The Premium Brand and Luxury Consumer

Transcription

The Premium Brand
and Luxury Consumer –
US, December 2014
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v 101013 Single
Table of Contents
US, December 2014
SCOPE AND THEMES ...............................................................................................................................10
What you need to know ......................................................................................................................10
Definition .............................................................................................................................................10
Data sources .......................................................................................................................................11
Sales data .............................................................................................................................................................. 11
Consumer survey data ........................................................................................................................................... 11
Consumer qualitative research ............................................................................................................................... 12
Direct marketing creative ........................................................................................................................................ 12
Abbreviations and terms .....................................................................................................................13
Abbreviations .......................................................................................................................................................... 13
Terms ..................................................................................................................................................................... 13
EXECUTIVE SUMMARY .............................................................................................................................14
The market ..........................................................................................................................................14
Figure 1: Luxury goods revenue, global and US, 2009-13 ...................................................................................... 14
Figure 2: US luxury revenue, by category, 2013 ..................................................................................................... 15
Market drivers .....................................................................................................................................15
Leading companies .............................................................................................................................15
Figure 3: Luxury sales by top luxury houses (in USD billions), FY2013 .................................................................. 16
Figure 4: Luxury sales by top luxury houses (in USD billions), FY2013 .................................................................. 17
The consumer .....................................................................................................................................17
Craftsmanship is the number one defining characteristic of luxury ......................................................................... 17
Figure 5: Top five defining attributes of luxury, by all and luxury goods buyers, September 2014 .......................... 18
Majority of luxury buyers only purchase discounted luxury ..................................................................................... 18
Figure 6: Luxury purchasing habits, September 2014 ............................................................................................. 19
Accessible American brands popular among luxury consumers ............................................................................. 19
Figure 7: Premium brands owned and purchased in the last three years, September 2014 ................................... 20
Luxury consumers purchase across channels and across countries ...................................................................... 20
Figure 8: Where respondents bought luxury goods in the last 18 months, May 2014 ............................................. 21
Luxury buyers over index in upscale activities ........................................................................................................ 21
Figure 9: Premium services/activities of the last 12 months, luxury goods buyers index to total,
September 2014 ..................................................................................................................................................... 22
Consumers more likely to avoid visible trademarks than to enjoy owning them ...................................................... 22
Figure 10: Attitudes toward logo visibility, by all and by luxury goods buyers, September 2014 ............................. 23
One third of luxury goods buyers say luxury makes them feel good, very few interested in knockoffs .................... 23
Figure 11: Attitudes toward quality, authenticity, and hedonistic thrill of buying luxury, September 2014 ............... 24
What we think......................................................................................................................................24
ISSUES AND INSIGHTS .............................................................................................................................25
How can luxury companies leverage social media without losing the appearance of
exclusivity? ..........................................................................................................................................25
The issues .............................................................................................................................................................. 25
The implications...................................................................................................................................................... 26
Should luxury brands operate e-commerce sites? .............................................................................26
The issues .............................................................................................................................................................. 26
Do luxury rental sites pose a threat to luxury companies? .................................................................27
The issues .............................................................................................................................................................. 27
TREND APPLICATION ...............................................................................................................................29
Trend: Fauxthenticity ..........................................................................................................................29
Trend: Make it Mine ............................................................................................................................29
Trend: Let’s Make a Deal ....................................................................................................................30
MARKET SIZE ............................................................................................................................................31
© Mintel Group Ltd. All rights reserved.
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Key points ...........................................................................................................................................31
The market size ..................................................................................................................................31
US luxury revenue reaches nearly $36 billion, a 60% increase over 2009 ........................................31
Figure 12: Luxury goods revenue, global and US, 2009-13 .................................................................................... 31
US growth in luxury revenue outpaces all but Japan, China, Australia ..............................................32
Figure 13: Top 10 countries in the luxury market, by revenue, 2009-13 ................................................................. 32
Figure 14: Top 10 countries in the luxury market, by revenue, 2013 ....................................................................... 33
Fashion/leather is top category, perfume/cosmetics follows ..............................................................33
Figure 15: Luxury goods revenue, by category in selected luxury markets, 2013 ................................................... 33
Figure 16: Luxury goods revenue share, by category in selected luxury markets, 2013 ......................................... 34
MARKET DRIVERS ....................................................................................................................................35
Key points ...........................................................................................................................................35
International tourism ...........................................................................................................................35
Figure 17: International inbound tourism, 2000-13.................................................................................................. 36
Figure 18: Overseas leisure visitors to the US, 2006-13 ......................................................................................... 37
US economic growth ...........................................................................................................................37
Figure 19: GDP change from previous period, Q1 2007-Q3 2014 .......................................................................... 38
Figure 20: Consumer confidence and unemployment, by month*, January 2007-October 2014 ............................. 39
E-commerce ........................................................................................................................................39
Growing Asian and Hispanic populations ...........................................................................................40
Figure 21: Population, by race and Hispanic origin, 1970-2020 .............................................................................. 40
LEADING COMPANIES ..............................................................................................................................41
Key points ...........................................................................................................................................41
Financial performance of leading companies .....................................................................................41
Figure 22: Luxury sales by select companies, FY2012-FY2014* ............................................................................ 42
Company profiles ................................................................................................................................42
Christian Dior .......................................................................................................................................................... 42
LVMH Moët Hennessy – Louis Vuitton ................................................................................................................... 42
Richemont .............................................................................................................................................................. 43
Kering ..................................................................................................................................................................... 44
PVH (Phillips-Van Heusen) ..................................................................................................................................... 45
Ralph Lauren .......................................................................................................................................................... 45
Coach ..................................................................................................................................................................... 46
Other leading companies ........................................................................................................................................ 46
INNOVATIONS AND INNOVATORS ..........................................................................................................50
Overview .............................................................................................................................................50
Theme: Appeal to multicultural audiences ..........................................................................................50
Armani launches luxury chocolates for Ramadan ................................................................................................... 50
Bloomingdale’s celebrates the Year of the Horse ................................................................................................... 51
Theme: Launch relevant, but unexpected products............................................................................51
Christian Louboutin launches nail polish that is applied to the underside of nails ................................................... 51
Louis Vuitton’s ‘Iconoclast’ partnership with Karl Lagerfeld offers monogrammed punching bag ............................ 51
Theme: Let consumers customize their products ...............................................................................51
Stuart Weitzman, Prada launch customizable shoe collections .............................................................................. 51
Burberry launches monogrammed blankets ........................................................................................................... 52
Theme: Can’t beat technology companies? Then join them. .............................................................52
Ralph Lauren moves wearable technology from hardlines to softlines .................................................................... 52
Diane Von Furstenberg launches line of eyewear for Google Glass ....................................................................... 52
TAG Heuer announces plans to launch smartwatch ............................................................................................... 53
Theme: Create elite spaces for luxury consumers online ...................................................................53
Auctionata brings verified luxury goods to auction online........................................................................................ 53
Composer launches social networking site for affluent consumers ......................................................................... 53
James Edition serves as Craigslist for the wealthy ................................................................................................. 53
MARKETING STRATEGIES .......................................................................................................................54
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Overview .............................................................................................................................................54
Strategy: Highlighting history ..............................................................................................................54
Case study: The late Coco Chanel stars in “Inside CHANEL” campaign ................................................................ 54
Figure 23: Chanel, “Paris by Chanel – Inside CHANEL,” chapter 12, Sept. 17, 2014 ............................................. 55
Figure 24: Chanel, “The Colors – Inside CHANEL,” chapter 11, May 23, 2014 ...................................................... 55
Case study: DKNY’s Donna Karan iconizes her Cashmere Mist fragrance............................................................. 55
Figure 25: Donna Karan, “Cashmere Mist: THE MAKING OF AN ICON Chapter 2 –The Scent,” July 15,
2014 ....................................................................................................................................................................... 56
