DOCSLIB.ORG

The Companies in the Luxury Sector 2020 Sector Report What Are the Real Estate Trends of the Luxury Goods Industry? SUMMARY

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
The Companies in the Luxury Sector 2020 Sector Report What Are the Real Estate Trends of the Luxury Goods Industry? SUMMARY The companies in the Luxury sector 2020 Sector report What are the real estate trends of the luxury goods industry? SUMMARY Study scope France remains the leader of the • Activities, companies and range globalised luxury goods market. Although levels ..................................................... 05 • Global market: a few key figures ... 06 supported by strong expansion, notably throughout Asia, the sector’s companies • Sector challenges are still affected by a number of • Changing clientèle ............................. 08 demographic, ecological and numeric • More responsible consumption, mutations, each with its own challenges. a desire for longer-lasting goods .... 12 Regardless of their range (premium, luxury or ultra-luxury), the brands must Real estate trends • Company locations............................. 14 contend with changes in their clientèle • Focus on transactions concerning and consumption methods, forcing them more than 5,000m2 ............................. 18 to innovate while remaining true to their • Focus on the interior design DNA. of service areas ................................... 22 In terms of real estate, luxury company locations must reflect their brand image Case study: Luxury brands • Maintaining the head office ............ 26 through emblematic locations and • Transferring the head office .............27 buildings. • Site grouping ....................................... 28 • Extension of the head office ........... 29 Find out more about the latest trends in the luxury industry, in terms of Colliers International & you movements, service site locations and Our response to your challenges work environments, in this study based • A full service offer to meet your needs ........................................... 30 on a number of case studies. • Our references .................................... 32 • Contacts ................................................ 34 2 | The luxury sector The luxury sector | 3 4 | The luxury sector Activities, companies and range levels Study scope Luxury* sphere Personal luxury goods Other luxury goods (clothing, watches and jewellery, beauty, accessories, other) (outside scope) + ULTRA-LUXURY Luxury Wines and cars spirits LUXURY Luxury boats Luxury restaurants and aircraft and food Sales price Luxury Luxury real PREMIUM LUXURY hotels estate - Other luxury Art, - Production volumes + services collectibles * Luxury goods are defined as being non-basic consumer goods with a large element of creativity and handcrafting. The luxury sector | 5 Global market: a few key figures A market Leading exhibiting strong growth French players Global turnover in the personal luxury Among the top 100 global corporations in the goods segment represented €281 billion luxury sector on the list published by Deloitte in 2019. (Global Powers of Luxury Goods, 2018), France With +62% growth since 2010, this positive remains a leader of the luxury industry with trend is expected to continue over the next 9 players listed, including LVMH (1), Kering (4), three years, with a 4-5% annual increase, L’Oréal (7) and Hermès (11), known as "KHOL" according to the study by Bain & Company. on the international stage, the equivalent of Tech Giants of the digital sector. Turnover for personal luxury goods 21% 23% Beauty Clothing (€ billion) Source: Bain & Company - 2018 281 262 Turnover 254 245 244 distribution 212 219 by sector 2018 207 Source: Bain & Company - 2018 200 186 167 22% 34% Watches Accessories Jewellery 100 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Estimation 6 | The luxury sector The top ten global corporations Classed according to 2017 turnover in USD $ billion Source: Deloitte - 2019 2017 RANKING COMPANY COUNTRY 2017 TURNOVER 1 LVMH France 27.99 2 The Estée Lauder Cie Inc. USA 13.68 3 Cie Financière Richemont Switzerland 12.81 4 Kering France 12.16 5 Luxottica Group Italy 10.32 6 Chanel Limited* UK 9.62 7 L’Oréal Luxe France 9.55 8 The Swatch Group Switzerland 7.82 9 Chow Tai Fook Jewellery Group Limited China (H-K) 7.57 10 PVH Corp. USA 7.35 * Chanel Limited entered the top ten following simplification and rationalization of the group’s structure into a single entity. The luxury sector | 7 Changing Sector clientèle challenges Demographic Growth Brand evolution in Asia diversification The luxury market has By 2025, Chinese customers The commercial strategy reached the mature stage are expected to represent of luxury professionals is in France and Europe. 