LuxuryGoodsJune2025

MarketUpdate

Somepeoplethinkluxury

istheoppositeofpoverty.Itisnot.Itistheopposite

ofvulgarity.CocoChanel

2

TableofContents

01

OverallMarketContext

02

EvolvingConsumerDemandsinLuxury

03

M&AMarketandRelevantValuationConsiderations

04

Appendix

Overall

MarketContext

OverallMarketContext

04

03

02

01

GlobalLuxuryMarketSnapshot

V

LuxuryFashion

LuxuryWatches&Jewellery

€133.5B

+3.7%

5-yrCAGR

€144.6B

+4.6%

5-yrCAGR

MarketSize

MarketSize

33%31%

2024

LuxuryEyewear

€435B

+4.0%CAGR(1)

+2.1%

€27.4B

5-yrCAGR

LuxuryLeatherGoods

6%

15%

MarketSize

15%

€66.4B

+5.9%

MarketSize

5-yrCAGR

LuxuryCosmetics&Fragrances

€63.1B5-yrCAGR+2.6%

MarketSize

Note:(1)2019–2024CAGR.

Sources:StatistaLuxuryGoodsreport/“Thestateofluxury”McKinseyreport.

5

Upby+4%,thegloballuxurygoodssectorhasgrownfasterthanthe

economy(2019–2024)

Expectedtogrowat

approximately4%,

reachingmorethan€526billionin2029

ofindustrygrowthwas

drivenbypriceincreases

ratherthanvolumeincreases

Luxuryindustryeconomicprofitnearlytripled

between2019and2024

GenZcouldaccountfornearlyathirdofluxurypurchasesby2030

Almost40%from

U.S.andChina

~80%

2.6x

OverallMarketContext

04

03

02

01

Long-TermSectorPerformanceSnapshot

Sectorhasahistoricaltrackrecordofstrongresilienceandgrowth

GlobalLuxuryMarketSize(in€B)

+3.9%CAGR

526

508

488

30

469

28

30

CAGR

451

28

+5.4%

29

435

27

63

420

27

59

76

73

385

25

61

70

68

357

25

55

50

65

83

79

318

23

49

43

76

323

73

69

296

66

21

64

19

57

50

155

150

46

146

141

137

47

134

131

41

119

111

100

101

97

175

167

183

152

145

139

159

116

123

103

103

94

20182019202020212022202320242025E2026E2027E2028E2029E

LuxuryWatches&JewelleryLuxuryFashionLuxuryLeatherGoodsLuxuryCosmetics&FragrancesLuxuryEyewear

Source:StatistaLuxuryGoodsreport.

6

?Afteraslowdownin

2020and2021dueto

COVID-19,allsegments

recoveredtopre-COVID-19levelsin2022

?Post-COVID-19,theluxurymarketcontinuedtothrive,despitebroadermarket

uncertainty

?Stronggrowthfromleathergoodsaswellasjewelleryandwatchesasconsumersprioritisedinvestment

categories

OverallMarketContext

04

03

02

01

MarketSpotlight—U.S.andChina

TheU.S.andChinaarestilltheworld’slargestmarketsdespiterecentchallenges

Luxurymarketsharebytopcountries

?Nowtheworld’ssecond-largestmarketforluxurygoods,

Chinadroveluxurygrowthformuchofthepastdecade

?Whiletheultra-wealthysegmentremainsresilient,middle-classconsumershavebeentherealforcebehindthegrowth

?Recently,theChineseluxurymarkethasfacedamorechallengingenvironmentduetobroadereconomicturbulence

StructuraldriversbehindChineseluxurymarket

?WhiletheU.S.luxurygoodsmarkethasbeen

deceleratingandnotthemaindriverofgrowthin

55%

55%

56%

thepastfewyears,itstillrepresentsthelargestmarketforluxurygoodsglobally

9%

15%

8%

14%

9%

16%

?ThestrongU.S.demandduringCOVID-19wasmainlydrivenbyrisingassetprices(stockmarket,housing

market,crypto,etc.)andhighersavingsrates(fuelledbyCOVID-19restrictions)

22%

21%

20%

?Goingforward,higherconsumerconfidencelevelsshouldleadtosingle-digitgrowthintheU.S.