Strategy: Celebrity endorsement ........................................................................................................56
Case study: Dior brings back Charlize Theron for new J’adore campaign .............................................................. 56
Figure 26: Christian Dior, J’adore, “The Future is Gold,” Sept. 2, 2014 .................................................................. 57
Case study: Nicholas Hoult stars in “British Intelligence” campaign for Jaguar ....................................................... 57
Figure 27: Jaguar USA, “British Intel,” Oct. 6, 2014 ................................................................................................ 58
Strategy: Involve consumers...............................................................................................................59
Case study: Burberry uses customizable ad campaign to support launch of fragrance .......................................... 59
Figure 28: Burberry, “Introducing My Burberry – The New Fragrance for Women,” Sept. 1, 2014 .......................... 60
Case study: Saks Fifth Avenue launches #SaksStyle content hub ......................................................................... 60
Strategy: Create art instead of ads .....................................................................................................61
Case study: Giorgio Armani collaborates with world-class film schools .................................................................. 61
Figure 29: Giorgio Armani, “Ella,” Sept. 9, 2014 ..................................................................................................... 61
Strategy: Mobilizing marketing ............................................................................................................62
Case study: Hermès breaks the mold with Tie Break app....................................................................................... 62
Figure 30: Hermès, “Tie Break App – A random dose of Hermès,” Aug. 7, 2014 .................................................... 62
WHAT DEFINES LUXURY .........................................................................................................................64
Key points ...........................................................................................................................................64
Quality, legacy, labels, high prices are hallmarks of luxury ................................................................64
Figure 31: How luxury purchases are defined, by all and by luxury goods buyers, September 2014 ...................... 65
Women care more about quality, visibility, and uniqueness ...............................................................65
Figure 32: How luxury purchases are defined, by gender, September 2014 ........................................................... 66
Regardless of income, luxury should be visible ..................................................................................66
Figure 33: How luxury purchases are defined, by household income, September 2014 ......................................... 67
Key luxury qualities consistent across age groups .............................................................................67
Figure 34: How luxury purchases are defined, by age, September 2014 ................................................................ 68
LUXURY PURCHASING HABITS AND SHOPPING BEHAVIORS ...........................................................69
Key points ...........................................................................................................................................69
Majority of luxury buyers purchase luxury items at a discount ...........................................................69
Figure 35: Neiman Marcus, email advertisement, October 2014 ............................................................................ 70
Figure 36: Luxury purchasing habits, September 2014 ........................................................................................... 71
Figure 37: Luxury purchasing habits of luxury goods buyers, September 2014 ...................................................... 72
Women more likely to be deal seekers ...............................................................................................72
Figure 38: Luxury purchasing habits, by gender, September 2014 ......................................................................... 72
Luxury buyers are savvy shoppers regardless of income ..................................................................73
Figure 39: Luxury purchasing habits, by household income, September 2014 ....................................................... 73
Young affluents more willing to splurge ..............................................................................................74
Figure 40: Luxury purchasing habits, by age and household income, September 2014 ......................................... 74
PREMIUM BRANDS – OWNERSHIP AND ACQUISITION .......................................................................75
Key points ...........................................................................................................................................75
Popular premium brands are accessible, established ........................................................................75
Consumers drawn to accessible luxury .................................................................................................................. 75
Consumers purchase established premium brands ................................................................................................ 75
Figure 41: Premium brands owned and purchased in the last three years, September 2014 ................................. 76
More men than women have purchased premium brands in recent years ........................................77
Figure 42: Premium brands owned and purchased in the last three years, by gender, September 2014 ................ 78
Consumers from $150K+ households more likely to own premium brands .......................................78
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Figure 43: Premium brands ownership, by household income, August 2014 .......................................................... 79
High net worth women report greater incidences of premium brand ownership ................................80
Figure 44: Premium brands purchased in the last three years, by all and high net worth women,
September 2014 ..................................................................................................................................................... 81
Qualitative brand personification ........................................................................................................82
Introduction............................................................................................................................................................. 82
Figure 45: Commonly owned premium brands ....................................................................................................... 82
Brand personification .............................................................................................................................................. 82
LUXURY GOODS RETAILING ...................................................................................................................85
Key points ...........................................................................................................................................85
Plurality of luxury purchases made in department stores and online .................................................85
Figure 46: Where respondents bought luxury goods in the last 18 months, May 2014 ........................................... 86
Figure 47: Retailers shopped at in the last three months, April 2013-June 2014 .................................................... 87
Online shoppers tend to be younger, slightly less affluent .................................................................87
Figure 48: Where they shop for luxury, by age and household income, May 2014 ................................................. 88
Figure 49: Most popular locations where luxury branded items were bought, by age and household
income, May 2014 .................................................................................................................................................. 89
Male luxury buyers significantly more likely than women to buy premium brands online ..................89
Figure 50: Most popular locations where luxury branded items were bought, by gender, May 2014 ....................... 90
Majority of recent luxury buyers purchased apparel, fashion accessories .........................................90
Figure 51: Luxury branded items bought in the past 18 months, by category, May 2014 ........................................ 91
Figure 52: Luxury branded items bought in the past 18 months, May 2014 ............................................................ 92
PARTICIPATION IN UPSCALE ACTIVITIES .............................................................................................93
Key points ...........................................................................................................................................93
More than three quarters of luxury buyers participate in “upscale” activities .....................................93
Figure 53: Premium services/activities of the last 12 months, by all and luxury goods buyers,
September 2014 ..................................................................................................................................................... 94
Luxury brand ownership goes hand in hand with upscale services....................................................94
Figure 54: Premium services/activities of the last 12 months, by count of luxury brands owned,
September 2014 ..................................................................................................................................................... 95
Male and female luxury buyers both participate in upscale activities, but specific activities
vary by gender ....................................................................................................................................95
Figure 55: Premium services/activities of the last 12 months, by gender, September 2014 .................................... 96
Involvement in luxury activities increases with income .......................................................................96
Figure 56: Premium services/activities of the last 12 months, by household income, September 2014 .................. 97
Figure 57: Premium services/activities of the last 12 months, by age and household income, September
2014 ....................................................................................................................................................................... 98
CONSUMER ATTITUDES ABOUT LUXURY .............................................................................................99
Key points ...........................................................................................................................................99
Attitudes toward luxury goods and spending ....................................................................................100
For most consumers, participation in activities does not occur at the expense of luxury purchases ..................... 100
Figure 58: Attitudes toward spending, by all and luxury goods buyers, September 2014 ..................................... 100
Attitudes toward luxury goods and spending by gender, age, and household income .......................................... 100
Figure 59: Attitudes toward luxury purchases – Spending, by gender, age, and household income,
September 2014 ................................................................................................................................................... 101
Attitudes toward logo visibility ...........................................................................................................101
About one in four avoid obvious designer logos ................................................................................................... 102
Figure 60: Attitudes toward logo visibility, September 2014 .................................................................................. 103
Attitudes toward logo visibility by gender, age, and household income ................................................................. 103
Figure 61: Attitudes toward luxury purchases – Logo visibility, by gender, age, and household income,
September 2014 ................................................................................................................................................... 104
Attitudes toward exclusivity ...............................................................................................................104
More than one in 10 do not think luxury and attainability can coincide .................................................................. 104
Figure 62: Attitudes toward exclusivity, September 2014...................................................................................... 105
Attitudes toward exclusivity by gender, age, and household income .................................................................... 106
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Figure 63: Attitudes toward luxury purchases – Exclusivity, by gender, age, and household income,
September 2014 ................................................................................................................................................... 107
Attitudes toward quality, authenticity, and the hedonistic thrill of buying luxury ...............................107
Roughly one quarter of luxury buyers say luxury is better quality and makes them feel good; most are
not interested in knockoffs .................................................................................................................................... 107
Figure 64: Attitudes toward quality, authenticity, and hedonistic thrill of buying luxury, September 2014 ............. 108
Qualitative findings: Knockoffs viewed as both fun and guilt inducing ................................................................... 108
Attitudes about quality, authenticity, and the hedonistic thrill of buying luxury by gender, age, and
household income ................................................................................................................................................ 109
Figure 65: Attitudes toward luxury purchases – Quality, authenticity, and hedonistic thrill of buying
luxury, by gender, age, and household income, September 2014 ........................................................................ 110
IMPACT OF RACE AND HISPANIC ORIGIN ...........................................................................................111
Key points .........................................................................................................................................111
The core defining traits of luxury are the same regardless of race, Hispanic origin .........................111
Figure 66: How luxury purchases are defined, by race/Hispanic origin, September 2014 ..................................... 112
“Other races,” including Asians, more likely than average to pay full price for luxury ......................112
Figure 67: Luxury purchasing habits, by race/Hispanic origin, September 2014 ................................................... 113
Asians, Hispanics most likely to own a premium brand ....................................................................113
Figure 68: Premium brands owned, by race/Hispanic origin, September 2014 ..................................................... 114
Nearly half of Blacks have not participated in an upscale activity ....................................................114
Figure 69: Premium services/activities of the last 12 months, by race/Hispanic origin, September 2014 .............. 115
Hispanics, Asians most likely to say that purchasing luxury makes them feel good ........................115
Figure 70: Attitudes toward luxury purchases, by race/Hispanic origin, September 2014 ..................................... 116
APPENDIX – OTHER USEFUL MARKET TABLES ................................................................................118
