Insights on what the top Affluent spenders in key cities are expected to purchase, how they are expected to make their purchases and how the preferences differ from city to city
The hall under the great dome of the former Soviet Union-styled Shanghai Exhibition Center was decorated with a sense of luxury on Monday.
The scene was set for the International Luxury Travel Market Asia, where hundreds of international suppliers of luxury travel experiences met to tap into the opportunities that China, the world’s fastest growing and biggest market in the niche, has to offer.
The increasingly wealthy consumers of luxurious experiences who dominate Asian markets such as China are the “super lucrative segment” of the middle class now and in years to come, an industry report indicates.
Dubbed “Generation AAA” – referring to aspirational, ambitious and affluent – such customers aged between 18 and 34 have both the financial power and the “attitudinal and behavioral propensity” to travel and spend on luxury, said Amrita Banta, managing director of Agility Research and Strategy, which released the report in Shanghai on Tuesday, as part of International Luxury Travel Market Asia 2015.
World Retail Congress Singapore – March 2015 French Chamber Hong Kong – April 2015 French Chamber Singapore – March 2015
That was one of the findings of a new survey on luxury buying habits published by Singapore-based research and consulting agency Agility Research, which interviewed 3,000 U.S., Chinese, Hong Kong, and Singaporean consumers in the top 25th percentile for household income of their country’s population over the month of October 2014.
SINGAPORE: Both Chinese and American affluent consumers expect quality when considering luxury products, but exclusivity carries a much higher premium
A recent survey from Agility Research & Strategy has found that US and Chinese consumers behave differently when it comes to making luxury purchases. The survey looked at the different ways the two consumer populations think about and purchase luxury products…
For many luxury brands, Asia seems to be the next best destination. With its strong base of millionaires and nouveau riche, the luxury goods and services sector is sure to see a steady increase in demand in the coming years. Asia replaced North America as the region with the highest number of high net worth individuals in 2013.
Agility Research has identified four key areas of the affluent consumer market, a segment it said was now occupying the top 25% income levels of key markets around the world.
Titled “Affluent Luxury Consumer Segmentation”, the research shows affluent consumers are a growing class who can not be ignored by marketers.
“Given their purchasing power and market influence, they cannot be ignored by the marketers” said report said.
The four key profiles are the Exclusivity Seeker, Indulgent Traveler, Virtual Shopper, Luxury Bargain Hunter. Here’s how brands can identify them.
Not all affluent consumers are the same, but finding common characteristics that defines segments in this market can help us understand and better target this high value consumer base. Focusing on smaller homogeneous groups that think and behave in a similar fashion allows a brand to customize its offering, making them more relevant to the consumer. Nowadays, luxury is about providing a personable, customization experience to the end user.