back to the list send to a friend print

keywords

archives

- 10 Apr 2012

Men: The New Luxury Big Spenders?

4840_screen_shot_2012-03-27_at_2

James Lawson, director of Ledbury Research, highlights the promise of luxury for men, but feels that Chinese trends may mask a global shift


Accounting for 40% of global sales, men’s spending on luxury also grew almost twice as fast as women’s in 2011, 14% compared with 8% respectively (Bain). This segment therefore remains heavily in focus by those in the luxury sector, with the likes of Burberry and Coach flagging it as an area of expansion and aiming to join the ranks of menswear veterans Giorgio Armani, Hugo Boss and Dunhill.

At Burberry, where menswear and men’s accessories currently represent 27% of sales, the brand is looking to “double sales over time”. Coach has developed a dedicated men’s space at its flagship on Madison Avenue, subsequently leading to a doubling of its men’s sales to 20%.

Luxury giants have also jumped onto the bandwagon: LVMH’s Berluti expanded its niche from luxury footwear to debut its first men’s ready-to-wear collection at Paris Fashion Week in January, while PPR bought Italian suitmaker Brioni in November last year and signalled its faith in the segment’s prospects by announcing an expanded offering as well as new flagship plans for Europe, America, China and the Middle East.


 Accounting for 40% of global sales, men’s spending on luxury also grew almost twice as fast as women’s in 2011 


Alexander McQueen is another brand investing in menswear. The PPR owned house will open a 185sqm dedicated space on London’s Savile Row in September, showcasing both the ready-to-wear collection and Alexander McQueen by Huntsman, a bespoke service announced in January. Prices for the bespoke service will range from £4,500 – £5,000 and the pieces will take about 12 weeks to make.

Creative director, Sarah Burton, said bespoke was a natural progression for the brands menswear offering. “We already offer couture for women, and wanted to add it for men. And our clients were asking for it. With this service we want to give them beautiful, handcrafted clothes, and emphasize artisanal work,” she told WWD.


4837_screen_shot_2012-03-27_at_2

Net-a-Porter’s menswear counterpart, Mr Porter, launched in February 2011


Many attribute this growth to China, where men account for over two-thirds (70%) of all luxury sales. This is in part due to the popular gift-giving culture amongst businessmen and government officials. The question, however, is whether this has been overhyped, and if Chinese male appetites for luxury are sustainable in the long term.

Because while China may currently still be dominated by male spending, this appears to be changing: we are seeing Chinese women play an increasing role in wealth creation (see High Net Worth December 2011). The rise of self-purchasing women may soon come to overshadow male demand in China, and cause a shift in
the balance of luxury demand between the genders (see Ledbury’s Modern Matriarch Chinese Wealth Segment).


 Many attribute this growth to China, where men account for over two-thirds (70%) of all luxury sales 


Despite this, brands are still targeting men, the new big luxury spenders. This is partly due to the globally shifting attitudes. Traditionally male spend has been impacted faster and harder by the downturn, but men are now becoming more discerning.

Net -a-Porter’s Mr. Porter (since February 2011), Gilt Groupe’s GiltMAN (October 2009) and the latter’s full-price men’s site Park & Bond (August 2011) have not only tapped into the relatively underpenetrated online space in menswear, they have also recognized the change in the shopping habits of today’s men and have invested heavily in their editorial content.

Park & Bond, a partnership with GQ magazine, offers advice and how-tos, buying guides, and even free personal shopper assistance on their website to “find your own personal style”. As a further sign of male demand, Gilt has invested in a full-price men’s site before that for women, indicating the large potential in online male luxury spend.





The above is based on a collection of insights taken from Ledbury Research’s flagship publication High Net Worth. For more information please visit this link.


more

Ledbury Research is a research company specialising in the understanding and engaging of High Net Worth Individuals.

Bespoke consumer work spans all forms of quantitative and qualitative research, typically conducted on a multi-country basis, in wealth hubs around the world.

The analyst team delivers market information, trends and analysis through regular reports on the luxury and wealth markets.

www.ledburyresearch.com

Members opinion

  • Sophie Doran Is Zara The Newest Luxury Fashion Competitor? by Sophie Doran 19 Jun 2014
  • Avery Booker Weibo’s Decline Demands Digital Rethink for Luxury Brands in C... by Avery Booker 18 Apr 2014
  • Melissa Rae Wusaty Rethinking Luxury's Democratic Dilemma by Melissa Rae Wusaty 3 Feb 2014
  • Doug Gollan Could 'Luxury for Less' Threaten Market Share for 'True' Luxury? by Doug Gollan 16 Jan 2014

Recently published

  • A private jet to uni? The worst kind of first impression

    Telegraph.co.uk - 2 Sep 2014 13:38
  • Global Hotel Prices Rise for the Fifth Year in a Row

    HSyndicate - 2 Sep 2014 09:41
  • New York's Boutique Hotel Plaza Athénée Delivers Chinese Flavor To Upper East Side

    Jing Daily - 2 Sep 2014 06:19
  • Sale of Roberto Cavalli Seen by Mid-October

    WWD - 2 Sep 2014 06:02
  • Burberry Unveils New Fragrance Campaign with Cara Delevingne & Kate Moss

    Vogue - 2 Sep 2014 06:01
  • Ange Lin Ange Lin

    Vice President, Michel Dyens
    France

  • Filippo Arnaboldi Filippo Arnaboldi

    Vice President Retail, Frette
    United States

  • Colleen Collins Colleen Collins

    Chief Operating Officer, Diane Von Furstenberg Studio, LP
    United States

  • Alan Zhong Alan Zhong

    General Manager, Clarins
    China