The Prestige Consumer

Published by: Datamonitor

Published: Sep. 15, 2002 - 102 Pages

Table of Contents

Scope

Key data and detailed analysis of 7 leading country markets: France, Germany, Italy, The Netherlands, Spain, Sweden, UK

Sociological and psychological review of the underlying drivers behind prestige consumption and in-depth examination of purchasing motivations

Detailed forecasts of the prospects for the prestige market over five years, by product category and by country

Case studies illustrating the ways in which prestige manufacturers and retailers have boosted growth in their markets

Specific action points detail strategies for harnessing the growing wealth in Europe

Report Highlights

In 2001, there were 18.2 million mass affluent individuals, with a net worth of €2,090 billion. High net worth individuals numbered 4.71 million and were worth €3,214 billion in total Prestige personal care was worth €11 billion in 2001, and prestige drinks were worth €2.8billion in 2001. Prestige alcohol will be worth €4 billion by 2006;
prestige personal care will be worth €15 billion by 2006
The most important underlying motives for prestige purchasing are: social prestige and unique prestige. Unique prestige is the desire for rare or hard-to-find items; social prestige demands the imitation of other prestigious
people. These two motives conflict and can destroy brand equity.

Reasons to Purchase

Target prestige consumers according to their exact motivation

Avoid the dangers lurking in this market

Generate greater levels of brand equity

Refine and improve marketing plans using best practice case studies Use increased prestige marketing know how to increase your revenues while minimizing risk.

MARKET CONTEXT

Key Findings

Key Findings Sub-Heading

. There are two personal motivations for prestige purchasing - pleasure and quality. Pleasure derives from the enjoyment, not only of the product, but also of the “prestige experience.” Quality derives from the satisfaction of owning and consuming an exceptionally well-made item..

There are three basic social motivations for prestige purchasing. Social prestige is concerned with the societal role assumed by the owner of the prestige item. Conspicuous prestige derives from visibly spending a great deal of money on an unnecessary luxury. Unique prestige comes from ownership of rare and unusual goods.

Drivers and Trends

This section examines the underlying consumer motivations for prestige purchasing, and recent manufacturer and retailer action in the market. Manufacturers and retailers have the power to shape consumers’ definition of prestige by working together to refine and update the image of their prestige products. This is most successfully done by associating products with existing prestige products or occasions.

Market Segments

In 2001, there were 18.2 million mass affluent individuals, with a net worth of €2,090 billion. High net worth individuals numbered 4.71 million and were worth €3,214 billion in total

Market Sizes

Prestige personal care was worth €11 billion in 2001, and prestige drinks were worth €2.8billion in 2001

FUTURE DECODED

This chapter provides understanding of the major opportunities and threats facing the prestige market over the next five years, with development forecasts.

By 2006:

Prestige alcohol will be worth €4 billion

Prestige personal care will be worth €15 billion

There will be 27 million consumers with over €50,000 in disposable assets in Europe

ACTION POINTS

By understanding exactly what needs consumers are trying to fulfill in the pursuit of prestige goods, manufacturers and retailers can adapt their offering to meet those needs. This relies on a good understanding of the relationship between the consumer and the product.

Maintaining prestige is a constant concern. It is very easy for the prestige of

a brand to be ruined by too close an association with mass-market brands, or

even by association with the wrong sort of prestige for the target consumer

group.

APPENDIX

This chapter contains further data, research methodology and sources used in

the report.

