Luxury Victims 2012

“Purchase of luxury items gives the buyer an

immense amount of joy

which surpasses the economic value of the

product.”

“…it is bought to satiate an altruistic need and

the joy of possessing a piece

of extreme luxury is an end in itself.”

Louis Vuitton CEO, Yves Carcelle

Their economics will become much more compelling as the economic downturn makes opening stores and traditional advertising economically challenging. Look for all types of traditional luxury goods and services providers to begin to imitate the techniques of these luxury innovators or to acquire them.

Changing Models Using Global communities more Crowd sourcing

• In the recent boom, some in the luxury industry deluded themselves into believing that the more expensive an item, the greater its appeal to the wealthy, regardless of quality, functionality and service experience. University research suggested that the more expensive a consumer was told an item was, regardless of the fact that it was the same quality as a much lower priced item, the more the happy chemicals in the brain approached a state of bliss.

• In times of economic crisis, that high can only last so long. Most of the wealthy are self-made, and have sacrificed to earn every cent while delivering great quality and service to their own customers. Like their customers, they use both sides of their brains to make luxury purchasing decisions. One empirical example: The 2008 research shows that when it comes to luxury travel, the top two factors influencing vacation destination decisions are: scenery and nature (58%), and cost (56%). So, it’s back to value-added luxury fundamentals in 2009.

In 2015 ….. We should think:

E-Luxury + Eco-luxuryChina and India

World turnover in 2007: $233 bill.Powerhouses of luxury consumptionUSA – largest, accounts for one thirdJapanChinaEurope

North America 2%Europe 12%Asia Pacific 18%

Values of Luxury: • Rarity/exclusivity• Highest quality• Know how• History, roots, dreams• Rewards: pleasure, status• Emotion, experience• Custom made

1- Unique experience

RoatánBahamas

2- The plasure of buying something different and unique

AsianRusians

Brasilians

Downside:

Opulent & decadentMaterialist & consumeristSocial segmentation & vanityExploitative - $1000 LV bag in canvasNot essentialConspicuous consumption

Upside:

Need not be vulgar but sophisticatedAesthetic expressionSocial positioning more democratic than ‘caste’ systemCan be genuine pursuit of excellenceSelling dreams/mystical experience

Classic Standards:

• Need a change ¡¡ • But with style and European look.• Spanish Loewe Add:

• http://youtu.be/UUWFWJ9fRoo

* 10 Best Brands for 2011:1. Louis Vuitton2. Hermès3. Gucci4. Chanel5. Cartier6. Rolex7. Hennessy8. Moet & Chandon9. Fendi

10. Burberry

Tiffany & Co (Corral

protection)

Cartier (Gold mines)

Loro Piana y

Ermenegildo Zegna:

(animals care)

Eco Luxury // E-luxury:

Luxury brands have to change their mentality and they must take into consideration the environment, etc..

World Luxury Association (In 2015)

ChinaIndiaBrasilJapón EEUU

Luxury model for ASIA:

Stage 1: Subjugation, desire basedStage 2: Start of money, IndiaStage 3: Show off, new rich, ChinaStage 4: Fit in, Conformity, Joneses, Taiwan/KoreaStage 5: Way of life, Japan, Hong Kong

China in 2015 : 1st in the luxury market

• They only buy exclusive products • At least 3 cars and travel 3 times per

year.• 30-40 years old• Love to buy and they change their

clothing every 3 months• Intelligent, modern, they have more

than 1 university degree and they are conscious about the environment, animals, etc…

• People’s Republic Change• Luxury in a Shift• Faces of Luxury

They prefer:

AppleLouis Vuitton

CartierHermesChanelMaotai

Shanghai:

Plaza 66.

Shanghai:• Shanghái is the city for luxury• A city with 23 millions and 132000 are multimillionaire.• 18,3% of Luxury Sales

33000$

7500$

12000$

Huaihai Road:

Hermès in China: (new brand Shang Xia)

Over one million luxury consumersPotential new customers: eight millionWith high disposable incomeTarget audience: 22-55 yearsCurrently worth: US$444mil/Rs2,400cr

India has gone from old money to new moneyIndia could be in top 5 consumers by 2025

Shopping Centers: in Delhi, Gurgao , Bangalore

Status:

• Gucci 41%• Versace 25%• Calvin Klein 31%• Armani 22%• Dior 26%

57 % ..see labels as status symbols.

Any question or questions ?

Susanapuigmarti@yahoo.es

Susana Puigmartí Cansick Master Title in Marketing. Exe MBA.Degree in Negotiation. Ecole Hôtelière Les Roches