2018

2023

2028E

Overallgrowingwealthandexpandingmiddleclass

U.S.ChinaJapanOthers

Customersincreasinglyshiftingtheirattentiontowards“home-grown”localcompanies

Despiterecenteconomicturbulence,itisanticipatedthatChineseluxury

marketgrowthwilloutpaceU.S.marketgrowthbetweennowand2028

Consumers(especiallymiddle-class)focusingonlessfrequent,buthigher-endpurchases

Socialstratificationfuelsstatus-consciousbuyers’desireforstatussymbols

SaksFifthAvenueBeverlyHillsopenedanewlocationon8February2024

Thesecond-handmarketisbecoming

relevant;thus,resalevaluesareincreasinglyimportant

Sources:MorganStanleyResearch/selectedpress.

7

7

OverallMarketContext

04

03

02

01

VogueArabia

DubaiMallistheworld’slargestdestinationforshopping,entertainment,andleisure,locatednexttotheworld’s

tallestbuilding,theBurjKhalifa

MarketSpotlight—MiddleEastandIndia

TheMiddleEastandIndiaareemergingasdominantmarketsinthegloballuxurylandscape

MiddleEast

A€12-billionmarketisexpectedtocontinuetogrowat+11%p.a.

Hugeinvestmentintotheretailenvironmentintheregion(primarilyshoppingmalls)

Inboundtourismgrowthboostedbystate-sponsoredinvestment

Increaseddemandfromlocalyoung

generations

Ranked20thontheWorld’s

WealthiestCitiesReport2023

(andhometomorethan68,000millionaires)

Sources:BCGFashion&LuxuryMarketreport/selectedpress

India

Approximatelyx3expectedgrowth

On7February2023,DubaiDesignDistrictandtheArabFashionCouncilannouncedthelaunchoftheofficialfashionweek,DubaiFashionWeek,formerlyknownasArabFashionWeek

between2021and2031,drivenbyvariousfactors

Riseofwealthypopulation,oneofthefastestgrowing

Simplifiedtaxationandlogistics

India’snewluxurymall

Increasinginterestandinvestmentsfrominternationalbrands

Luxuryrealestateontherise

AccordingtoFirstpost,thenumberofmillionairesinIndiaisprojectedtosurgeby69%by2027

8

OverallMarketContext

04

03

02

01

LuxuryGoodsGlobalMajorsSnapshot

Webelievethesectorhas15main,globallistedplayerswithacombinedportfolioofover150brands.Theseplayersformthebackboneofsectorperformance,trendsandM&Aactivity—atthe2022sectorpeak,theircombinedmarketcapwasmorethan€700billion

Segmentationofselectedlistedplayers

#ofbrands

Single-brand

Multi-brand

Marketcaprelativetotheotherplayers

LVMH

PRADA

BURBERRY

Multi-segment

Single-segmentLuxurysegmentscoverage

Listedplayerssharepricedevelopment(1)

250%FashionandAccessoriesJewelleryandWatchesBeautyandFragrances200%

150%

100%

50%

0%

(50%)

+170.1%

+124.5%

+96.6%

BeautyandFragrances

ESTELAUDER

HIEIDO

JewelleryandWatches

May-15May-16May-17May-18May-19May-20May-21May-22May-23May-24May-25

FashionandAccessories

BURBERRY

LVMH

HUG。B。SS

PRADA

tapestryZEGNA

OtherunlistedglobalmajorsoftheLuxuryGoodssector

ARMANI

DOCE:GABBANA

Notes:Flagindicatesheadquarters;(1)Sharepricedevelopmentcalculatedforeachpanelasthemarketcap-weightedaverageperformanceoftheindividualstockconstituents

Source:StatistaLuxuryGoodsreport/CapIQ

9

OverallMarketContext

04

03

02

01

Tariffs:WhatIstheImpactontheKeyLuxuryGoodsPlayers?

