31% 32% 31% 38%
18% 15%
28% 19% 18% 77%
20% 27% 28% 12%
27%
62% 62%
43% 46% 43% 50% 50% 50%
37% 41% Strongly Agree & Agree
15% Neither agree nor disagree
8% Strongly Disagree & Disagree
All
Countries
Surveyed
Europe & US extensively affected by Covid-19,
Chinese express optimistic sentiment towards recovery,
especially in key areas for economic development.
as the country is now ahead in the virus cycle.
Strict lockdown imposed to all citizens.
Note: % represents share of respondents
Source: Proprietary BCG-Altagamma True-Luxury Global Consumer Insight Survey & Analysis in two field moments: Pre-Covid (Dec-Jan 2020; 12K+ respondents in 10
countries)
Source: BCG& Post-Covid
Knowledge(June 2020; ~2000 in 10 countries)
& Analysis 7
WITHIN PERSONAL LUXURY, CASUALWEAR & COSMETICS EXPECTED TO REBOU ND
IN 2 YEARS, WHILE OTHER CATEGORIES IMPACTED BY CRISIS ON THE LON G TERM
20%
WINNERS
Net appetite1 (2-3 years from now)
10% Cosmetics
Sneakers
T-shirts
True-Luxury Consumers
Pants/Skirts
Perfumes Sportswear
0% Shirts/Topwear
Formal Shoes Dress/suits Knitwear/sweaters
Small leather goods Hoodies
Watches Sunglasses
-10% Jewelry
Handbags Backpacks Down jackets
Silk goods
Formal coats Hard luxury
-20% Beauty
Casualwear
Formalwear
LOSERS Accessories
-30%
-60% -40% -20% 0% 20%
True-Luxury Consumers Net appetite1 (next 6 months)
Question text : "How does your luxury spending over the next 6 months will compare to your luxury spending in the 6 months prior to the coronavirus outbreak (i.e. 2nd
half of 2019) and in 2-3 years from now? Note: 1. Net appetite: (% of a lot more + % of a bit more) – (% of a bit less + % of a lot less)
Source: Proprietary BCG-Altagamma True-Luxury Global Consumer Insight Survey & Analysis in two field moments: Pre-Covid (Dec-Jan 2020; 12K+ respondents in 10
countries)
Source: BCG& Post-Covid
Knowledge(June 2020; ~2000 in 10 countries)
& Analysis 8
IN EXPERIENTIAL, TRUE -LUXURY CONSUMERS ARE STILL RELUCTANT TOWAR DS HOTELS,
RESORT AND CRUISE VACATIONS, PREFERRING MORE INTIMATE EXPERIENCE S
20%
WINNERS
Net appetite1 (2-3 years from now)
10%
Home Tech
True-Luxury Consumers
Private Villas
Super Yacht Fine Wine & Spirits
0%
Exclusive Hotels
Exclusive Fine Dining Lightning
Exclusive Resort Vacations Wellness & SPA
-10% Design Furniture
Exclusive Luxury Bars & Clubs Art Goods
-20% Exclusive Cruise Vacations
Social Experiences
Private Experiences
LOSERS Experiential Products
-30%
-60% -40% -20% 0% 20%
True-Luxury Consumers Net appetite1 (next 6 months)
Question text : "How does your luxury spending over the next 6 months will compare to your luxury spending in the 6 months prior to the coronavirus outbreak (i.e. 2nd
half of 2019) and in 2-3 years from now? Note: 1. Net appetite: (% of a lot more + % of a bit more) – (% of a bit less + % of a lot less)
Source: Proprietary BCG-Altagamma True-Luxury Global Consumer Insight Survey & Analysis in two field moments: Pre-Covid (Dec-Jan 2020; 12K+ respondents in 10
countries)
Source: BCG& Post-Covid
Knowledge(June 2020; ~2000 in 10 countries)
& Analysis 91. COVID-19 IMPACT
June 2 0 2 0
2. TRUE-LUXURY CONSUMER INSIGHTS
3. NEW REALITY & IMPLICATIONS FOR
BUSINESSES8 CONSUMER TRENDS SHAPING THE NEW LUXURY REALITY, WITH 5 ACCELER ATED
BY THE COVID-19 CRISIS THAT ARE HERE TO STAY
