TIMMINT MI - Luxury Weekly Report (Issue 2014-18)

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GLOBAL LUXURY

Weekly Report

Issue - 2014 Week 18

28th to the 5th of May, 2014

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to 5th

of May 2014

2

From:

TIMMINT Market Intelligence

To:

Whom it may concern

Subject:

Weekly Report, Luxury industry

Issue Year 2014, Week 18

Report Sections

Global Luxury News

Stock Market Performance

Companies Stock Charts

Who We Are

The TIMMINT Group is specialized in providing professional services to the

worldwide business community.

This report was prepared as an account of work sponsored by the

Company. Certain information has been obtained from published

sources and is given as of the dates specified. All the information in this

publication is verified to the best of the authors’ and publisher’s ability,

but neither the company nor the Management Team makes any

warranty, express or implied, or assumes any legal liability or

responsibility for the accuracy completeness or the results of such use

of the information. All such information is subject to change without

notice.

Disclaimer:

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VISIT OUR WEBSITE

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Global Luxury

News

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Purveyors of luxury goods have one eye set on Africa

AFRICA’s fast-growing emerging markets provide "great" potential for purveyors of luxury goods, London-

based Euromonitor said in a "webinar" (online seminar).

Swaying the continent’s fortunes, the spate of oil, gas and commodity discoveries is fuelling economic growth

and spawning a bling-fuelled consumption culture in countries such as Nigeria, Angola, Ghana, Mozambique

and Kenya.

"Africa is a continent to watch … it’s becoming more attractive to investors thanks to strong growing

consumer markets," Fflur Roberts, head of luxury goods research at Euromonitor, said. "South Africa is already

an important market for luxury goods with its large population of high-income earners. When we talk of sub-

Saharan countries, we generally don’t include South Africa because compared to the other emerging markets

it’s too advanced.

"However, there is still a lot of room … many of the luxury brands don’t operate there [South Africa] and if

they do, on a very small level. It’s definitely an area where luxury brands will be

looking to move into," Ms Roberts said.

With 60%, or 71,000, of Africa’s millionaires based in South

Africa, it has the continent’s most developed luxury retail

sector, with representation by global luxury brands such as

Cartier, Louis Vuitton, Burberry, Fendi, Gucci and Salvatore

Ferragamo.

Amelia Beattie, chief investment officer for Stanlib Direct Property Investments, which acts as an asset

manager for Liberty Group’s 75% ownership investment in the centre, said the move was fuelled by a demand

from shoppers and tenants for stronger representation by high-end retailers. Brands such as Jimmy Choo and

Alexander McQueen are expected to set up shop in the Diamond Walk, planned to open in mid-2015. Africa’s

most populous nation, Nigeria, is also a key market for upmarket trappings.

Luxury retailers such as Ermenegildo Zegna, Porsche and Hugo Boss have already ventured into Nigeria, with

Prada a probable new arrival, Ms Roberts said. Following the success of Zegna’s Lagos store, it had confirmed

three more openings in the region by next year. Despite numerous problems to overcome in the region, other

brands were certain to follow suit in opening new outlets, she said.

Source: Business Day Live

60% of millionaires in

South Africa

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What Luxury Home Buyers Want

The two amenities luxury home shoppers want the most are a chef’s kitchen and a sprawling views, particularly of oceans, mountains, or cityscapes, according to a new survey by realtor.com.

Fifty-four percent of luxury home buyers voted for the chef’s kitchen, while 44 percent flagged the views. Thirty-eight percent also say the square footage of the property is a key attribute, and 36 percent say having an expansive master suite is important.

“The luxury home buyer is an important contingent of today’s real estate market, as luxury homes tend to drive trends throughout the entire balance of the marketplace,” says Barbara O’Connor, chief marketing officer at Move Inc., which operates realtor.com.