85% of new consumers, evolving to become more The proportion of new owing to the emergence of offensive. The goal is to Y (millennials) and Z a middle class with rising diversify their offer to attract generation customers income, and its own age- new customers without is increasing, and they related consumer habits. diluting the brand’s essence are operating a profound to ensure the loyalty of their transformation of These Asian millennials core market. consumption habits in differ from their Western this market. counterparts in their The brands are implementing consumption of luxury integrated development Their new expectations goods. More loyal to brands, policies, notably by concern the concept of they are looking for quality purchasing service providers "experience" and are less above all else. In spite of (external growth) or related to actual possession being highly connected, extending towards new of the goods. Above all, they remain deeply attached derived products. they are seeking "singularity" to physical stores. through luxury and want recognition for their preferences, whether these are cultural or morphological. 8 | The luxury sector Challenges • Being in phase with customer expectations: immediacy, experience, quality, singularity. • Diversifying their activities and proposing new products. Evolution of annual turnover between 2018 and 2019 by major • Gaining new customers. geographic region Source: Bain & Company - 2019 +30% Impacts 30% • “Product” luxury is turning 20% into “experience” luxury. +11% • Cultures and sub-cultures will 10% +9% be replacing consumption +5% trends. +2% • Luxury is becoming more 0% "casual" and turning towards streetwear. Japan China Europe • The leading luxury brands are Americas Other Asia developing outside Europe, for example, by manufacturing in China for the Chinese market. The luxury sector | 9 Challenges • Developing CRM and customer relations strategies. • Diversifying communication and consumption channels.. Impacts • Recruiting web marketing, innovation and data management professionals: Innovation Director, Digital Brand Heritage, Customer Experience. • Developing partnerships between on-line and physical boutiques: from “point of sale” to "point of contact" with customers. 10 | The luxury sector Changing strategy Towards the digital Birth of a digital transformation: strategy bricks & clicks On-line sales increase by more The luxury brands communicate than 20% each year to win new on-line customers and are expected to account for and gain their loyalty by 40% of growth in this market in deploying a personalised the coming years. Customers are approach, processing data tending to seek information first and using social networks and and digital technology offers a way influencers. around the barriers, which can be intimidating, of making a purchase Luxury goods companies are in a luxury store. entering the era of Digital Customer Relations, which The boundaries between on-line consists in proposing "high and physical stores are becoming end” service quality via their increasingly blurred, to the on-line platforms (product point of proposing partnership personalisation, fast delivery, operations with major retailers to verification of in-store availability, sell part of a collection exclusively geolocation of delivery services, for a limited period of time. in-store appointment scheduling, or teams of advisers and stylists). The luxury sector | 11 More responsible consumption, a desire for longer-lasting goods A new driver Emergence of Turning old of excellence a second-hand into new goods market According to the study New businesses and services Among the giants of the conducted in 2018 by Bain & are being developed to luxury industry, upcycling, or Company, 94% of customers extend the life of luxury recycling into higher quality believe that luxury brands goods, notably via rental products, is attracting the should be more committed services or second-hand attention of brands such as to environmental issues; this sales. Guerlain, where handbags demand is even stronger and other accessories than for other industries. In 2018, the second-hand are manufactured from luxury goods market tarpaulins and advertising The brands have understood boomed, thanks to major banners. this growing demand from growth in Europe, and the their consumers. Sustainable strong growth of specialised However, upcycling also development concerns are on-line platforms. Jewellery involves reusing ordinary thus altering an entire eco- and watches are the top goods (plastic bags, wire system, from suppliers to categories of this second- coat hangers). final consumers, in terms hand market. of R&D as well as product "Turning old into new" could impact. be a lever of future growth for luxury brands seeking to attract new generations of proactive consumers. 12 | The luxury sector Challenges • Winning new markets. • Responding to the environmental concerns of the Y and Z generations. • Manufacturing differently, locally, ethically. Impacts • Appearance of new businesses and segments in the luxury