Market drivers ...................................................................................................................................118
Figure 71: International inbound tourism, 2000-13................................................................................................ 118
Figure 72: Overseas leisure visitors to the US, 2006-13 ....................................................................................... 118
APPENDIX – OTHER USEFUL CONSUMER TABLES...........................................................................119
What defines luxury ..........................................................................................................................119
Figure 73: How luxury purchases are defined, by attitudes toward luxury purchase – Spending,
September 2014 ................................................................................................................................................... 119
Figure 74: How luxury purchases are defined, by attitudes toward luxury purchase – Logo visibility,
September 2014 ................................................................................................................................................... 120
Figure 75: How luxury purchases are defined, by attitudes toward luxury purchase – Quality and
authenticity, September 2014 ............................................................................................................................... 121
Figure 76: How luxury purchases are defined, by attitudes toward luxury purchase – Exclusivity,
September 2014 ................................................................................................................................................... 122
Luxury purchasing habits and shopping behaviors ..........................................................................122
Figure 77: Luxury purchasing habits, September 2014 ......................................................................................... 122
Figure 78: Luxury purchasing habits, by age, September 2014 ............................................................................ 123
Figure 79: Luxury purchasing habits, by race/Hispanic origin, September 2014 ................................................... 123
Figure 80: Luxury purchasing habits, by attitudes toward luxury purchase, September 2014 ............................... 124
Premium brands: Ownership and acquisition – brands owned ........................................................125
Figure 81: Luxury brands owned, September 2014 .............................................................................................. 125
Figure 82: Luxury brands owned by luxury goods buyers, by gender, September 2014 ....................................... 126
Figure 83: Luxury brands ownership, by age, August 2014 .................................................................................. 127
Figure 84: Luxury brands owned, by household income, September 2014 ........................................................... 128
Figure 85: Luxury brands owned, by race/Hispanic origin, September 2014 ........................................................ 129
Figure 86: Luxury brands owned, by age and household income, September 2014 ............................................. 130
Figure 87: Luxury brands owned, by luxury purchasing habits, September 2014 ................................................. 131
Figure 88: Luxury brands owned, by repertoire of luxury brands owned, September 2014 ................................... 132
Figure 89: Luxury brands owned, by luxury brands owned, part I, September 2014 ............................................. 133
Figure 90: Luxury brands owned, by luxury brands owned, part II, September 2014 ............................................ 134
Figure 91: Luxury brands owned, by luxury brands owned, part III, September 2014 ........................................... 135
Figure 92: Luxury brands owned, by luxury brands owned, part IV, September 2014 .......................................... 136
Figure 93: Luxury brands owned, by luxury brands owned, Part V, September 2014 ........................................... 137
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Figure 94: Last watch brand purchased, by race/Hispanic origin, April 2013-June 2014 ...................................... 138
Figure 95: Last watch brand purchased, by household income, April 2013-June 2014 ......................................... 138
Figure 96: Brand of nail polish/nail care products used by women, by age, April 2013-June 2014 ....................... 139
Figure 97: Brand of perfume, toilet water, or cologne used most often, by gender, April 2013-June 2014 ............ 139
Figure 98: Brand of perfume, toilet water, or cologne used most often, by age, April 2013-June 2014 ................. 140
Figure 99: Brand of perfume, toilet water, or cologne used most often, by household income, April
2013-June 2014.................................................................................................................................................... 141
Premium brands: Ownership and acquisition – brands purchased in last three years.....................142
Figure 100: Luxury brands purchased in the last three years, September 2014 ................................................... 142
Figure 101: Luxury brands purchased in the last three years, by age, September 2014 ....................................... 143
Figure 102: Luxury brands purchased in the last three years, by household income, September 2014 ................ 144
Figure 103: Luxury brands purchased in the last three years, by age and household income,
September 2014 ................................................................................................................................................... 145
Figure 104: Luxury brands purchased in the last three years, by spending, September 2014 .............................. 146
Figure 105: Luxury brands purchased in the last three years, by logo visibility, September 2014 ......................... 147
Figure 106: Luxury brands purchased in the last three years, by quality and authenticity, September
2014 ..................................................................................................................................................................... 148
Figure 107: Luxury brands purchased in the last three years, by exclusivity, September 2014 ............................ 149
Luxury goods retailing .......................................................................................................................150
Figure 108: Most popular locations where luxury branded items were bought in the last 18 months, by
gender, May 2014 ................................................................................................................................................. 150
Figure 109: Retailers purchased from online in past three months, by gender, April 2013-June 2014 .................. 150
Participation in upscale activities ......................................................................................................151
Figure 110: Premium services/activities of the last 12 months, by gender, September 2014 ................................ 151
Figure 111: Premium services/activities of the last 12 months, by age, September 2014 ..................................... 152
Figure 112: Premium services/activities of the last 12 months, by race/Hispanic origin, September 2014 ............ 153
Figure 113: Premium services/activities of the last 12 months, by age and household income,
September 2014 ................................................................................................................................................... 154
Figure 114: Premium services/activities of the last 12 months, by spending, September 2014 ............................ 155
Figure 115: Premium services/activities of the last 12 months, by logo visibility, September 2014 ....................... 156
Figure 116: Premium services/activities of the last 12 months, by quality and authenticity, September
2014 ..................................................................................................................................................................... 157
Figure 117: Premium services/activities of the last 12 months, by exclusivity, September 2014 ........................... 158
Attitudes toward luxury goods and spending ....................................................................................159
Figure 118: Attitudes toward luxury purchases, September 2014 ......................................................................... 159
Figure 119: Attitudes toward luxury purchase – Spending, by race/Hispanic origin, September 2014 .................. 160
Figure 120: Attitudes toward luxury purchase – Spending, by demographics, September 2014 ........................... 161
Figure 121: Attitudes toward luxury purchase – Logo visibility, by race/Hispanic origin, September 2014 ............ 162
Figure 122: Attitudes toward luxury purchase – Logo visibility, by demographics, September 2014 ..................... 163
Figure 123: Attitudes toward luxury purchase – Quality and authenticity, by race/Hispanic origin,
September 2014 ................................................................................................................................................... 164
Figure 124: Attitudes toward luxury purchase – Quality and authenticity, by demographics, September
2014 ..................................................................................................................................................................... 165
Figure 125: Attitudes toward luxury purchase – Exclusivity, by race/Hispanic origin, September 2014 ................ 166
Figure 126: Attitudes toward luxury purchase – Exclusivity, by demographics, September 2014 ......................... 167
Figure 127: Attitudes toward luxury purchase, by spending, September 2014 ...................................................... 168
Figure 128: Attitudes toward luxury purchase, by logo visibility, September 2014 ................................................ 169
Figure 129: Attitudes toward luxury purchase, by quality and authenticity, September 2014 ................................ 170
Figure 130: Attitudes toward luxury purchase, by exclusivity, September 2014 .................................................... 171
Figure 131: Attitudes about apparel (any agree), by gender, April 2013-June 2014 ............................................. 172
Figure 132: Attitudes about apparel (any agree), by age, April 2013-June 2014 .................................................. 172
Figure 133: Attitudes about apparel (any agree), by race and Hispanic origin, April 2013-June 2014 .................. 173
Figure 134: Attitudes about apparel (any agree), by household income, April 2013-June 2014 ............................ 173
Figure 135: Attitudes about apparel (any agree), by race and age groups, April 2013-June 2014 ........................ 174
Figure 136: Attitudes about apparel (any agree), by Hispanic origin and age groups, April 2013-June
2014 ..................................................................................................................................................................... 174
Figure 137: Attitudes about apparel (any agree), by region, April 2013-June 2014............................................... 175
Figure 138: Agreement that “A designer label improves a person’s image,” by gender, age, and
household income, April 2013-June 2014 ............................................................................................................. 175
Figure 139: Attitudes toward designer quality, by gender, age, and household income, April 2013-June
2014 ..................................................................................................................................................................... 176
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Figure 140: Attitudes/opinions about money, quality, and status (any agree), by gender, April 2013June 2014............................................................................................................................................................. 176
Figure 141: Attitudes/opinions about money, quality, and status (any agree), by age, April 2013-June
2014 ..................................................................................................................................................................... 177
Figure 142: Attitudes/opinions about money, quality, and status (any agree), by race/Hispanic origin,
April 2013-June 2014 ........................................................................................................................................... 177
Figure 143: Attitudes/opinions about money, quality, and status (any agree), by household income,
April 2013-June 2014 ........................................................................................................................................... 178
Teens and luxury ..............................................................................................................................178
Figure 144: Retailers shopped at in past three months, by gender and by age, April 2013-June 2014 ................. 178
Figure 145: Retailers shopped at in past three months, by gender by age, April 2013-June 2014 ........................ 179
Figure 146: Brand of nail polish/nail care products used by teen girls, by age, April 2013-June 2014 .................. 179
Figure 147: Brand of perfume, toilet water, or cologne used most often, by gender and by age, April
2013-June 2014.................................................................................................................................................... 180
Figure 148: Brand of perfume, toilet water, or cologne used most often, by gender and age, April 2013June 2014............................................................................................................................................................. 180
APPENDIX – TRADE ASSOCIATIONS ...................................................................................................181
US METHODOLOGY ................................................................................................................................183
CONSUMER RESEARCH ............................................................................................................................183
Primary Data Analysis ............................................................................................................................................. 183
Secondary Data Analysis ......................................................................................................................................... 186
Qualitative Research................................................................................................................................................ 190
Further Analysis ..................................................................................................................................................... 190
Social Media Research ............................................................................................................................................ 191
TRADE RESEARCH ...................................................................................................................................191
STATISTICAL FORECASTING......................................................................................................................192
ix
Scope and Themes
US, December 2014
Scope and Themes
What you need to know
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 – a 60% increase
over 2009, while the global market increased by 57% over the same period to reach $167.1 billion. 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-toluxury marketers, but also deep, thought-provoking content for more seasoned professionals.
Readers of this report may also be interested in Mintel’s Asian American Premium Brand Consumers –
US, June 2013 and Luxury Goods Retailing – International, August 2014.
Definition
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; and