Limitedimpactexpectedgivenrelativepriceinelasticityandgeographicalmixofluxurysales

Scenarioanalysis:percentimpactonEBITfromtariffs,assumingcompaniesdonotadjustpricingorcosts

SportingGoodsLuxury

BURBERRY

R

PRADA

LVMH

(8%)

(24%)(24%)

(11%)

(21%)

(9%)

(3%)(6%)(6%)

(5%)

(2%)

(4%)

(2%)

(1%)(1%)(1%)(1%)

OriginalTariffRates

0%0%

(1%)(1%)

10%BlanketTariff

(45%)

Europe(excl.Switzerland)

Switzerland

RoW

Luxuryplayerssourcingbyregion

100%

35.0%

80.0%

78.0%

93.0%

95.0%

100%

93.0%

100%

60.0%

5.0%

22.0%

15.0%

5.0%

7.0%

5.0%

7.0%

R

PRADA

Sources:Barclays/UBSanalysis.Dataasof13June2025.

10

Commentary

?Whiletariffsmaytemporarilydampensentimentanddiscretionaryspendingamonggloballuxuryconsumers,theimpactisexpectedtobemitigatedbytheU.S.market’sstructuraltailwinds

?Indeed,despiteholdingroughlyathirdofglobalwealth,theU.S.accountsforlessthanaquarterofgloballuxury

sales,indicatingmaterialheadroomforgrowth.Overthemediumterm,

favourabledemographicand

sociologicaltrendsarelikelytosupportcontinuedsectorexpansion,partially

offsettingshort-termheadwinds

?Additionally,pricingpoweracross

leadingbrandsislikelytoenableat

leastapartialmitigationofthetariffimpact,asthepriceincreasesneededtooffsetthenewblankettariffsare

expectedtobemodest.Thisisfurthersupportedbyexistingpricing

architecturedifferentialsbetweentheU.S.andEuropeanmarkets,whichmayhelpabsorbpartofthepressure

OverallMarketContext

04

03

02

01

Pricing:LimitationsonUpsideFrom2025Onwards

Sectoranalystsindicatethatthefuturescopeforpriceincreasesasadriverofrevenuegrowthismorelimitedthanhistoricaltrends

Globalluxurymarket:revenuedrivers(2009A–2025E)Globalsoftluxury:pricingchanges(2016–2025E)

400

350

300

250

200

150

100

50

0

9%

8%

+8%

+4%

+2%

+6%

0%

0%

+2%

+8%

-10%

-1%

+1%

4%

+2%

+2%

+2%

+4%

0%

2%1%

+9%

-2%

0%1%

1%

0%

-1%

2016201720182019202020212022202320242025E

Commentary:SoftLuxury

?In2024,theaveragepriceincreasewas4%onsoftluxury

?In2025,somebrandswillbemoreselectivearoundpriceincreases(FX,regionaladjustments,etc.)whileotherswillpausepriceincreasesaltogether

?Withinsuchachallenginglandscape,therealpointwillbearoundvolumes.Luxuryplayerswillhavetoprovetheyareabletonavigatethroughbroadermacroweakness

impactingluxuryconsumersamidanormalisingbackdrop

Commentary:20192024

Commentary:2025>

?Analystcommentaryindicatesthatthepriceincreases

seenoverthepast5yearshavebeenpushingthelimitofdigestionbytheconsumer,andvolumeshavebeguntosuffer

?Brandswillneedtointroduceinnovation/newnessinordertore-energisevolumes,althoughoverallthe

sectorisexpectedtogrow

?Analystsrecentlycommentedthatluxurycompanies

mightpassonthetariffsintheformofpriceincreasestoendconsumers,whotendtobelesssensitiveto

pricingandaccustomedtoregionalpricedifferentials

–

?From2019to2024,ASPhasdriven60%ofluxurysectorgrowth

?Strongpriceincreasesreturnedtothesectorin2022–

2023,ledbyleadingluxurybrandssuchasCHANEL,Dior,LouisVuitton,andRolex.Thisenabledsmallerbrandsintheindustrytofollowsuit

?From2024onwards,overallrevenuegrowthwasnegative(ASPincreasedby8%butvolumesdeclinedby10%).This

meansthatcomparedwithpre-COVID-19,volumesareflattoslightlynegativeintheindustryoverall

Sources:BankofAmericareport/brokerreports/selectedpress.

