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Luxury Marketing - China - November 2015

Luxury Marketing - China - November 2015

“With advancements in digital technology and marketers’ efforts in planning integrated marketing communication strategies, the scope for campaigns for luxury goods or services is seemingly unlimited. Crossover partnerships to create limited edition products, services or leisure activities inspired by luxury brands are flourishing in China. The key challenge is the impact of experiential marketing and brand extension on exclusivity.

In an era when affluent consumers are eager to act as opinion leaders in their social circles, charting new creative sources is the key direction for luxury brands, and has fuelled an entirely new approach to luxury marketing.”

– Esther Lau, Research Analyst

This report looks at the following areas:

Expression of individuality leading the new mix and match style
A new scope for luxury marketing
Tapping into lifestyle elements and corporate social responsibility (CSR) in the luxury market for established rich
Effectiveness of different touchpoints is granular
The potential for affluent men market


OVERVIEW
What you need to know
Covered in this report
Methodology
EXECUTIVE SUMMARY
Five distinct groups of luxury consumers
Figure 1: Target groups, July 2015
Traditional view of luxury: social status and appearance
Figure 2: Personal value of purchasing luxury products and services, July 2015
Four main categories of luxury buying attitudes
Figure 3: Attitudes towards luxury, July 2015
Luxury ready-to-wear is the most accessible category
Figure 4: Likelihood to purchase luxury branded items or experiential luxury products or services in the next 12 months, July 2015
Video clips are the most effective channels
Figure 5: Effective information sources in delivering different types of communication objective, July 2015
Customisation is driving the luxury industry
Figure 6: Interest in a variety of innovative marketing ideas, July 2015
Influential marketing channels for different luxury categories
Figure 7: Correspondence analysis – Luxury marketing, July 2015
What we think
ISSUES & INSIGHTS
Expression of individuality leading the new mix and match style
A new scope for luxury marketing
Tapping into lifestyle elements and corporate social responsibility (CSR) in the luxury market for established rich
Effectiveness of different touchpoints is granular
The potential for affluent men market
THE MARKET
What you need to know
Where is China now?
Influence of overseas tourism
The focus on lifestyle has led to more mature attitudes towards luxury
Market drivers
The impact of the economic slowdown
Overseas travel purchases – Chinese shoppers abroad
The willingness to purchase luxury services is high – lifestyle products to penetrate the Chinese market
The problem of ubiquity
Digitally connected
KEY PLAYERS
What you need to know
The decline of mainstream luxury brands
How has the trend of personalisation change the game?
The rebirth of affordable luxury?
Companies and brands
Burberry
LVMH (Moët Hennessy-Louis Vuitton)
Kering
Coach
Who’s innovating?
The world of personalisation
When art meets fashion
Crossovers to boost awareness and creativity
Working with charity to show commitment to society
Lifestyle extension – incorporating sensorial experience
The masculine world
THE CONSUMER
What you need to know
Five distinct luxury consumer groups
The evolving value of luxury consumption
The popularity of affordable luxury is higher than predicted
The new age of experiential consumption
The obsession with customisation and Oriental design
What is the most effective marketing touchpoint?
Different types of luxury consumers
Figure 8: Target groups, July 2015
Outside The Luxury Circle
Figure 9: Target groups of consumer attitude towards luxury, by demographics, July 2015
Art and Cultural Savvy
Figure 10: Target groups of consumer attitude towards luxury, by demographics, July 2015
Occasion-Driven Buyers
Figure 11: Interest in a variety of innovative marketing ideas, by clusters, July 2015
Quintessentially Casual Aspirants
Figure 12: Target groups of consumer attitude towards luxury, by demographics, July 2015
Figure 13: Interest in a variety of innovative marketing ideas, by clusters, July 2015
High-Powered Masculine Buyers
Figure 14: Interest in a variety of innovative marketing ideas, by clusters, July 2015
Value of purchasing luxury products and services
Traditional view of luxury: social status and appearance
Figure 15: Personal value of purchasing luxury products and services, July 2015