DATASETS

Table 1: High net worth and mass affluent individuals, 1997-2001

Table 2: Mass affluent individuals, 1997-2001

Table 3: High net worth individuals, 1997-2001

Table 4: No. of aspirational consumers (m) 1997-2001 and CAGR

Table 5: Retail and DTF sales (€m) Europe 1999-2001 and CAGR

Table 6: Retail prestige sales by category (€m) Europe 1999-2001 and CAGR

Table 7: DTF sales by category (€m) Europe 1999-2001 and CAGR

Table 8: Prestige sales by country (€m), 1999-2001 and CAGR

Table 9: Prestige alcohol sales 1997-2001 (€m) and CAGR

Table 10: Overall prestige personal care sales (€m), 1999-2001 and CAGR

Table 11: Overall luxury goods sales (€m), 1999-2001 and CAGR

Table 12: Prestige sales by category(€m), Europe 1999-2001 and CAGR

Table 13: Alcohol sales by category (€m), Europe, 1997-2001 and CAGR

Table 14: Prestige whisky sales 1997-2001 (€m) and CAGR

Table 15: Prestige Cognac , Armagnac and Brandy sales 1997-2001 (€m) and CAGR

Table 16: Prestige wine sales 1997-2001 (€m) and CAGR

Table 17: Prestige personal care sales (€m), Europe, 1999-2001 and CAGR

Table 18: Prestige women’s fragrance sales (€m), 1999-2001 and CAGR

Table 19: Prestige men’s fragrance sales (€m), 1999-2001 and CAGR

Table 20: Prestige skin care sales (€m), 1999-2001 and CAGR

Table 21: Prestige make up sales (€m), 1999-2001 and CAGR

Table 22: Luxury goods sales (€m), Europe, 1999-2001

Table 23: Luxury jewelry sales (€m) 1999-2001 and CAGR

Table 24: Luxury leather goods sales (€m) 1999-2001 and CAGR

Table 25: Luxury watch sales (€m) 1999-2001 and CAGR

Table 26: High net worth and mass affluent individuals

Table 27: High net worth individuals, 2001-2006

Table 28: Mass affluent individuals, 2001-2006

Table 29: Retail and DTF sales (€m) Europe 2001-2006 and CAGR

Table 30: Retail prestige sales by category (€m) Europe 2001-2006 and CAGR

Table 31: DTF sales by category (€m) Europe 2001-2006 and CAGR

Table 32: Prestige sales by country (€m), 1999-2001 and CAGR

Table 33: Prestige alcohol sales 2001-2006 (€m) and CAGR

Table 34: Prestige personal care sales 2001-2006 (€m) and CAGR

Table 35: Prestige luxury goods sales 2001-2006 (€m) and CAGR

Table 36: Prestige sales by category(€m), Europe 2001-2006 and CAGR

Table 37: Prestige whisky sales (€m) 2001-2006 and CAGR

Table 38: Prestige Cognac , Armagnac and Brandy sales 2001-2006 (€m) and CAGR

Table 39: Prestige wine sales 2001-2006 (€m) and CAGR

Table 40: Prestige women’s fragrance sales (€m) 2001-2006 and CAGR

Table 41: Prestige men’s fragrance sales (€m) 2001-2006 and CAGR

Table 42: Prestige skin care sales (€m) 2001-2006 and CAGR

Table 43: Prestige make up sales (€m) 2001-2006 and CAGR

Table 44: Luxury jewelry sales (€m) 2001-2004 and CAGR

Table 45: Luxury leather goods sales (€m) 2001-2004 and CAGR

Table 46: Luxury watches sales (€m) 2001-2004 and CAGR

Table 47: Mass affluent individuals and assets by asset band, France, 1997-2001 and CAGR

Table 48: High net worth individuals and assets by asset band, France, 1997-2001 and CAGR

Table 49: Mass affluent individuals and assets by asset band, Germany, 1997-2001 and CAGR

Table 50: High net worth individuals and assets by asset band, Germany, 1997-2001 and CAGR

Table 51: Mass affluent individuals and assets by asset band, Italy, 1997-2001 and CAGR

Table 52: High net worth individuals and assets by asset band, Italy, 1997-2001 and CAGR

Table 53: Mass affluent individuals and assets by asset band, Spain, 1997-2001 and CAGR

Table 54: High net worth individuals and assets by asset band, Spain, 1997-2001 and CAGR

Table 55: Mass affluent individuals and assets by asset band, Sweden, 1997-2001 and CAGR

Table 56: High net worth individuals and assets by asset band, Sweden,1997-2001 and CAGR

Table 57: Mass affluent individuals and assets by asset band, UK, 1997-2001 and CAGR

Table 58: High net worth individuals and assets by asset band, UK, 1997-2001 and CAGR

Table 59: Mass affluent individuals and assets by asset band, overall, 1997-2001 and CAGR

Table 60: High net worth individuals and assets by asset band, overall, 1997-2001 and CAGR

Table 61: Retail prestige alcohol sales by country (€m) 1997-2001 and CAGR

Table 62: Retail prestige personal care sales by country (€m) 1997-2001 and CAGR

Table 63: Retail luxury goods sales by country, 1999

Table 64: DTF prestige alcohol sales by country (€m) 1997-2001 and CAGR

Table 65: DTF prestige personal care sales by country (€m) 1999-2001 and CAGR

Table 66: DTF prestige luxury goods sales by country (€m) 1999-2001 and CAGR

Table 67: Definitions for Prestige Consumers NCI

Figure 1: Motivational matrix for prestige consumption

Figure 2: Prestige fragrance packaging, 2002

Figure 3: Prestige consumers as proportion of total population

Figure 4: Consumer wealth segments, Europe, 2001

Figure 5: Prestige consumers by product knowledge and social aspiration

Figure 6: Retail and DTF prestige sales, Europe, 2001

Figure 7: Prestige sales by country (€m), 1999-2001 and CAGR

Figure 8: Prestige sales by category(€m), Europe 1999-2001 and CAGR

Figure 9: Alcohol sales by category (€m), Europe, 1999-2001 and CAGR

Figure 10: Prestige personal care sales (€m), Europe, 1999-2001 and CAGR

Figure 11: Luxury goods sales (€m), Europe, 1999-2001

Figure 12: Consumer wealth segments, Europe, 2006

Figure 13: High net worth and mass affluent individuals’ contribution to the core prestige consumer base by number and asset value

Figure 14: Category share of prestige sales by channel, 2006

Figure 15: Prestige sales by country (€m), 1999-2001 and CAGR

Figure 16: Prestige sales by category(€m), Europe 2001-2006 and CAGR

Figure 17: Prestige alcohol sales by product, 2001-2006 and CAGR

Figure 18: Prestige personal care sales (€m), Europe, 2001-2006 and CAGR

Figure 19: Luxury goods salses (€m) Europe 2001-2006 and CAGR

Figure 20: Prestige positions and associated products

Figure 21: Potential growth of the prestige consumer base

Abstract

About MarketResearch.com
MarketResearch.com is an online aggregator selling over 160,000 market research reports, company profiles and country profiles from over 600 research firms. Our reports will provide you with the critical business and competitive intelligence you need for strategic planning and marketing research. Coverage includes the US, UK, Europe, Asia and global markets.