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TRANSPORT INSURANCEFOR THE LUXURY INDUSTRY

As a provider of insurance services to major luxury groups suchas Gucci, Hermès, LVMH and L’Oréal, Allianz Global Corporate &Specialty France has developed an innovative transport solutiontailored to the specific needs of luxury segments, includingfashion, perfumes & cosmetics, leather, design, tableware, andwine & spirits.

❯ France is currently the global leader in the luxurygoods sector, with a market share estimated at 34% –

far ahead of Italy (20%) and the United States (14%),according to the study “Un Plan pour la Façon Française”published in May 2009. Of the most prestigious luxuryhouses, six post sales of over a billion euros annually.They include Gucci, Hermès, LVMH and L’Oréal, all ofwhom are clients of Allianz Global Corporate & SpecialtyFrance for their transport, property and liability insuran-ce programs. In addition to these major players, severalsmaller corporations as well as a host of small and medium-sized enterprises (SMEs) share this market,which comprises a total of some 20,000 companies.

“AGCS France’s ambition is to be the benchmark in-surer in its market for the luxury industry, by creating arange of dedicated products and services,” says keyaccount manager and business developer Jean-FrançoisRomain. “This April, we’re launching a transport insur -ance solution for SMEs in luxury sectors includingfashion, perfume & cosmetics, leather goods, design,tableware, and wine & spirits. Developed specifically forBy Encarnacion Gimenez

No headaches? Fine spirits and perfumes do not cause them.Their loss can... AREAS COVERED BY LUXURY TRANSPORT

Presentation of collections in showrooms and high-prestige locations

Fashion shows, exhibitions, photo shoots

Presentation of items to individuals in prestige hotels orother locations

Product launches and prototypes

Sales representatives’ sample cases, all locations

Products lent to VIPs, staff members or for magazineshoots

Internet sales

Transport of samples

Transport of prestige items and items containingprecious metals

Rental of luxury products or locations to individuals, museums or groups

Product repair and restoration

After-sales service

Products in situ at subcontractors

Additional costs or suspension of operations due to dis-aster

Theft or destruction of exceptional items

Luggage loss

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companies with sales of more than 20 million euros, thissolution carries guarantees common to all these sectorsas well as coverage that is specific to each of them.”

COMPREHENSIVE COVERAGEWith his fifteen years of experience in luxury goodstransport insurance, Romain has an in-depth knowledgeof the market and its needs. “SMEs are rarely insured fortransport-related risk, because the insurance policies onoffer are not sufficiently tailored to their needs and operating methods,” he explains. “And yet a major disas-ter can be fatal to their business, partic ularly in the cur-rent economic climate (see box above). Thanks to our dedicated transport insurance solution, we can offercomplete coverage for all risks related to their business,without conditions. Our coverage contributes to anSME’s long-term viability and reassures the luxury goodsgroups who are its customers.”

Romain cites the example of a label supplier for anew perfume bottle who fails to deliver on time due totransport problems, compromising the launch of its cus-tomer’s product. “Our insurance solu tion covers this typeof risk. We will insure SMEs in the luxury sector even un-der the most extraordinary circumstances, because weunderstand their constraints. Likewise, although we willadvise certain safety and prevention measures, we don’tmake them a condition of insurance. In any case, theseare high-quality risks from our perspective because luxu-ry goods companies tend to have extremely high profes-sional standards.”

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JEAN-FRANÇOIS ROMAINAGCS France Key Account Manager and Business Developerjean-francois.romain@allianz.com

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MORE INFORMATION

“Un Plan pour la Façon Française”http://www.industrie.gouv.fr/portail/secteurs/NOTESYNTHESEFINALE.pdf

The Colbert Committeewww.comitecolbert.com

RETURN TO GROWTH IN 2010 FOR THE LUXURY INDUSTRY

According to a study by French marketing consultancyXerfi, the luxury sector should see a return to high levels ofgrowth in 2010-2015, thanks notably to higher consump-tion in emerging economies and to new diversificationand distribution strategies deployed by the industry’s ma-jor players.

Following four years of strong growth (an average of7.5% according to market analysts Eurostaf), the globalluxury industry, largely dominated by French companies,stagnated in 2008 (up a mere 0.3 %) then went into de-cline in 2009. The impact of the global economic crisis hasvaried according to the size and activity of the companiesin this sector. Although the major groups have survived relatively unscathed, other companies have been forced

to take various measures, from staff redundancies or re-duced work hours to even the possible sale of the company.

In France, it is the piece workers, workshops and othersubcontractors for the major brands who are currently theworst hit. In his speech to a meeting of major luxury and fashion houses on November 18th last year, ChristianEstrosi, Minister of the Economy, Industry and Employ-ment, said that French fashion manufacturing was “partic-ularly under threat”. In 2009, orders for French subcon-tractors were down 25 to 30% on average. The governmenthas taken certain short- and medium-term measures to safeguard and strengthen the economic situation of theseSMEs, whose activities are vital to ensure France’s contin-uing global leadership in the luxury goods industry.

WORLDWIDE LUXURY GOODS SALES (BILLION EUROS)

160

180

80

100

140

120

20

2001

134 133 129136

147

159170 167

153(estimated)

155(estimated)

2002 2003 2004 2005 2006 2007 2008 2009 2010

40

60

MORE DEDICATED SOLUTIONS TO COMEAGCS France will market its transport insurance solu -tion through a variety of intermediaries. These includekey luxury industry brokers whose current clients, in -cluding subcontractors, may be interested; the ColbertCommittee, an association of over 70 luxury companies;Colipa, the European cosmetics association; and theConfédération des Arts de la Table (CAT, the Frenchtableware association). On the heels of this new trans-port insurance solution other new products will be de -vel oped, with the goal of offering a dedicated range for allluxury goods companies. ❚

Source: Cabinet Bain & Company

A stitch in time: transport insurance for luxury goods can preventa problem from turning into a disaster.

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