The latest edition of the Bain Luxury Study has found that the overall luxury market exceeded €850 billion in 2014 and showed a growth of 7% overall. The report says that luxury hospitality (9%) was driving this growth, along with luxury cars (10%).
The worldwide market study states that: ‘The luxury-goods industry in most markets is now driven by touristic spending.’ It says that many tourists are willing to spend more when abroad than at home, and that this is particularly true of Chinese tourists who spend three times more when abroad. It is interesting to note that in 2014 luxury spending within China showed a negative trend of 1% growth for the first time since the study has been published. However, the consumer segment which report calls the ‘upper-middle-class “wannabe”’ in China is expected to double by 2017.
In this briefing experts discuss luxury brands and consumer behaviour worldwide:
In the hospitality market, luxury hotels have had steady growth (up 9%). According to the report it is ‘younger generations seeking superior lifestyle experiences’, who have helped to fuel 5% growth in the cruise market.
Research by the Travel Leaders Group found Luxury hospitality bookings in the U.S are going strong. The survey states that 92% of luxury oriented travel agents had increased or steady bookings in 2014.
The Affluence & Wealth Survey by Time Inc. and YouGov sheds some light on the luxury consumer. In a survey of high earning individuals (predominately American), 78% of people said they enjoy being treated like a VIP. 73% said they worry less about money while on holiday.
So how can brands appeal to luxury consumers? The Affluence & Wealth Survey found that 82% of people prefer brands that reflect their values, and 82% prefer brands that stay true to their history and heritage. There is also a strong use of mobile devices among luxury consumers. According to Criteo, 33% of Fashion and Luxury Transactions are on mobile.
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