“We are seeing large portions of buyers throughout the country — from 23 percent in the Northeast region and 23 percent in the South Atlantic — eyeing luxury homes. This means sellers, builders, and certainly REALTORS® should all be paying particular attention to desired luxury amenities, such as chef-quality kitchens and master suite features, to close deals for them.”

Forty percent of luxury buyers say the biggest challenge in searching for a high-end luxury home is to find a property that meets their family’s needs; 20 percent say it’s limited number of properties offered.

What’s prompted their search for a luxury home? The realtor.com survey found that 19 percent of luxury home shoppers say a recent success in their career has prompted their home search, while 17 percent say they entered the market because they’re newly retired.

Other popular motivations for a luxury home: 14 percent say they are entering the luxury market as an investment, and 12 percent say they have entered the market to purchase their first home.

Source: Realty Biz News

54% w

ant a chef kitchen

44% w

ant the view

Meeting Family

Needs

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Arabian Travel Market has focused on Luxury

There are plenty of facts and figures that highlight why the luxury hotel industry in the Middle East is a lucrative business to be in. One of the core markets, GCC nationals, spend 260% more on airfares than any other nationality, 430% more on accommodation and 558% more on dining.

Unsurprising, when according to a 2012 Credit Suisse report, the number of millionaires in the UAE is set to grow by 12% by 2017, reaching 48,000 individuals. The global picture is promising too: research released by the Boston Consulting Group (BCG) put luxury goods and services spending by the world’s super rich at US $1.8 trillion in 2013, with $1 trillion spent on services and $460 billion allocated to one-of-a-kind travel adventures.

But, those with more money typically expect more for their money and they are used to the finer things in life; to access and impress this lucrative market you have to be well versed in what luxury means and how to provide it.

The luxury debate — started by our columnist Guy Wilkinson on page 35 — is likely to be one of the key talking point’s at this year’s Arabian Travel Market, which features the theme ‘Spotlight on Luxury’, in which premium travel and hospitality will be the focus.

Luxury brand exhibitors, targeting luxury buyers and visitors, will be treated to special seminar sessions exploring the high value market segment for both inbound and outbound travellers. Mark Walsh, portfolio director, Reed Travel Exhibitions, organiser of ATM, said there can be “few places on earth” that have such a concentration of luxury five-star hotels complemented by a lifestyle to match. “The luxury theme clearly resonates with ATM participants and so we have a dedicated platform for discussion and brand showcasing this year,” he added.

The Oberoi, Dubai, is the official luxury hotel for luxury buyers at ATM 2014, but a host of other renowned luxury hospitality brands including Amenyara and Zaya Retreats, Anantara Resorts & Spas, Mandarin Oriental, Kerzner International, FRHI Hotels & Resorts, Taj Hotels Resorts & Palaces, Bulgari Hotels & Resorts and The Ritz-Carlton Hotel Company will be present. High-flying destinations including Monaco, Mauritius, Maldives, and the Seychelles will also have a presence.

Source: Hotelier Middle East

Number of

millionaires to reach

48000

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Indian luxury pen market to double in size in 4 years

The Indian luxury pen market is all set to double its size from the current Rs 400 crore in the next four years. Higher disposable income and greater brand consciousness among Indian, especially young adults, has increased demand for global brands and almost all of whom are present in the country.

"Despite the sluggish market where discretionary spending has been curtailed, the luxury pen segment has been growing in double digits," says Nikhil Ranjan, CEO, William Penn - a distributor/retailer of luxury writing instruments with 26 outlets across the country and a market share of about 30 per cent. The other major players with a national presence in the market are Mont Blanc, Cross and Luxor. On Tuesday, William Penn signed an exclusive distributorship agreement with German luxury pen maker Lamy. Lamy is one of the top 5 luxury pen brands in the world.

Indians' penchant for luxury pens pales in significance compared to Chinese. The size of little kingdom's luxury pen market is at least five times that of India's, estimates Ranjan. This puts its value at Rs 2,000 crore. "It is an indication of the potential that exists in India," he adds.

