- ECGI Holdings is targeting a share of the growing luxury goods market by designing, manufacturing, and selling luxury equestrian apparel and equipment through its subsidiary Pacific Saddlery
- The company sees the utilization of smaller focused markets as a proven entrance pathway to much larger general luxury markets
- Bain & Company valued the global luxury goods market at €362 billion ($395.4 billion) in 2023 and expects this market to grow to between €540 billion ($589.8 billion) and €580 billion ($633.5 billion) by 2030
- ECGI Holdings and Pacific Saddlery are using celebrated brands like Hermès, Gucci, and Ralph Lauren as a template for what’s possible in the luxury market
- Throughout their respective histories, celebrated luxury brands have continuously incorporated equestrian elements into their designs to capitalize on the timelessness, prestige, and positive connotation attached to horses
ECGI Holdings (OTC: ECGI), a diversified holding company focused on luxury fashion, equestrian, and viticulture markets, recognizes that a marginal share of a globally large market would translate to more revenue annually than even a big share of a small market, and sees smaller focused markets as a proven entrance pathway to much larger general luxury markets.
To put the figures and logic into perspective, Bain & Company published its annual Luxury Goods Worldwide Market Study, which noted that the personal luxury goods segment of the overall luxury market recorded €362 billion ($395.4 billion) in spending in 2023. This represented a 4% increase over 2022 figures (at January 2024 exchange rates) or an 8% increase (at constant exchange rates) (https://nnw.fm/bhDLZ).
Anchoring this increase was the growth in all personal luxury goods categories, including accessories, apparel, beauty, watches, and jewelry. Looking ahead, Bain & Company forecasts moderate growth in the personal luxury goods segment in 2024, ranging between 1% and 4%. Beyond 2024, the analysis report projects that the market will post annual growth rates of 5% to 7%, reaching €540 billion ($589.8 billion) to €580 billion ($633.5 billion) by 2030. (For ECGI Holdings, therefore, a marginal share of this market would translate to millions of dollars in revenue through 2030.)
With the study urging luxury brands to focus on creativity and innovation “to enhance relevance to consumers, with the ultimate goal of continuing to expand their client bases while cultivating brand lovers,” fashion houses are expected to continue incorporating timeless trends and elements that have endured seasons and events. And when it comes to timelessness, few things come close to the allure and symbolic power of the upscale equestrian market.
For ages, horses have represented royalty, nobility, and grace. Fast forward to today, high-end fashion brands like Hermès (OTC: HESAF), Ralph Lauren (NYSE: RL), and Gucci, which is part of Kering Group (OTC: PPRUF), celebrated designers like Stella McCartney, and mainstream fashion houses have incorporated equestrian aesthetics and motifs into their creations. ECGI Holdings, too, has jumped on this bandwagon through Pacific Saddlery, its subsidiary and leading manufacturer and retailer of equestrian apparel, tack, equipment, and accessories.
These brands have converted what would otherwise be considered ordinary riding attire and accessories into symbols of luxury and sophistication, targeting affluent consumers who invest in high-end products and services related to horse care and horse riding. By embracing equestrian chic, these fashion houses have continued to move the needle in the growing luxury equestrian market, a niche segment of the luxury goods and luxury markets.
Valued at tens of billions of dollars, the luxury equestrian market is segmented into two: the luxury equestrian apparel segment, which covers the design, production, and sale of high-end riding gear like helmets, boots, jackets, and breaches, and the luxury equestrian tack and equipment segment, which comprises brands that manufacture premium saddles, bridles, and tack.
For its part, Pacific Saddlery creates products for both segments. Having initially focused on the equestrian tack and equipment segment – a focus that saw it manufacture and sell bridles, reins, and martingales under its celebrated Allon brand – Pacific Saddlery is preparing to launch a new collection of equestrian apparel under this brand (https://nnw.fm/x3TvJ).
Through this launch, Pacific Saddlery will follow a path trodden by Hermès before it. A French luxury design house, Hermès was established in 1837 as an artisanal workshop that primarily crafted harnesses. It then went on to introduce made-to-measure saddles, beginning in the 1880s, before introducing additional products. Today, Hermès is a celebrated brand that makes products across various métiers that contributed to consolidated revenue in the first half of 2024 of €7.5 billion ($8.19 billion) (https://nnw.fm/2e0yC).
Pacific Saddlery and ECGI Holdings are nonetheless not out to replicate Hermès’ and other established luxury brands’ models exactly; rather, they wish to use such brands as an inspiration of what is possible if they adopt and maintain the required level of creativity, innovation, and strategic decision-making. This approach, ECGI Holdings hopes, will help it expand its customer base and, as a result, grow its market share in the luxury goods and luxury equestrian markets, leading to significant revenues.
For more information, visit the company’s website at www.ECGIHoldings.com.
NOTE TO INVESTORS: The latest news and updates relating to ECGI are available in the company’s newsroom at https://nnw.fm/ECGI
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