Attitude towards luxury and purchasing habits

Transcription

1 Attitude towards luxury and purchasing habits Results of the survey Milan, March 2017

2 Status used to be about the possession of certain objects. Now,somany people have somuch. The result? Status has become less about 'what I have' and much more about 'who I am': namely, more ethical, creative, connected, tasteful. The proportion of people who declared to buy luxury products because they like to show off them is low (just 56%). On the other hand, most of the respondents (82%) buy luxury products for the positive feeling they experience while purchasing them. Attention to sustainability and ethics seems to be a worldwide issue (except in Russia and in Japan).

3 Premium quality remains a must have. Allthe marketspaya lotof attentionto quality. Wealthy Chinese are the top spenders when it comes to quality: 93% of them declared to buy luxury products because they are premium quality products. Spain (92%) and Russia (91%) get into the top 3 while Italy (90%) is placed in 4th position. 90% of Chinese consumers like to buy luxury products which are hand-made and 89% avoid buying luxury products that do not respect ecological sustainability.

4 Luxury consumers are now exposed to a lot of stimulus, coming both from print advertising, television and online. Traditional media channels (TV, cinema and print advertising) are still considered top influencers of the luxury world by most of the respondents but digital channels has the same influence with millennials as print has (respectively, 58% and 59%). Online channels increases the need for high-quality, personalized content at scale. To solve this challenge, some luxury brands start to open up a dialogue with consumers, involving them in the marketing process. VIPs, actors, designers remain top influencers but now people pay attention also to YouTubers and bloggers.

5 Physical stores are still popular. Following an impulse is one of the main reasons why people buy luxury products: when looking for luxury goods, 66% of consumers declared to be influenced by seeing the product in a physical store. Moreover, 63% of consumers stillpreferthe experienceof shopping inside physical stores. 57% of luxury consumers prefer mono-brand physical stores.

6 Multi-channel mobility seems to be the way to succeed with millennials. 47% of worldwideluxurypurchasesare made abroador travelling at airport(52% among millenials). Millennials are also the most digitally influenced: 42% of luxury products purchases made by millennials take place online; 19% on a mobile device. 78% of online luxury purchases are made at global level in multi-brand stores (e.g. Amazon, Net à Porter, Yoox).

7 Breakdown of respondents

8 Approach at a glance Respondents selection criteria The survey was conducted online by people who declared to have purchased at least one of these luxury categories in the last 6 months: Apparel and footwear Bags and accessories Cosmetics and fragrances Jewellery and watches. The respondents belong to Esomar* Social EconomicGradeAorB. Respondents had to be above than the national average in terms of total family annual income. Timing Febraury 8 th -Survey launched March 3 nd -Survey closed *Esomar Social Economic Grade is built on the occupation status of each respondent for every country 8

9 More than 1,300 respondents from across 11 countries 36% 64% Emerging Markets Mature Markets Percentages may not sum up exactly 100% due to rounding 9

10 Profile of the respondents Age The majority of the respondents (around 64%) are between 25 and 44. Most of them are married, engaged or in a relationship (82%) and employed full time (81%). This is consistent with the selection criteria. Profession 32% 32% Self Employed 15% Retired 2% 11% 14% 5% 6% Millennials 43% Generation X 46% Baby Boomers 11% Full time employed 81% Part time employed 2% Gender Status Single In a relationship 54% 46% 18% 82% 10

11 Travel habits All the respondents have travelled abroad by plane and have done so at least once in the last 6 months. Europe is the top destination (74%). How frequently have you travelled abroad by plane in the last 6 months for both leisure and business purposes? Which areas of the world have you visited in the last 6 months? (multiple choice) 36% 35% 34% 34% 42% 36% Mature Mkt Emerging Mkt Total North America 43% Europe 74% Asia 49% 17% 17% 17% 13% 11% 7% 1-2 times 3-4 times 5-10 times +10 times Mature Markets Emerging Markets South America 18% Africa 19% Oceania 11% EU USA Japan China Russia UAE 11

12 Attitudes towards luxury

13 Inclination towards purchasing luxury products In the last 5 years, the purchasing inclination towards luxury products has generally increased across both of the areas, especially among respondents coming from emerging markets. In the last 12 months, there has been a small slowdown, but only 4% of all the respondents declared that their purchasing inclination towards luxury has decreased. In the last 5 years, would you say your inclination towards purchasing luxury products has And in the last 12 months such an inclination has 70% 62% 53% 59% Mature Mkt Emerging Mkt Total 49% 53% 47% 43% 42% 37% 35% 27% 5% 3% 4% 5% 2% 4% Increased Stayed the same Decreased Increased Stayed the same Decreased Mature Markets Emerging Markets EU USA Japan China Russia UAE 13

