Europe’s Personal Luxury Goods Market Contracted by 36% in 2020

Brand Spur
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Europe’s Personal Luxury Goods Market Contracted by 36% in 2020

The luxury industry took a hit in 2020, recording its sharpest drop on record. The personal luxury goods market fell by 23% to €217 billion.

According to the research data analyzed and published by Sijoitusrahastot, Europe had the highest regional drop during the year, contracting by 36% to €57 billion. The collapse in global tourism is presumed to be the key causal factor behind the drop. While local luxury consumption remained, regional consumption fell significantly.

Personal Luxury Goods Market in 2020

Europe’s Personal Luxury Goods Market Contracted by 36% in 2020

Asia was second with a 35% decline and the United States got the third sport, tumbling 27% year-over-year (YoY). Japan fell by 24% and the rest of the world by 21%. Explaining the regional discrepancies, consultancy firm Bain pointed to the fact that tourists shifted to make purchases in their home markets.

The share of local purchases was between 80% and 85% during the year. It was the first time that the worldwide luxury market recorded a decline since the 2009 global financial crisis.

The only country to record growth was China, rising by a remarkable 45% compared to 2019. At the same time, global online purchases in the luxury market in 2020 shot up by 50%, going from €33 billion to €49 billion. By the end of the year, digital sales accounted for 23% of the overall market.

Europe’s Personal Luxury Goods Market Contracted by 36% in 2020 Brandspurng1

It is estimated that by 2025, the online luxury segment will be worth between €105 billion and €115 billion. By then, it is projected to account for 30% of the market.

Scrapped VAT Rebate Scheme Could Cost UK Economy £5.6 Billion

Bain projects that in 2021, the overall luxury market will grow by 15%. McKinsey echoes the sentiments, forecasting a return to pre-pandemic growth by 2023.

However, the rebound could take longer for Europe due to the uncertainty surrounding the Brexit deal. Among the factors putting the market under pressure is the removal of the VAT rebate scheme for international buyers in Britain. Under the program, foreign travellers recover a significant portion of the 20% VAT charged on purchases. Luxury brands like Chanel and Mulberry say the decision is likely to cost billions in terms of tourist spending.

According to analyst estimates cited by CPP-Luxury, tourists account for two-thirds of luxury sales in Europe. As a case in point, 70% of luxury house Kering’s sales in Europe came from tourists in 2019.

 

Based on data from tax refund company Global Blue, high-net-worth Chinese shoppers spend €197,000 per year when they travel abroad. High-net worth Americans, on the other hand, spend €180,000 per year.

Compared to the US and China, the UK is a relatively small luxury market. Its position in the industry is, however, crucial for domestic brands. Small local brands rely on tourist purchases. Although Chinese tourists only make up 5% of non-EU tourists in the UK, they account for nearly a third of VAT refunds.

The Centre for Economics and Business Research estimates that non-EU visitors to the UK could drop by up to 7.3%. As a result, there could be a loss of £1.8 billion in sales.

The Association of International Retail (AIR) states that the rebate scheme would potentially generate an additional £1 billion in sales revenue through the UK. For the wider tourist economy, the body estimated that it would generate a total of £2.1 billion.

Based on a New West End Company research, the decision to scrap the rebates changes the potential £2.1 billion of revenue into a £3.5 billion loss. The group estimates that the decision’s total hit on the UK economy would be a net £5.6 billion loss ($7.2 billion).

Europe Luxury Market to Grow by 13% in 2021 to $100 Billion

On the bright side though, 80% of luxury products in Britain are destined for markets abroad according to Walpole.

Furthermore, Britain and the US are in talks that could lead to the reduction of the 25% tax on Saville Row suits, cashmere and British wool. Coupled with the current vaccine rollout and pent up customer demand, the outlook seems bright for the market.

According to Statista, the UK luxury goods market is projected to grow at 11.9% YoY to $13.94 billion in 2021. In the period between 2021 and 2025, it is estimated to grow at a 3.7% compound annual growth rate (CAGR).

 

For the greater Europe region, the market is set to grow by 12.8% YoY in 2021, a slightly higher rate than the UK. By the end of the year, it is estimated to reach $100.19 billion. Its largest segment will be the fashion category, generating $40.41 billion during the year.

In the period between 2021 and 2025, the market will grow at a 4.8% CAGR, once again, higher than the rate of growth in the UK.

Infinix receives Mobile Phone Brand of the Year Award at the Peace Legend Awards

Esan Bolaji
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Infinix receives Mobile Phone Brand of the Year Award at the Peace Legend Awards

Africa’s premium smartphone brand Infinix has been awarded the honours of the Mobile Phone Brand of the year at the prestigious Peace Legend Awards. The award took place at the prestigious Oriental Hotel, Victoria Island, Lagos and saw the attendance of representatives from several high-profile brands in Nigeria.