Despite the upside, there has not been much of an activity in the luxury pen market in the country which is broadly divided into the sub-Rs 8,000 category and the Collectors pens which cost in excess of Rs 10,000 (almost 85 per cent of the pens sold fall under the first category and balance 15 per cent under the Collector's pen category).

This adds to the cost of inventory and working capital management is a critical aspect of this business. While the distributors have to necessarily buy and stock the pens, the retails have the `sale or return' option.

Source: Business Today

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LVMH Buys Controlling Stake in Singaporean Restaurant Chain

As dining out by Asian families and young professionals grows in popularity, private equity investors have shown an appetite too. The latest investment speaks to a love for pan-friend pork buns, turnip pastries and other tasty Cantonese treats.

Luxury giant LVMH Moet Hennessy Louis Vuitton SAMC.FR -0.89% is spending more than $100 million for a larger than 90% stake in Chinese restaurant chain Crystal Jade, according to Christina Teo, managing director at LVMH’s private equity arm.

The private equity arm, L Capital Asia, had been looking at Crystal Jade for three years, Ms. Teo said in an interview Wednesday. The sale was in part because Crystal Jade Chairman and CEO Ip Yiu Tung, at 65 years old, is looking to step back in his role with the firm. Mr. Tung’s majority stake will be reduced to a minority stake, although he will remain as CEO for about one year after the ownership handover.

Crystal Jade, founded in 1991, specializes in Cantonese cuisine, including dim sum, handmade noodles and baked goods. The firm is based in Singapore and has over one hundred outlets across Asia, including in China, Hong Kong and a number of Southeast Asian countries.

LVMH plans to help the chain enter new countries, as well as expand deeper into China, where the chain’s current presence is mostly limited to first tier cities. LVMH has the international infrastructure and experience to help the restaurant chain get better rental locations globally, increase its wine offerings,

improve branding and expand its footprint not just in China, said Ms. Teo.

She added that the restaurant’s China operations haven’t been hurt by the country’s push for officials to cut back on lavishing spending including fine dining, because Crystal Jade offers cuisine at a wide range of price points. Investors considering luxury brands and high-end restaurants have been wary that such businesses are more susceptible to the austerity drive starting under President Xi Jinping in 2012.

According to Ms. Teo, Crystal Jade’s revenue has been growing at 20% each year since its founding.

L Capital is investing from its second Asia fund, which raised $1 billion this year. The fund has also invested in Australian apparel maker 2XU and Italian luxury shoe brand Giuseppe Zanotti. After Crystal Jade, the fund plans to invest in a Chinese online fashion company, said Ms. Teo.

Source: Forbes India

$100 million for

a 90% stake

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Stock Market

Performance

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Top Luxury Companies by market Cap

The table below shows the top 20 luxury companies by Market Cap listed in the stock markets and

their weekly percentage change at the closing stage of this week:

# Company Name

Market Cap (5thth of May) (USD billion)

Market Cap (28th of April) (USD billion)

% Change

1 Lvmh 99.44 100.01 -1%

2 Daimler 98.3147 97.7454 1%

3 Diageo 77.8122 75.7482 3%

4 Nike 64.1 63.84 0%

5 Hermes 37.113 37.122 1%

6 Christian Dior 37.0435 36.7218 0%

7 Porshe automobile 33.44 33.6 0%

8 Pernod Ricard 31.831 31.2294 2%

9 Estee Lauder 29.34 28.01 5%

10 Kering 27.8139 27.6966 0%

11 Luxxotica 27.1745 26.7996 1%

12 Tesla motors 26.16 24.79 6%

13 Prada 20.8897 20.1747 4%

14 Harley Davidson 15.99 15.76 1%

15 Ralph lauren 14 13.83 1%

16 Beam 13.8 13.83 0%

17 Lindt & Spruengli 12.5517 13.8 1%

18 Coach 12.18 13.3896 -12%

19 Royal Caribbean 11.815 12.489 2%

20 Nordstrom 11.76 11.66 1%

The below graph shows the top 5 companies

that had the highest increase in market cap

(last week):

