TheTrue-LuxuryGlobalConsumerInsight4thEditionMilan,February16th,2017BCGAltagammaTrue-LuxuryGlobalConsInsight2017Edv6914feb17FinalNoBUP.pptx1Draft—fordiscussiononlyCopyright©2016byTheBostonConsultingGroup,Inc.Allrightsreserved.TheTrue-LuxuryGlobalConsumerInsightpanelSource:BCG-AltagammaTrue-LuxuryConsumerInsight10Nationalities~36k€Avg.luxuryspend12000+ConsumersVs.2016Ed.1•+1000inChina•+1000inUS•+15k€BCGAltagammaTrue-LuxuryGlobalConsInsight2017Edv6914feb17FinalNoBUP.pptx2Draft—fordiscussiononlyCopyright©2016byTheBostonConsultingGroup,Inc.Allrightsreserved.WepushtoberelevantonthehighestsegmentsoftheluxuryconsumersLuxuryyearlyspend1(k€perconsumer)100k€50-100k€20-50k€10-20k€5-10k€AverageSpendforoverallsample3rdedition1%6%28%35%30%~21k€1.Expenditureincludespersonalluxury(e.g.handbags,shoes,sunglassesandotheraccessories,clothing)andexperientialluxury(e.g.hotels,wineandspirits,exclusivevacations).Excludedcars,yachts,smartphones&tabletsSource:BCG-AltagammaTrue-LuxuryGlobalConsumerInsightTrue-LuxuryConsumerssampledistribution(%respondents)Clusterssizeevolution4thvs3rdEdition7%18%30%25%20%~36k€4thedition7%25%2BCGAltagammaTrue-LuxuryGlobalConsInsight2017Edv6914feb17FinalNoBUP.pptx3Draft—fordiscussiononlyCopyright©2016byTheBostonConsultingGroup,Inc.Allrightsreserved.WesethigherthresholdsbycategoryvspreviouseditiontoidentifyaTrueLuxuryConsumer400€/eachSmartwatchesThresholdPrice1000€/each300€/each180€/each180€/each21400€/each1200€/each1600€/each400€/each200€/each250€/each100€/each2000€/each100000€/each750000€/each450€/night4000€/pers./week3000€/each100€/bottle1200€/each200€/personCategoryHandbagsShoesSunglassesOtheraccessories1Outerwear/CoatsDressesforwomenSuitsformenSweaters/KnitwearShirts/TopwearJeans/Pants/SkirtsFragrances&CosmeticsWatchesCarsLuxuryBoats/YachtsHotels(leisure)Cruise/resortDesignfurnitureWine&SpiritsJewelryRestaurants1000€/eachLighting1000€/eachSmartphones/Tablets1.Otheraccessoriesincludesscarves,wallets,beltsandties2.180€/eachforSmallLeatherGoods,150€/eachforSilkGoodsSource:BCG-AltagammaTrue-LuxuryGlobalConsumerInsight;BCGMinimumspent5k€inthepastyearonpersonalluxurygoodsThresholdPriceCategoryvs.'16vs.'16PersonalLuxuryGoodsExperientialLuxuryGoods3OtherLuxuryGoodsThresholdPriceCategoryvs.'16BCGAltagammaTrue-LuxuryGlobalConsInsight2017Edv6914feb17FinalNoBUP.pptx4Draft—fordiscussiononlyCopyright©2016byTheBostonConsultingGroup,Inc.Allrightsreserved.TheTrue-LuxuryGlobalConsumerInsight4thEditionMainOutcomesSteadymarket,TrueluxuryconsumersgrowingArisingperceptionofprice-valuemisalignmentMorecasual,morecustomized!TrueluxuryconsumersbuyingmoreathomeLuxurygoesomnichannelMonobrandattheheartofanomnichannelexperience#LuxurygoessocialBehavioralconsumersegmentevolution4BCGAltagammaTrue-LuxuryGlobalConsInsight2017Edv6914feb17FinalNoBUP.pptx5Draft—fordiscussiononlyCopyright©2016byTheBostonConsultingGroup,Inc.Allrightsreserved.Steadymarket,True-LuxuryConsumersgrowingprimocapitolo.pptx6Draft—fordiscussiononlyCopyright©2016byTheBostonConsultingGroup,Inc.Allrightsreserved.Thegloballuxurymarketworth~860Bn€in2016,experientialgrowingfasterthanpersonalluxury1.Personalgoodsincludeaccessories,apparel,watches&jewelry,fragrances&cosmeticsSource:BCGLuxuryMarketmodelGloballuxurygoodsmarket(B€)3053173664124454645225428072072332572802852913223183802010551511200911872023F623201186020169.3%5.6%8442015755201473020136922012@Retailvalue09-136Personal1Experiential13-1616-23FCAGR8.3%9.9%3.8%2-3%6.8%5-6%4-5%primocapitolo.pptx7Draft—fordiscussiononlyCopyright©2016byTheBostonConsultingGroup,Inc.Allrightsreserved.Outof~400MnLuxuryConsumersonly17MnidentifiedasTrue-LuxuryConsumersAbsoluteTopAbsoluteEntryAbsolute4.51.31162.014TotalTrue-Luxury1722CLUSTER2016#(M)Bn(€)Bn(€)#(M)2023TopAspirational2128OtherAspirational375440~415~490TotalLuxuryConsumers+5+72+752k€5k€20k€10k€Note:roundednumbersSource:BCGLuxuryMarketmodel750k€Beyondmoney0.40.5primocapitolo.pptx8Draft—fordiscussiononlyCopyright©2016byTheBostonConsultingGroup,Inc.Allrightsreserved.Afurtherpolarizingpyramidahead:True-LuxuryConsumersupfrom~29%to~32%ofglobalmarket4.51.31162.01417222016#(M)Bn(€)1Bn(€)1202393301072501415314738121286192375549715+131+196~415~860~1185+325TotalLuxuryConsumers#(M)~4904401.IncludingExperientialandPersonalluxury,excludingcarsandYachtsNote:roundednumbersSource:BCGLuxuryMarketmodel8CLUSTER2k€5k€20k€10k€50k€0.40.52040AbsoluteTopAbsoluteEntryAbsoluteTopAspirationalOtherAspirationalBeyondmoneyTotalTrue-Luxuryprimocapitolo.pptx9Draft—fordiscussiononlyCopyright©2016byTheBostonConsultingGroup,Inc.Allrightsreserved.True-LuxuryConsumersmaintainingahealthierandsteadiergrowthforthefutureNote:roundednumbersSource:BCGLuxuryMarketmodel92k€5k€20k€10k€50k€PersonalExperientialTrueLuxuryCAGR2016-20232-3%5-6%6-7%~4%7-8%5-6%4-5%1-2%Aspirational4-5%Totalprimocapitolo.pptx10Draft—fordiscussiononlyCopyright©2016byTheBostonConsultingGroup,Inc.Allrightsreserved.Inaslowerpersonalluxurymarket,therewillbeclearwinnersandlosersamongBrands2009-20132013-2016Turnovergrowthfor20le