The Peace Legend Award is an apex event focused on honouring and celebrating great personalities and brands that have tremendously helped to move Nigeria forward by promoting peace, creating employment opportunities and altogether encouraging the development of the state.

Infinix receives Mobile Phone Brand of the Year Award at the Peace Legend Awards

This year’s edition was the seventh edition of the event. Infinix received the Mobile Phone Brand of the year award at the event for empowering the youths within its community through several campaigns and also helping to promote young entertainers with burgeoning talents through different activities.

After receiving the award, Infinix marketing communications manager Kevin Olumese said,

“I’m thrilled to receive this award on behalf of Infinix. We’re glad that our efforts to support young talents and empower youths with budding ideas have not gone unnoticed. This award would serve to remind us of how these initiatives have truly touched lives and that in turn will cheer us to do more.”

Infinix receives Mobile Phone Brand of the Year Award at the Peace Legend Awards

This year has been quite eventful for the Infinix brand. Although brands all over the world have been largely affected by the COVID 19 pandemic and its resultant effect on the economy of the countries in which they operate, Infinix has managed to squeeze in several empowerment activities for Nigerian youths in different fields of interest.

The brand recently supported two young entrepreneurs who participated in the #EmpoweredByinfinixNote8 campaign with 1 million naira each to get their business ideas off the ground.

Likewise, Infinix announced winners for its dance challenge and star of the week challenge on the last episode of AM’s Turn Up Friday. Infinix, which is a headline sponsor of the event, rewarded both winners with two hundred thousand naira each after creating a stage for them to show the world their unique talents.

So far, nothing has stopped the brand from making good on its commitment towards supporting youths with brilliant ideas and incredible talents. It’s no wonder why young Nigerian folks endear them.

Infinix Wefie Full Specification and Features 3

Help for Nigerian small-scale farmers to improve food security and combat poverty in the face of COVID-19

Esan Bolaji
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Help for Nigerian small-scale farmers to improve food security and combat poverty in the face of COVID-19

Rome/Abuja, 28 January 2021 – The Federal Government of Nigeria and the International Fund for Agricultural Development of the United Nations (IFAD) are working together to lessen the impact of the Covid-19 pandemic on small-scale farmers’ activities and domestic food supply in northeastern states of Nigeria.

IFAD has provided a first grant of US$900,000 through its Rural Poor Stimulus Facility (RPSF) to support the worst affected small-scale producers and rural households in the North through the COVID-19 crisis, as well as to rebuild and recover in the post-crisis period.

Help for Nigerian small-scale farmers to improve food security and combat poverty in the face of COVID-19 brandspurng

The grant agreement, signed by Zainab Shamsuna Ahmed, Minister of Finance, budget and National Planning and Nadine Gbossa, IFAD’s Regional Director for West and Central Africa, will help vulnerable small-scale farmers in seven northern states (Borno, Jigawa, Katsina, Kebbi, Sokoto, Yobe, and Zamfara).

Under the leadership of the   Ministry of Agriculture and Rural Development, more than 8,000 vulnerable smallholders in Northern Nigeria will receive an agricultural stimulus and resilience package composed of climate resilient seeds; these are high yielding, and high nutritional value varieties that will help farmers achieve good production and secure their incomes.

IFAD’s support complements the United Nations Nigeria COVID-19 Basket by earmarking resources to mitigate the impact of the pandemic on smallholders’ farming activities and domestic food supply.

”We both recognize and appreciate IFAD’s support to our quest to mitigate the impact of the COVID-19 pandemic on the country’s economy, particularly on the agricultural sector,” said Mohammed S. Nanono, Minister of Agriculture and Rural Development of Nigeria.

“This support strengthens my Ministry’s COVID-19 Agricultural Mitigation and Sustainability Plan, which aims to address the impact of the pandemic on Nigerian agriculture and food security.”

The government will procure 80 metric tons of seed – maize, rice and vegetables – and 722 metric tons of fertilizer that will support the most affected small-scale farmers. About 50 per cent are women, 25 per cent men and 25 percent young farmers who are already participating in the ongoing IFAD-funded Climate Adaptation and Agribusiness Support Programme.

“I am very happy to be among the beneficiaries who will collect rice seed and fertilizer. This will enable me to cultivate the half hectare of rice I have under irrigation for this year’s dry season. I will be able to increase my income and food security despite the COVID -19 pandemic,” said Ige Abdullahi Yarkofoji, a farmer from the Rini Community, Bakura area in Zamfara State.

