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LUXURY PURCHASE INTENTIONS

ASIA

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release date: DECEMBER 2018

The quantitative online survey conducted for this report was carried out during summer 2018, and used 200 members from four Asian countries within Altiant's online affluent community split as follows: Singapore 29%; China 28%; Japan 24%; Hong Kong 19%. 52% of this sample was aged 18-39, while 48% was aged 40+. The gender split was 59:41% male:female.


SAMPLE COMPOSITION


Base: 200 Asian affluent/HNWIs  Source: LuxuryOpinions/Altiant

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PURCHASE INTENTIONS AMONG AFFLUENT/HNWIs


Our Affluents and HNWIs response to this question indicates a strong degree of confidence towards luxury spending. Half of our respondents expect to buy more luxury goods or services within the next year, with 13% expecting to buy much more. 38% expect to spend about the same within the next year, while only 12% anticipate cutting back on their luxury purchases.

Base: 200 Asian affluent/HNWIs  Source: LuxuryOpinions/Altiant

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PURCHASE INTENTIONS BY CATEGORY


We then asked our respondents how likely they were to buy the following luxury items/services within the next year: watches, jewellery, shoes, flights, overnight hotel stays and cars. Leisure spending secures the highest proportion of positive responses (either ‘definitely’ or likely’), with 93% and 91% expecting to buy luxury flights and overnight hotel stays respectively. Shoes also proved to be a highly popular category with our luxury respondents for purchase intention (82%), while cars had the lowest score (53%), a likely reflection on the high cost of purchase.

Base: 200 Asian affluent/HNWIs  Source: LuxuryOpinions/Altiant

SPENDING PATTERN PER CATEGORY


Watches (n=180): 44% of our respondents would not be prepared to spend more than RMB 45,000 on a new luxury watch. 39% are prepared to break this threshold, with 13% prepared to spend more than RMB 90,000 on a new luxury watch.

Jewellery (n=184): This category appears to be somewhat price-sensitive as 22% of our respondents are not prepared to spend more than RMB 50,000 on a new luxury item of jewellery. 39% state that they would spend more than RMB 200,000, with 9% prepared to spend heavily and break the RMB 500,000 mark.

Cars (n=158): Just over a quarter (27%) of our respondents would be prepared to spend RMB 390-600,000 on a new luxury car. 15% would spend less than this amount while 27% would spend RMB 650,000-1.3m. 16% appear to be car enthusiasts and are prepared to spend more than RMB 1.3m on a new high-end car.

Overnight hotel stay (n=197): Almost a third of our respondents (32%) would not be prepared to spend more than RMB 20,000 on a luxury overnight hotel stay, with an additional 30% prepared to spend RMB 20-40,000. 12% are prepared to break the RMB 70,000 mark for this service, while price appears to be irrelevant for the 6% who are willing to spend more than RMB 100,000.

Shoes (n=192): 30% of our respondents would not be prepared to spend more than RMB 10,000 on a new luxury pair of shoes, with an additional 14% prepared to spend RMB 10-20,000. Nevertheless, there is scope for high-end shoe brands to prosper as 27% are prepared to spend more than RMB 50,000 on a new luxury pair of shoes.

Flight (n=197): There is quite a wide discrepancy in prepared spending on luxury flights. 27% are not prepared to spend more than RMB 15,000 for this service, while 20% are willing to spend upwards of RMB 40,000. There appears to be a ‘sweet spot’ between RMB15-35,000 in which 40% are prepared to pay for a luxury flight.

Results were merged and normalised to RMB as per December 2018. The base for this question relates to respondents who coded ‘Definitely’, ‘Likely’, or ‘Unlikely’ in the previous question (‘Definitely not’ respondents were excluded). 
 
Base: Asian affluent/HNWIs who are definitely or likely to buy a new luxury product within the category within the next 12 months    
Source: Luxury Opinions/Altiant

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LUXURY BRAND AWARENESS


A wide variety of brands were mentioned by our panel, reflecting the highly fragmented nature of the luxury industry. Luxury goods industries such as fashion and jewellery fare the best for top-of-mind awareness/preference, with Louis Vuitton scoring the highest number of mentions (11%). Rolex, Chanel and Hermès are the next three most cited luxury brands among our survey respondents.

Note: Brand size equates to number of mentions
Base: 200 Asian affluent/HNWIs Source: LuxuryOpinions/Altiant

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