Temporary trends, here today Accelerating trends, here to stay
Experiential luxury & tourism: more Luxury values polarizing
secluded and short-hauled between West and China
Deep-dive today Deep-dive today
Purpose at the heart of
Sustainability 360°
Chinese: from global spenders to
local consumers Next generation relationship
driven by Clienteling 2.0
Deep-dive today
A new shopping equation:
online acceleration & in-store brand experience
Millennials take a hit, but are most
hopeful for the future
New business models reshaping ownership:
rise of 2nd hand and rental
11Temporary trends, here today
EXPERIENTIAL LUXURY & TOURISM:
MORE SECLUDED AND SHORT-HAULED
12Business Travel Leisure Travel
54% Travel & 60%
Of True-Luxury
consumers say Tourism Of True-Luxury
consumers say
they plan to
travel less for most affected they can't wait
to travel again
work compared
to before
by the crisis for leisure
Long-term impact Temporary impact
Focus of the study:
experiential luxury
Source: Proprietary BCG-Altagamma True-Luxury Global Consumer Insight Survey & Analysis in two
field moments: Pre-Covid (Dec-Jan 2020; 12K+ respondents in 10 countries) & Post-Covid (June 2020;
~2000 in 10 countries)
within leisure 13
1343% OF CONSUMERS WERE SHIFTING THEIR SPENDING TOWARDS EXPERIENTI AL
LUXURY BEFORE PANDEMIC HIT, AND TREND IS RESISTING
Compared to 2/3 years ago do you feel that you are buying fewer personal products
and more leisure experiences? (Pre-Covid Survey)
% of respondents
No 14% 13% 13% 9% 15% 13% 12% 11%
20% 16% 18%
34% 32%
Unchanged 43% 49% 48% 50% 42% 43%
46% 50% 44%
53% 57%
Yes 43% 38% 39% 41% 43% 44%
34% 34% 37%
~43% HAVE SHIFTED THEIR SPENDING TO EXPERIENTIAL BEFORE COVID-19
AND 40% STILL CONFIRM THEY ARE MORE LIKELY TO DO SO AFTER COVID-19
Source: Proprietary BCG-Altagamma True-Luxury Global Consumer Insight Survey & Analysis in two field moments: Pre-Covid (Dec-Jan 2020; 12K+ respondents in 10
countries)
Source: BCG& Post-Covid
Knowledge(June 2020; ~2000 in 10 countries)
& Analysis 14AMONG THOSE WHO ARE SWITCHING, ~88% ARE SHIFTING SINCE EXPERIENC ES
PROVIDE GREATER SATISFACTION AND EXCLUSIVITY
Compared to 2/3 years ago why do you feel that you are buying fewer personal products
and more experiences? (Pre-Covid Survey)
% of respondents % of respondents3
All
Full wardrobe 43 33 40 52
47%
Bored of personal
9 6 8 10
goods
Negatives of
personal goods1
Experiences bring
49 56 49 53
more satisfaction
Experiences are
88% more exclusive
35 37 33 36
Spend time with
Positives of 34 40 33 35
friends and family
experiences2
Note: 1. Respondents who are switching because of at least 1 negative reason 2. respondents who are switching because of at l east 1 positive reason 3. multiple choice
question; Sample sizes are China = 876, Top 4 EU = 1294, US = 1194; multiple choice question
Source: Proprietary BCG-Altagamma True-Luxury Global Consumer Insight Survey & Analysis in two field moments: Pre-Covid (Dec-Jan 2020; 12K+ respondents in 10
countries)
Source: BCG& Post-Covid
Knowledge(June 2020; ~2000 in 10 countries)
& Analysis 15AMONG EXPERIENTIAL, SOCIAL EXPERIENCES MORE NEGATIVELY IMPACTED BY
COVID-19 CRISIS, WITH CONSUMER SHIFTING TOWARDS MORE INTIMATE AC TIVITIES
How does your luxury spend in the future will compare to prior to the Covid-19 outbreak for the following categories?
