Personal Luxury in the US
Euromonitor International
January 2021
PERSONAL LUXURY IN THE US
LIST OF CONTENTS AND TABLES
KEY DATA FINDINGS.................................................................................................................. 1
2020 IMPACT ............................................................................................................................... 1
Store closures and other restrictions decimate foot traffic to key retail channels...................... 1
Lack of consumer need amid increased time spent at home further weighs on sales .............. 1
Hurt by reduction in tourism, leading players shift strategies .................................................... 2
RECOVERY AND OPPORTUNITIES .......................................................................................... 2
Recovery of value sales expected over forecast, but volume recovery will be slower .............. 2
Accelerating e-commerce growth will demand additional capabilities....................................... 2
Burgeoning resale market to weigh on primary market sales over the forecast period ............. 3
CATEGORY DATA ....................................................................................................................... 3
Table 1
Table 2
Table 3
Table 4
Table 5
Table 6
Table 7
Sales of Personal Luxury by Category: Value 2015-2020 ............................ 3
Sales of Personal Luxury by Category: % Value Growth 2015-2020 ........... 4
NBO Company Shares of Personal Luxury: % Value 2015-2019 ................. 4
LBN Brand Shares of Personal Luxury: % Value 2016-2019 ....................... 5
Distribution of Personal Luxury by Format: % Value 2015-2020 .................. 6
Forecast Sales of Personal Luxury by Category: Value 2020-2025 ............. 6
Forecast Sales of Personal Luxury by Category: % Value Growth
2020-2025 .................................................................................................... 6
© Euromonitor International
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PERSONAL LUXURY IN THE US
PERSONAL LUXURY IN THE US
KEY DATA FINDINGS
▪ Store closures and travel restrictions amid COVID-19 weighed on personal luxury sales in
2020
▪ Personal luxury declined 22% in 2020 to reach USD65.2 billion
▪ Luxury writing instruments and stationery posted the least decline within personal luxury in
2020
▪ At the brand level, Michael Kors led personal luxury in 2019
▪ Personal luxury is expected to register a current value CAGR of 6% (4% at constant 2020
prices) over the forecast period
2020 IMPACT
Store closures and other restrictions decimate foot traffic to key retail
channels
Following a decade of continued retail value sales growth, personal luxury registered
significant declines in both retail value and volume sales in 2020 as efforts to mitigate the
spread of COVID-19 disrupted both demand for and availability of all of its respective product
categories. With lockdowns lasting from mid-March until at least May or June in many states,
the closure of mixed retailers and non-grocery specialist retailers prevented consumers from
purchasing designer apparel and footwear (ready-to-wear), luxury jewellery, luxury timepieces,
luxury leather goods and other personal luxury products in stores during this time, while
increased hygiene and social distancing protocols in stores, as well as boarded-up storefronts
during periods of civil unrest, led to a reduction in foot traffic to stores throughout the remainder
of the year. While e-commerce, at times the only available sales channel for personal luxury,
experienced a dramatic boost in its percentage value share of multiple personal luxury
categories as a result, while also registering growth in actuals in certain categories including
luxury timepieces and designer apparel and footwear (ready-to-wear) as many consumers
purchased personal luxury products online for the first time, the limited availability of certain
leading brands and popular products for sale online, as well as a reduction in tourism, economic
constraints and changed consumer lifestyles, meant that gains in e-commerce were not enough
to significantly mitigate declines in personal luxury overall.
Lack of consumer need amid increased time spent at home further
weighs on sales
Further reducing demand for personal luxury goods across product categories was a lack of
consumer need amid not only lockdowns and quarantines, but also throughout the rest of the
year as remote work, e-learning, travel restrictions and the cancellation of special in-person
events led consumers to spend significantly more time at home than in a typical year. Without a
need to dress up for work, dining out, or large social events and gatherings, consumers with
discretionary income purchased goods and services to help make their increased time spent at
home more comfortable, such as food and alcohol delivery, furniture, home décor and home
entertainment systems, in addition to allocating more of their money to savings, instead of
© Euromonitor International
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PERSONAL LUXURY IN THE US
personal luxury products such as luxury jewellery, luxury timepieces, luxury leather goods, and
more.