There will also be training for communities on improved food production practices, including effective application of fertilizer and agro-chemicals, farm management and climate-smart agriculture.

These activities are intended to safeguard smallholders’ pre-COVID gains in food security, better market access and increased income. Activities would also sensitize small-scale producers to COVID-19 security measures they should follow to stay safe during their farming activities.

“This funding from IFAD’s Rural Poor Stimulus Facility will ensure that farmers have timely access to inputs, information, and markets. By supporting smallholders to mitigate this crisis through a market-led approach, basic farming activities will be sustained, facilitating post-COVID-19 crisis recovery and resilience,” said Nadine Gbossa, IFAD’s Regional Director for West and Central Africa.

“IFAD is committed to leave no one behind and will ensure that women and youth in Nigeria have an equal opportunity to benefit from this funding.”

Since 1985, IFAD has financed 11 projects in Nigeria for a total of $ 1,136.8 million, including $ 510.5 million from IFAD’s own resources, directly benefitting nearly 3.9 million Nigerian rural households.

Local Equities Rebounds…Investors Gained N259.45bn

PFI Capital
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Local Equities Rebounds…Investors Gained N259.45bn

The Nigerian equities market traded on a positive note as investors position for earnings release. The benchmark All Share Index (ASI) went up by 121bps  to close at 41,584.94  with market capitalization adding N259.45bn to settle at N21.75tn.

In summary, the  Year-to-Date (YtD) performance improves to 3.26%.

Sectoral indices tolled different part with 3 of the 5 sectors under coverage closing positive. Notably, the insurance, consumer goods and industrial indices advanced by 0.40%, 0.54% and 0.25% buoyed by positive sentiments in AFRINSURE(+9.09%), CHAMPIONS(+9.81%) and WAPCO(+3.77%). Conversely, Oil & gas and banking indices waned by 5.31% and 0.14% following losses in SEPLAT (-9.26%) and ZENITHBANK(-0.94%).

Local Equities Rebounds...Investors Gained N259.45bn

Investors’ sentiment was also positive as 32 stocks advanced while 19 stocks declined to indicate a 1.68x market breadth.  Market activity level improves as both the volume and value of transaction advanced by 40.47% and 110.79%. Investors traded a total of 467 million units of shares valued at N5.57billion.

The bond market traded on a muted note as yield compressed marginally on shorter maturities while those on longer maturities remained stable. The yield on  FGN-JUL-2030 consequently closed at 4.96%.

Market Snapshot

  • Local Bourse Maintains Uptrend…ASI Gained 83bps Today
  • Bond market traded on a muted note with yield stabilizing on longer-term maturities
  • US S&P 500 Drops the Most Since October
  • Oil Steady With Market Structure Pointing to Tight Global Supply
  • Naira weakened in the parallel market to close at N475/$

Car Rentals, Taxi and Ride-Hailing Revenues to Hit $325B in 2021, a $68B Plunge Compared to Pre-COVID-19 Figures

Esan Bolaji
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Car Rentals, Taxi and Ride-Hailing Revenues to Hit $325B in 2021, a $68B Plunge Compared to Pre-COVID-19 Figures

The COVID-19 pandemic has brought significant changes and challenges for the taxi and car rentals industries. Lockdown restrictions, cancelled flights, and people working from home have dried up revenues in both sectors, and fears over their future have been raised due to the cost of personal protective equipment and a lack of customers.

According to data presented by Stock Apps, car rentals, taxi and ride-hailing revenues are expected to reach $325bn in 2021, a $68bn plunge compared to pre-COVID-19 figures.

Car Rentals, Taxi and Ride-Hailing Revenues to Hit $325B in 2021, a $68B Plunge Compared to Pre-COVID-19 Figures Brandspurng

Revenues Halved amid COVID-19 Crisis

Before the pandemic, both sectors have witnessed steady growth in revenues and the number of users revealed the Statista survey. In 2017, the global ride-hailing and taxi industry hit $281.3bn value.

Over the next two years, this figure rose to $302.2bn. However, the coronavirus pandemic caused a massive hit to the entire sector, with revenues plunging by 42% year-over-year to $162.8bn in 2020.

Although 2021 is set to witness a recovery with revenues rising by almost 60% YoY to $260.1bn, this value still represents a $42bn drop compared to 2019 figures. However, statistics show the entire segment is expected to recover in the following years, with revenues rising to $360.5bn by 2023.

The Statista survey revealed that the car rentals industry had also witnessed a colossal revenue drop amid the COVID-19 crisis, with the figure plunging from $91.1bn in 2019 to $40.6bn in 2020.