Next Next
more secluded
Net appetite1 6 months 2-3 years Impact
Home Tech -8% 4%
EXPERIENTIAL Lightning -16% -5% Less impacted by crisis as
consumers enjoy more time at
Design Furniture -30% -10%
PRODUCTS Art Goods -32% -17%
home
Wine & Spirits -4% 2% Impacted in the short term but will
recover faster as experiences
PRIVATE Private Villas -25% 5%
become more secluded; super yacht
Super Yacht -27% 2%
EXPERIENCES Exclusive Fine Dining -31% -5%
and private villas positively affected
Wellness & SPA -33% -7%
Luxury Hotels -35% -5% More impacted both in the short
SOCIAL Luxury Resort Vacations -37% -7% and long term as consumers are
structurally shifting their preferences
EXPERIENCES Luxury Bars & Clubs -41% -15%
towards intimate moments
Luxury Cruise Vacations -44% -21%
1. (% of a lot more + % of a bit more) – (% of a bit less + % of a lot less)
Source: Proprietary BCG-Altagamma True-Luxury Global Consumer Insight Survey & Analysis in two field moments: Pre-Covid (Dec-Jan 2020; 12K+ respondents in 10
Source: BCG
countries) Knowledge(June
& Post-Covid & Analysis
2020; ~2000 in 10 countries) 1654% OF TRUE-LUXURY CONSUMERS DO NOT EXPECT TO RESUME INTERNATION AL
LEISURE TRAVEL BEFORE 6 MONTHS
From the moment you will be allowed to travel for leisure internationally again,
when do you think you will actually start doing so?
3% 2% 3% 1% 5% 2% 1% 1% 7% 2% 4% 100%
11% 16%
17% 17% 18% 21% 25%
24%
29% 34%
54% 23%
46%
23% 28% 24% 30% 29%
27% 28%
30% 33%
22%
65% I don’t think I will travel internationally again
57% 55% 54% 50%
46% 48% 46% After more than 1 year
34% 31% After 6 months - 1 year
28%
From Immediately after to 6 months
All Germany France Italy Russia UK China Brazil US South Japan
nationalities Korea
Average
timeframe 9 6 7 7 7 8 9 10 11 12 14
(in months)
On average, Europeans & Russians Non-Europeans will take a bit more time
expected to resume international travel in before they travel internationally again,
6-8 months, preferring neighboring with higher share of consumers waiting
countries and short-hauled trips 1 year
Source: Proprietary BCG-Altagamma True-Luxury Global Consumer Insight Survey & Analysis in two field moments: Pre-Covid (Dec-Jan 2020; 12K+ respondents in 10
countries)
Source: BCG& Post-Covid
Knowledge(June 2020; ~2000 in 10 countries)
& Analysis 17ONCE THE COVID-19 WILL BE UNDER CONTROL, ITALY WILL BE THE PREFE RRED
LOCATION FOR EUROPEAN NEIGHBORS AND AMERICAN, BUT NOT FOR CHINESE
Top Abroad Destinations Top Abroad Destinations
for luxury experiences, Pre-Covid for luxury experiences, Post-Covid Era
(x%) – Sum of share of respondents who ranked the country 1st, 2nd or 3rd
1 2 3 1 2 3
Italy France US Spain = (54%) = (51%) UK (42%)
France Italy US Spain = (61%) = (41%) UK (35%)
UK Italy US Spain = (57%) = (48%) = (45%)
Germany Italy France US = (51%) = (49%) = (36%)
Russia Italy France Spain = (64%) = (56%) = (52%)
Nationality
US Italy France Spain = (62%) = (57%) UK (44%)
Brazil US Italy France = (51%) France (51%) Italy (43%)
China Italy France US France (63%) Japan (52%) Italy (39%)
Japan US Italy France = (62%) = (60%) = (60%)
South Korea Italy US France US (51%) France (49%) Italy (44%)
Note: Pre-Covid: question asked was 'How many trips of each type have you done to each destination in the last 12 months"; Post-Covid: Question was "Once the Covid-19
will be under control, which will be your 3 top international destinations (outside of your country of residence) for luxury experiences (e.g. luxury resorts, cruises, wellness)?"