The below graph shows the 5 companies that

had the highest decrease in market cap (last

week):

25%

17%

11% 9%

8%

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The table hereunder shows the top 15 luxury companies by P/E ratio and their weekly percentage

change last week:

# Company Name P/E Ratio (5th of May) P/E Ratio (28th of April) % Change

1 Yoox spa 116.86 115.18 1%

2 Group FNAC 38.72 39.99 -2%

3 Blue Nile 37.29 39.6 -7%

4 Luxxotica 35.88 35.33 2%

5 Hermes 33.33 33.21 0%

6 Beam 33.22 33.21 0%

7 Harman International 29.55 31.98 -8%

8 Estee Lauder 28.43 28.12 1%

9 PVH corp 27.8 26.89 5%

10 Shiseido 27.65 26.78 3%

11 Remy cointreau SA 27.43 26.5 2%

12 Treasure wine estates ltd 26.8 26.09 3%

13 Tempur sealy international inc 26.34 25.63 7%

14 Salvatore ferragamo 25.56 24.7 0%

15 Polaris Industries 24.71 24.48 2%

T A K E A B R E A K

http://timmint.com/ttg/tip_details.php?id=21







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Turnberry, the iconic Scottish golf course which hosted one of the sport's greatest duels, has been sold to American billionaire

Donald Trump. The real estate magnate announced on Tuesday that he had bought the famous links course for an undisclosed sum

from the Dubai-based Leisurecorp."It was an opportunity, as far as I was concerned,” Trump told golf.com.

"Turnberry is considered one of the greatest courses in the world. It’s a special place. It’s an important place.”Trump said he had no

plans to change the course layout, which sits on a former World War One airfield and overlooks the Irish Sea, but he does want to

develop the Turnberry hotel.

Trump owns a handful of golf courses in the United States but has never had one that has hosted a major championship but that

could change with his purchase of Turnberry.The course has hosted the British Open four times, most recently in 2009, and is likely

to be considered for future majors."Turnberry is a great favorite among the players and it's on the Open rota for sure," R&A chief

executive Peter Dawson told the BBC.

The British Open was first staged at Turnberry in 1977 when Tom Watson beat fellow American Jack Nicklaus by a stroke in a

famous final round which became known as the "duel in the sun."

Trump buys Turnberry golf course

Source: Reuters

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Yearly % of Change

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COMPANIES STOCK

CHARTS

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Top 12 Luxury Companies Charts

The charts below reflect the index movement of the top 12 companies that had the highest market cap

during this week:

Price Change

Begin High Low End Value %

176 203.23 154.95 195.88 19.88 11%

* One year data *Market: US * Currency: US Dollar

Price Change


43.147 71.27 42.4 66.03 22.883 53%

* One year data *Market: France * Currency: Euro

Price Change


23.16 25.4 21.23 23.3 0.14 1%


Price Change


63.96 80.26 59.11 72.99 9.03 14%

* One year data *Market: US * Currency: US Dollar

Price Change


136 149.26 121.28 146.9 10.9 8%


Price Change


93.882 95.92 78.78 86.19 -7.692 -8%

* One year data *Market: Germany * Currency: Euro

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Price Change


170.8 185.15 136.95 158 -12.8 -7%

* One year *Market: France * Currency: Euro

Price Change


70 76.24 63.63 75.62 5.62 8%

* One year *Market: NYSE * Currency: US Dollar

Price Change


7.8 11.24 7.25 10.92 3.12 40%

* One year *Market: US * Currency: US

Price Change


39.71 42.97 35.22 40.92 1.21 3%

* One year data *Market: Italy * Currency: Euro

Price Change 34 194.5 32.85 138 104 306%


59.5 265 55.12 210.91 151.41 254%

* One year *Market: US * Currency: US Dollars

Price Change


262.1 283.2 223.95 251.5 -10.6 -4%

* One year *Market: France * Currency: Euro

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