14 Jewellery is the top category: a trend boosted by emerging countries Thinking about the last 12 months, in which of these categories did you buy the most products? (multiple choice) Cosmetics & fragrances Total Mature Markets Emerging Markets EU USA Japan China Russia UAE 19% 21% 16% 22% 15% 23% 21% 11% 13% Watches 16% 15% 18% 14% 16% 21% 21% 14% 19% Jewellery 22% 17% 30% 18% 17% 7% 24% 36% 33% Bags and accessories 14% 15% 12% 14% 14% 21% 13% 12% 11% Shoes 12% 13% 9% 13% 16% 11% 8% 10% 10% Clothes 17% 19% 14% 19% 22% 18% 12% 17% 14% Luxury consumers purchased goods fairly evenly across the product categories during the last 12 months. Jewellery is the top category, with most consumers coming from Russia and the Emirates *EU Italy Germany Spain France UK Switzerland 14

15 Reasonsto buy? Followyourimpulseand go with the flow Which is the main reason for purchasing new luxury items? (multiple choice) Impulse When I see something I like Trend To keep up to date with fashion Offer When something is on sale/ discount Novelty When I get bored of my current items Routine Always buy new luxury products Necessity When I need it Cosmetics & fragrances 28% 22% 16% 7% 13% 12% Watches 30% 26% 17% 9% 8% 8% Jewellery 38% 22% 13% 8% 8% 10% Bags and accessories 31% 26% 17% 11% 6% 8% Shoes 34% 29% 12% 7% 8% 9% Clothes 29% 34% 14% 7% 8% 7% Following an impulse or the latest fashion trends are the main reasons why people buy luxury products. In particular, jewellery and shoes are the category where people are more used to follow their impulses, while with clothes consumers tend to go with the flow. Instead, routine and necessity seem to be the main drivers in cosmetics and fragrances purchasing. These trends are confirmed also per geographic area. 15

16 Some advicefor luxurybrands: qualityfirst, payattentionto design and reputationand offer premium feel and comfort Thinking of when you look for luxury products, which are the most important aspects that you take into consideration? (multiple choice) There are 5 key assets that people are looking for when they buy luxury products: the main one is the quality of the materials (17%), followed by design (14%), a strong brand reputation (12%), a premium feel and comfort (11%) and a good perception of price-value alignment (9%). These are 5 must have that brands should always care about when they are about to launch a new product: otherwise the trade down effect would be more than a risk. TOP 5 Quality of the materials Design Brand reputation Premium feel and comfort Value for money 17% 14% 12% 11% 9% Top 3 Mature Markets Top 3 Emerging Markets Quality of the materials Design Brand reputation Premium feel and comfort Brand reputation Design 21% 16% 11% 15% 15% 12% 16

17 Allthe marketspaya lotof attentionto quality I buy luxury products because they are premium quality Wealthy Chinese are the top spenders when it comes to quality (93%). Spain (92%) and Russia (91%) get into the top 3, while Italy (90%) is placed in 4th position. 1 China 93% 2 Spain 92% 3 Russia 91% 4 Italy 90% 5 Germany 90% 6 EAU 88% 7 US 88% 8 UK 84% 9 France 81% 80% 10Japan 74% 11Switzerland Note: the percentage per country refers to respondents who answered «important» or «definitely important». 17

18 Luxury products must not be either«poor» or «common» What would you say is the opposite of luxury for you? In emerging markets, quality remains important but here there is a greater attention to the exclusivity of goods. Mature Markets Emerging Markets 13% 11% 4% POOR 27% Poor - related to the quality Cheap - related to the price Common - related to the spread Unstylish - related to the style 23% 7% 14% COMMON 15% Basic - related to the design 24% 20% Boring - related to the feelings 12% 30% Mature Markets EU USA Japan Emerging Markets China Russia UAE 18

19 US and China nevermiss the latesttrend The USA and China are the countries where we find the highest proportion of trend followers. There is an average gap of 30 points between them and the other countries placed in the middle of the rank. When it comes to buy luxury products, for me it s important to buy the latest trend 1 US 97% 2 China 97% 3 UAE 68% 4 Spain 68% 5 Russia 66% 6 Italia 64% 7 France 63% 8 UK 57% 9 Germany 54% 40% 10Switzerland 38% 11Japan Note: the percentage per country refers to respondents who answered «important» or «definitely important». 19