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.
Value figures throughout this report are at rsp (retail selling prices) excluding sales tax unless
otherwise stated.
10
Scope and Themes
US, December 2014
Data sources
Sales data

Market Size: The Mintel market size is calculated from the aggregated turnover of luxury brands in the
retail context, adjusted where necessary to add a retail margin and the sales of smaller players.

Mintel’s market size is based on the sales of the leading players. Those figures are a combination of
sales through directly operated stores, which are consolidated at retail prices, and sales to wholesalers
and licensees, which are consolidated at the price the luxury company sells to them. In order to
estimate the retail value of the market we need to add a retail margin to the wholesale value. Retail
markups were estimated.

Leading Companies: Unless otherwise noted, all information presented about a company was obtained
from the respective company’s website, annual report, or SEC 10-K filing (where applicable).
Consumer survey data
For the purposes of this report, Mintel commissioned exclusive consumer research through Lightspeed
GMI to explore consumption of luxury goods and attitudes toward luxury products and services. Mintel
was responsible for the survey design, data analysis, and reporting. Fieldwork was conducted in
September 2014 among a sample of 2,000 adults aged 18+ with access to the internet.
In addition to the general market sample, Mintel includes an augment sample of 500 High Net Worth
Women (HNWW) in regard to luxury brand ownership and purchasing. These include women aged 18+
with access to the internet, 250 with $500K-999.9K in household investments, and 250 women with
household investments of $1M+. Further, where appropriate, Mintel has included research conducted for
its Luxury Goods Retailing – International, August 2014. Fieldwork was conducted in May 2014 among a
sample of 2,000 adults aged 18+ with access to the internet.
Mintel selects survey respondents by gender, age, household income, and region so that they are
proportionally representative of the US adult population using the internet. Mintel also slightly oversamples, relative to the population, respondents that are Hispanic or Black to ensure an adequate
representation of these groups in our survey results and to allow for more precise parameter estimates
from our reported findings. Please note that Mintel’s exclusive surveys are conducted online and in
English only. Hispanics who are not online and/or do not speak English are not included in our survey
results.
Mintel has also analyzed data from Experian Marketing Services, using the Simmons NHCS (National
Hispanic Consumer Study) and the Simmons NCS Teen Study.
The Experian Marketing Services, Simmons NHCS was carried out from August 2013-September 2014,
and the results are based on the sample of 26,053 adults aged 18+, with results weighted to represent the
US adult population. The Experian Marketing Services, Simmons NCS Teen Study was conducted from
April 2013-June 2014 and is based on a sample of 1,692 teenagers aged 12-17, with results weighted to
represent the US teen population.
11
Scope and Themes
US, December 2014
While race and Hispanic origin are separate demographic characteristics, Mintel often compares them to
each other. Please note that the responses for race (White, Black, Asian, Native American, or other race)
will overlap those that also are Hispanic, because Hispanics can be of any race.
Consumer qualitative research
In addition to quantitative consumer research, Mintel also conducted an online discussion group among a
demographically mixed group of adults aged 18+. This discussion group was asynchronous (ie not run in
real time), functioning like a blog or bulletin board, with questions remaining posted for a predetermined
period of time. This method allows participants to respond reflectively, at their leisure, or to log off to
think about any issues raised, and return later to respond. Participants were recruited from Lightspeed
GMI’s online consumer panel with responses collected in October 2014. Relevant quotes are included as
stated. However, Mintel corrected typos and grammatical errors prior to publishing.
Direct marketing creative
All estimated mail volume data and consumer direct mail marketing creative are provided by Mintel
Comperemedia.
Mintel Comperemedia is a searchable competitive database tracking direct mail, print, and online
advertising in the US and Canada, as well as email in the US. Comperemedia tracks information across
eight sectors: Banking, Credit Card, Investments, Insurance, Mortgage and Loan, Telecom, Travel and
Leisure, and Automotive.
For more information, please contact Account Services Management at 312.450.6353 or www.mintel.com.
12
Scope and Themes
US, December 2014
Abbreviations and terms
Abbreviations
The following is a list of abbreviations used in this report:
bn
DKNY
EIC
EUR
FY
GDP
GIF
GQ
H&M
HNWW
K
LLC
LVMH
m
NCS/NHCS
PVH
Q
SA
SEC
UK
UNTWO
US
USD
VAT
VeRO
VVSA
WWD
Billion
Donna Karan – New York
Editor in chief
Euros
Fiscal year
Gross domestic product
Graphics interchange format
Gentleman's Quarterly
Hennes & Mauritz
High net worth women
Thousand
Limited liability company
Moët Hennessy – Louis Vuitton SA
Million
National Consumer Study/National Hispanic Consumer Study (Experian Simmons)
Phillips-Van Heusen
Quarter
Société Anonyme
Securities and Exchange Commission
United Kingdom
United Nations World Tourism Organization
United States of America
US dollars
Value added tax
Verified Rights Owner
Varin-Etampage and Varionor
Women's Wear Daily
Terms
Generations are discussed within this report, and they are defined as:
World War II /
Swing generation
Baby Boomers
Generation X
Millennials*
iGeneration
Emerging
generation
Members of the WWII generation were born in 1932 or before and are aged 82 or
older in 2014. Members of the Swing Generation were born between 1933 and
1945 and are aged 69-81 in 2014.
The generation born between 1946 and 1964. In 2014, Baby Boomers are between
the ages of 50 and 68.
The generation born between 1965 and 1976. In 2014, Gen Xers are between the
ages of 38 and 49.
The generation born between 1977 and 1994. In 2014, Millennials are between the
ages of 20 and 37.
The generation born between 1995 and 2007. In 2014, iGens are between the ages
of 7 and 19.
The newest generation began in 2008 as the annual number of births declined
sharply with the recession. In 2014 members of this as-yet-unnamed generation are
younger than 7.
* also known as Generation Y or Echo Boomer
13
Executive Summary
US, December 2014
Executive Summary
“The luxury market is growing both on a domestic and international level, and it shows no signs of
stopping. Premium brands should see sustained success so long as they manage their exclusive
reputations, remain innovative, and meet expectations for quality. This can be accomplished in a
number of ways, most notably by crafting high-quality products, offering customization, and
creating all-encompassing luxury experiences that pamper customers at every touchpoint.”
– Lindsey Rogers, Consumer Analyst
The market
The luxury goods market has grown on both a global and domestic level, though it has grown more
quickly within the US. From 2009-13, the US market increased from $22.4 billion to $35.9 billion, an
increase of 60%. This growth in luxury revenue outpaces most other countries, with the exception of
Japan, China, and Australia.
In 2013, the largest luxury category by revenue in the US was fashion/leather. The second largest was
perfume/cosmetics, and the third was watches/jewelry.
FIGURE 1: LUXURY GOODS REVENUE, GLOBAL AND US, 2009-13
Note: Excludes VAT, values based on sales at retail selling prices and do not include markups
SOURCE: CAPGEMINI-RBC W EALTH MANAGEMENT W ORLD W EALTH REPORT 2012-14 AND CAPGEMINI-MERRILL LYNCH W ORLD
WEALTH REPORT, 2010-2011/MINTEL, LUXURY GOODS RETAILING – INTERNATIONAL, AUGUST 2014
14
Executive Summary
US, December 2014
FIGURE 2: US LUXURY REVENUE, BY CATEGORY, 2013
SOURCE: MINTEL, LUXURY GOODS RETAILING – INTERNATIONAL, AUGUST 2014
Market drivers

Tourism: In 2013, international tourism grew 5% worldwide, and it grew by 3% in the US. It is
expected to grow again in 2014. Mintel’s data shows that many consumers buy luxury goods when
abroad, so this growth should help drive the market.

Economic growth: Since the end of the recession in 2009, GDP and consumer confidence have
trended upward, while employment rates have trended downward (in September 2014, unemployment
fell below 6% for the first time since 2008). These changes may lead to increases in discretionary
purchases.

Population growth: Over the next several years, growth in the luxury market should be driven in part
by growing Asian and Hispanic populations. Both of these demographics are more likely than average
to own luxury brands and to say that purchasing luxury makes them feel good.