Hurt by reduction in tourism, leading players shift strategies
Despite having strong presences across e-commerce and digital marketing platforms,
enabling them to advertise and sell to domestic consumers while in-store shopping is restricted,
leading personal luxury players including Michael Kors, Louis Vuitton, Ralph Lauren and Coach,
the top four brands in the US in terms of 2019 retail value sales, respectively, saw sales in 2020
especially impacted by the reduction in foreign expenditure brought about by travel restrictions.
While international retail expenditure typically represents over 39% of total personal luxury
sales, this fell to just over 28% of a much lower total in 2020 as international and domestic travel
restrictions alike, as well as limitations to the in-store shopping experience, prevented wealthy
international students and travellers, key drivers of luxury goods sales, from visiting large cities
and other tourist destinations across the US. As a result, leading players focused their efforts on
courting such travellers in their home markets, such as China, throughout the year instead,
either through digital engagement or through opened stores there, while prioritising domestic
consumers through their digital and in-store engagements in the US.
RECOVERY AND OPPORTUNITIES
Recovery of value sales expected over forecast, but volume recovery
will be slower
While store closures, travel restrictions, increased time spent at home and the postponements
or cancellations of large, in-person social events significantly lowered personal luxury sales
across the category in 2020, the overall category is expected to recover to pre-pandemic retail
value sales levels over the forecast period, returning to 2019-level value sales by 2024/2025
(current terms). However, multiple product segments, including designer apparel (ready-towear), designer footwear, luxury timepieces, and luxury writing instruments and stationery, are
not expected to recover 2019-level volume sales over the forecast period as a result of shifting
consumer spending priorities and shopping habits. In the wake of the pandemic, consumers with
less disposable income are expected to increasingly trade down to non-luxury products in order
to save money and prioritise spending in other areas, at the same time that those with more
disposable income are expected to prioritise purchasing fewer yet higher quality, and often more
expensive, personal luxury goods. As a result, average unit prices for multiple personal luxury
product categories are expected to increase over the forecast period, resulting in a later
recovery for volume sales than for retail value sales.
Accelerating e-commerce growth will demand additional capabilities
As many consumers’ only available sales channel for personal luxury goods throughout much
of 2020, the dramatic boost in both e-commerce penetration came as consumers, often
motivated by free shipping and returns, became increasingly comfortable researching, shopping
for, and purchasing high-priced products online, with many doing so for the first time. With more
consumers than ever before now comfortable shopping for personal luxury across product
categories online through pure play e-commerce retailers and marketplaces such as Farfetch
and Richemont’s Net-A-Porter, which also offer helpful sizing and styling guides, luxury brands’
own e-commerce sites and the e-commerce sites of department stores such as Nordstrom and
Neiman Marcus, the growth of the online sales channel is only expected to accelerate moving
forward, largely at the expense of store-based retailers such as department stores, classified as
© Euromonitor International
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PERSONAL LUXURY IN THE US
Passport
mixed retailers. Therefore, just as they have throughout 2020, brands and retailers will have to
continue to make significant investments in their digital marketing, e-commerce, logistics and
reverse-logistics capabilities in order to provide a satisfactory experience to consumers as
digital channels become increasingly important to both drive sales and facilitate product
discovery. Meanwhile, they must also integrate digital tools and capabilities, such as BOPIS, to
the in-store shopping experience as physical retail stores remain a significant driver of sales
across the category.
Burgeoning resale market to weigh on primary market sales over the
forecast period
In addition to increasing average unit prices, as well as the growing importance of ecommerce in driving both sales and product discovery, the outlook for personal luxury will also
be impacted by the expansion of the resale market. Offering value for money, environmental
merits, and the opportunity to find unique or hard-to-find pieces, the resale market has been
growing in popularity across both luxury and non-luxury product categories in recent years.
