attitudetowardsluxuryand purchasinghabits · cheap - related to the price common - related to the...
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Attitude towards luxury and purchasing habitsResults of the survey
Milan, March 2017
Status used to be about the possession of certain objects. Now, so many people have so much. 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).
Premium quality remains a ‘must have’.
All the markets pay a lot of attention to 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.
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.
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 still prefer the experience of shopping inside physical stores.
57% of luxury consumers prefer mono-brand physical stores.
Multi-channel mobility seems to be the way to succeed with millennials.
47% of worldwide luxury purchases are made abroad or 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).
Breakdown of respondents
8
Approach at a glance
The survey was conducted online by peoplewho declared to have purchased at leastone of these luxury categories in thelast 6 months:
• Apparel and footwear• Bags and accessories• Cosmetics and fragrances• Jewellery and watches.
Respondents selection criteria
*Esomar Social Economic Grade is built on the occupation status of each respondent for every country
Respondents had to be above than thenational average in terms of total familyannual income.
The respondents belong to Esomar* SocialEconomic Grade A or B.
Febraury 8th - Survey launched March 3nd - Survey closed
Timing
9
More than 1,300 respondents from across 11 countries
Mature MarketsEmerging Markets
64%
36%
Percentages may not sum up exactly 100% due to rounding
10
Profile of the respondents
Age
Gender
Profession
Status
11%
32% 32%
14%
5% 6%
18-24 25-34 35-44 45-54 55-60 60+
Millennials43%
Generation X46%
Baby Boomers11%
54% 46% 18% 82%
Single In a relationship
Full time employed
81%
Self Employed15%
Part time employed
2%
Retired2%
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.
11
36%
34%
17%
13%
34%
42%
17%
7%
35%36%
17%
11%
Mature Mkt
Emerging Mkt
Total
Travel habits
“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)
North America43% Europe
74%
Asia49%
South America18%
Africa19% Oceania
11%
1-2 times 3-4 times 5-10 times +10 times
Mature Markets
EU USA Japan
Emerging Markets
China Russia UAE
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%).
Attitudestowards luxury
13
Inclination towards purchasing luxury products
53%
42%
5%
70%
27%
3%
59%
37%
4%
Mature Mkt
Emerging Mkt
Total
Increased
“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…”
Stayed the same Decreased
49%47%
5%
62%
35%
2%
53%
43%
4%
Increased Stayed the same Decreased
Mature Markets
EU USA Japan
Emerging Markets
China Russia UAE
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.
14
TotalMatureMarkets
EmergingMarkets EU USA Japan China Russia UAE
Cosmetics & fragrances
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%
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)
Italy Germany Spain
France UK Switzerland
*EU
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
15
ImpulseWhen I see something
I like
TrendTo keep up to date
with fashion
OfferWhen something is on
sale/ discount
NoveltyWhen I get bored of
my current items
RoutineAlways buy new luxury
products
NecessityWhen 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%
Reasons to buy? Follow your impulse and go with the flow
“Which is the main reason for purchasing new luxury items?” (multiple choice)
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.
16
Some advice for luxury brands: quality first, pay attention to design and reputation and 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)
Design
14%
Premium feel and comfort
11%
Value for money
9%
Quality of the materials
17%
TOP
5
Quality of the
materials
21%
Design
16%
Brand reputation
11%
Premium feel and comfort
15%
Design
12%
Brand reputation
15%
Top3
Mature Markets Top3
Emerging Markets
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.
Brand reputation
12%
17
All the markets pay a lot of attention to quality
“I buy luxury products because they are premium quality”
China93%
41
Spain92%
2
758
Italy90%
Germany90%
US88%
UK84%
Russia91%
369
EAU88%
France81%
10Japan80% 11
Switzerland74%
Note: the percentage per country refers to respondents who answered «important» or «definitelyimportant».
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.
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27%
20%24%
13%
11%4%
Mature Markets
Poor - related to the quality
Cheap - related to the price
Common - related to the spread
Unstylish - related to the style
Basic - related to the design
Boring - related to the feelings
Luxury products must not be either «poor» or «common»
“What would you say is the opposite of luxury for you?”
14%
15%
30%
12%
23%
7%
Emerging Markets
Mature Markets
EU USA Japan
Emerging Markets
China Russia UAE
POOR COMMON
In emerging markets, quality remains important but here there is a greater attention to the
exclusivity of goods.
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US and China never miss the latest trend
“When it comes to buy luxury products, for me it’s important to buy the latest trend”
US97%
41
China97%
2
758
Spain68%
Russia66%
France63%
UK57%
UAE68%
369
Italia64%
Germany54%
10Switzerland40% 11
Japan38%
Note: the percentage per country refers to respondents who answered «important» or «definitelyimportant».
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.
20
Attitude towards luxury products
“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”
56%
57%
60%
63%
68%
82%
88%
22%
24%
21%
21%
24%
13%
10%
22%
20%
19%
16%
I buy luxury products because I like to show off the them
I tend to wear only luxury products and accessories (not commonproducts)
I tend to buy luxury products impulsively
I buy luxury products because I like have things that other peoplehaven't heard of yet
For me it's important to buy the latest trend
When I buy a luxury product I feel happy/confident
I buy luxury products because they are premium quality products
Agree Neither agree nor disagree Disagree
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.
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?”
TotalMatureMarkets
EmergingMarkets 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.