E-commerce: More than half of recent luxury buyers have purchased a luxury item online within the
last 18 months. Furthermore, global management firm McKinsey & Company projects that online
luxury transactions are growing twice as fast as the sector as a whole.
Leading companies
The largest luxury group in the world is French company LVMH Moët Hennessy – Louis Vuitton SA,
which reported revenues exceeding $37 billion in 2013. This revenue is tied closely to that of its parent
company, Christian Dior SA, which holds a 40% stake in LVMH through one of its wholly owned
subsidiaries. Richemont, the Swiss company that owns Cartier, NET-A-PORTER, and Van Cleef &
Arpels, is the next largest luxury goods company, though it only earns about one third the revenue that
LVMH does.
15
Executive Summary
US, December 2014
By revenue, one of the largest US-based luxury corporations is PVH (Phillips-Van Heusen), the company
that owns Calvin Klein and Tommy Hilfiger. Of the companies evaluated, PVH reported the greatest
increase in revenue in its FY 2013 (35.4%).
FIGURE 3: LUXURY SALES BY TOP LUXURY HOUSES (IN USD BILLIONS), FY2013
Notes: LVMH’s brands include Louis Vuitton and TAG Heuer. Richemont’s brands include Cartier, NET-A-PORTER,
Montblanc, and Van Cleef & Arpels. Kering’s brands include Gucci, Saint Laurent, and Balenciaga. PVH’s brands
include Calvin Klein and Tommy Hilfiger.
Data may not equal totals due to rounding.
* based on the average exchange rate for 2013 as reported by the IRS (1 USD = 0.783 EUR)
SOURCE: COMPANY WEBSITES/MINTEL
16
Executive Summary
US, December 2014
FIGURE 4: LUXURY SALES BY TOP LUXURY HOUSES (IN USD BILLIONS), FY2013
Company
Dior
LVMH
Richemont
Kering
PVH
Ralph Lauren
Coach
Revenue
FY2013
USD
$(bn)
38.47*
37.23*
12.96*
12.45*
8.19
6.95
5.08
EUR
€(bn)
Net income
FY2013
USD
$(m)
Profit margin
FY2013
EUR
€(m)
%
30.12
29.15
10.15
9.75
-
7,773.95*
5,041.87*
2.55*
63.86*
143.54
750.00
1,034.00
6,087.00
3,947.00
2.00
50.00
-
20.20**
13.54**
<0.01**
<0.01**
1.74
10.8
20.37
Notes: LVMH’s brands include Louis Vuitton and TAG Heuer. Richemont’s brands include Cartier, NET-A-PORTER,
Montblanc, and Van Cleef & Arpels. Kering’s brands include Gucci, Saint Laurent, and Balenciaga. PVH’s brands
include Calvin Klein and Tommy Hilfiger.
Data may not equal totals due to rounding.
* based on the average exchange rate for 2013 as reported by the IRS (1 USD = 0.783 EUR)
** calculated using value of euros, not US dollars
The consumer
Craftsmanship is the number one defining characteristic of luxury
Nearly six out of 10 luxury goods buyers say that luxury products are those that use high-quality materials
and craftsmanship, though the percentage of all respondents who agree with this statement is significantly
lower (49%). Agreement that luxury is defined by craftsmanship increases as respondents’ household
income increases.
Half of luxury goods buyers also say that luxury brands are those with a long-standing history of
exclusivity. Other hallmarks of luxury include visible designer trademarks, high prices, and unique
offerings.
17
Executive Summary
US, December 2014
FIGURE 5: TOP FIVE DEFINING ATTRIBUTES OF LUXURY, BY ALL AND LUXURY GOODS BUYERS, SEPTEMBER 2014
“In your opinion, which of the following statements define a luxury purchase?”
Base: 2,000 internet users aged 18+/1,249 who buy luxury goods
SOURCE: LIGHTSPEED GMI/MINTEL
Majority of luxury buyers only purchase discounted luxury
When projected to the US population, about 7.5 million adults buy full-price luxury most of the time;
however, the majority of luxury buyers are only interested in luxury items that are deeply discounted.
Female respondents, who are more likely to view luxury items as non-necessities, are more likely than
male respondents to purchase discounted luxury goods. In addition, Blacks and Whites are more likely
than other race groups (predominantly Asians) to purchase discounted luxury.
These findings present a challenge to companies that want to increase sales and profit margins without
cheapening their brand. Some companies have found success by positioning discounts as limited or
exclusive. Others have opted to keep their sales largely unpublicized, only telling customers when they
walk in the door. Either way, luxury companies that offer discounts must remain vigilant to ensure that the
balance remains tipped in their favor.
18
Executive Summary
US, December 2014
FIGURE 6: LUXURY PURCHASING HABITS, SEPTEMBER 2014
“Based on your shopping habits, which of the following best describes how you view luxury
purchases?”
Base: 1,780 internet users aged 18+ who have an opinion of luxury
Accessible American brands popular among luxury consumers
Of the brands evaluated, the most popular brands are Ralph Lauren, Coach, and Calvin Klein. These
brands are all US-based and use scalable product lines; in other words, they sell less expensive products,
such as wristlets, that can be upgraded to more expensive products, such as handbags. These brands also
have friendly personas, as opposed to intimidating ones. In Mintel’s qualitative research, respondents
tended to identify with brands like Calvin Klein. Though some luxury brands seem to fear popularity or
accessibility, the companies behind these brands are prosperous. All three companies experienced sales
growth in 2013, and two of the companies (Ralph Lauren and Coach) reported healthy profit margins.
Luxury companies that want to increase their brand penetration may want to aim their products at those
with household incomes of $150K+ (who over index in brand ownership) and at men. Though women are
more likely than men to be premium brand owners, more men than women have purchased premium
brands within the last three years. Companies may also want to target Asians and Hispanics, who report
higher rates of premium brand ownership than do other races.
19
Executive Summary
US, December 2014
FIGURE 7: PREMIUM BRANDS OWNED AND PURCHASED IN THE LAST THREE YEARS, SEPTEMBER 2014
“Which, if any, of the following luxury brands do you own?”
“And which, if any, have you purchased in the last three years?”
Base: 2,000 internet users aged 18+/1,309 who own any luxury brands
Luxury consumers purchase across channels and across countries
In the last 18 months, the majority of luxury buyers purchased their luxury goods in-store in the US (71%)
or online (54%), though many also purchased abroad (40%). Both in country and abroad, department
stores are the most popular brick-and-mortar shopping destinations. Respondents who have recently
purchased at a department store tend to be older than those who have purchased at stand-alone stores.
Department store shoppers also tend to be older than online shoppers.
The plurality of recent online purchasers (37% of recent luxury buyers) have purchased from a brand
store. Still, 26% of recent luxury brands have purchased from a non-brand store (eg eBay) and luxury
companies are losing potential revenue streams to these sites. Luxury goods buyers who have shopped at
these third-party sites tend to be younger and slightly less affluent.
20
Executive Summary
US, December 2014
FIGURE 8: W HERE RESPONDENTS BOUGHT LUXURY GOODS IN THE LAST 18 MONTHS, MAY 2014
“Please select where you purchased the luxury branded item(s) you bought in the last 18
months.”
Base: 2,000 internet users aged 18+/1,309 who own any premium brands
SOURCE: LIGHTSPEED GMI/MINTEL, LUXURY GOODS RETAILING – INTERNATIONAL, AUGUST 2014
Luxury buyers over index in upscale activities
Many luxury goods buyers live a lifestyle of luxury that also includes involvement in upscale activities.
Over the last year, three quarters of luxury buyers participated in one of the upscale activities evaluated,
which means that they are 23% more likely than average to have done so. The most popular activities
among luxury goods buyers include eating a meal at a fine dining restaurant (44%), purchasing tickets for
a cultural event (26%), and staying overnight at a premium/luxury brand hotel or resort (22%). Though
going to a spa is not the most popular activity among these luxury goods buyers, they are 35% more likely
than the average to do so, and incidences of involvement increase with household income. Luxury goods
buyers also over index several other activities, such as purchasing artwork.
Luxury goods brands and luxury service providers may wish to collaborate for marketing initiatives. For
example, Saks Fifth Avenue offers personal shopping appointments to Four Seasons hotel guests who lose
their luggage.
21
Executive Summary
US, December 2014
FIGURE 9: PREMIUM SERVICES/ACTIVITIES OF THE LAST 12 MONTHS, LUXURY GOODS BUYERS INDEX TO TOTAL, SEPTEMBER 2014
“Which, if any, of the following activities have you done in the last 12 months?”
Base: 1,249 internet users aged 18+ who buy luxury goods
Consumers more likely to avoid visible trademarks than to enjoy owning them
The majority of respondents seem indifferent toward visible trademarks, though some do have opinions.
About one third of luxury buyers avoid trademarks, likely because they perceive them to be too flashy, as
was indicated by Mintel’s qualitative research. Though about one out of five luxury goods buyers do enjoy
owning these visible markings, brands may want to offer some more discreet options. These designs can
still be visible; they should just be a little more demure.
Compared to the average, luxury goods buyers are 38% more likely to be interested in owning trademarkbranded items. The luxury buyers who are interested in these items are more likely to be male than female.
22
Executive Summary
US, December 2014
FIGURE 10: ATTITUDES TOWARD LOGO VISIBILITY, BY ALL AND BY LUXURY GOODS BUYERS, SEPTEMBER 2014
“Which, if any, of the following statements about luxury goods do you agree with?”
One third of luxury goods buyers say luxury makes them feel good, very few interested in
knockoffs
Luxury goods buyers – especially Asians, Hispanics, or have those with household incomes of at least
$150K – are significantly more likely than the average to agree that purchasing luxury goods makes them
feel good. They are also significantly more likely to agree that luxury products are better quality than midpriced products. Luxury companies may wish to reinforce these beliefs in their communications with
consumers.
For the majority of respondents, the disadvantages of owning a knockoff outweigh the advantages. Only
15% of respondents agree that they would rather purchase a knockoff if no one could tell the difference,
though respondents may be reluctant to admit their interest. Female luxury buyers and less affluent buyers
show a greater interest in product replicas than do other groups.
23
Executive Summary
US, December 2014
FIGURE 11: ATTITUDES TOWARD QUALITY, AUTHENTICITY, AND HEDONISTIC THRILL OF BUYING LUXURY, SEPTEMBER 2014
What we think
The luxury goods market in the US continues to grow, and indicators suggest that it will continue to do so.
Both tourism rates and the economy are growing, as are key demographics such as Asians and Hispanics.
Furthermore, members of the nation’s largest generation, the Millennials, are reaching the prime luxury
purchasing age.
Despite these positive market indicators, luxury brands should not become complacent. Companies that
want to increase their sales or market share must strive not only to keep up with the fast-paced luxury
market, but also to stay ahead of the curve. As part of this process, luxury companies may need to court a
wider audience, including discount buyers, while taking care not to diminish their perceived value. They
may also need to launch e-commerce sites (especially if they are courting Millennials or Asians/Hispanics,
who tend to be younger), expand internationally, acquire new companies, or add new lines to their product
mix.
24
Issues and Insights
US, December 2014
Issues and Insights
“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
How can luxury companies leverage social media without losing the
appearance of exclusivity?
The issues
Luxury companies have been hesitant to jump on the social media bandwagon, often claiming that doing
so will make them appear less exclusive and, therefore, less desirable. This is a valid concern as half of
luxury goods buyers consider luxury goods as those with a long-standing history of exclusivity (see What
Defines Luxury). Nonetheless, a social media presence has become progressively more important as
consumer use of social media has increased. For example, Mintel’s Social Networking – US, June 2014
finds:

The overwhelming majority (95%) of adult internet users in the US visit Facebook. Another 81% visit
YouTube, and 50% visit Twitter.

About 66% of adult internet users view company-posted content at least once a month.

Some 11% of adults say they look for information on a company’s social media pages before going to
a company’s website.
In addition, Mintel’s Marketing to Millennials – US, February 2014 reports on the importance of using
technology and social media to reach consumers:

Some 22% of adult internet users agree that companies/brands that don’t communicate with their
customers using technology (eg social media, email, text messages) are outdated; this increases to
29% among Millennials.

About one in five (19%) agree that companies/brands need social media pages while 28% of
Millennials share this sentiment.
Moreover, social brand pages are de rigueur, and several luxury brands (eg Chanel, Burberry, Dior,
Cartier, and Hermès) are active on social media. Luxury brands that are not active on social media risk
losing both visibility and sales to these competitors.
25
Issues and Insights
US, December 2014
The implications
Luxury companies should not avoid social media entirely; however, they should avoid sites and strategies
that threaten their exclusive reputation or provide a low return on investment. Luxury brands may find the
most success from sites where there is less brand-to-consumer interaction, such as YouTube. Brands are
also more likely to find success on sites where their audience is active; Dom Perignon, for example, would
probably see more success on Facebook than it would on Kik or WhatsApp.
On social sites that require more interaction, such as Facebook and Twitter, luxury brands should be
reserved but impactful with their messaging. Many luxury brands do not post every day. That way, when
they do post something, their followers realize they should pay attention. According to True Social
Metrics, Chanel posts three times less often than Burberry, but receives 30% higher engagement.
Similarly, Louis Vuitton posts two times less often than Burberry, but receives 70% higher engagement.
To seem less accessible, some luxury brands also vet their followers by making their Twitter and
Instagram profiles private.
Brands cannot push out or share clumsy content and still maintain their high-end reputations. Luxury
brands must ensure that their content quality is reflective of their products’ quality. Brands should also aim
to imbue their content with glamour, prestige, and a little je ne sais quoi. This can sometimes be
accomplished by using celebrities or by using artistic photography (see Marketing Strategies).
Brands should remember that both luxury and social networking are about influence. Luxury brands may
even wish to create partnerships with well-known online influencers who can push out brand-related
content.
Should luxury brands operate e-commerce sites?
The issues
For the same reason that luxury companies have been hesitant to join social media, they have been hesitant
to start e-commerce sites. Bain Consulting estimates that 40% of luxury retailers don’t sell online. Some
of these companies will list their products online in an attempt to drive sales in-store, but this strategy is
not always effective for a variety of reasons, for example:

Many Americans do not live close to luxury stores. Nearly two out of 10 American citizens lived in a
rural area in 2010, and many consumers live in smaller urban areas that do not have luxury stores.
Consumers in some of these areas are growing wealthier. According to Wealth-X, North Dakota
experienced a 14.3% increase in ultra-high-net-worth individuals (those who are worth more than $30
million) in 2014, the most of any US state.