Uber Market Cap Rose by 18% in Q3 2020, H1 Revenue Plunged by $481 Million YoY Brandspurng
Photo by Austin Distel | www.brandspurng.com

The Statista data also indicate it will take years for the market to recover from the effects of the coronavirus pandemic. In 2021, revenues are projected to grow by 59.6% year-over-year to $64.8bn, 29% less than in 2019. By 2023, the car rentals segment is forecast to reach a $93.6bn value.

The Number of Users to hit 1.8B in 2021, a 50M Plunge in Two Years

In 2019, more than 1.85 billion people worldwide had been using car rentals, taxis and ride-hailing services. Statistics show this figure plummeted to 1.6 billion in 2020, as the countries across the globe imposed restrictions to curb the spread of the virus.

Although the number of users is expected to rise to 1.8 billion in 2021, it still represents a 50 million plunge compared to pre-COVID-19 figures.

The number of people using car rentals services is set to reach 331.4 million this year, 117 million less than in 2019. However, the ride-hailing and taxi sector is expected to reach 1.47 billion users in 2021, a 70 million increase in two years.

Analyzed by geography, the United States represents the world’s largest car rentals market, forecast to generate $18.2bn in revenue this year. China, Brazil, and Germany follow with $12.7bn, $2.5bn, and $2.3bn, respectively.

On the other hand, China ranked as the leading market in the ride-hailing and taxi industry, with a $78.9bn valuation in 2021. The United States, India, and the United Kingdom follow, with $52.2bn, $35bn, and $9.5bn market values, respectively.

Global Consumer Spend on Health and Fitness Apps Rose by 50% in 2020

Esan Bolaji
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Global Consumer Spend on Health and Fitness Apps Rose by 50% in 2020

Consumers turned to digital platforms for their fitness needs driving remarkable growth in the industry in 2020. According to the research data analyzed and published by Comprar Acciones, worldwide consumer spend on mobile health and fitness apps jumped by 49.7% year-over-year (YoY) in 2020.

Based on a report by the Washington Post, between January and November 2020, a total of 2.5 billion health and fitness apps were downloaded globally.

Global Consumer Spend on Health and Fitness Apps Rose by 50% in 2020 brandspurng2

During the first half of the year, health and fitness app downloads shot up by 46% according to We Forum. In that period, India had the highest growth rate, with the number of downloads surging by 157%.

Download Growth of Health and Fitness Apps in 2020

Global Consumer Spend on Health and Fitness Apps Rose by 50% in 2020 brandspurng1
Source: Worldwide Economic Forum

The digital shift to fitness also spurred a surge in demand for fitness wearables. According to an IDC estimate, wearable shipments reached almost 400 million in 2020. Compared to 2019, that would be an increase of 60 million.

Worldwide Wearable Shipments and Market Share in 2020

Global Consumer Spend on Health and Fitness Apps Rose by 50% in 2020 brandspurng
Source: IDC

IDC pointed to wearables that provide virtual fitness and health coaches like the ones pushing the sales of multiple products that work together. These included Fitbit Premium, Apple’s New Fitness and Amazon’s Halo.

But while the online segment thrives, its offline counterpart has been on a downtrend. According to the IHRSA, the US gym and health club sector lost a cumulative $13.9 billion between mid-March and August 31, 2020.

The report estimated that 25% of gyms in the US would close down by the end of the year. Gold’s Gym, Town Sports International, Cyc Fitness and 24 Hour Fitness were among those that filed for bankruptcy.

European Consumers Spent $544 Million on Health and Fitness Apps in 2020

In Europe, digital fitness growth was particularly remarkable as consumer spending on the industry’s apps shot up by 70.2%. The figure soared from $319.8 million in 2019 to a whopping $544.2 million in 2020. The yearly increase nearly doubled that of 2019, which stood at 37.2% YoY.

The uptrend started in Q1 2020 when gross sales rose from the 2019 average of $80 million to reach $115 million. In Q2 2020, the figure rose higher to $142 million.

Q3 2020 was the peak quarter as gross sales shot up to $148 million. That was 83.3% higher than Q3 2019 when spending totaled $81 million. Though there was a slight decline in Q4 2020, the figure was still considerably higher than the 2019 average, at $140 million.

Most of the spending was concentrated on the Apple App Store. It generated $392.8 million, accounting for 72.2% of the final tally. Google Play, on the other hand, contributed $151.4 million, 27.8% of total revenue.

Europe accounted for 30.3% of total global spending on health and fitness apps during the year. The UK was its top market, generating $160.6 million, 29.5% of the region’s total. Germany came in second with a total of $89.3 million (16.4%) while France was third with $56.4 million (10.4%).