Load more

Recommended publications
  • Exploiting the Mass-Market Vs Refocusing on the High-End Segment
    Emerging Competitive Strategies in the Luxury Sector: Exploiting * the Mass-Market vs Refocusing on the High-End Segment Enrica Pavione University of Insubria, Department of Economics Via Monte Generoso 71, 21100 Varese (Italy) email: [email protected] Roberta Pezzetti University of Insubria, Department of Economics Via Monte Generoso 71, 21100 Varese (Italy) email: [email protected] Abstract The distinctive characteristics of European luxury firms - excellence in quality, brand exclusivity, rarity and craftsmanship of products- combined with their global vocation have allowed the luxury industry of achieving worldwide a leadership position in all market segments. The growth in demand for branded products, driven by both the dynamics of spending in emerging economies and the sustained growth of the HNWI segment, along with the increased democratization of luxury carry two main effects. On the one hand, an expansion of the market, with a positive impact on financial performance of firms; on the other, the increasing over-exposure of brands, with negative impact on the perception of exclusivity both of the products and the brand’s image. In this framework, the paper analyses emerging competitive strategies in the European luxury sector, which are not necessarily mutually exclusive: leveraging the opportunities offered by the mass-market demand through an integration of the retail channels versus the re-focusing of the brand on the high-end segment to strengthening the perception of exclusiveness and rarity of the product as well as the aspirational value associated with the brand prestige. The limits of the paper are connected to the absence of case studies to reinforce the analysis of emerging competitive strategies of luxury firms.
    [Show full text]
  • Info Session Retail & Luxury Goods Chazen Study Tour March 17 – 23
    Info Session Retail & Luxury Goods Chazen Study Tour March 17 – 23 | London + Paris Organizers Eleanor Thadani Suzan Riazi Victoria Harman CBS ’19 CBS ’19 CBS ’20 Fendi Christian Dior UK’s Department for Couture International Trade Itinerary 1 3 days in London 2 days in Paris • Arrive in London Sun 3/17 • Train to Paris Thurs 3/21 morning • Depart from Paris Sat 3/23 2 London Innovative tech-focused luxury companies Fascinating fast fashion brands Highest online luxury sales globally Paris Birthplace of heritage luxury brands Primary luxury shopping destination (24% international share) Potential Company Visits (TBC) Tech-Focused Retailers and Traditional Brick & Mortar Fast Fashion and Traditional Luxury Brands Potential Company Visits (TBC) Tech-Focused Retailers and Traditional Brick & Mortar Fast Fashion and Traditional Luxury Brands Sweaty Betty British Fashion Council Molton Brown Charlotte Tilbury Superdry Ted Baker The White Company Selfridges Clive Christian Mulberry Jack Wills Depop Marks & Spencer Temperley London London Eye Tour + Champagne Toast V&A Exhibition: Christian Dior, Designer of Dreams High Tea Harry Potter World Tour LONDON OPTIONAL ACTIVITY Private Walking Tour of Montmartre Sun 3/17 Mon 3/18 Tue 3/19 Wed 3/20 Company Visit Company Visit Company Visit Arrive Morning London Lunch High Tea Lunch Afternoon Company Visit Company Visit Company Visit London Eye Tour Welcome Optional Tourist + Champagne Dior Exhibit Evening Dinner Activity Toast Tentative Itinerary Thu 3/21 Fri 3/22 Sat 3/23 Company Visit Morning Arrive
    [Show full text]
  • Redefining the Meaning of Luxury Goods: a Conceptual Paper