While thrift stores, vintage shops and other store-based resale channels have faced many of the
same challenges as apparel and footwear specialist retailers, department stores, and other
store-based, primary market personal luxury retailers throughout 2020, the pandemic brought
about increased interest in resale as consumers not only re-assessed their spending priorities,
but also had additional time to clean out their closets and browse online resale marketplaces
such as Depop, Poshmark and Grailed, to both purchase and sell personal luxury products from
a wide range of brands. Resale companies sought to expand their presence in the market as a
result, with TheRealReal opening a store on Chicago’s Michigan Avenue in October 2020, and
Rebag beginning to sell authenticated, pre-owned luxury jewellery and luxury timepieces online
for the first time, also in October 2020. With both buying and selling second-hand personal
luxury goods accelerating in popularity amid the pandemic, primary market sales as tracked by
Euromonitor International will be impacted moving forward as consumers increasingly turn their
time and money towards shopping second-hand instead.
CATEGORY DATA
Table 1
Sales of Personal Luxury by Category: Value 2015-2020
USD million
Designer Apparel and
Footwear (Ready-to-Wear)
Luxury Eyewear
Luxury Jewellery
Luxury Leather Goods
Luxury Portable
Consumer Electronics
Luxury Timepieces
Luxury Writing
Instruments and
Stationery
Super Premium Beauty
and Personal Care
Personal Luxury
Source:
2015
2016
2017
2018
2019
2020
29,332.3
30,025.6
30,535.0
31,022.2
31,549.0
24,942.9
7,202.5
11,346.2
15,606.0
52.7
7,419.0
10,675.9
15,882.9
50.2
7,479.6
10,274.4
16,341.4
53.2
7,685.9
10,866.8
17,392.8
65.3
7,864.3
11,082.2
17,765.0
82.3
6,115.9
8,647.7
12,641.8
64.6
5,445.9
112.4
4,874.1
109.8
4,768.2
113.4
4,964.8
119.8
4,956.8
114.4
3,787.5
99.8
8,943.8
9,218.6
9,579.9
10,200.7
10,573.3
8,934.6
78,041.9
78,256.1
79,145.1
82,318.2
83,987.2
65,234.8
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
© Euromonitor International
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PERSONAL LUXURY IN THE US
Table 2
Passport
Sales of Personal Luxury by Category: % Value Growth 2015-2020
% current value growth
Designer Apparel and Footwear (Readyto-Wear)
Luxury Eyewear
Luxury Jewellery
Luxury Leather Goods
Luxury Portable Consumer Electronics
Luxury Timepieces
Luxury Writing Instruments and
Stationery
Super Premium Beauty and Personal Care
Personal Luxury
Source:
Table 3
2019/20
2015-20 CAGR
2015/20 Total
-20.9
-3.2
-15.0
-22.2
-22.0
-28.8
-21.5
-23.6
-12.7
-3.2
-5.3
-4.1
4.1
-7.0
-2.4
-15.1
-23.8
-19.0
22.5
-30.5
-11.2
-15.5
-22.3
0.0
-3.5
-0.1
-16.4
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
NBO Company Shares of Personal Luxury: % Value 2015-2019
% retail value rsp
Company
LVMH Moët Hennessy