Peloton Stock Grew by 434% in 2020, Digital Subscribers Up by 382%

Growth was also seen in the home fitness business due to the closure of gyms after the pandemic took hold.  Based on a report by NPD, in the period between March and October 2020, revenue from health and fitness equipment rose to $2.3 billion. That was more than double the revenue from the prior-year period. During the same period, stationary bike sales almost tripled while treadmill sales rose by 135%.

Peloton was among the top beneficiaries of the trend. Its products sales during the year doubled from $910 million in 2019 to $1.8 billion in 2020.

The company also increased its digital foothold, with the total number of members reaching 3.3 million by the end of the year.

The company’s digital subscribers shot up by 382% to reach 510,000, while paid digital subscriptions rose by 210% YoY, reaching over 316,800.  The number of Connected Fitness (CF) subscribers grew from 563,000 to 1.334 million over the year, a 137% uptick YoY.

As a result of the stellar performance, Peloton’s stock grew by 434% in 2020. During fiscal Q1 2021, Peloton’s revenue was $757.9 million. From that amount, 79.4% came from Connected Fitness products.

Revenue during the quarter grew by 232.4% YoY and by 24.8% compared to the previous quarter. The upsurge resulted from a 132.9% increase in subscription revenue and a 274% uptick in product revenue. For Q2 FY21, seasonal holiday strength is expected to drive sales up to almost $1.1 billion.

Other CF companies also gained from the industry’s growth. After its acquisition by Lululemon, Mirror is estimated to have generated $150 million in revenue in 2020. Its company’s previous revenue projection stood at $100 million. For Tonal, sales soared by 700% during the year.

DF Holdings Acquires N29.89m Worth of Additional AIICO Insurance Shares

Esan Bolaji
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DF Holdings Acquires N29.89m Worth of Additional AIICO Insurance Shares

AIICO Insurance revealed that a majority shareholder, DF Holdings Limited had acquired additional 27,174,309 ordinary shares at N1.10k per share at the Nigerian Stock Exchange platform.

DF Holdings Limited is based in the United Kingdom which acts as a holding company and provides administrative services to the group.

The notice which was signed by Donald Kanu, Company Secretary and dated January 7, 2021, further shows that the said dealing took place on December 9th 2020.

DF Holdings Acquires N29.89m Worth of Additional AIICO Insurance Shares Brandspurng
SOURCE: NSE

AIICO Insurance PLC specializes in pension and asset management, general and health insurance, annuity, and life assurance and serves corporations, financial institutions, governments, and individuals in Nigeria.

Moët Hennessy Closes 2020 with 14% Sales Drop

Esan Bolaji
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Moët Hennessy Closes 2020 with 14% Sales Drop

LVMH showed good resilience against the pandemic crisis in 2020

LVMH Moët Hennessy Louis Vuitton, the world’s leading luxury products group, recorded revenue of 44.7 billion euros in 2020, down 17%. Organic revenue declined by 16% compared to 2019.

LVMH showed good resilience in 2020 in an economic environment severely disrupted by the serious health crisis that led to the suspension of international travel and the closure of the Group’s stores and manufacturing sites in most countries over a period of several months.

Moët Hennessy Closes 2020 with 14% Sales Drop

With an organic revenue decline of only 3% in the fourth quarter, the Group saw a significant improvement in trends in all its activities compared to the first nine months of 2020. Fashion & Leather Goods, in particular, enjoyed a remarkable performance, with double-digit growth in both the third and fourth quarters.

While Europe is still affected by the crisis, the United States saw a good recovery and Asia grew strongly.

Profit from recurring operations, which amounted to 8.3 billion euros in 2020, declined only 28% over the year due to a return to growth in the second half, which was up 7%. Operating margin reached 18.6% in 2020. Group share of net profit amounted to 4.7 billion euros, down 34%.

Moët Hennessy Closes 2020 with 14% Sales Drop Brandspurng

Bernard Arnault, Chairman and Chief Executive Officer of LVMH, said:

“LVMH showed remarkable resilience against the unprecedented health crisis the world experienced in 2020. Our priority has been to protect the health and safety of our employees and our clients and we have provided direct support in the fight against the pandemic.

Our Maisons have shown great agility and creative energy in continuing to bring to life our customers’ dreams through a unique digital experience thereby further strengthening their desirability. Our focus on dynamic innovation was accompanied by strong commitments to the environment, sustainability and inclusion.

We are starting 2021 with the pleasure of welcoming the iconic jewellery Maison Tiffany and its teams to our Group. In a context that remains uncertain, even with the hope of vaccination giving us a glimpse of an end to the pandemic, we are confident that LVMH is in an excellent position to build upon the recovery for which the world wishes in 2021 and to further strengthen our leadership in the global luxury market.”