Source: Proprietary BCG-Altagamma
BCG Knowledge & Analysis True-Luxury Global Consumer Insight Survey & Analysis in two field moments: Pre-Covid (Dec-Jan 2020; 12K+ respondents in 10 18
countries) & Post-Covid (June 2020; ~2000 in 10 countries)Accelerating trends, here to stay
LUXURY VALUES POLARIZING BETWEEN
WEST AND CHINA
19LUXURY ALWAYS CHARACTERIZED BY ALTERNATION OF GLOBAL STYLE ERAS
New
Emancipation Woodstock Eccentricity Eclectic Minimalism Outrageous Extravagance
Elegance
60's 70's 80's 90's 00's 10's 20's Future
Source: desk
BCG research
Knowledge & Analysis 20THE GROWTH TRAJECTORY OF EXTRO VALUES PROGRESSES FAST IN CHINA
BUT HALTS IN THE WESTERN WORLD: TWO DIVERGING DIRECTIONS
+14%
Preference for -18% -9%
New luxury values
Extro Values1
Extravagant & fun
Identity statement 35%
28% 28% 29% 31%
Brand visibility & patterns 26%
Adorned aesthetics 21% 23% 22% 22%
19%
Cool & Sexy 15%
…
2014 2017 2019 2020 2014 2017 2019 2020 2014 2017 2019 2020
More significant values Timelessness Craftsmanship Brand iconic patterns
compared to global average Craftsmanship Heritage An identity statement
Less significant values Adorned aesthetics Brand iconic patterns Exclusivity
compared to global average Craftsmanship
Exclusivity Brand visibility
Note: 1. % of new luxury values indicated as a response to the question "Luxury to me is…"
Source: Proprietary BCG-Altagamma True-Luxury Global Consumer Insight Survey & Analysis in two field moments: Pre-Covid (Dec-Jan 2020; 12K+ respondents in 10
countries)
Source: BCG& Post-Covid
Knowledge(June 2020; ~2000 in 10 countries)
& Analysis 21LUXURY WORLDS TRAVELS NOT ONLY AT TWO SPEEDS BUT ALSO TOWARDS
TWO DIFFERENT DIRECTIONS
Towards the Sober Era: Extra is still cool:
• Preference for temperance and "slow fashion" • Chinese consumers still appreciate bold and
• This preference is also linked to a general extravagant values
appreciation for sustainability 360°: consumers in • Luxury items represent a way to express fun
mature fashion countries increasingly thoughtful in identity statements
their consumption habits
Would they sober-up Would they follow extro values
to appeal Westerns? to appeal Chinese consumers?
Source: BCG Knowledge & Analysis 22
22Accelerating trends, here to stay NEXT-GENERATION RELATIONSHIP DRIVEN BY CLIENTELING 2.0
A NEXT-GENERATION TYPE OF RELATIONSHIP: CLIENTELING 2.0
CLIENTELING…
Establish long-term relationships with consumers
leveraging data about what they like, what they
purchase, how they behave…
…2.0
…ensuring that the relationship is seamlessly
nurtured both in store & online, combining
capabilities of people and data using advanced
tools (e.g. machine learning)
Source: BCG Knowledge & Analysis 24
24IN THE NEW REALITY CONSUMERS WILL HIGHLY VALUE DIGITAL CLIENTELING,
WITH HIGH EXPECTATIONS ON LEVEL OF SERVICE
SAY THEY WILL BE MORE TO THE POINT THEY WILL EXPECT TO
46% APPRECIATIVE OF DIGITAL
PERSONALIZED CLIENTELING
COMPARED TO BEFORE
RECEIVE THE SAME LEVEL OF SERVICE
IN BOTH ONLINE AND OFFLINE
CHANNELS
EVEN MORE SIGNIFICANT FOR
76% 57%
Source: Proprietary BCG-Altagamma True-Luxury Global Consumer Insight Survey & Analysis in two field moments: Pre-Covid (Dec-Jan 2020; 12K+ respondents in 10
countries)
Source: BCG& Post-Covid
Knowledge(June 2020; ~2000 in 10 countries)