66% 67% 64% 69% 78% 39% 73% 46% 69%
I avoid buying luxury products that do not respect ecological sustainability
63% 59% 69% 57% 84% 44% 89% 41% 64%
I buy local luxury brands to support the local economy.
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 «definitelyimportant».
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)
66%
52%
45%
45%
44%
43%
41%
40%
36%
35%
27%
Seeing the product in a physical store
Seeing the product in an online store
Seeing it advertised online
Seeing it wore by my network/people Ipersonally know
Word of mouth: everyone is talkingabout it
Seeing an ad on a papermagazine/newspaper
Seeing it at a fashion show
Seeing an ad on TV
Seeing it wore by public personalities
Influencers on social networks talkabout it
TV personalities talk about it
Store & Fashion Shows
Online
People
82 % 82 %
78%
Media
75%
24
Media channel fragmentation
“Which of the following media do you consider as the “top influencers” of the luxury world?” (multiple choice)
TV & CinemaMagazines & Newspapers
Online & Social Network
Radio /Web Radio
62% 53% 11%67%
MagazinesMainstream
TV
Satellite TV with thematic
channels
51% 42% 38%
Online
35%
Social Network
NewspapersRadio /
Web Radio
30% 21% 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.
NET
25
Advertising trends among generations
“Which of the following media do you consider as the “top influencers” of the luxury world? -NET” (multiple choice)
Millennials
Generation X
Baby Boomers
73%
64%
61%
59%
64%
67%
58%
50%
49%
9%
13%
8%
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.
Magazines & Newspapers
62%
Online & Social Network
53%
Radio /Web Radio
11%
TV & Cinema
67%
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.
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?”
53%
31%
16%
Total
Home country
Abroad
Travelling atairport
59%26%
15%
Mature Markets
41%
40%
20%
Emerging Markets
Mature Markets
EU USA Japan
Emerging Markets
China Russia UAE
Consumers coming from emerging markets show a greater tendency to buying products abroad.
29
54%31%
16%
Generation X
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 atairport?”
48%
33%
18%
Millennials
Home country
Abroad
Travelling atairport 65%
22%
13%
Baby boomers
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?”
22%
15%
63%
Total
Online from acomputer / laptop
Online on a mobiledevice
In a physical store
21%
14%
65%
Mature Markets
23%
17%60%
Emerging Markets
Mature Markets
EU USA Japan
Emerging Markets
China Russia UAE
31
Millennials are the most digitally influenced
23%
19%
58%
Millennials
Online from acomputer / laptop
Online on a mobiledevice
In a physical store
21%
14%
66%
Generation X
22%
6%
72%
Baby boomers
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?”
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?”
43%
57%
Physical store
Multi-brand
Mono-brand
78%
22%
Online
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.
33
Online and abroad purchasing are driven by similar reasons
“What are the main benefits associated with buyingluxury products abroad (not in your home country)?” (multiple choice)
45%
59%
37%39%
75%
51%
43%
65%
43%
Greateraffortability
Ability to get itemsnot available in my
home country
Greater offer -more comparison
allowed
Mature Mkt Emerging Mkt TotalMature Markets
EU USA Japan
Emerging Markets
China Russia UAE
“What are the main benefits associated with buying luxury products online?”(multiple choice)
Orders item 24/7
Ability to order items not available in my home
country
Price comparison
No in-store crowds
57% 47% 48%
39%
Greater affordability
36%
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)
Personalized promotions
Receive some gift linked to the
purchase Home delivery
45% 44% 39%
Obtain discounts for future
purchasing
35%
Premium store experience
Receive the catalogue at home
Receivee-mails personalized
to my needs
33% 30% 24%
Fidelity club registration
32%
Customization and tailor made services are the keys to conquer the heart of luxury consumers.
35
Some examples of great luxury experiences
“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.”
“Online purchase of some
cosmetics with excellent
packaging, fast shipping and free
samples.”
“Definitely in the store of
Louis Vuitton in Rome.“
“I purchased a diamond in a store
and it was a great experience. I
liked the design, quality and
style.”
“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.”
“Buying shoes by Salvatore
Ferragamo in its store.”
“Consider the last 12 months. Can you describe your best luxury purchase experience?” (free text)
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)
TotalMatureMarkets
EmergingMarkets EU USA Japan China Russia UAE
By a widespread use ofe-commerce/ m-commerce.
48% 45% 53% 41% 65% 43% 37% 67% 65%
By enhancing the usability of luxury products.
46% 44% 48% 28% 40% 28% 45% 33% 28%
By linking the luxury products to technology.
37% 30% 51% 42% 57% 43% 45% 48% 55%
By decreasing the prices of luxury products.
32% 30% 37% 29% 34% 28% 64% 44% 38%
By making the luxury products more ethically.
32% 27% 41% 28% 31% 16% 49% 33% 36%
By enhancing the premium feeling given by luxury
products.22% 20% 26% 21% 14% 20% 25% 21% 32%
Again, emerging markets (China in particular) pay attention to ethics.
38
Emerging technologies will play an important role also in the luxury world
“Do you think luxury world will be disrupted by emerging technologies such as robotics, artificial intelligence, 3D printing …?”
8%
14%
23%
16%
Yes, in morethan 10years
Yes, in 6-10years
Yes, in 3-5years
Yes, in lessthan 2 years
Yes61%
No31%
Don't know8%
61% of worldwide luxury consumers think that the luxury industry will be disrupted by emerging technologies (but not in less than 2 years).
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