Key highlights from 2020 include:

  • Highest priority is given to the health and safety of our employees and our customers,
  • Direct support in the fight against the pandemic,
  • Good resilience, notably from the major brands, in an economic environment disrupted by the health crisis,
  • Impact of the crisis on revenue trends around the world, with, however, a second-half marked by a strong recovery in Asia, which saw double-digit growth, and a significant improvement in trends in the United States and Japan,
  • Double-digit organic revenue growth at Louis Vuitton and Christian Dior over the last two quarters of 2020,
  • The success of both iconic and new products at Louis Vuitton, whose profitability remains at an exceptional level,
  • The remarkable resilience of Cognac,
  • The sharp acceleration in online sales, partially offsetting the effect on revenue caused by the closure of the Group’s stores for several months,
  • Suspension of international travel, severely penalizing hotel and travel retail activities,
  • Operating free cash flow equivalent to that of 2019,
  • The completion of the agreement with the iconic American jewelry Maison Tiffany.

Wines & Spirits: strong recovery in the United States in the second half of the year and improvement in trends in China

The Wines & Spirits business group saw its organic revenue decline by 14% in 2020. Profit from recurring operations was down 20%. All Maisons showed great resilience and gained market share.

After a significant drop in volumes in the second quarter, the Champagne business experienced improved trends in the second half, particularly in the United States. Beginning in June, Hennessy cognac recorded a strong recovery, driven notably by demand in the United States.

2020 saw the integration of the 2019 acquisitions Château d’Esclans and Château du Galoupet for the first time over a full year, establishing a strong position for Moët Hennessy in the growing market for high-end rosé wines. A new high-end rum, Eminente launched in the third quarter.

Fashion & Leather Goods: remarkable resilience

In 2020, the Fashion & Leather Goods, the business group recorded a decrease in organic revenue of only 3% in an environment marked by the closure of stores over a period of several months.

The second half saw noteworthy rebound inactivity, with double-digit organic revenue growth in both quarters. China recorded a strong recovery in revenue beginning in April and the United States in July.

The brands’ strict cost management made it possible to limit the decline in profit from recurring operations to 2%. Louis Vuitton, always driven by exceptional dynamism and creativity, was able very quickly to transform and revitalize its customer relations with high quality and efficient digital service.

Many innovations were unveiled throughout the year, such as the Pont 9 range and the 1854 canvas. The Maison’s commitment to high-quality craftsmanship and sustainability continues in the form of responsible creativity.

A new workshop opened at Vendôme in France. Christian Dior demonstrated remarkable momentum and gained market share in all regions thanks to its exceptional creativity. The Lady Dior bag has become a global icon, the women’s collections of Maria Grazia Chiuri and the men’s runway shows of Kim Jones were a huge success.

The other fashion brands showed solid resilience during the year, notably Loewe with the creations of J. W. Anderson, Celine with the creations of Hedi Slimane, Fendi and Marc Jacobs.

Perfumes & Cosmetics: continuous innovation and rapid growth in online sales

The Perfumes & Cosmetics business group recorded a 22% decline in organic revenue in 2020. Profit from recurring operations was down 88%.

In a sector suffering from the decline in international traveller, spend and makeup, LVMH’s major brands chose to be selective in their distribution and, unlike certain competitors, limited promotions and refused to sell indirectly to the Chinese parallel market, which presents major risks to the medium-term desirability for brands that follow that route.

The Perfumes and Cosmetics brands are showing good resilience resulting from the growth of skincare and online sales, particularly in Asia. Christian Dior saw a gradual improvement in the second half of the year, underpinned by the success of its new products Miss Dior Roses N’Roses and J’adore Infinissime in perfume, and Rouge Dior in makeup.

Guerlain benefited from the remarkably dynamic skincare market, with the continued success of Abeille Royale and Orchidée Impériale. The new skincare brand Fenty Skin, developed by Rihanna, is off to a very promising start.

Watches & Jewelry: strong rebound in China in the second half of the year

The Watches & Jewelry business group saw its organic revenue decline by 23% in 2020, with a strong improvement in trends in the fourth quarter, which fell only 2%. Profit from recurring operations was down 59%.

Bvlgari was very responsive and quickly capitalized on the strong recovery in China. The Maison maintained a high pace of jewelry innovation with the successful launches of its Serpenti Viper, B.Zero1 Rock and Barocko collections. Chaumet inaugurated its new store at its historic address on Place Vendôme in Paris at the start of 2020 and strengthened its presence in China.

In the watch sector, TAG Heuer celebrated its 160th anniversary with several limited editions in the Carrera collection and launched the third generation of its smartwatch in New York. The year 2021 marks the welcome to the Group of the prestigious American jeweler Tiffany.