Louis Vuitton Inc
Capri Holdings Ltd
Ralph Lauren Corp
Tapestry Inc
Luxottica US Holdings
Corp
Gucci America Inc
Chanel USA Inc
Estée Lauder Cos Inc
PVH Corp
Tiffany & Co
Cartier International Inc
L'Oréal USA Inc
Hermès International SCA
Kate Spade & Co Inc
Rolex Watches USA, Inc
Safilo USA Inc
Burberry USA
Tory Burch LLC
Shiseido Americas Corp
Coty Inc
Yves Saint Laurent
America Inc
Richemont North America
Inc
LVMH Perfums &
Cosmetics USA Inc
Marchon Eyewear Inc
Prada USA Corp
Hugo Boss AG
Valentino Fashion Group
© Euromonitor International
2015
2016
2017
2018
2019
6.8
6.4
6.8
7.5
7.6
6.2
3.0
5.3
3.0
4.5
3.2
3.0
5.1
4.1
3.1
3.0
4.8
4.0
3.0
3.0
1.5
2.2
1.9
2.3
2.1
1.4
1.3
1.0
1.2
1.3
1.7
1.1
1.0
0.4
0.7
0.4
1.7
2.2
2.1
2.4
2.0
1.5
1.3
1.1
1.3
1.1
1.7
1.1
1.0
0.9
1.0
0.6
2.3
2.3
2.2
2.4
2.0
1.6
1.4
1.1
1.2
1.0
1.2
1.1
1.0
1.0
1.0
0.7
2.8
2.3
2.2
2.3
1.9
1.7
1.4
1.2
1.2
1.1
1.1
1.0
1.0
1.0
1.0
0.8
2.9
2.3
2.2
2.1
1.9
1.7
1.4
1.3
1.1
1.1
1.1
1.0
1.0
1.0
1.0
0.8
0.8
0.8
0.8
0.8
0.7
0.6
0.7
0.7
0.8
0.7
0.7
0.7
1.2
0.5
0.7
0.7
1.0
0.5
0.7
0.6
0.9
0.6
0.7
0.6
0.8
0.6
0.7
0.6
0.6
0.6
4
PERSONAL LUXURY IN THE US
Passport
SpA
Kering SA
Van Cleef & Arpels Inc
Tumi Inc
Michael Kors Holdings Ltd
Coach Inc
Tumi Holdings Inc
Others
Total
Source:
Table 4
0.6
0.5
6.5
3.2
0.6
46.6
100.0
0.5
0.5
0.6
5.7
3.3
47.6
100.0
0.5
0.5
0.6
5.4
47.7
100.0
0.5
0.6
0.6
47.4
100.0
0.6
0.6
0.6
47.9
100.0
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
LBN Brand Shares of Personal Luxury: % Value 2016-2019
% retail value rsp
Brand (GBO)
Michael Kors
Louis Vuitton (LVMH
Moët Hennessy Louis
Vuitton SA)
Ralph Lauren
Coach
Gucci (Kering SA)
Chanel (Chanel SA)
Calvin Klein
Tiffany & Co
Cartier (Richemont
SA, Cie Financière)
Hermès
Kate Spade
(Tapestry Inc)
Rolex (Rolex SA)
Tory Burch
Burberry (Burberry
Group Plc)
Hugo Boss
Valentino
Van Cleef & Arpels
(Richemont SA, Cie
Financière)
Tumi (Samsonite
International SA)
Yves Saint Laurent
(Kering SA)
Prada (Prada SpA)
Givenchy (LVMH Moët
Hennessy Louis
Vuitton SA)
Giorgio Armani
(L'Oréal Groupe)
Salvatore Ferragamo
TAG Heuer (LVMH
Moët Hennessy Louis
Vuitton SA)
Redken (L'Oréal
Groupe)
Aveda
© Euromonitor International
Company (NBO)
2016
2017
2018
2019
Capri Holdings Ltd
LVMH Moët Hennessy
Louis Vuitton Inc
3.5
3.8
5.1
4.5
4.8
4.6
Ralph Lauren Corp
Tapestry Inc
Gucci America Inc
Chanel USA Inc
PVH Corp
Tiffany & Co
Cartier International Inc
5.3
1.7
2.2
2.4
2.0
1.5
4.5
3.2
2.3
2.3
2.4
2.0
1.6
4.1
3.1
2.8
2.3
2.3
1.9
1.6
3.9
3.0
2.9
2.3
2.1
1.9
1.6
Hermès International SCA
Kate Spade & Co Inc
1.1
-
1.1
1.2
1.1
1.2
1.3
1.1
Rolex Watches USA, Inc
Tory Burch LLC
Burberry USA
1.1
1.0
1.1
1.0
1.0
1.0
1.1
1.0
0.9
1.1
1.0
0.9
Hugo Boss AG
Valentino Fashion Group
SpA
Van Cleef & Arpels Inc
1.0
0.5
0.9
0.6
0.8
0.6
0.6
0.6
0.5
0.5
0.6
0.6
Tumi Inc
0.6
0.6
0.6
0.6
Yves Saint Laurent
America Inc
Prada USA Corp