    Redefining the Meaning of Luxury Goods: A Conceptual Paper Name of student: Rumina Akther Programme: BA (Hons): Marketing Year of Study: 3 Mentored by: Dr Jon Wilson Abstract This paper discusses the concept of luxury brands and the possible drivers for the increasing level of high consumption of such goods. Factors such as availability of counterfeits, psychological need and emergence of new media are closely scrutinised. A critical analysis of the concept particularly regarding how it has evolved over the years help branding strategists and marketers understand how the perceptions of luxury brand has been shaped in the mind of consumers. Finally, this paper analyses future implications that this change may have on marketing and branding strategies. Key words: Luxury, Luxury branding, Affordable Luxury, Country of Origin, Conspicuous Consumption 1 Introduction The concept of ‘luxury’ has become more ambiguous due to the increased accessibility of ‘luxury’ products in the recent years. This change has led to new perspectives of what a luxury item actually is. The definition of what ‘luxury’ can vary according to a person or situation, making it difficult to provide a universal definition. According to Brun & Castelli (2013), historically luxury goods were always linked with wealth, exclusivity and power, as well as the satisfaction of non-basic necessities. Luxury is defined as ‘a state of great comfort or elegance, especially when involving great expense’ (Oxford Dictionary, 2014). Both definitions demonstrate a significant part that price plays suggesting that something of luxury comes at a ‘great expense’. Wiedmann, et al. (2007) argues that by definition luxury goods are something that is not affordable or possessed by everyone.
    [Show full text]
  • The 100 Most Renowned Luxury Brands and Their Presence in Europe's Metropolitan Centres
    Glitter and glamour shining brightly The 100 most renowned luxury brands and their presence in Europe’s metropolitan centres Advance • Luxury shopping streets Europe • July 2011 2 Worldwide luxury market has emerged stronger from the financial crisis The global market for luxury goods has emerged from the financial uses images of diligent craftsmen and companies seek to add crafts crisis significantly faster than expected. The likes of Burberry, Gucci firms with long traditions to their portfolios. At the same time, the Group, Hermès, LVMH, Polo Ralph Lauren, Prada and Richemont east-bound shift of manufacturing activities, which was in full swing have recently reported double-digit sales growth or even record an- before the financial crisis, has slowed down significantly. nual sales, which has also reflected favourably on their share prices. Companies’ own store networks have played a significant role in all Rising requirements in the areas of marketing and logistics these success stories, with their retail operations typically growing March saw the launch of Mr Porter, the new men’s fashion portal of ahead of their other divisions. Most recently business has mainly Net-a-Porter, the world’s leading e-commerce seller of luxury goods. been driven by Asia. With the exception of Japan, this is where the Yoox most recently reported a continuing rise in its sales figures. All luxury brands have recorded the highest growth rates. In particular major luxury labels have considerably expanded the online shopping luxury fashion makers have greatly benefited from the booming Chi- offerings on their websites and feature them prominently in their nese market.
    [Show full text]
  • What's Powering China's Market for Luxury Goods?
    What’s Powering China’s Market for Luxury Goods? Sales are growing at a healthy 20% rate, but not all brands are celebrating. This report was authored by Bruno Lannes, a Bain & Company partner based in Shanghai and a member of the firm’s Retail and Consumer Products practices. Copyright © 2019 Bain & Company, Inc. All rights reserved. What’s Powering China’s Market for Luxury Goods? At a Glance It was the second year in a row of 20% growth for luxury goods in China. Brands benefited from repatriated purchases, a focus on millennials, increased digitalization and China’s expanding middle class. Although growth was robust overall, some companies outperformed with growth rates in excess of 25%, while others lagged with less than 10% growth. The winners’ strategies offer clear lessons for the future. China’s luxury goods market is humming along nicely, with a second straight year of 20% growth in 2018 (see Figure 1). Think of it as a powerful machine running on four engines operating in perfect alignment. More than 70% of millennials have a positive financial outlook; 81% of them expect their income to increase. Engine 1: Repatriation The Chinese government’s reduction in import duties and stricter controls over gray markets— combined with brands’ efforts to narrow the price gap with overseas markets—have led more Chi- nese consumers to make their luxury purchases in China, instead of traveling to previous bargain locales such as Hong Kong, Seoul, Tokyo and cities in Europe. Chinese consumers made 27% of their luxury purchases in China in 2018, up from 23% in 2015, and we anticipate that this share will increase to 50% by 2025 (see Figure 2).