11

OverallMarketContext

04

03

02

01

‘QuietLuxury’HasSoftenedVolumes

‘Quietluxury’hasbeenapreeminentluxurytrendsincelate2021,impactingoverallvolumesduetoaperceivedlackofinnovationandloweringbarriersforcopycatproducts

However,2025sofarhasseenanimprovementinthemomentumof

“l(fā)oud”brandswhichshouldleadtoimprovedengagementandvolumes

Brandleadingindicatorrevenuegrowthof“l(fā)oud”versus“understated”brands(weightedaveragethree-monthrollinggrowth)

Quietluxurywaslikelyaidedbyaweakerconsumerbackdropfrom2020onwards,favouringbuyingproductswithmorelongevity

Brandleadingindicatorrevenuegrowthof“l(fā)oud”versus“understated”brands(weightedaveragethree-monthrollinggrowth).Anenvironmentwithnologoalsolowersbarrierstoentryandfuelsdupes;therefore,fashioncontentandlogosareimportantto

MiddleLoud

reestablishstrongerbarrierstoentry.

UnderstatedLoud

Understated

60%

Emergenceofamoreunderstatedaesthetic

Dominanceofquietluxury

Loud,logo-andhigh-fashion-drivencycle

40%

1Q25TDvs.4Q244Q24vs.3Q24

20%

In1Q25TD,middleandloudbrandsacceleratedversus4Q24,whileunderstatedbrandsslowed

0%

-20%

Jan-16

May-16

Sep-16

Jan-17

May-17

Sep-17

Jan-18

May-18

Sep-18

Jan-19

May-19

Sep-19

Jan-20

May-20

Sep-20

Jan-21

May-21

Sep-21

Jan-22

May-22

Sep-22

Jan-23

May-23

Sep-23

Jan-24

May-24

Sep-24

Jan-25

Commentary

?Quietluxuryvolumescontinuetooutperform“l(fā)oudluxury”(andhavedonesosince2019)

Loud

Understated

Middle

?However,BofAindicatesthatthistrendhasbeenaidedbyaweakerconsumerbackdropandhasimpactedbroadersectorvolumesbyreducingbarrierstoentryandnarrowingthedeltatopremiumapparel

FENDIGUCCI

of-whiteVERSACE

BOTTEGAVENETA

ARMANIFERRA口AMO

?Thisresearchalsoindicatesthatthetrendmayhavepeakedin2024,andthat“l(fā)oud”and“middle”brandsmayberegainingrelativemomentum

?Thereremainsplentyofsectorcommentarysupportingthecontinuationofthequietluxurytrend(e.g.,the

SAINTLAURENT

conceptof“l(fā)uxuryshame”inChina,inwhichconsumers,influencedbyeconomicuncertaintyandsocialpressures,continuetoleantowardsmorediscreetproductsratherthanitemswhichcouldbeperceivedasopulent)

Source:BankofAmericareport.

12

EvolvingConsumer

DemandsinLuxury

0102EvolvingConsumerDemands0304

WhoIstheNewLuxuryConsumer?

MillennialsandGenZalreadydominateluxurygoodsspending.Theglobalwealthtransferwillmakethemthewealthiestgenerationsinhistory

AffluentMillennialandGenZconsumersgenerated65%ofthetotalluxurymarketin2022andisexpectedtomakeupmorethan80%by2030(1)

$365$333$530

9%

17%

23%

25%

30%

50%

82%

65%

47%

44%

36%

27%

18%

8%

5%

201920222030E

GenAlphaGenZMillennialsGenXBabyBoomersSeniors

Note:(1)IncludesGenAlpha.

Source:Bain&Co./KnightFrank.

14

TheGenZdemographicover-indexes

comparedwithotherconsumergroupsintermsoftheirexpectationsaroundfuturewealthprospects

Doyouexpecttoseeyourwealthincreaseinthenext12months?

65%

75%

ofhigh-net-worthindividualssaid“Yes”in2024

Thisfigureincreasesto75%forGenZhigh-networths

0102EvolvingConsumerDemands0304

WhoIstheNewLuxuryConsumer?(cont.)