LVMH Moët Hennessy
Louis Vuitton Inc
0.4
0.5
0.6
0.6
0.6
0.5
0.5
0.5
0.5
0.5
0.5
0.5
L'Oréal USA Inc
0.5
0.5
0.5
0.5
Salvatore Ferragamo SpA
TAG Heuer International
SA
0.5
0.5
0.5
0.5
0.5
0.5
0.5
0.5
L'Oréal USA Inc
0.4
0.4
0.4
0.5
Estée Lauder Cos Inc
0.4
0.4
0.4
0.4
5
PERSONAL LUXURY IN THE US
Armani
Tom Ford
Bottega Veneta
(Kering SA)
Céline (LVMH Moët
Hennessy Louis
Vuitton SA)
Michael Kors
Coach
Kate Spade
Others
Total
Source:
Passport
Giorgio Armani SpA
Estée Lauder Cos Inc
Bottega Veneta Inc
0.6
0.4
0.5
0.5
0.4
0.4
0.5
0.4
0.4
0.4
0.4
0.4
LVMH Moët Hennessy
Louis Vuitton Inc
0.3
0.3
0.4
0.4
5.7
3.3
1.3
59.0
100.0
5.4
59.1
100.0
58.9
100.0
59.4
100.0
Michael Kors Holdings Ltd
Coach Inc
Kate Spade & Co Inc
Others
Total
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 5
Distribution of Personal Luxury by Format: % Value 2015-2020
% retail value rsp
Store-Based Retailing
- Grocery Retailers
- Non-Grocery Specialists
- Mixed Retailers
Non-Store Retailing
- E-Commerce
Total
Source:
2015
2016
2017
2018
2019
2020
88.1
0.2
44.4
43.4
11.9
11.9
100.0
86.4
0.2
43.8
42.4
13.6
13.6
100.0
84.6
0.2
43.4
41.0
15.4
15.4
100.0
83.0
0.2
43.4
39.4
17.0
17.0
100.0
80.8
0.2
43.1
37.5
19.2
19.2
100.0
72.6
0.2
39.9
32.4
27.4
27.4
100.0
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 6
Forecast Sales of Personal Luxury by Category: Value 2020-2025
USD million
Designer Apparel and
Footwear (Ready-to-Wear)
Luxury Eyewear
Luxury Jewellery
Luxury Leather Goods
Luxury Portable
Consumer Electronics
Luxury Timepieces
Luxury Writing
Instruments and
Stationery
Super Premium Beauty
and Personal Care
Personal Luxury
Source:
Table 7
2020
2021
2022
2023
2024
2025
24,942.9
27,210.6
28,396.0
28,947.5
29,354.4
29,633.7
6,115.9
8,647.7
12,641.8
64.6
6,726.6
9,725.9
13,803.9
78.8
7,132.6
10,475.3
15,521.9
91.4
7,331.1
10,889.1
16,364.7
102.4
7,398.2
11,047.2
16,671.7
113.2
7,413.3
11,052.1
16,699.9
122.3
3,787.5
99.8
4,014.8
106.0
4,454.4
107.6
4,563.1
107.2
4,608.7
106.0
4,613.7
104.5
8,934.6
8,353.1
8,164.2
8,194.4
8,228.7
8,383.3
65,234.8
70,019.8
74,343.5
76,499.4
77,528.2
78,022.9
Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Forecast Sales of Personal Luxury by Category: % Value Growth 2020-2025
% constant value growth
© Euromonitor International
6
PERSONAL LUXURY IN THE US
Designer Apparel and Footwear (Readyto-Wear)
Luxury Eyewear
Luxury Jewellery
Luxury Leather Goods
Luxury Portable Consumer Electronics
Luxury Timepieces
Luxury Writing Instruments and
Stationery
Super Premium Beauty and Personal Care
Personal Luxury
Source:
Passport
2020/2021
2020-25 CAGR
2020/25 Total
9.1
3.5
18.8
10.0
12.5
9.2
22.0
6.0
6.3
3.9
5.0
5.7
13.6
4.0
0.9
21.2
27.8
32.1
89.4
21.8
4.8
-6.5
7.3
-1.3
3.6
-6.2
19.6
Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
© Euromonitor International
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