    [Show full text]
  • Managing an Iconic Old Luxury Brand in a New Luxury Economy: Hermès Handbags in the US Market
    GFB pp. 167–178 Intellect Limited 2014 Global Fashion Brands: Style, Luxury & History © 2014 Intellect Ltd Chapter. English language. doi: 10.1386/gfb.1.167_1 Tasha L. Lewis Cornell University BriTTany haas Hermès of Paris Managing an iconic old luxury brand in a new luxury economy: hermès handbags in the Us market aBsTracT Keywords The Hermès brand is synonymous with a wealthy global elite clientele and its prod- European luxury ucts have maintained an enduring heritage of craftsmanship that has distinguished Hermès it among competing luxury brands in the global market. Hermès has remained a American consumers family business for generations and has successfully avoided recent acquisition women’s accessories attempts by luxury group LVMH. Almost half of the luxury firm’s revenue ($1.5bn status consumption in 2012) is derived from the sale of its leather goods and saddlery, which includes its aspirational brands handbags. A large contributor to sales is global demand for one of its leather acces- sories, the Birkin bag, ranging in price from $10,000 to $250,000. Increased demand for the bag in the United States since 2002 resulted in an extensive customer waitlist lasting from months to a few years. Hermès retired the famed waitlist (sometimes called the ‘dream list’) in the United States in 2010, and while the waitlist has been removed, demand for the Birkin bag has not diminished and making the bag available to luxury consumers requires extensive, careful distribution management. In addition to inventory constraints related to demand for the Birkin bag in the 167 03574_Ch10_Lewis_p165-178.indd 167 3/1/14 9:46:00 AM Tasha L.
    [Show full text]
  • Experience a New Level of Luxury at River Oaks District
    EXPERIENCE A NEW LEVEL OF LUXURY AT RIVER OAKS DISTRICT World-class shopping, dining and entertainment district serves as a vibrant international destination for domestic and international visitors to Houston. HOUSTON, TEXAS – River Oaks District, a curated collection of luxury and world class retail, dining and entertainment amenities set in a sophisticated open-air environment, invites visitors to experience the destination with luxury shopping and dining. LOCATED IN THE HEART OF HOUSTON - River Oaks District is located 25 minutes from George Bush Intercontinental Airport at the intersection of Westheimer and Kettering. Spanning six city blocks, River Oaks District’s shops and restaurants are open Monday through Saturday 10 a.m. to 7 p.m. and noon to 6 p.m. on Sunday. Complimentary parking is available in the parking garage onsite, or guests are welcome to use metered parking located throughout the District for a small hourly fee. Valet is also available throughout River Oaks District. EXPLORE FASHION FROM AROUND THE WORLD Visitors from around the world will discover the finest in luxury goods and services, many of which are found nowhere else in the city except at River Oaks District Houston. (*Notes Houston’s only location.) • Swiss fashion house AKRIS*, known for exquisite fabrics and innovative embroidery and design • Alice + Olivia*, a contemporary clothing company featuring the latest trends in women’s ready to-wear, gowns, shoes, tech accessories and handbags from designer Stacey Bendet • Founded by Houstonian Maryam Afshari-Khreibani,
    [Show full text]
  • Signaling Status with Luxury Goods: the Role of Brand Prominence
    Signaling Status with Luxury Goods: The Role of Brand Prominence Young Jee Han Joseph C. Nunes Xavier Drèze Forthcoming in Journal of Marketing July 2010 Young Jee Han is a Ph.D. student at the Marshall School of Business, University of Southern California, Los Angeles, CA 90089-0443. This research emerged as part of her dissertation. Joseph C. Nunes is Associate Professor of Marketing, Marshall School of Business, University of Southern California, Los Angeles, CA 90089-0443. Xavier Drèze is Associate Professor of Marketing, the Anderson School of Management at UCLA, Los Angeles, CA 90095-1481. Questions should be directed to Young Jee Han at [email protected], Joseph C. Nunes at [email protected], or Xavier Drèze at [email protected]. The authors would like to thank the Marketing Science Institute for their generous assistance in funding this research. We would also like to thank Claritas for providing us with data. We are indebted to Vincent Bastien, former CEO of Louis Vuitton, for the time he has spent with us critiquing our framework. 