TheriseofMillennialsandGenZasthekeydriversofluxuryspendinghasresultedintheemergenceofa‘newluxury’consumer

NewLuxury

Fluidbrandchoicesandtendencytospendtimefindinginspiration

Luxuryasameansforself-expressionandauthenticity

Moreversatiledesignswithlessrelianceonlogos/branding,includingmoreminimalism

Drivenbycommunity:influenceanddigitalcreators

Immersiveanddigital-firstshoppingexperiences

Responsiblebrandswithpurposeandcommitmenttosustainability

>

>

>

>

>

>

OldLuxury

Strongsingle-brandloyaltyandlifelongcustomercommitment

Emphasisonstatusandrecognition

Signaturebranding/logosserveasanovertmarkerofluxurystatus

Celebrityendorsementsandaspirationalmarketing

Offlineshoppingandhigh-endretailexperiences

Heritageandexclusivitythroughpriceandscarcity

15

0102EvolvingConsumerDemands0304

2.Lifestyle-focusedbrandpositioning

Theemergenceofbrandpositioningstrategiesthatfocusonconsumers’lifestyleaspirationsthrough

content-basedvisualstorytelling,replacing

traditionalmarketing,whichhashistoricallyfocusedonproductattributes.

4.Luxuryxsport

Developingontheemergenceoftheindependentathleisuretrendfrom2015to2021theworldsof

luxuryfashionandsporthavecontinuedto

convergethroughproductcollaborationsandsponsorshipdealsinvolvingmajorlabels.

6.Artificialintelligenceandmachinelearning

Technologyistransformingthewayluxurybrandsengagewithcustomersandsupportthe

personalisationtrend.

HowAreLuxuryBrandsAdaptingtoEvolvingConsumerPriorities?

1.Evolvingchannelmodel

Brandsareexploitingphysicalanddigitalshoppingenvironmentssynergistically,withaclearrolefor

eachchannel.

3.Brandresale

Consumersincreasinglyseeresaleasalegitimate

purchasingoptioninluxurywithseveraladvantages.Brandsarecapitalisingbyparticipatingdirectlyin

theresalemarket.

5.Hyper-personalisation

Fromcustomdesignstocuratedshopping

experiences,personalisationandtailoredservicesaregainingpopularity,cateringtoindividual

shopperpreferences.

16

02EvolvingConsumerDemands

04

03

01

EvolvingChannelModel

Brandsareexploitingphysicalanddigitalshoppingenvironmentssynergistically,withaclearroleforeachchannel

Howistheconsumerpurchasingjourneyevolving?

Evensincethedigitalboomof2020/2021,digitalchannelshaveplayedanever-increasingroleinconsumers’purchasingdecisions,bothintermsofinspirationandtransactions

InspirationTransactions

11%

15%

46%

50%

30%

24%

10%

14%

B

12%

12%

B

1Pand3P;social

11%

1Pand3P

15%

Online:

Moreoptions

available,

convenience,morediscountsavailable,accessibility

13%

Social

18%

Omnichannelincl.ROPO(1)

64%

Offline

55%

Pure

offline

Offline:

Tryandtestproducts,tailoredorbespoke

experience

2022

2025E

2022

2025E

Note:(1)ResearchOnlinePurchaseOffline.

Sources:Statista/BCGreport/BusinessofFashion.

17

Howarebrandsadapting?

Brandscontinuetoincreasetheiradoptionof360-degreechannelandcommunicationstrategiestocreateacohesiveshoppingexperience.

Seamlessandconsistentcontentacrosssocialmedia,website,andstores

CHANEL’swebsiteembeds

fashionshowclipsandsocialmedia-drivencampaigns,

creatinganimmersivestorytellingexperience

Launched“CHANELConnects,”anewaudioserieswhereculturalvisionariesdiscussthefutureoffashion,art,andcreativity.AvailableonApplePodcasts,Spotify,andCHANEL’swebsite

Directconnectionbetweenofflineandonlinepresence

GucciusesQRcodesonproducttagsand

displaysinstore.ScanningtheQRcodeonaproduct’stagdirectscustomerstotheGucciwebsiteorapp,wheretheycanseemore

details,availablesizes,andpurchaseoptions

SomeGucciQRcodesallow

userstovirtuallytryonand

unlockbehind-the-scenes

videos,fashionshowclips,andspecialcollectionstories

0102EvolvingConsumerDemands0304

Lifestyle-FocusedBrandPositioning

Heritageluxuryfashionbrandsincreasingly

owningall

lifestyletouchpoints

Immersivebrand

experiences

Theemergenceofbrandpositioningstrategiesthatfocusonconsumers’lifestyleaspirationsthroughcontent-basedvisualstorytelling,replacingtraditionalmarketingwhichhashistoricallyfocusedonproductattributes