Luxury purchases frequently happen on impulse when consumers get that I need to have it now
feeling, as indicated by Mintel’s qualitative research:
“I once purchased a Fendi leather purse….I didn’t really think about this; I’d been looking for a
specific style of leather bag for a while, and when I went into the store, I saw it. I thought about it
for five minutes until my mother convinced me to buy it.”
– Female, aged 18-24, luxury item owner
26
Issues and Insights

US, December 2014
Consumers who shop online are often looking at multiple sites. If a woman who is browsing online
falls in love with both a Chanel bag and a Gucci bag, she may be more likely to purchase the Gucci
bag – simply because it’s available online.
Luxury companies should also be aware that online shopping is increasingly common. More than half of
recent luxury buyers say they have purchased a luxury product online in the last 18 months (see Market
Drivers and Luxury Goods Retailing). Further, global management firm McKinsey & Company estimates
that online luxury transactions are growing twice as fast as the sector as a whole.
The implications
There is no “one size fits all” approach to e-commerce. There can be legitimate reasons for not selling
online, but luxury brands should not immediately dismiss e-commerce without further examination. To
determine the best strategy, brands should look at their business model, their financial performance, and
their long-term goals. For example, designers who use their ready-to-wear line as a marketing tool for
their other lines (eg bags, watches) may not need to sell their clothes online, but designers whose core
products are lagging in sales may wish to explore the option.
Luxury companies that sell online may wish to offer their products in limited quantities or for limited
times. This helps create the feeling of exclusivity.
Another idea for luxury companies is to create membership-based e-commerce sites where users cannot
purchase items or even see product prices until they are a member. After a user submits a membership
request, he or she could receive an “exclusive” email invitation to join the site. This e-commerce model
also presents an opportunity for brands to personalize their interactions with consumers.
Do luxury rental sites pose a threat to luxury companies?
The issues
In the last 10 years, luxury rental companies, such as Rent the Runway and Bag, Borrow, or Steal, have
been cropping up on the internet. These websites have disrupted the luxury goods business by allowing
consumers to rent luxury items temporarily instead of purchasing them. Obviously, these websites create
demand for rental items, but they can potentially reduce profit margins by discouraging consumers from
purchasing their own luxury goods. These sites can also create issues for brands that want to maintain their
exclusive allure. Rent the Runway, for example, received backlash from several designer companies in
2012 for allowing user-submitted photos on its site.
“When you present a luxury brand, in my opinion it’s not about being accessible – it’s all about the
dream, it’s all about the aspiration. It’s not about the girl around the corner that lives near you and
has a Gucci jacket, a martini in her hand and is smoking a cigarette – it’s about the supermodel in
Paris, shot by the best photographer.”
– Marc Beckman, Designers’ Management Agency head
As of 2014, Rent the Runway is not yet profitable, but it is valued at $220 million. Moreover, it has some
5 million users – many of whom are on the site’s recently launched “unlimited” plan – and even more
consumers are interested in the idea:
27
Issues and Insights
US, December 2014
“In my opinion, renting luxury items is a very new and special idea. It is a very special idea for
special occasions.”
– Male, aged 35-44, luxury item owner
“I’ve never rented luxury items, but I think it’s a great idea. I can save money by renting them
instead of buying them for special occasions. The only disadvantage I can think of is not wanting to
give it back if I really like it.”
– Male, 35-44, luxury item owner
The implications
Undoubtedly, some consumers will fall in love with the items they rent. Companies can take advantage of
this by partnering with rental sites to reach recent renters. For example, companies could create “try then
buy” programs through which renters receive a slight discount – perhaps the cost of their rental – on a
purchase of the item they rented. Another idea is for companies to email consumers after they rent,
encouraging them to visit a related e-commerce site, sign up for email alerts, or “like” a Facebook page. In
this way, companies can create new brand fans and future customers.
Luxury companies that list their products on luxury rental sites should be strategic when developing
buyer-supplier contracts. These contracts should be positioned in a way that maximizes profit and reduces
loss. For instance, luxury companies may want to ask that the rental company purchase a certain number
of items each month or that they replace items regularly.
Luxury rentals aren’t going anywhere anytime soon, so luxury companies may want to pilot their own
rental programs. Though some may argue that these rental programs reduce the appearance of exclusivity
and cannibalize purchases – issues that must be managed – company-operated rental programs would
allow brands to better control the rental process and reap the financial benefits.
28
Trend Application
US, December 2014
Trend Application
Mintel’s approach in this section goes beyond merely identifying trends. Mintel trends are applied to
understand the wider implications of cultural changes, resulting in insight into how companies and brands
can translate these into on-the-ground opportunities relevant to the premium brand and luxury market.
Trend: Fauxthenticity
Consumers have grown more comfortable with goods and services that look, taste, sound, or feel like the
real thing, even though they are known pretenders.
When asked about purchasing luxury goods, 15% of luxury goods buyers say that they would rather
purchase a look-alike or knockoff if no one could tell the difference. Counterfeit luxury goods can be close
enough to the real thing that some consumers are content to own knockoffs and save some money in the
process. However, when consumers purchase counterfeit goods, luxury brands lose revenue and the
premium status of their brand is at risk.
In an era of e-commerce, when consumers make purchases based on two-dimensional images and a list of
specifications, it is particularly difficult for luxury brands to defend against knockoff products. The key for
luxury brands looking to protect the exclusivity of their products is to develop ways to distinguish
themselves from copycats.
Consumers indicate a willingness to purchase luxury knockoffs when no one can tell the difference.
Having a noticeable, difficult-to-imitate differentiator for an authentic product can help to protect a luxury
brand. For example, brands such as Louis Vuitton and Coach have ornate handbag linings that are hard for
counterfeiters to replicate. In another example, Tiffany & Co. stamps every piece of its jewelry with the
Tiffany & Co. mark and uses a trademarked alloy called Rubedo, something that few knockoff brands can
imitate.
Additionally, luxury brands can partner with retailers to help curb the sale of counterfeit goods. An
example is eBay’s VeRO (Verified Rights Owner) program, which provides intellectual property owners
the ability to report and remove fraudulent site listings. Some companies have taken even more drastic
measures to protect their brand: Tiffany & Co. sues third-party retailers who do not police the authenticity
of the products they have for sale.
Trend: Make it Mine
“One size fits all” is dead. The ability for a consumer to have some sort of input into what he or she buys
has crossed every industry and nearly every part of the globe. It is the very pervasiveness of customization
that makes the trend what it is today: an expectation that consumers simply won’t do without.
Customization is a symbol of luxury for many consumers. Some 25% of luxury goods buyers say that they
define luxury goods as those that offer the choice to customize. That percentage jumps to 38% for luxury
buyers aged 18-24, and it will likely increase as today’s teenagers – who are accustomed to customization
– become adults. Though custom options sometimes take longer to make and require a larger inventory,
luxury companies can no longer ignore customization’s importance.
29
Trend Application
US, December 2014
Several companies have already launched customizable products and even customizable ad campaigns.
Burberry is one of the companies leading this charge. It offers customized perfume bottles, scarves,
ponchos, etc, and billboards that can be digitally customized by viewers (for more information, see
Marketing Strategies and Innovations and Innovators). For other companies, customization is as easy as
offering a package deal and then letting consumers select the included products; that is what Chanel did
when it offered pick-your-own nail polish trios. Other examples include customizable Stuart Weitzman
boots, made-to-order Prada micro-soles, and personalized Champagne bottles from Moët & Chandon.
Another idea is for companies to create customizable websites and apps. Companies can ask consumers
what types of products they are interested in and make personal recommendations. Companies can also
send personalized offers based on interest.
Trend: Let’s Make a Deal
Scoring discounts has evolved from a chore into a form of entertainment or even a full-fledged hobby.
Consumers are seeking enjoyment in the purchasing and saving process.
In a post-recession world, many consumers pride themselves on being savvy shoppers. According to
Mintel data, about six out of 10 luxury buyers infrequently buy luxury goods and do so only if they are
drastically reduced in price (see Luxury Purchasing Habits and Shopping Behaviors). These consumers
revel in finding a steal. So much, in fact, that their very interest often stems from the chance to utter a
variant of one phrase: I found such a great deal on it. Sometimes, these consumers seem ready to burst
waiting for the opportunity to mention their deal and experience the resulting emotion, a thrill that can be
equal parts pride and shame.
Of course, this presents a challenge to luxury companies that want to increase their sales without
cheapening their brand. There is no magic solution to this riddle, and companies must often experiment
until they find the right balance. Still, there are certain tactics that companies can use to appeal to these
consumers. As suggested in Luxury Purchasing Habits and Shopping Behaviors, one tactic is to position
deals as exclusive. Doing so creates the impression that discounts are only offered to certain people,
thereby amplifying the “I’m special” factor. Another idea is to offer lottery- or sweepstakes-style savings.
This is done when companies offer savings scratch-off cards that reveal varying discount levels. Using
these cards, companies can offer significant savings to a select few without appearing too loose with their
discounts.
One more option is to create a multi-level luxury structure that includes an outlet store. When this is done,
however, brands must find a way to differentiate their outlet store offerings from their higher-end
offerings. Sometimes this can be accomplished by using different brand identities for each luxury level.
This is the strategy used by Calvin Klein (see Leading Companies).
30
Market Size
US, December 2014
Market Size
Key points

From 2009-13, the overall growth of the US luxury market outpaced the growth of the global
market. This was led largely by gains in 2012 and 2013.

In 2013, the US comprised 21.5% of the worldwide luxury goods market. The US luxury goods
market is the fourth fastest growing luxury market by country from 2009-13, following only
China, Japan, and Australia.

