welcome to luxury consumer behavior dr. satyendra singh professor, marketing and international...
TRANSCRIPT
Welcome toLuxury Consumer Behavior
Dr. Satyendra SinghProfessor, Marketing and International Business
University of [email protected]
www.uwinnipeg.ca/~ssingh5
What is Consumer Behaviour?
Luxury Consumers
TraditionalHead-to-toe covered, loyal to single brand,…Buy established brand Hermes, Dior,…
ModernNot brand loyal, or loyal to one brand,…They know what they wantDifferent desire and expectationsSmart, educated, savvy discerning consumersHigh status
Modern Consumers
Parent and children dress alike ↓ gapCosmetics, surgery,…
Luxury market cannot be segmented40s, 50s, 60s does not matterPresidents: Zimbabwe, Italy 80s
Group pressure > individual taste
↑ group pressure in Japan, France, Spain…
Types of Consumers
PurchaserThey’ve knowledge to buy products
BrowserFor entertainmentMay come back need more time to make decisionOpinion leader
Meeting point Sephora store (10,000 visits weekend)
We display our history and heritageThat’s why we have museum section in luxury stores
Product Display
LevelEye: ↑50%Hand: ↓30-40%Floor:???
End-of-aisleNot brand loyal, or loyal to one brand,…
Stand alone
Windows displays brand image, communications…
In-store Consumer Behaviour
Time spentWomen (W) + W = 8 minW + child = 7 minW alone = 5 minW + Man = 4 min
Stealing 33% by customers, 66% by staff
Always take receipt staff makes fake returns
RFID Radio Frequency Identification
Online Consumer Behaviour
Online Pull consumers to store
Offline sales people use knowledge for $
Debate Luxury cannot be sold online
Prada www for info only
Some brands sale limited (e.g., old) products online.
Others sale through luxury e-stores
Bluefly.com
designerimports.com
Forzieri.com
Glam.com
Neimanmarcus.com
Net-a-porter.com
Yoox.com
Attitude towards Luxury Products? (10-pt scale)
China = 8.2Mexico = 8.0India = 7.3UK = 7.3USA = 6.8S. Korea = 6.4
Germany = 6.1 difficult relationship with luxury
Italy = 6.1 and France = 5.7 Catholic countriesHelping poor and controlling desire is important
Japan = 5.6 Symbolic revenge of WWII
Not liking may not mean customer’ll not buy luxury products
Europe -- UK, Italy, Spain Germany
25% of population > 60
Older people in Europe than USA
Italy
Inspired by art
Flashy watches mechanical
Curves in jewellery
Germany
Quality is important
Simple watches Quartz
Japan
Like cosmetics, ready-to-wear,…
Do not like perfumes
It hides natural body odour
Encroaches personal space
India
70,000 millionaires 50% of population < 50 by 2020
Jewelleries gold, diamonds, gems,…
Industrial names Sony, Mercedez, BMW…
Own luxury world’s thinnest watch
Saries even becoming popular abroad
To be served Indian palace train,…
World’s thinnest (3.5mm) Indian watch
Hilton in Sari
Victoria Bechman in Sari
German model Claudia Ciesla in Sari
Palace on wheelIndian Service Luxury
Palace on wheels -- Inside
Palace on wheels -- Inside
HK/SP/Thailand/Taiwan
Full of young people
Stylish, sleek
Ready-to-wear
Brand visibility is important
China
Largest emerging luxury market in the world
300,000 millionaires in China
12% of luxury goods are sold in ChinaTo be 26% by 2020
Cosmetics ↑ whitening products
Silk, Wine, whisky,…
Russia
90,000 millionaires
Moscow alone spends $2b/year on luxury
Russians love luxury banned before
Flashy
New wealth Skiing Courchevel French Alp
Other Emerging Luxury Markets
Columbia
Indonesia
Vietnam
Egypt
Turkey
South Africa
CIVETS
Types of Fake Luxury Products
Counterfeit industry $600b (x4 luxury industry!!)
Counterfeit 100% copyDeceive customers as real
Pirated CopiedCustomers know it
Imitation Not 100% identicalCustomers know it
Custom-made Could be realReplica made by legitimate craftsman through some connection
Where are Fake Luxury Products?
China, HK, Thailand, Morocco, Taiwan, Turkey, S Korea Customers age: 25-35
London Oxford Street
Manhattan Canal Street
Shanghai Xiang-Yang Road (Closed now!)…
Fake Luxury Products Prevention
France: criminal activities buyer and seller
If caught, 2 years in jail
LV sued Carrefour for $40,000 Shanghai store
Hermes post warnings on InternetLV, Burberry,… and police raid fake shops
LV spends $15m-$20m/year to combat fake luxury
How to detect it? Click