Creatingimmersivepop-upsinresortdestinations

LouisVuittoninJapan

LoroPianain

Zermatt,Switzerland

AcquadiParmainSaintTropez,France

Fendi

inIbiza

Creatinghospitalityandtravelexperiences

Valentino2023collaborationwithPalazzoAvinoonthe

AmalfiCoast

LouisVuittonreopeneditsrestaurantin

SaintTropezforthe2024season

Diorlaunchedaspain

ArmaniHotelChainBeverlyHillsHotelin2024

Expansionintobeauty/cosmeticscategory

StellaMcCartneybeautyline

Expansionintohome/lifestylecategory

Product

categoryexpansion

Jacquemuslaunched“Objets,”itsfirsthomecollection

Dolce&Gabbana’s

“Casa”collection

CELINE

Celine’scosmeticslinelaunchedin2024

Pradalaunchedabeautylinein2023

Sources:Brands’websites/selectedpress.

18

0102EvolvingConsumerDemands0304

BrandResale

Consumersincreasinglyseeresaleasalegitimatepurchasingoptioninluxurywithseveraladvantages.Brandsare

capitalisingbyparticipatingdirectlyintheresalemarket

Resalemarketsnapshot

Moreandmoreluxury

brandsandretailersare

embracingtheresaletrendandtryingtomaintainvaluebypartneringdirectlywithsecond-handplayers

Perceivedadvantagestotheconsumer

TheRealReal

Sustainability

Morethan50%ofcustomersshoponVestiaireCollectivetoreducetheirenvironmentalimpact

Scarcity/rarity

Consumers‘growingdesireforunique,vintage,orhard-to-finditems

Insomecases,thisleadstoresaleitemstrading

evenabovetherecommendedretailprice(RRP),furthercultivatingbrandequityinthemindsoftheconsumer

SelfridgesinLondon

SomeretailerslikeFarfetchaddeda“secondlife”

€35B

45%–50%

purchasingoptiontotheirwebsites…

ofrevenue

fromEurope

Second-handluxury

goodsmarketsize(2023)

Second-handvs.newluxurygoodsmarketevolution(indexedto100in2017)

Aresellingfor

50%

Second-hand New

abovemarketprice

225

212

Kelly/Hermès

on

141

Otherluxurybrandsare

goingevenfurtherby

launchingtheirownresale

129

111

100

100

143

138

166

114

111

103

Wassellingfor

~75%

abovemarketprice

inJanuary2025(1)

86

platformswhereyoucan

2017201820192020202120222023

purchasegoodsguaranteedandcertifiedauthenticbythebranditself.These

Note:(1)FromWatchChartsandMorganStanleyResearch.

Sources:Bain&Co./the2024

PatekPhilippe

AquanautCollection

RealRealresalereport/RobbReport/eBay

authenticationservicescanalsobeofferedtoother

Recommercereport.

third-partyplatforms

19

0102EvolvingConsumerDemands0304

LuxuryxSport

2021onwards

Buildingontheemergenceoftheathleisuretrendfrom2015to2021,theworldsofluxuryfashionandsporthavecontinuedtoconvergethroughproductcollaborationsandsponsorshipdealsinvolvingmajorlabels

2015–2021

01

luxury

Riseofathleisurecombiningfashionwithsportswear

?Themixoffashionandfunctionhassparkedabigchangeinstyle.It’smadeluxuryathleticwearakeycomponentoftheathleisuretrend

?Mixofquality,exclusivity,andstyle.Consumersarelookingforlong-lasting,high-performanceitems

?StudiesbyEuromonitorInternationalpredictaglobal

athleisuremarketreachingastaggering$540billionby2027

?Thefashionworldhasseenluxurysportswearbrandsgrowrapidly

alootuulenon

V人RLEYADANOLA

Source:Selectedpressarticles.