20 Attitude towards luxury products Luxury is not anymore perceived as showing off but, instead, as a personal status about lifestyle. It is not related anymore to possessing the product, instead it is more intangible. Most of the respondents buy luxury products for the positive feeling they experience while purchasing them. Here is a list of statements about the relation you might or might not have with luxury products. Please let us know to what extent you agree with each of them I buy luxury products because they are premium quality products 88% 10% When I buy a luxury product I feel happy/confident 82% 13% For me it's important to buy the latest trend 68% 24% I buy luxury products because I like have things that other people haven't heard of yet 63% 21% 16% I tend to buy luxury products impulsively 60% 21% 19% I tend to wear only luxury products and accessories (not common products) 57% 24% 20% I buy luxury products because I like to show off the them 56% 22% 22% Agree Neither agree nor disagree Disagree 20

21 Luxury, ethics and sustainability And to what extent do you agree with each of these statements related to what luxury means in terms of sustainability and ethics? Total Mature Markets Emerging Markets EU USA Japan China Russia UAE I like to buy luxury products which are hand-made. 75% 72% 80% 74% 88% 44% 90% 76% 67% I tend to buy luxury products that are not produced by exploiting the workforce of the poorest country. I avoid buying luxury products that do not respect ecological sustainability I buy local luxury brands to support the local economy. 66% 67% 64% 69% 78% 39% 73% 46% 69% 63% 59% 69% 57% 84% 44% 89% 41% 64% 59% 59% 58% 57% 88% 38% 77% 28% 60% Buying hand-made products is valued by all the countries, especially China. Sustainability also seems to be a worldwide issue, except in Russia and in Japan. Americans show an inclination towards buying local products (this may be the first Trump effect on the luxury industry!). Note: the percentage per country refers to respondents who answered «important» or «definitely important». 21

22 Luxury as a lifestyle

23 Physical stores are still popular, but online browsing is gaining in popularity Thinking about when you look for luxury products, which are the most important aspects that you take into consideration? (multiple choice) Seeing the product in a physical store 66% Store & Fashion Shows Online Seeing the product in an online store Seeing it advertised online 45% 52% 82 % 82 % People Media Seeing it wore by my network/people I personally know Word of mouth: everyone is talking about it Seeing an ad on a paper magazine/newspaper Seeing it at a fashion show 45% 44% 43% 41% 78% 75% Seeing an ad on TV 40% Seeing it wore by public personalities 36% Influencers on social networks talk about it 35% TV personalities talk about it 27% 23

24 Media channel fragmentation Which of the following media do you consider as the top influencers of the luxury world? (multiple choice) Magazines Mainstream TV Satellite TV with thematic channels Online Social Network Newspapers Radio / Web Radio 51% 42% 38% 35% 30% 21% 11% NET TV & Cinema Magazines & Newspapers Online & Social Network Radio / Web Radio 67% 62% 53% 11% Print advertising still plays an important role but luxury consumers now are exposed to a lot of stimulus, coming both from television than online. 24

25 Advertising trends among generations The influence of magazines and newspapers is strong especially among baby boomers, while millennials are more used to build up their personal idea of luxury watching TV and scrolling down the social media pages. Which of the following media do you consider as the top influencers of the luxury world? -NET (multiple choice) TV & Cinema Magazines & Newspapers Online & Social Network Radio / Web Radio 67% 62% 53% 11% Millennials 73% 59% 58% 9% Generation X 64% 64% 50% 13% Baby Boomers 61% 67% 49% 8% 25

26 Also YouTubers and bloggers are now top influencers of the luxury world Which person do you consider as the top influencer of the luxury world? (free text) Luxury brands could keep this slide in mind when they choose their celebrity representatives. 26

27 Luxury shopping experiences

28 47% of worldwide luxury purchases are made abroad or travelling at airport Consider the last 12 months. How many of your luxury products purchases take place in your home country, abroad or while travelling at airport? Total Mature Markets Emerging Markets Home country Abroad 16% 15% 20% 41% Travelling at airport 31% 53% 26% 59% 40% Consumers coming from emerging markets show a greater tendency to buying products abroad. Mature Markets Emerging Markets EU USA Japan China Russia UAE 28

29 Mobility is important expecially to millenials Consider the last 12 months. How many of your luxury products purchases take place in your home country, abroad or while travelling at airport? Millennials Generation X Baby boomers Home country 18% 16% 13% Abroad 48% 22% 54% Travelling at 31% airport 33% 65% 29

