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Luxury Looks to Beauty to Diversify Product Options, Says Euromonitor

Posted: October 22, 2013

A video post from Euromonitor International, “Luxury Companies Look to Diversify Products,” expands on how leading luxury companies are looking to beauty as a way to growth their businesses.

In the video, Ffleur Roberts, global head of luxury goods research for Euromonitor, says, “Whilst there is nothing new about fashion houses developing their own branded fragrances, what is new is luxury fashion houses ramping up exposure across the full beauty care remit to include products such as nail polish, lipstick, eye and facial makeup, body lotions, self-tanners, and even bath and shower products. We have recently seen the likes of Marc Jacobs, Michael Kors, Tom Ford, Tory Burch and Giorgio Armani teaming up with big name beauty care products to set out their own stores, whilst others, like the likes of Burberry, have adopted a more independent strategy. One way or other, almost all the industry leading players are looking for a bigger piece of action. Marc Jacobs has gone as far as opening his own Manhattan-based store dedicated solely to cosmetics and fragrances, and this October Tom Ford launches his men’s cosmetics line.”

Discussing where the market research company sees the growth moving, Roberts notes, “Euromonitor International forecasts that by 2018, the U.S.A., with 34 million high-income earners and a projected retail value of $90 billion, will continue to the lead the world in total value sales of luxury goods, followed by, of course, China. However, consumer [nations] with fast-growing populations of high earners such as India, Malaysia, Indonesia, Mexico and Brazil will present the greatest opportunity for business and brands offering luxury goods and services. We’re also keeping a very close eye on Nigeria at the moment, as the possible next big growth frontier for luxury goods. It may be very hard to believe that a country where most of the people live on less than $2 could be one of the fastest-growing markets in the world for French champagne and digital television. Yet Nigeria, Africa’s most populous country, is just a place where the pursuit of wealth has become even a religion.”