Content thumbnail Seeking sustainable growth - The luxury and cosmetics financial factbook

DCF and vIndustry oaluation pverview arameters PPage 37age 37 Ex ec Global personal luxury goods continue to buoy the market, but utiv Global luxury goods Title for section H Global luxury goods market e summary G growth is leveling off • The worldwide personal luxury goods market is estimated to have grown by 3.0% in 2014. However, at X Welcome to the third edition of EY’s annual Sales of industry players are expected to grow at a healthy rate, led by double-digit annual growth rate for constant exchange rates, the market-observed growth (4.0%) was comparatively slower than the 7.0% DCF and v Financial Factbook for the luxury and cosmetics L’Occitane and Natura from FY11A to FY14E. s recorded in 2013. p X ar er Increased demand through innovative products will cater to underserved emerging markets. aluationt sector. The Factbook combines financial • The growth was helped by the sharp depreciation of the euro, which left the sector with an unbalanced price ame data, insight from EY’s global team of sector X aluation ame Introduction of eco-friendly, sustainable and naturally derived beauty products and cosmetics will stimulate t ar structure across regions. er specialists and opinions of external experts. s DCF and vp demand in established geographies. • Retail remained a key growth driver in 2014, but the market saw a slowdown in the retail network expansion, illustrating the players’ objective to focus on organic growth. Titles for charts • The online luxury goods market continued its successful run with the share of online purchases increasing to 5.0% in 2014 from 4.5% recorded last year. Retailers are still the top-performing players online, followed by Indusw e-tailers and individual brands. try oervie v v ervietry o 1 w Worldwide personal luxury goods market trend Indus 300 13% 15% 250 11% 10% 250-265 200 8% 10% and disMe 7% 218 224 thodology 150 159 167 173 192 212 claimer 153 n 100 170 3% 3% 5% o h Titles for charts i t l 50 l i w b o r € 0 0% G -2% and specific analyS -50 ample s -100 -5% election -150 -8% s e s -200 2006 2007 2008 2009 2010 2011 2012 2013 2014e 2017e -10% Market size Growth Source: Data based on consensus of several brokers’ reports for each C Glo company. Sources: Altagamma/Bain and other selected research on t s act uss Notes:Market capitalization is based on a one-month average as of December 2012. Note: 1) Luxury Goods Worldwide Market Study Fall–Winter 2014, Altagamma/Bain ary The 2012 growth corresponds to the sales growth rate between FY11A and FY12A/E. The luxury and cosmetics financial factbook 2015

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