1 ABSTRACT This research introduces brand prominence, a construct reflecting the conspicuousness of a brand’s mark or logo on a product. We propose a taxonomy that assigns consumers to one of four groups based on wealth and need for status, and demonstrate how each group’s preference for conspicuously or inconspicuously branded luxury goods corresponds predictably with their desire to associate or dissociate with members of their own and other groups. Wealthy consumers low in need for status wish to associate with their own kind and pay a premium for quiet goods only they can recognize.
    [Show full text]
  • Luxury As an Indicator of the Country's Economic
    Natalia Bykova Chernivtsi Trade and Economics Institute of KNTEU LUXURY AS AN INDICATOR OF THE COUNTRY’S ECONOMIC DEVELOPMENT Introduction In today’s conditions every country of the world strives for improving the welfare of its population. One of the factors determining the welfare of people is their ability to purchase luxury goods. In recent years, with the intensification of crisis in the most countries of the world, the welfare of people is expected to deteriorate. But, according to the ex- pert’s prognosis, in 2012 the world market of luxury goods and services is expected to reach 1,5 trillion US dollars, which is associated with the growth of the middle class in China1. Though, such situation is not typical of the economic situation in most European countries at the present time. But, it is well known since ancient times that during the crisis developing countries become powerful. Therefore, we became interested in the investigation of luxury as on indicator of the country’s economic development on the example of two countries – Ukraine and Poland. The object of our investigation is to determine the state of people’s welfare in Ukraine and Poland as an indicator of the country’s economic development due to their ability to purchase luxury goods. 1. Theory and classification of luxury Free Encyclopedia treats the concept of luxury as a social and economic phenomenon, which is associated with the process of consumption of goods2. 1 Real Economy, http://real-economy.com.ua (5 June 2012). 2 The Free Encyclopedia, http://www.wikipedia.org/. 110 Natalia Bykova The issue of luxury was considered by scientists as far back as in the XIX-XX centuries, namely by: K.
    [Show full text]
  • The Social Foundation of Luxury Good Obsession in South Korea Master's
    The Social Foundation of Luxury Good Obsession in South Korea Master’s Thesis Presented to The Faculty of the Graduate School of Arts and Sciences Brandeis University Global Studies Chandler Rosenberger, Advisor In partial Fulfillment Of the Requirement for Master’s degree By Youngseok Kim February 2011 Copyright by Youngseok Kim February 2011 Acknowledgement I would like to show my gratitude to the thesis advisor, Chandler Rosenberger, whose continuous encouragements and considerations kept me pursuing the research and achieving a deeper comprehension of the topic. I also would like to thank all people who have believed in and supported me during this year. Without their help, I could not have continued the study. ABSTRACT Luxury Commodity and Social Impact on South Korea A thesis presented to the Department of Global Studies Graduate School of Arts and Sciences Brandeis University Waltham, Massachusetts By Youngseok Kim Many young people in Korea are addicted to luxury brands. This phenomenon often ruins their lives. By examining the causes of social, historical, and economical luxury obsession, the research aims to get a better understanding of people’s behavior. Severance of nobility culture in Korean history led to wealthy people’s indiscreet imitation of western culture. Without traditional and cultural heritage, Korea’s wealthy people only seek material display. In addition, various Korean traits such as social hierarchy, western-centrism, egalitarianism, narcissism, collectivism, competition, and love of authenticity account for the obsession trend. The introduction of credit cards and the nature of the luxury brand will also explain the love of luxury in Korea. Furthermore, the paper attempts to compare different generations and both groups’ attitudes to luxury commodity.