& Analysis 25THE OLD MODEL DOES NOT WORK ANYMORE, AS CLIENTS WISH TO REPLICAT E
ONLINE THE OFFLINE RELATIONSHIP THEY HAVE WITH BRANDS
PAST FUTURE
Inspiration Purchase Clienteling Inspiration Purchase Clienteling
80% of True-Luxury Personalized
consumers in-store treatment,
conclude their selling ceremony,
purchase in store with 1to1
PHYSICAL (of which 39% knowledge of taste
CHANNELS ROPO1) and preferences
Online penetration Digital clienteling
50% of True-Luxury will increase will become as
consumer starts strongly up to 20% relevant as
their journeys of luxury sales in physical
online, searching 2022 (46% preference
DIGITAL for inspiration (+ 8 pp vs 19) vs. 49% for
CHANNELS physical)
Note: 1. ROPO: Research Online, Purchase Offline
Source: BCG Knowledge
Analysis & Knowledge
& Analysis 26SOME BRANDS HAVE STARTED EXPERIMENTING NEW AND PERSONALIZED WAYS
OF ENGAGING WITH CONSUMERS DURING LOCKDOWNS
Galeries Lafayette has been
trialing ‘Exclusive Live Shopping,’ a
video service that links up
individual customers at their
homes with consultants and
personal shoppers
Gucci Live, a video service that
Luxury brands in High Jewelry
enables staff to communicate with
shifting from events to deeper
shoppers on their mobiles or laptops,
personalization and intimate events
offers a seamless, always accessible,
(digital & offline) in the long-term
personalized experience
During lockdowns, consumers and brands engage ..with brands imagining the
on a personalized level via digital… next-generation of relationship
Source: desk
BCG search,
Knowledge
brands'
& Analysis
websites 27HOW TO BUILD A STRONG CLIENTELING 2.0 BACKBONE, THROUGH ALL
CHANNELS?
FROM DATA TO PEOPLE
• Enable sales associates to use customer targeting
and recommendation
People • Move from blast campaigns to personalization
– Impact on content design, creation and
validation process
ADVANCED TOOLS AND METHOD
AI/AA • From data to action: advanced methods and tools
such as machine learning to gather insights
• Customer-centric mindset
LEVERAGE DATA TO GET TO KNOW YOUR CLIENTS
Data • Gathering of client data (socio-demo; recent
purchases; browsing data; third-party)
Capabilities • Build an end-to-end automated flow from customer
data capture to activation
Source: BCG Knowledge & Analysis 281. COVID-19 IMPACT
June 2 0 2 0
2. TRUE-LUXURY CONSUMER INSIGHTS
3. NEW REALITY & IMPLICATIONS FOR
BUSINESSESGIVEN THE CONTEXT, SEVERAL PRIORITY INVESTMENTS FOR BRANDS TO WIN IN THE
NEW LUXURY REALITY
RESET & STREAMLINE
MAKE SUPPLY IMPLEMENT A ZERO-
CHAINS LESS RETHINK THE BASED
RESET COSTLY AND MORE FASHION ORGANIZATIONAL
DISTRIBUTION AGILE ADJUST P&L CALENDAR REDESIGN
INVEST
ADDRESS BUILD AN
CHANGING ACCELERATE AI-DRIVEN BRING FRESH
CONSUMER INVEST IN EMBRACE THE DIGITAL TECHNOLOGY SKILLS TO THE
DEMAND INSPIRATION CLIENTELING 2.0 ECOSYSTEM BACKBONE WORKFORCE
Source: BCG Knowledge & Analysis 30ALTAGAMMA & BCG TEAM FOR THE 7TH EDITION OF THE STUDY
Stefania Nicola Javier Filippo Sarah Guia
Lazzaroni Pianon Seara Bianchi Willersdorf Ricci
General Manager Managing Director Managing Director Managing Director Managing Director Principal
Altagamma & Senior Partner & Senior Partner & Partner & Partner
Source: BCG Knowledge & Analysis 31Research Partner THANK YOU
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