Selective retailing: good resilience at Sephora and strong impact of the suspension of international travel on DFS

The Selective Retailing business group saw organic revenue decline by 30% in 2020. Profit from recurring operations amounted to (203) million euros. Sephora demonstrated good resilience during the health crisis, which, nonetheless, lead to the closure of most of its stores for several months.

The commitment and agility of its teams have enabled an acceleration of online sales, which reached historic levels in all markets, and the development of services such as Click & Collect and Live Shopping. Sephora has also strengthened its offering with new skincare and hair products.

A new partnership has been signed with the American retailer Kohl’s, whose stores are expected to accommodate 200 beauty spaces dedicated to Sephora in 2021. DFS saw a significant decline in its activity in most destinations due to the total suspension of international travel.

While Hong Kong continues to feel the impact of the pandemic strongly, Macau saw improved trends in the latter part of the year. New services are being developed for its local customers and online sales have strengthened.

Cautious confidence for 2021

In a very turbulent context, LVMH is well-equipped to build upon the hoped-for recovery in 2021 and regain growth momentum for all its businesses. The Group will continue to pursue its strategy focused on developing its brands by building on strong innovation and investments as well as a constant quest for quality in its products and their distribution.

Driven by the agility of its teams, their entrepreneurial spirit and its well-diversified presence across its activities and the geographic areas in which it operates, LVMH enters 2021 with cautious confidence and once again, sets an objective of reinforcing its global leadership position in luxury goods.

Dividend 2020

At the Annual General Meeting of April 15, 2021, LVMH will propose a dividend of 6 euros per share. An interim dividend of 2 euros per share was paid on December 3 of last year. The balance of 4 euros will be paid on April 22, 2021.

Nigeria Mortgage Refinance Company PLC Lists ₦10.00 Bn Fixed Rate Bond on FMDQ Exchange

Esan Bolaji
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Nigeria Mortgage Refinance Company PLC Lists ₦10.00 Bn Fixed Rate Bond on FMDQ Exchange

FMDQ Securities Exchange Limited (FMDQ Exchange), following the due diligence of its Board Listings and Markets Committee, has approved the Listing of the Nigerian Mortgage Refinance Company PLC (NMRC) Series 3 ₦10.00 billion Fixed Rate Bond under its ₦440.00 billion Bond Issuance Programme on its platform.

The listing joins a host of other corporate securities issued on the FMDQ Exchange Platform to kick off the year 2021 in addition to Total Nigeria PLC, Valency Agro Nig. Ltd., Mixta Real Estate PLC and Flour Mills of Nigeria PLC.

CAMA 2020 Netting Provisions: Game Changer for FMDQ Derivatives and Central Counterparty Agenda

In view of the sustained disruptions occasioned by the impact of the COVID-19 pandemic to businesses and economies alike, the Nigerian capital market has continued to provide the much-needed succour for corporate entities looking to raise funds to meet shortfalls in their working capital needs as well as capital expenditures.

The Nigerian real estate sector has evidently been one of the worst-hit sectors with financing remaining a core challenge for property developers and prospective homeowners.

The NMRC is a private sector-driven mortgage refinancing company with the purpose of promoting homeownership for Nigerians while deepening the primary and secondary mortgage markets by raising long-term funds from the capital market, to enhance access to affordable housing finance in Nigeria.

Nigeria Mortgage Refinance Company PLC Lists ₦10.00 Bn Fixed Rate Bond on FMDQ Exchange

In a quote by the Managing Director of NMRC, Mr. Kehinde Ogundimu, he mentioned that “the proceeds of the issue would be used to refinance existing and conforming mortgage loans, he added that the issuance also demonstrates NMRC’s commitment to the provision of affordable liquidity to the mortgage market by attracting long-term funding into the housing finance industry from the capital markets.

Mr. Ogundimu further stated that the prevailing interest rate regime will reduce the rate at which the primary mortgage institutions lend to their customers and in the long-term, substantially drive a reduction in mortgage interest rates as well as translate to cost reductions in housing construction finance going forward”.

In an additional quote by the sponsors of the transaction on the Exchange, DLM Capital Group said “We are proud to have acted as Issuing House and Financial Advisors on the NMRC Series 3 Bond issuance.

The success of the deal indicates that investors have an appetite for long tenured assets and highlights their confidence in NMRC’s operating model. We expect the impact on the mortgage industry to be far-reaching, making home-ownership much more accessible to the average individual”.

These recent admissions to FMDQ Exchange’s platform are reflective of the potential of the Nigerian DCM and the commendable level of confidence demonstrated by both issuers and investors in the market.