Figure 16: Personal value of purchasing luxury products and services, by age, July 2015
Is globalisation always effective for the luxury industry?
Cater to a high quality lifestyle
Figure 17: Value of Purchasing Luxury products and services, by clusters, July 2015
Attitudes towards luxury
Four main categories of luxury buying attitudes
Figure 18: Attitudes towards luxury, July 2015
Personality driven
Figure 19: Attitudes towards luxury, by age and monthly personal income, July 2015
Engagement with digital innovation – the link with expressing individuality
Figure 20: Attitudes towards luxury, by age and monthly personal income, July 2015
CHAID analysis
Methodology
Oversea travel experience ties with the appreciation of luxury materials
Figure 21: Luxury Marketing – CHAID – Tree output, July 2015
Likelihood to purchase luxury items or experiential luxury products or service
Luxury ready-to-wear is the most accessible category
Figure 22: Likelihood to purchase luxury branded items or experiential luxury products or services in the next 12 months, July 2015
Figure 23: Likelihood to purchase luxury branded items or experiential luxury products or services in the next 12 months, July 2015
Figure 24: Interest in a variety of luxury information when surfing the internet, by gender, July 2015
Figure 25: Interest in a variety of luxury information when surfing the internet, by gender, July 2015
Figure 26: Interest in a variety of luxury information when surfing the internet, by value in luxury, July 2015
Figure 27: Interest in a variety of luxury information when surfing the internet, by age, July 2015
Gourmet dining and health-related experiences help build another identity outside conventional lifestyles
Figure 28: Interest in a variety of luxury information when surfing the internet, by value in luxury, July 2015
Information sources and communication objectives
Video clips are the most effective channel
Figure 29: Effective information sources in delivering different types of communication objective, July 2015
Figure 30: Information source and communication objectives, by Q5 clusters, July 2015
Articles and interviews effectively attract Art and Cultural Savvy consumers
Figure 31: Information source and communication objectives, by Q5 clusters, July 2015
Figure 32: Effective information sources in delivering different types of communication objective, July 2015
Offline events meet luxury experience
Innovative luxury product and service offerings
Customisation is driving the luxury industry
Figure 33: Interest in a variety of innovative marketing ideas, July 2015
Chinese culture to reflect Oriental beauty
Figure 34: Interest in a variety of innovative marketing ideas, by cluster groups, July 2015
Figure 35: Interest in a variety of innovative marketing ideas, by cluster groups, July 2015
Blurring the line between luxury and art
Figure 36: Interest in a variety of innovative marketing ideas, by cluster groups, July 2015
Quintessentially Casual Aspirants are looking for luxury brand crossovers
Figure 37: Interest in a variety of innovative marketing ideas, by cluster groups, July 2015
Key driver analysis
Methodology
Incorporating personal experience to explore luxury brand workshops and creative studios
Figure 38: Key drivers of users who are very likely planning to purchase luxury branded items or experiential luxury products/services in the
next 12 months, July 2015
Influential marketing channels for different luxury categories
Methodology
Correspondence map
Figure 39: Correspondence Analysis – Luxury Marketing, July 2015
Conventional media remains effective in luxury fashion marketing
Luxury beauty and celebrity endorsements and video tutorials
Figure 40: Correspondence Analysis – Luxury Marketing, by gender and age and monthly personal income, July 2015
Travel and Leisure
Figure 41: Correspondence Analysis – Luxury Marketing, by age and city tier, July 2015
Figure 42: Correspondence Analysis – Luxury Marketing, by gender and age, July 2015
Food and Drink
Figure 43: Correspondence Analysis – Luxury Marketing, by gender and age and monthly household income, July 2015
APPENDIX
Key driver analysis
Interpretation of results
Figure 44: Key drivers of Users who are very likely planning to purchase luxury branded items or experiential luxury products/services in the
next 12 months– key driver output, July 2015
RESEARCH METHODOLOGY
China Research Methodology
Confidence levels
Sample sizes by city
Sampling methodology and sampling structure
Our research partner - QQsurvey
QQ’s sampling and Quality control
Further Analysis
Appendix

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