Lovers of Luxury in China, Hong Kong, India, Japan, South Korea, Singapore and Taiwan are big spenders and savvy Internet users according to new study
04 March 2008, Asia Pacific – The Asia market represents a huge opportunity for online luxury advertising, according to a new global survey conducted by Essential Research in conjunction with Microsoft Advertising. Asia consumers spent an estimated $134 billion on luxury goods last year, driven by such motivators as status and indulgence, and increasingly, they are using the Internet to help them make purchase decisions.
Asia represents a younger breed of luxury consumers compared to the European sample, and are generally more Internet savvy, particularly in China, where the largest Asia spend reached $103 billion last year. Two-thirds of Asian luxury lovers use the Internet to regularly find luxury goods, and while the majority of purchases are offline, $40 billion in luxury goods (30%) were purchased online - more than the entire luxury market in Europe. Furthermore, luxury consumers in Asia have a positive attitude towards luxury advertising appealing to their status.
The ‘Luxury Lovers’ survey of 1,762 luxury brand fans from 7 Asian countries gives brands and advertisers’ valuable insight into the online behaviours of this much sought after demographic, including behaviours that drive purchase. The primary motivators of luxury goods purchased in Asia are status and indulgence. Keeping up appearances amongst business contacts, friends and family drove status purchases, while treating oneself and sense of deservedness drove indulgence purchases. Status is particularly the case in China, Japan and India, which also happen to be skewed heavily towards male purchasers.
“Luxury consumers across Asia represent a younger breed of luxury consumers and are more comfortable using the web to satisfy their need to engage with luxury brands” said Beth Uyenco, Global Research Director, Microsoft Advertising, “Consumers in Asia use the Internet to learn more, research and even eventually purchase luxury brands.”
The Internet (63% of respondents) is second only to magazines (65%) as the biggest inspiration source for luxury brands; and it jumps up to number one as the most frequently used medium for actively gathering information prior to a luxury purchase. Official brand Web sites and search engines top the list of online sources used to get pre purchase information. The Internet has become on a consumer’s decision to buy luxury goods.
“Online research is an important step in defining a consumer’s perception and relationship with a luxury brand,” commented Kenneth Andrew, Marketing Director, Microsoft Advertising. “For advertisers, reaching consumers of luxury brands is most effective through their personal desktop. Advertisers need to create an immediacy and intimacy between the consumer and the brand to have the greatest impact. ”
Luxury Lovers Leisure Time
In the past year, 2.6 billion luxury items have been purchased in Asia: 94% have purchased designer clothing /accessories; 86% fine jewellery/watches; 82% designer fragrances/cosmetics; and 49% luxury cars. While most purchases are for the buyer themselves, South Korea and India have considerably higher than average gift purchases.
The study also revealed that the most common Internet usage for luxury lovers: using email (80%), online shopping (79%) and online banking (75%). In addition, Asia luxury lovers access the following at least once a week: Windows Live Hotmail (65%), Windows Live Messenger (60%), MSN Portal (58%), Windows Live Search (52%) and Facebook (42%) presenting opportunities for marketers to target their communications to luxury consumers.
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About the survey
Luxury Goods was conducted by Essential Research in conjunction with Microsoft Advertising and the Asia-specific results are drawn from a sample of 1,762 respondents in 7 markets in Asia.
About Microsoft Advertising
Microsoft Advertising provides world-class advertising tools and solutions for digital advertisers and publishers to drive brand and consumer engagement. The portfolio includes all of our digital advertising businesses: our global media network that includes MSN, Windows Live™, Office Online, XBOX, Live Search, Facebook and more, and our global technology platforms and tools that include Atlas, AdECN, adCenter, DRIVEpm, Massive and ScreenTonic, which together create engaging digital advertising experiences for their consumers. Microsoft Advertising helps make buying and selling media simple, smart and more cost-effective across media and devices in the Microsoft network of properties and beyond, which spans 42 markets globally and 21 languages. Visit http://advertising.microsoft.com/asia/home for more information.
About Essential Research
Essential is a specialist full-service research consultancy delivering intelligent, innovative consumer research methodologies and inspiring insight to leading businesses in Media, Entertainment, Communications and Technology industries. The agency’s exclusive focus and deep sector knowledge enables it to give clients a competitive edge in their ever-changing media markets. Essential was named ‘Best New Agency 2007” by the Market Research Society and currently works with high-profile cross-media brands and organisations including Ofcom, ITV, BBC, Channel 4, five, Microsoft, MTV, AOL, Nokia and BBC World News. Please visit www.essentialresearch.co.uk for further information. For more information or comment from Essential, please contact Lishen@essentialresearch.co.uk or call +44(0) 20 7384 1297
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Bridgit O’Donovan Melissa Lee
Edelman for Microsoft Advertising Edelman for Microsoft Advertising
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