    [Show full text]
  • LUXURY GOODS WORLDWIDE MARKET STUDY Fall-Winter 2014
    LUXURY GOODS WORLDWIDE MARKET STUDY Fall-Winter 2014 The rise of the borderless consumer By Claudia D’Arpizio, Federica Levato, Daniele Zito and Joëlle de Montgolfier Claudia D’Arpizio is a Bain & Company partner. Federica Levato is a principal, and Daniele Zito is a consultant. All three are based out of the firm’s Milan office. Joëlle deMontgolfier is a practice area senior director in the firm’s Paris office. All four are part of Bain’s Global Retail and Luxury practices. Copyright © 2014 Bain & Company, Inc. All rights reserved. Luxury Goods Worldwide Market Study | Bain & Company, Inc. Contents Executive summary: Slower but steadier growth and a shift to consumers 1. Luxury-spending trends in 2014 .............................. pg. 7 2. The regional lens ......................................... pg. 11 3. Changes in distribution ..................................... pg. 17 4. Individual category performance .............................. pg. 23 5. Outlook for the future ..................................... pg. 27 Page 1 Luxury Goods Worldwide Market Study | Bain & Company, Inc. Executive summary: Slower but steadier growth and a shift to consumers The 13th edition of the Bain Luxury Study, published by Bain & Company for Fondazione Altagamma, the industry association of the manufacturers of Italian luxury goods, analyzed recent developments in the global luxury-goods industry. Slower, steadier growth for luxury goods The overall luxury industry comprises nine segments in total, one of which is personal luxury goods. Fac- toring all segments, the overall luxury market exceeded €850 billion in 2014, showing healthy growth of 7% overall, driven primarily by luxury cars (10%) and luxury hospitality (9%). Bain research finds that international travel and tourism is fueling an appetite for 360-degree luxury expe- riences, such as high-end transportation, that includes highly customized “super cars” and yachts, as well as luxury hotels and cruises.
    [Show full text]
  • Determinants of Demand for Luxury Goods
    Ergun, K. / Journal of Yasar University, 2021, 16/61, 128-146 Determinants of Demand for Luxury Goods: A Comparative Study among Three European Countries Lüks Mal Talebinin Belirleyicileri: Üç Avrupa Ülkesinde Karşılaştırmalı Bir Çalışma Kutlu ERGUN, Balıkesir University, Turkey, [email protected] Orcid No: 0000-0001-6360-0095 Abstract: Identifying the determinants of luxury consumption may produce positive results for marketing. This study is based on an online survey including the participants from Romania, Spain and Turkey, and it aims to reach possible factors that may affect the demand for luxury goods. It investigates the factors affecting the demand within the framework of purchasing luxury goods by using logistic regression. The analyses reveal a likelihood of positive relationship between the demand for luxury goods and financial future expectations, and show that those who do not consider themselves financially secure in the future have a higher likelihood of demand for luxury goods than those who feel secure about their financial future. The result also demonstrates that being in low-income classes has a likelihood of positive impact on purchasing conspicuous status goods. It can be concluded that compensating for feelings of powerlessness might increase demand for luxury goods. Luxury good demand of individuals spending according to their budget is likely to be higher than those who don’t spend according to the planned budget. Individuals having positive economic behavior might spend for luxury within their budget limits. The results of this study may provide a new approach to shape the luxury demand of individuals. Considering the consumers’ psychology for future expectation may be useful for marketing managers who intend to increase the demand for luxury goods.
    [Show full text]