They also validate the efficient processes and integrated systems through which FMDQ Holdings PLC (FMDQ Group or FMDQ), through its wholly-owned subsidiaries – FMDQ Exchange, FMDQ Clear Limited, FMDQ Depository Limited and FMDQ Private Markets Limited – has sustained its uninterrupted service delivery to the market and its diverse stakeholders during these uncertain times and beyond.

As is the corporate tradition for FMDQ Exchange, these securities shall be availed the benefits of the value-driven listings and quotations service on the Exchange, including global visibility through its website and systems, liquidity credible price formation and continuous information disclosure to protect investor interest, amongst others.

In keeping with its commitment to the development of the market, FMDQ Exchange shall sustain its efforts in supporting issuers with tailored financing options to enable them to achieve their strategic objectives, deepen and effectively position the Nigerian DCM for growth, in support of the realisation of a globally competitive and vibrant economy.

FMDQ Group is Africa’s first vertically integrated financial market infrastructure (FMI) group providing a one-stop platform for the seamless and cost-efficient execution, risk management, clearing, settlement and depository services, as well as data and information services across the debt capital, foreign exchange and derivatives markets in Nigeria.

Xiaomi Launches Redmi 9T In Nigeria Market

Esan Bolaji
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Xiaomi Launches Redmi 9T In Nigeria Market

The world’s third-largest smartphone brand Xiaomi today announced Redmi 9T in Nigeria market, the new king of entry-level. Redmi 9T was designed to deliver the exceptional performance and multi-day battery life that users crave without compromising on photography capabilities and overall design.

According to Mr. Somoye Habeeb, the Marketing Director Xiaomi Nigeria, Redmi 9T is a photography powerhouse with its 48MP AI quad rear-camera.

Xiaomi Launches Redmi 9T In Nigeria Market

The device’s 8MP ultra-wide-angle camera accommodates large group photos and wide landscape shots without cropping, while its 2MP macro lens and 2MP depth sensor enable stunning close-up shots with professional-level bokeh.

Redmi 9T is also equipped with a new movie frame feature that gives photos a more cinematic look and feels without editing. It also sports a new time-lapse feature which offers various speed and duration values for shooting so users can capture creative time-lapse photos without tapping a DSLR or other professional camera.

Xiaomi Launches Redmi 9T In Nigeria Market

Despite its lightweight design, Redmi 9T packs a punch with its 6,000mAh (typ) battery and Qualcomm® Snapdragon™ 662 chipset. Combined with its 11nm energy-efficient processor, Redmi 9T delivers higher performance with less heat production and lower power consumption than previous generations.

Moreover, MIUI battery saving mode and reverse wired charging capabilities help maximize all-day, and even multi-day usage. Redmi 9T comes with 18W fast charging and an in-box 22.5W charger said, Habeeb.

Xiaomi Launches Redmi 9T In Nigeria Market Brandspurng2

Redmi 9T features a modern and minimalistic design with its rounded corners and an anti-fingerprint textured back. Its 6.53” FHD+ Dot Drop display with Corning® Gorilla® Glass 3 offers a crisp and clear viewing experience and strong protection against cracks and scratches.

Redmi 9T also comes with Widevine L1 and TÜV Rheinland Low Blue Light certifications for a more enjoyable viewing experience. The device is available in four bright powerful colours variants: Carbon Gray, Twilight Blue, Sunrise Orange, and Ocean Green.

Complete with Dual SIM and microSD expandable storage, Redmi 9T offers expandable storage of up to 512GB so users can keep their favourite apps, games, photos and videos all on one device.

Infrared blaster support would come in handy on your Redmi 9T. Redmi 9T will be available in 4GB + 64GB and 4GB + 128GB at N71,200 and N76,700 respectively. Redmi 9T is available nationwide.

Xiaomi Corporation was founded in April 2010 and listed on the Main Board of the Hong Kong Stock Exchange on July 9, 2018 (1810.HK). Xiaomi is an internet company with smartphones and smart hardware connected by an Internet of Things (IoT) platform at its core.

With an equal emphasis on innovation and quality, Xiaomi continuously pursues high-quality user experience and operational efficiency. The company relentlessly builds amazing products with honest prices to let everyone in the world enjoy a better life through innovative technology.

Xiaomi is currently the world’s third-largest smartphone brand and has established the world’s leading consumer AIoT (AI+IoT) platform with 289.5 million smart devices connected to its platform, excluding smartphones and laptops. Xiaomi products are present in more than 90 markets around the world. In August 2020, the company made the Fortune Global 500 list for the second time, ranking 422nd, up 46 places compared to the previous year. Xiaomi also ranked 7th among internet companies on the list.

Xiaomi is a constituent of the Hang Seng Index, Hang Seng China Enterprises Index and Hang Seng TECH Index.

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