Ever wondered how luxury brands spend your dollars when you buy an LV hand bag? You will be surprised to learn how little this industry nets after expenses. Can mobile be the game changer to improve their earnings per share? I conduct industry research on the top three global players in the luxury market and postulate that mobile can change the industry's bottom line.

1. Prepared
September 2011
MOBILE APPS A
GAME CHANGER
FOR LUXURY
BRANDS.

2. ABOUT FUTUREBOOKS
We officially started in
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3. ABOUT FUTUREBOOKS
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4. ABOUT FUTUREBOOKS
We help you to market
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5. INDUSTRY
ANALYSIS OF
THE LUXURY
MARKET

6. NEW MARKETS
China to account for
20-50% of the consumer
luxury market by 2015.
Source: Resurgence in demand for luxury goods, 2011 KPMG International
Cooperative (“KPMG International”), a Swiss entity.
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7. NEW CONSUMERS
Emerging consumers are
young singles with stable
income.
Source: Resurgence in demand for luxury goods, 2011 KPMG International
Cooperative (“KPMG International”), a Swiss entity.
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8. NEW CHANNELS
Digital branding will
become the focus. 100
million Chinese will
own an iPhone 5 by
2015.
50% of consumers from
China and South Korea
spent 11% of salary
online shopping.
Source: Resurgence in demand for luxury goods, 2011 KPMG International
Cooperative (“KPMG International”), a Swiss entity.
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9. NEW INNOVATION
8% year-on-year decline
in industry sales.
Consumers are more
discerning, focusing on
value.
Source: Resurgence in demand for luxury goods, 2011 KPMG International
Cooperative (“KPMG International”), a Swiss entity.
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10. KEY PLAYERS
IN THE LUXURY
MARKET

11. TOP 3 PLAYERS IN
LUXURY MARKET
Revenues of top luxury
players (US$billions)
Source: Company websites and Capital IQ
Note: The top 10 global luxury goods players have been listed on the basis of their revenues. PPR SA revenues for 2009 and 2010 have been restated
for the reclassification of Conforama under “Discontinued operations” and the restatements of Puma Greece in accordance with IAS 8. Safilo Group
SA revenues for 2010 are unaudited.
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12. COMMONALITIES ACROSS
ALL 3 BRANDS
All 3 are conglomerates
(multiple brands, spread
across multiple sectors
of luxury market)
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13. COMMONALITIES ACROSS
ALL 3 BRANDS
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14. COMMONALITIES ACROSS
ALL 3 BRANDS
Gross profit margins
are 50-65%.
Marketing and sales
eats 50% of gross
margins - very high
compared to other
consumer industries.
Source: LVMH company annual reports 2010
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15. THE BIG QUESTION
CAN MOBILE
REDUCE COST OF
MARKETING?
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16. THE BIG ANSWER
YES.
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17. HOW MOBILE WILL
CHANGE LUXURY

18. MOBILE SOLVES MULTIPLE
PAIN POINTS
The desktop has let
down the luxury
experience for
consumers and brands.
The PC is transactional,
unintuitive, impersonal.
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19. MOBILE SOLVES MULTIPLE
PAIN POINTS
Mobile phones instead
deliver a rich, personal,
tactile experience –
perfect for luxury goods.
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20. MOBILE SOLVES MULTIPLE
PAIN POINTS
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21. LUXURY PRINT
MAGAZINE TITLES
AND BRANDS TO
CONVERGE

22. PRINT FACES NEW
COMPETITORS
Online retailers have an
edge over brands and
luxury titles.
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23. ADVERTISING TRENDING
TOWARDS PAY FOR PERFORMANCE
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24. PRINT TITLES WEIGHTING
PRIORITY AND EFFORT
High traffic. High touch. High traffic. Private Low traffic. Backup for
Magazine points to vents, photos, highlights, people without smart
content in app. wish lists, virtual goods. phone or print edition.
Turn back time.


Move the hands of the
watch backwards and
forwards
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25. POSSIBILITIES
FOR RICH AND
INTIMATE
MOBILE APPS

26. MOBILE PURCHASE OF
CUSTOM CONTENT
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27. MOBILE PURCHASE OF
CUSTOM CONTENT
“I’ll read it
on the plane.”

“You can buy
directly from
articles”.
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28. MOBILE PURCHASE OF
CUSTOM CONTENT
“I added a
few to my
favourites.”
100 Prada
 bags
“Hmmm. Your
birthday is
coming up”.
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29. MOBILE PURCHASE OF
LUXURY GOODS
http://www.marketingvox.com/luxury-mobile-users-ready-to-embrace-big-purchases-049543/
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30. MOBILE PURCHASE OF
LUXURY GOODS
“I’m at the
airport. Want
that Prada
but don’t
want to carry it.”
“Buy it
via mobile
and carry
less”
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31. VIRTUAL LUXURY GOODS
http://blogs.which.co.uk/mobile/uncategorized/mobile-sales-of-%E2%80%98virtual-goods%E2%80%99-increase-by-400/
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32. VIRTUAL LUXURY GOODS
“Remind me
what it looks
Your Your garage and feels like.”
wardrobe
“I’ll own a
real one
soon.”
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33. PRIVATE EVENTS
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34. PRIVATE EVENTS
“You need an
invite code
By to access
invitation events”.
only.
“Thanks for
Invite a friend
inviting me.
This is
exclusive.”
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35. QR TRIGGER WELCOME
CUSTOM CONTENT
http://www.technologyreview.com/communications/23369/
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36. QR TRIGGER WELCOME
CUSTOM CONTENT
“Welcome to the clan.
Here’s some tips on


making the most of your
new LV.”
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37. STAY IN TOUCH WITH
FUTUREBOOKS
Email us at
inquiry@futurebooks.com.sg
Follow us
twitter/futureb00ks
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38. TERMS OF USE
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