What is Luxury and how do Luxury brands work?
Key trends in the Luxury marketplace
Know vs. Show – the Luxury consumer
The Recession and the Luxury consumer
35. Most likely to live in the South East (36%) or Greater London (35%)
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37. 65% of them claim to have a large/moderate amount of knowledge of food and wine
38. 70% of them say they have a large/moderate amount of knowledge of restaurants
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41. Quality and the Finer Things They consider themselves in-the-know and say they are the first amongst their friends to know what’s going on. They like taking risks and spend money without thinking. They are prepared to pay more for quality wine as well as luxury cosmetics and toiletries. They say they consider themselves connoisseurs of wine. There are some luxuries that they just cannot do without. Needless to say, they like to stand out from the crowd!
42. Image Conscious They think it’s important to look attractive to the opposite sex and like to be well dressed. Designer labels are considered to improve a person’s image. When it comes to advertising, they like it to be entertaining and 60% of them say they refer to the internet before making a purchase.
45. Gender Split: Top Brands by Category Gin, Vodka, Champagne and Liqueurs are fairly evenly split but the Whiskeys, and Brandies are very male Source: TGI Premier 2009, All data on this chart only, based on all AB Adults 20+
64. Only 12% ‘feel uncomfortable spending money in this recession’
65. BUT 49% are ‘more likely to evaluate the quality of brands before buying’
66. And 68% ‘shop around for the best prices now’I guess I’m one of the lucky ones because, economically, it has pretty much passed my by. I haven’t had to change my lifestyle at all. Ian, 38 - Confident
Product integrity is important (e.g Burberry actually didn’t suffer) -Burberry NEVER suffered from the chav thing (balance sheet) BECAUSE they maintained product integrity via Chris Bailey’s designs
Logic – business has got to be the best in market – distribution needs to be best in market, have the best quality suppliers, point of sale standards extremely high, technical superiority – etc.Magic – harder to define how this is attained, can come largely from product and brand stories, the company it keeps etc.0
Logic point at end: e.g. Sailing / skiing gear worn by world’s best sailors and skiiers / Quality is paramountMove from a niche offering to a broader one without losing product/brand integrity
New store openings using cutting edge architects to create a store ‘experience’ that is vastly different from the traditional maroquinerie stores in ItalyReflects brand values of contemporary design
Trends presentationStores are offering this bespoke, indulgent shopping experience to consumers because they are shopping for luxury online and therefore the maison is a go-to destination not just a store to browse as they can browse items online.
Consumer feels like they’re buying into a rare product – emotional connection by enhancing the magicSmythson,
Use an axis and state – terminology from their research
The Know group is more valuable to BB&R than the Show group – advocacy, long term use vs. fashion
Need to take an increasingly international Business Perspective on Business 276 Want to get to the very top of my career 255I often notice adverts on taxis 222I follow the stock market 219I use my credit cards mostly for business 203I read the financial pages of my newspaper 194I never have enough time for my family 181First amongst friends to know what’s going on 175I like taking risks 174Economy is more important than the Environment 173I tend to spend money without thinking 172Prepared to spend more for good quality of wine 169Like to stand out from the crowd 150When it comes to wine, I consider myself a bit of a connoisseur 143Prepared to pay more for luxury cosmetics and toiletries 168Some luxuries I can’t do without 117Advertising should be entertaining 121Imp to look attractive to the opp sex 141Designer labels improve a person’s image 150Imp to look well dressed 139Refer to the internet before making a purchase 121
Need to take an increasingly international Business Perspective on Business 276 Want to get to the very top of my career 255I often notice adverts on taxis 222I follow the stock market 219I use my credit cards mostly for business 203I read the financial pages of my newspaper 194I never have enough time for my family 181First amongst friends to know what’s going on 175I like taking risks 174Economy is more important than the Environment 173I tend to spend money without thinking 172Prepared to spend more for good quality of wine 169Like to stand out from the crowd 150When it comes to wine, I consider myself a bit of a connoisseur 143Prepared to pay more for luxury cosmetics and toiletries 168Some luxuries I can’t do without 117Advertising should be entertaining 121Imp to look attractive to the opp sex 141Designer labels improve a person’s image 150Imp to look well dressed 139Refer to the internet before making a purchase 121
Need to take an increasingly international Business Perspective on Business 276 Want to get to the very top of my career 255I often notice adverts on taxis 222I follow the stock market 219I use my credit cards mostly for business 203I read the financial pages of my newspaper 194I never have enough time for my family 181First amongst friends to know what’s going on 175I like taking risks 174Economy is more important than the Environment 173I tend to spend money without thinking 172Prepared to spend more for good quality of wine 169Like to stand out from the crowd 150When it comes to wine, I consider myself a bit of a connoisseur 143Prepared to pay more for luxury cosmetics and toiletries 168Some luxuries I can’t do without 117Advertising should be entertaining 121Imp to look attractive to the opp sex 141Designer labels improve a person’s image 150Imp to look well dressed 139Refer to the internet before making a purchase 121
Gin Brands: Tanqueray, Bombay Sapphire, Beefeater, Hendricks, Gordon’sChampagne: Taittinger, Heidsieck Co & Monopole, Laurent Perrier, Pommerey, Nicolas FeuillatteLiqueur Brands: Chartreuse, Benedictine, Amarula Cream, Disaronno, Bailey’s, CointreauVodka: Flavoured Smirnoff, Finlandia Vodka, Smirnoff black label, StolichnayaScotch Whiskey: Bailie Nicol Jarvie, Teacher’s, JW Red Label, JW Black LabelMalt whiskey: Oban, Lagavulin, Laphroaig, Cardhu, Glen Moray, The BalvenieBrandy/Cognac/Armagnac: Hine, Martell, Remy Martin
They use the internet for shopping, information & to make life easier as they are quite time-poorFT Online 591 The Sun 390 The Independent Online 345 Economist Online 330 Visiting Sites on Share Prices or Dealings/Investments/ 324 Visiting Sites on Business Info 319 Telegraph.co.uk 294 Times Online 291 Buying Gardening Eqip 246 Visiting Sites on Magazines 242 Sites Visited: Reuters 227 Sites Visited: Apple 207 Buying Flowers 206 Expedia 168Regularly Visiting Amazon 136Buying Books 123Buying Music 173Buying beer/Spirits/Wine 185Reg visiting sports sites 176Visiting Travel Websites 127regularly visit news websites (exc newspapers) – [154]
They are light TV and Radio consumers.The radio they listen to is mainly the BBC.They are not very likely to notice adverts in pubs/clubs/bar, washrooms, on buses.