02

Bigluxurybrandscollaborationwithsportswearcompanies

Facedwithamorediscerningconsumer,luxuryhouseshave

identifiedastrategicgoldmineinpartneringwithsportswearbrandsinordertoreachnew,youngeraudiences

GuccixAdidas

NewBalancexMiuMiu

ReebokxVictoriaBeckham

03

Luxuryfashionandathleticwear

havemergedtocreateahottrendinsportswear

LVMHisnowapremiumpartneroftheOlympicGamesandFormula1

CHANEListhetitlesponsoroftheOxford-Cambridgeboatrace

PradabecametheofficialpartneroftheChineseWomen’sNationalFootballTeamandrefreshedtheiroutfits

20

Custom-designedclothingand

jewelleryuniquelycraftedtoreflectthecustomer’svisionandtaste

DIOR

PersonaliseyourMissDior,

Sauvage,andAddictLipstick

choosingfromcharms,

embroideryonaribbon,ortheSauvagewoodencapfora

Jewellerycanbeengraved,

embossed,oretchedwitha

monogram,date,ormessagetoforevercaptureaspecial

momentormemory

TIFFANY&CO.

creationunlikeanyother

Astoresectionfullydedicatedtoproductpersonalisation

LouisVuitton

JIMMYCHOO

Made-to-Order

Bringyourdreamtolifewithbespokedesignservices.

Personalisedshoppingexperiencewith

recommendations,individualisedservice,anduniqueconcepts

Gucciopenedanexclusivesalonbyappointment

onlyforitsVIPclients

whereproductspresentedarepersonalisedbasedonthecustomer’stastes

LouisVuittonlaunchedapop-upstoreinLondon,whichcanbeexperiencedbothin-personand

virtually

“TheideaofAPHousewasnottodesignashop.Itwastodesignahome,aclub.Aconceptthatoffersabespokeexperiencetoclientsand

collectors.”

IlariaResta,AudemarsPiguetCEO

02EvolvingConsumerDemands

04

03

01

Hyper-Personalisation

Fromcustomdesignstocuratedshoppingexperiences,personalisationandtailoredservicesaregainingpopularity,cateringtoindividualshopperpreferences

Clearevidencethatpersonalisationleadstoimprovedpurchasingintentandadvocacy…

Percentofsurveyrespondentswhosaythatpersonalisationwillleadthemtorecommend,purchase,andrepurchase

RECOMMEND

78%76%

78%

REPURCHASE

…resultinginhigherbrandgrowth

Morerevenue

Below-averagerevenuegrowth

Above-averagerevenuegrowth

“Themoreweknowaboutonlinecustomers,the

morewewanttocreateanexperiencethatfeelsalittlebitmorerelevanttothem—intherightway.”

DanielleSchmelkin,ChiefInformationOfficeratJ.CrewGroup

frompersonalisedmarketingactionsortactics

40%

PURCHASE

Sources:Statista/McKinsey.

21

Improvepersonalisedexperienceandcustomerprofiling

Manyluxurybrandsnowofferaninteractiveandvirtualexperiencetoenhanceandguidecustomersthrough

thepre-purchaseprocess

FARFETCH

Farfetch

leveraging

Snapchat’s

AI-powered

try-onfeature

InpartnershipwithMicrosoft,ZegnalaunchedtheZegnaXsolutioninmultiplestores,featuringa3Dstyleconfiguratorandconnectingstyleadvisorstocustomersforpersonalisedservice

Authenticityverification

CrucialroleofAItoaddressthegrowingchallengeofcounterfeitluxurygoods,andenhanceproducttransparencyandtraceability

Blockchain

technology

trackingthe

entireproductlifecycle

Digital

watermarksandsmarttags/IDs

AI-poweredimage

recognition

Rejected1.26millionitemsinthedigital

authenticationstagebetweenJanuary

2020andJune2022

Mulberry

TeamingupwithEON,itwilladddigitalIDs(NFCtags)toallits

productsby2025,startingwithbags

Productinnovationand

creativemarketingcampaigns

AIcanbeusedforproductinnovationtoanalyseconsumerpreferencesandtrends,automate

processes,andcreateinteractivecontent

LANCEL’sNewVoyageAIcampaign

AIdesigned

Pradadeveloped33foundationshades,

basedonanAI-algorithmthatscanned3kdifferentskintones

MonclerGeniusFall

2023AIcampaign

Valentino’s

Essentialscollection

0102EvolvingConsumerDemands0304

ArtificialIntelligenceandMachineLearning

Te