Luxury Consumers Around The World Are Very Similar
Value Is Placed on Freedom
to Experience Rather Than Possessions
July
23, 2007. Luxury consumers in the U.S. and much of Western
Europe are remarkably similar in many ways, especially
in the emphasis consumers place on experiences, rather
than something that one has or owns, according to a
report released today by the Consumer Research Center
of The Conference Board.
The report was sponsored by Conde Nast Publications,
Gucci Group, Gibson USA, The Ritz Carlton and Tru Vue
and is based on an online survey of 1800 affluent consumers
in the U.S., China, France, Germany, Italy, Japan, and
the UK. Respondents were over age 18 and in the top
25% income brackets.
"Consumers have remarkably similar perspectives
on how to define luxury," says Lynn Franco, Director
of The Conference Board Consumer Research Center. "The
largest share of luxury consumers (44%) and the largest
share of consumers in each country most strongly agree
that 'luxury is having enough time to do whatever you
want and being able to afford it.' So, for luxury consumers
worldwide, time is the ultimate luxury."
Time is the most highly valued luxury (named by 35%
of respondents as best matching their personal definition
of luxury), then life experiences (25%), followed by
having comfort, beauty and quality (18%).
About one-fourth or fewer luxury consumers strongly
agree that:
-- Luxury is less about the material things one has
or one owns and more about how one experiences life,
a sense of happiness and satisfaction (26% strongly
agree).
--
Luxury is being comfortably well off and not having
to worry about tomorrow (25% strongly agree).
--
Luxury is the finer things in life that surround you
with extreme comfort, beauty, and quality (25% strongly
agree).
-- Luxury is the "best of the best" in all
aspects of your life (18% strongly agree).
Luxury consumers' favorite pursuits worldwide include
high-tech activities and travel. High-tech activities,
such as using a personal computer, the Internet, or
a cell phone, rank as the most participated in lifestyle
activities by nearly three-fourths of all luxury consumers.
Travel comes next, with 69% of luxury consumers worldwide
reporting an interest.
The most popular status luxuries owned across the countries
surveyed were collections of antiques and rare items
(30% of all luxury consumers report earning); original
art, paintings and sculpture (31%); and vacation/second
home (27%). American luxury consumers led in ownership
of antiques or collections of rare items, while the
Italian luxury consumers were more likely to own original
art. The Italian luxury consumers also enjoy the highest
share of vacation or second homes.
The next most widely owned status luxuries included
collections of fine jewelry and watches (24%), fine
musical instruments (22%), and collections of fine wine
and spirits. Chinese luxury consumers led the other
countries in ownership of fine jewelry and watches and
in fine wine and spirits ownership, while the French
consumers have the highest incidence of fine musical
instrument ownership.Compared with luxury consumers
living in other countries, Japanese consumers trail
in their participation in the various lifestyle activities
included in the survey, such as photography (enjoyed
by only 30% in Japan, compared to the international
average of 59%); avid book reading (35% versus a 58%
average of all countries); listening to records, tapes,
DVDs (37% versus 56%).
Other key differences across cultures include:
-- American consumers are noted for their interest in
cable/satellite television, pets, physical fitness and
health foods, electronics, and investing in stocks and
bonds.
--
British consumers are distinctive in their strong interest
in Internet and cell phone usage, videos/DVDs, wine,
gourmet goods, health foods, avid book reading, and
cable/satellite TV.
--
German consumers are more involved in reading books,
attending cultural events, gardening, and home furnishings.
Italian consumers share many of the same interests as
those in Germany, but they are more active in travel.
French consumers are similar to those in Germany and
Italy, too, but with an even greater interest in gourmet
food and wine.
--
China has the greatest interest in photography, electronics,
and home furnishings.
"For the largest share of luxury consumers, luxury
is not specifically related to how much something costs
or what brand it might be," says Pamela Danziger,
President of Unity Marketing and author of the report.
"Luxury is highly personal and something the individual
interprets and judges for him or herself. But while
luxury is highly personal and separated from price and
brand, luxury is expected to be something with a quality
that sets it far above the ordinary product."
Luxury is noticeably a cut above the average, as 81%
of luxury consumers agreed. Luxury is about the feelings
the consumers get in enjoying their luxury lifestyles,
so it is very much an experience, rather than a material
good one has or one owns. Luxury is being able to pursue
one's personal passions and interests.
Because it is defined personally and about one's experience,
luxury is something that everyone can partake in. Nearly
three-fourths of those surveyed agreed that "luxury
is for everyone and different for everyone." It
is not exclusive to one class or group of people.
The vast majority of luxury consumers say they reject
conspicuous consumption or buying to impress. The person
who most matters when it comes to luxury is the individual
and how he or she experiences, interprets, and feels
about his or her own luxury lifestyle-not what some
neighbor, colleague, or coworker thinks.
While brands don't necessarily define luxury, many luxury
consumers look to the brand and the brand's reputation
as a signal of quality. China is the only country surveyed
in which a significant portion of consumers (46%) tend
to agree with luxury being defined by the brand.
The
Conference Board
845 Third Ave., New York NY 10022
www.tcb.org
Frank
Tortorici
(212) 339-0231
f.tortorici@conference-board.org