30 63% of consumers still prefer the experience of shopping inside physical stores How many of your luxury products purchases take place in a physical store, online from a computer/laptop or online on a mobile device? Total Mature Markets Emerging Markets Online from a computer / laptop Online on a mobile device 22% 21% 23% In a physical store 63% 15% 65% 14% 60% 17% Mature Markets EU USA Japan Emerging Markets China Russia UAE 30

31 Millennials are the most digitally influenced 42% of luxury products purchases made by millennials take place online; 19% on a mobile device. How many of your luxury products purchases take place in a physical store, online from a computer/laptop or online on a mobile device? Millennials Generation X Baby boomers Online from a computer / laptop Online on a mobile device In a physical store 58% 23% 19% 66% 21% 14% 72% 22% 6% 31

32 Luxury consumers prefer mono-brand physical stores and multi-brand online retailers Do you mainly buy in a mono-brand store or in multi-brand store? Physical store Online 43% Multi-brand 22% 57% Mono-brand 78% 78% of online luxury purchases are made at global level in multi-brand stores (e.g. Amazon, Net à Porter, Yoox). On the other hand, while referring to physical stores, 57% of luxury consumers prefer mono-brand. 32

33 Online and abroad purchasing are driven by similar reasons What are the main benefits associated with buying luxury products online? (multiple choice) What are the main benefits associated with buying luxury products abroad (not in your home country)? (multiple choice) 75% Orders item 24/7 Ability to order items not available in my home country Price comparison 57% 47% 48% 45% 39% 43% 59% 65% 37% 51% 43% No in-store crowds Greater affordability 39% 36% Greater affortability Ability to get items not available in my home country Greater offer - more comparison allowed Mature Markets Emerging Markets Mature Mkt Emerging Mkt Total EU USA Japan China Russia UAE 33

34 Advice for luxury brands: tailor your services to the customer What experience do you want to have when buying a luxury product? (multiple choice) Customization and tailor made services are the keys to conquer the heart of luxury consumers. Personalized promotions Receive some gift linked to the purchase Home delivery Obtain discounts for future purchasing 45% 44% 39% 35% Premium store experience Fidelity club registration Receive the catalogue at home Receive s personalized to my needs 33% 32% 30% 24% 34

35 Some examples of great luxury experiences Consider the last 12 months. Can you describe your best luxury purchase experience? (free text) When I bought shoes and the sales person was patient enough to show me different sizes of different designs depending on my comfort. While I was buying a bespoke suit, I was drinking champagne with the tailor. My best experience was when I bought a watch by Chanel in New Bond Street. I purchased a diamond in a store and it was a great experience. I liked the design, quality and style. Online purchase of some cosmetics with excellent packaging, fast shipping and free samples. Definitely in the store of Louis Vuitton in Rome. Buying shoes by Salvatore Ferragamo in its store. I have purchased a luxury watch online and it was delivered within a short time frame. Mulberry handbag - in store at Heathrow Terminal 5. Great customer service and advice. 35

36 The future of luxury

37 For consumers, future is linked to a widespread use of e-commerce / m-commerce How do you see the luxury goods market emerging in your country in the coming years? (multiple choice) By a widespread use of e-commerce/ m-commerce. By enhancing the usability of luxury products. By linking the luxury products to technology. By decreasing the prices of luxury products. By making the luxury products more ethically. By enhancing the premium feeling given by luxury products. Total Mature Markets Emerging Markets EU USA Japan China Russia UAE 48% 45% 53% 41% 65% 43% 37% 67% 65% 46% 44% 48% 28% 40% 28% 45% 33% 28% 37% 30% 51% 42% 57% 43% 45% 48% 55% 32% 30% 37% 29% 34% 28% 64% 44% 38% 32% 27% 41% 28% 31% 16% 49% 33% 36% 22% 20% 26% 21% 14% 20% 25% 21% 32% Again, emerging markets (China in particular) pay attention to ethics. 37

38 Emergingtechnologieswillplay an importantrolealsoin the luxuryworld Do you think luxury world will be disrupted by emerging technologies such as robotics, artificial intelligence, 3D printing? Don't know 8% Yes, in less than 2 years 16% Yes, in 3-5 years 23% No 31% Yes 61% Yes, in 6-10 years 14% Yes, in more than 10 years 8% 61% of worldwide luxury consumers think that the luxury industry will be disrupted by emerging technologies (but not in less than 2 years). 38

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