In the US, fashion and leather goods account for 45.6% of the luxury market. Cosmetics and
perfume account for 28.5% and watches and jewelry account for 24.1%.
The market size
Mintel’s market size is based on the sales of the leading players; those figures are a combination of sales
through directly operated stores, which are consolidated at retail prices, and sales to wholesalers and
licensees, which are consolidated at the price the luxury company sells to them. For the purposes of this
report, Mintel includes sales figures as reported revenues and has not applied a retail markup, which can
be substantial considering that luxury goods are generally low volume and high margin.
US luxury revenue reaches nearly $36 billion, a 60% increase over 2009
Global revenues of luxury goods reached an estimated $167.7 billion (excluding VAT) in 2013, up just
about 7% compared to 2012. This marked a significant slowdown following four strong years. While sales
in the US have not been quite as steady, over five years, the US market posted a slightly stronger gain,
relative to the global market. The relatively stronger US economy is driving growth and indicators point to
continued gains in 2014.
Mintel’s Luxury Goods Retailing – International, August 2014 has forecast that the global market for
luxury goods will increase by about 60% from 2014-19. Sales in the Americas are forecast to increase by
about 65% based on growing affluence among the Brazilian middle class and a continued strong US
market for luxury goods.
FIGURE 12: LUXURY GOODS REVENUE, GLOBAL AND US, 2009-13
2009
2010
2011
2012
2013
Global total
$bn
%change
Index
(2009=100)
106.7
120.7
136.3
156.1
167.1
13.2
12.9
14.5
7.1
100
113
128
146
157
US
$bn
%change
Index
(2009=100)
22.4
25.1
27.4
33.0
35.9
12.3
9.1
20.4
8.7
100
112
123
148
160
Note: Excludes VAT, values based on reported revenues
31
Market Size
US, December 2014
US growth in luxury revenue outpaces all but Japan, China, Australia
Economic recovery was one of the main drivers for the market in 2013, especially in the US. Smaller,
faster growing economies – which may appear to have greater growth prospects, such as Brazil – have not
yet realized that potential in luxury goods.

Japan overtook the US as the largest country market in the world for luxury goods in 2013. After a
long-sluggish economy, Japan’s aggressive monetary policy appears to have put the country on the
road to recovery in 2013.

The greatest growth potential lies in China, which is currently ranked at number four among the top
countries in luxury spending – up from a number six rating five years ago. Despite a recent slowdown,
the world’s second largest economy continues to outpace the world average.

Australia’s revenue has increased significantly over the period, though at just $3.6 billion in 2013, it
remains a small player in the global luxury market.
FIGURE 13: TOP 10 COUNTRIES IN THE LUXURY MARKET, BY REVENUE, 2009-13
Japan
US
Germany
China
UK
France
Switzerland
Italy
Australia
Canada
2009
$bn
2010
$bn
2011
$bn
2012
$bn
2013
$bn
2009-13
%change
20.2
22.4
10.8
5.8
6.8
6.3
4.2
4.4
2.1
1.9
23.0
25.1
12.0
7.0
7.0
6.7
4.8
4.4
2.5
2.3
27.6
27.4
12.9
8.5
7.2
7.2
5.2
4.6
2.7
2.5
30.7
33.0
14.3
10.4
7.9
7.9
5.9
4.9
3.4
2.8
38.2
35.9
13.6
12.4
7.6
7.3
6.0
4.9
3.6
2.9
89.4
60.5
25.1
111.9
11.3
16.9
43.5
10.6
72.2
50.4
32
Market Size
US, December 2014
FIGURE 14: TOP 10 COUNTRIES IN THE LUXURY MARKET, BY REVENUE, 2013
Fashion/leather is top category, perfume/cosmetics follows
Below are Mintel’s estimates of the category breakdown for select countries. The main guide for this
breakdown is the information published by the leading companies, coupled with Mintel’s consumer
research.
These findings are consistent with the findings that US luxury buyers are more likely to purchase fashion
and fashion accessories than they are to buy other categories of luxury (see Luxury Goods Retailing).
FIGURE 15: LUXURY GOODS REVENUE, BY CATEGORY IN SELECTED LUXURY MARKETS, 2013
ex VAT
US
Germany
China
UK
France
Italy
Spain
Fashion/
leather
$bn
Perfumes/
cosmetics
$bn
Watches/
jewelry
$bn
Other
Total
$bn
$bn
16.4
6.1
5.6
3.5
3.3
2.3
0.8
10.2
3.9
3.6
2.1
2.1
1.3
0.5
8.6
3.3
3.1
1.9
1.7
1.2
0.4
0.7
0.3
0.3
0.1
0.1
0.1
*
35.9
13.6
12.4
7.6
7.3
4.9
1.7
* <$0.1bn
There is remarkably little variation among the countries in luxury purchasing, which demonstrates the
global nature of the market for luxury goods.
33
Market Size
US, December 2014
FIGURE 16: LUXURY GOODS REVENUE SHARE, BY CATEGORY IN SELECTED LUXURY MARKETS, 2013
Fashion/leather
US
Germany
China
UK
France
Italy
Spain
Watches/
jewelry
%
Other
Total
%
Perfumes/
cosmetics
%
%
%
45.6
45.1
45.2
45.6
45.5
45.9
46.2
28.5
28.4
29.0
28.1
29.1
27.0
30.8
24.1
24.5
24.7
24.6
23.6
24.3
23.1
1.9
2.0
2.2
1.8
1.8
2.7
*
100.0
100.0
100.0
100.0
100.0
100.0
100.0
* <1%
34
Market Drivers
US, December 2014
Market Drivers
Key points

The annual number of visitors to the US has increased steadily since 2000. This trend is likely to
continue because intent to travel to the US has also increased in several countries, including
Canada, the UK, and Japan.

In the US, both consumer sentiment and GDP are trending upward, while unemployment rates
are trending downward.

The internet and smartphones have high penetration rates among American consumers.
Furthermore, the majority of internet users purchase products online at least once a month.

The population of Asians and Hispanics – two demographics important to the luxury market –
are growing faster than the general population.
International tourism
Tourism is a very important element of luxury demand. The leading houses focus on tourist destinations
for their flagship outlets. A significant proportion of purchases are made when on vacation. This is one of
the reasons why luxury is an international market. It is also why demand by country is difficult to predict.
Tourism has been increasing steadily and seems to have shrugged off any adverse effects of the global
financial crisis very quickly.

International tourist arrivals (overnight visitors) grew by 5% worldwide in 2013, reaching a record
1,087 million arrivals, after topping the 1 billion mark in 2012. In the Americas, international arrivals
grew by 3% (source: UNTWO).

China, which leaped to first place in the ranking by international tourism expenditure in 2012,
extended its lead further, increasing expenditure in 2013 by US$27 billion to a record US$129 billion.
Boosted by rising disposable incomes, fewer restrictions on foreign travel, and an appreciating
currency, Chinese tourism spending abroad has increased almost tenfold in the 13 years since 2000,
when it ranked only seventh (source: UNTWO).
35
Market Drivers
US, December 2014
FIGURE 17: INTERNATIONAL INBOUND TOURISM, 2000-13
SOURCE: UNTWO/MINTEL
The National Travel and Tourism Strategy (launched in 2012), was created to draw 100 million
international visitors to the US by 2021 with hopes of having them spend $250 billion annually. The US
has embarked on a major tourism campaign in 2013, targeting international visitors.

Intent to travel to the US – an industry term meaning the likelihood of a person booking a trip within
the next few months – has risen by 22% in Canada, 12% in the UK, and 14% in Japan since 2012.

While emerging destinations are attracting a greater share of foreign visitors, visitation to the US has
increased by 62% from 2006-13; there is no reason to expect the trend to discontinue.

Brazilian tourism to the US has been rising for years, according to the National Travel and Tourism
Office. Visitation from the country jumped by 15% in 2013 – to 2 million – and it now accounts for
more visitors to the US than Germany, France, and China.

President Barack Obama announced in November 2014 an agreement with China that will make
tourist and business visas for Chinese visitors valid for 10 years instead of one year.
The number one activity for international leisure visitors is shopping (91% participation, followed by
sightseeing, 84%). Therefore, expected increases in inbound tourism, particularly from countries with an
emerging middle class eager to travel to the US, will drive spending on luxury goods.
36
Market Drivers
US, December 2014
FIGURE 18: OVERSEAS LEISURE VISITORS TO THE US, 2006-13
SOURCE: US DEPARTMENT OF COMMERCE, INTERNATIONAL TRADE ADMINISTRATION, NATIONAL TRAVEL AND TOURISM OFFICE,
"2013 SECTOR PROFILE: LEISURE"/MINTEL
US economic growth
The luxury market reached nearly $36 billion in 2013, a 60% increase over 2009 (when the recession
officially ended). Much of this growth has coincided with increases in GDP (gross domestic product).
GDP is the sum of all goods and services produced over a specific period, and it usually increases as
consumer spending (ie demand) increases.
As shown below, the GDP has grown quarter-over-quarter almost every quarter since the recession ended,
and growth is trending upward. This growth means that consumers are spending more of their
discretionary income, and non-necessity or luxury purchases are likely to benefit.
37
Market Drivers
US, December 2014
FIGURE 19: GDP CHANGE FROM PREVIOUS PERIOD, Q1 2007-Q3 2014
SOURCE: BUREAU OF ECONOMIC ANALYSIS, ST. LOUIS FEDERAL RESERVE/MINTEL
Consumers are spending more in part because they are feeling more optimistic about the economy and
more secure in their finances. Consumer confidence was low in the years following the recession when
unemployment remained high. During that time of uncertainty, people were reluctant to spend their
discretionary income, if they had any. Today, however, unemployment has declined, and consumer
confidence has risen.
Some positive economic indicators:

US consumer sentiment hit a seven-year high in October 2014 (index value of 86.9).

Americans voluntarily left their jobs at the fastest rate in more than six years in September 2014,
signifying that workers are feeling more confident about their job prospects.

In September 2014, the unemployment rate fell below 6% for the first time since 2008. It decreased
another 0.1% in October to 5.8%.

On Nov. 20, 2014, reports indicated that the four-week moving average of jobless claims had stayed
below 300,000 for 10 straight weeks – the first time it had done so in 14 years.

Job openings increased to 4.8 million in August 2014, the highest number since 2001.
38
Market Drivers
US, December 2014
FIGURE 20: CONSUMER CONFIDENCE AND UNEMPLOYMENT, BY MONTH*, JANUARY 2007-OCTOBER 2014
* data for 2007-2009 is represented quarterly and includes the data for January, March, June, September, and
December. Data for January 2010-October 2014 is represented monthly
SOURCE: THOMSON REUTERS/UNIVERSITY OF MICHIGAN SURVEY OF CONSUMERS/BUREAU OF LABOR STATISTICS/MINTEL
E-commerce
As use of the internet and internet-enabled mobile devices has increased, so have luxury goods sales. The
internet enables luxury brands to reach consumers that they may not otherwise reach. This is especially
true of consumers who live in rural areas or in municipalities located a distance from cities (where luxury
retailers tend to be concentrated).
Some facts about internet use and e-commerce:

Nearly nine out of 10 Americans use the internet (see Mintel’s Digital Trends Fall – US, September
2014).

