The Premium Brand and Luxury Consumer - US - December 2014
“The internet is the ultimate equalizer, and it has given brands both large and small a chance to communicate directly with consumers; however, the ‘access for all’ mentality of the web does not always work in favor of brands that have an exclusive reputation to manage. Though the adoption of internet-based business tactics has been slow among luxury brands, it appears that the luxury market is catching on, and a few have created effective models that others can emulate.”
– Lindsey Rogers, Consumer Analyst
This report answers the following questions:
- How can luxury companies leverage social media without losing the appearance of exclusivity?
- Should luxury brands operate e-commerce sites?
- Do luxury rental sites pose a threat to luxury companies?
The luxury market has experienced growth over the last several years, thanks in part to a recovering economy and booming online sales. In 2013, US luxury revenue reached $35.9 billion, while the global market increased by 57%. This report focuses on how and why consumers are driving this growth. It discusses their definitions of luxury, purchasing habits, attitudes, and their lifestyles. The report also covers several hot topics within the market, including social media, e-commerce, knockoffs, customization, discounted luxury, multi-level strategies, and luxury product rentals. The resulting analysis provides a strong foundation for new-to-luxury marketers, but also deep, thought-provoking content for more seasoned professionals.
The concept of luxury goods is inevitably highly subjective. It is usually obvious where a product is luxury and equally obvious where it isn’t, but there is a gray area in between that is more subjective. The term luxury usually carries with it the idea that a very high level of craftsmanship is involved and that the products carry a high price so that they are out of the reach of most mass-market buyers. Unfortunately, they can also carry connotations of ostentation and even “bling.”
In Mintel’s analysis, there are three main categories of luxury goods, to which a miscellaneous group of smaller products is added:
- Fashion and leather goods
- Fragrances and cosmetics
- Jewelry and watches
- Other (ie writing instruments, eyewear, furniture, home goods, and other miscellaneous items)
Food, beverages, tobacco, electronic goods, automobiles, and services such as travel are generally excluded.
What you get
This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.
Mintel provides a range of market information, frequently through the category level, including market size and forecasting, complete with market drivers that illustrate the forces that shape a category or market.
Mintel's proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.
Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.
Market reports provide appendices of data to support the research and insight produced. Our tables of data are easily manipulated and downloadable to support your research needs and covers factors from consumer attitudes to market forecasts.
* This is a sample representation of the report layout and does not reflect the research included in this report.
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