Seven in 10 own a smartphone – up from about six in 10 compared to January 2014 (see Mintel’s
Digital Trends Fall – US, September 2014).

More than six out of 10 online adults say they make an online purchase at least monthly (see Mintel’s
Online Shopping – US, June 2014).

More than half of recent luxury buyers say they have purchased a luxury product online in the last 18
months (see Luxury Goods Retailing).
39
Market Drivers
US, December 2014

Many companies have reported rapid growth within the online space. Luxury goods giant LVMH has
said that its online sales grew “significantly” in 2013.What’s more, sales online do not appear to be
cannibalizing in-store sales.

Online luxury transactions are growing twice as fast as the sector as a whole, according to global
management firm McKinsey & Company.
Growing Asian and Hispanic populations
Asian respondents are 17% more likely than the general population to own a luxury brand, and Hispanic
respondents are about 15% more likely (see Impact of Race and Hispanic Origin). Though both of these
demographic groups are currently minorities, both populations are growing rapidly. From 2010-20, the
Asian population is forecast to increase 30%, and the Hispanic population is forecast to increase 34%.
These population increases will likely drive luxury purchases.
FIGURE 21: POPULATION, BY RACE AND HISPANIC ORIGIN, 1970-2020
SOURCE: US CENSUS BUREAU, DECENNIAL CENSUSES (1970-2000) AND POPULATION PROJECTIONS RELEASED 2008 (201020)/MINTEL
40
Leading Companies
US, December 2014
Leading Companies
Key points

In 2013, the luxury companies with the highest revenues were those that owned several discrete
brands and sold within multiple luxury spaces; however, the companies that managed fewer
discrete brands or brands that shared similar names – Ralph Lauren Corps.’ brands include
Polo by Ralph Lauren, Lauren Ralph Lauren, Lauren, and Ralph – tended to report higher
profit margins.

All of the luxury houses evaluated experienced some revenue growth in 2013, but the percent
change varied by company. Kering reported the least revenue growth (less than 0.01%) and
PVH reported the most (35.4%).

In 2013, the revenues of sister companies LVMH and Christian Dior were each about three
times that of Richemont, their next closest competitor based on revenue.
Financial performance of leading companies
By nature, sales of premium brands are low volume and high margin. Moreover, luxury brands often avoid
high market penetration rates to avoid diminishing their exclusivity. Together, these facts mean that the
luxury companies with the highest revenues are those that own a large portfolio of profitable brands, such
as LVMH – the largest luxury brand in the world – and its parent company Christian Dior (Christian Dior
owns a 40.9% share in LVMH through its wholly owned subsidiary Financiere Jean Goujon, meaning that
LVMH’s revenues feed into Christian Dior’s. In addition, LVMH’s Chairman and CEO Bernard Arnault
owns shares in both companies).
Revenues do not tell the whole story, however. With the exception of LVMH/Christian Dior, the leading
companies that manage a large portfolio of discrete brands, such as Richemont, Kering, and PVH, reported
nearly imperceptible profit margins in 2013. Though they have lower sales, companies that own fewer
distinct brands, such as Ralph Lauren and Coach, reported much healthier profits.
41
Leading Companies
US, December 2014
FIGURE 22: LUXURY SALES BY SELECT COMPANIES, FY2012-FY2014*
Company
Christian
Dior
LVMH
Richemont
Kering
PVH
Ralph
Lauren
Coach
Revenue
FY2014
Revenue
FY2013
Revenue
FY2012
Change in
revenue
2012-2013
USD
$(bn)
EUR
€(bn)
USD
$(bn)
EUR
€(bn)
USD
$(bn)
EUR
€(bn)
%
Net
income
FY2013
USD
$(m)
Profit
margin
FY2013
39.22*
30.98
38.47*
30.12
11.11***
8.99***
N/A***
7,773.95*
6,087.00
20.20**
N/A
13.48*
N/A
N/A
7.45
N/A
10.65
N/A
-
37.23*
12.96*
12.45*
8.19
6.95
29.15
10.15
9.75
-
34.73*
10.96*
12.04*
6.04
6.86
28.10
8.87
9.74
-
3.7**
14.4**
0.01**
35.4
1.2
5,041.87*
2.55*
63.86*
143.54
750.00
3,947.00
2.00
50.00
-
13.54**
<0.01**
<0.01**
1.74
10.8
4.81
-
5.08
-
4.76
-
6.6
1,034.00
-
20.37
EUR
€(m)
%
Note: Data may not equal totals due to rounding
* 2014 numbers were determined using the exchange rate for September 30, 2014, as reported by the US Bureau of
the Fiscal Service (1 USD=0.790 EUR). Past years were based on the average exchange rate for that year as
reported by the IRS (In 2013, 1 USD = 0.783 EUR; in 2012, 1 USD=0.809 EUR)
** calculated using value of euros, not US dollars
*** Christian Dior’s FY 2012 was only four months long and cannot be directly compared to its 12-month FY 2013
Company profiles
Christian Dior
Designer Christian Dior opened his fashion house in 1947, and Christian Dior SA was established in 1988
when 42% of the company was sold to the public. The holding company’s operating unit, Christian Dior
Couture, designs and makes some of the world’s most coveted haute couture, as well as luxury ready-towear fashion and accessories for men and women. Its luxury goods categories include women’s, men’s,
and baby fashion and accessories, fragrance, make-up, skincare, jewelry, watches and timepieces, and
wine and spirits. Through its subsidiary Financiere Jean Goujon, the company also reportedly holds a
40.9% share in LVMH.
In Dior’s fiscal year ended June 30, 2014, revenue increased to about $39.22 billion. All business lines,
including the company’s shares in LVMH, contributed to its performance.
Dior is headquartered in Paris, France.
LVMH Moët Hennessy – Louis Vuitton
LVMH Moët Hennessy – Louis Vuitton SA is a world leader in luxury, possessing a portfolio of more
than 60 prestigious brands. Created in 1987, the group is currently active in five different sectors: Wines &
Spirits, Fashion & Leather Goods, Perfumes & Cosmetics, Watches & Jewelry, and Selective Retailing.
The LVMH group’s mission is to represent the most refined qualities of Western “Art de Vivre”
worldwide and continue to be synonymous with elegance and creativity. The group’s products combine
tradition with innovations, with almost 100,000 employees sharing its values. LVMH represents a large
range of companies and brands, including Louis Vuitton, Fendi, Donna Karan, Loew, Pucci, Dom
Perignon, Givenchy, and Guerlain.
42
Leading Companies
US, December 2014
Revenue for the fiscal year 2013 was about $37.23 billion, an increase of 3.7% over the previous year. In
2013, it operated a retail network of 3,384 stores across the globe, 669 of which were in the US. The US
accounted for 23% of its total revenue.
Looking forward, the company plans to build on the success of its flagship brands, grow and develop its
lesser-known brands, and build strategic alliances with like-minded companies. It expects to accomplish
these goals by sustaining innovation, sustaining quality, guaranteeing brand autonomy, implementing
synergies among brands, and developing teams of excellence.
LVMH is headquartered in Paris, France.
Brand spotlight: Louis Vuitton
In 1837 at the age of 16, French designer Louis Vuitton became an apprentice for a box-maker by the
name of Monsieur Marechal. His goal was to become a trunk designer. He succeeded in the trade, and in
1859, he opened an atelier in Asnières, a town just northeast of Paris. By 1914, he had 225 employees
making leather goods for clients across the globe.
Today, Louis Vuitton designs are still crafted in the Asnières atelier, where the brand’s iconic LV
monogram is placed onto leather goods, trunks, shoes, watches, jewelry, and ready-to-wear fashion. These
products are sold across the world, and in 2013, the brand expanded its presence to Venice and Munich.
The brand’s mobile site is available in 13 languages.
Richemont
Swiss luxury group Cie. Financiere Richemont SA was spun off from South African tobacco and
industrial company Rembrandt Group, now known as Remgro Limited, in the 1940s. Since then, the
company has grown to be more luxury focused, and the company reorganized in 2000 to streamline luxury
activities. Today, it sells jewelry, watches, and pens under several brand names, including Cartier,
Montblanc, Van Cleef & Arpels, and Baume & Mercier. Its largest market is Europe, which generates
40% of sales. The US is its third largest market, generating 14% of sales.
The brand’s sales increased in 2013 and again in 2014. The company’s growth is driven by maintaining
geographic spread, a healthy product sales mix, and a variety of distribution channels. In recent years,
Richemont has also acquired several businesses, including the retailer NET-A-PORTER, luxury apparel
and accessories brand Peter Millar LLC, and jewelry manufacturer VVSA (Varin-Etampage and
Varionor).
Richemont is headquartered in Geneva, Switzerland.
Brand spotlight: Cartier
Cartier was founded in 1847 by Louis-Francois Cartier. Celebrated for its beautiful jewelry and attention
to detail, Cartier’s luxury goods categories expanded to include jewelry, clocks, watches, perfume, leather
goods, apparel, and accessories. Cartier’s successful fragrances bear many of the same names as the
company’s jewelry collections and timepieces.
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Leading Companies
US, December 2014
Cartier distributes products worldwide through roughly 300 Cartier boutiques and through licensees, retail
concessions, and shopping sites in Japan and the US. Boutiques are located in Africa, Asia, the Caribbean,
Europe, Latin America, North America, and Oceania. It boasts flagship stores in London, New York, and
Paris. Cartier has also opened shops in China, Dubai, Azerbaijan, and Bahrain, with a company focus on
expanding in emerging markets where its luxury products are in demand among the newly rich.
The brand has operating margins of 35%, according to Forbes. Its headquarters are in Paris, France, and
its emblem is the panther.
Kering
Founded in 1921, Kering SA is a world leader in apparel and accessories. The company depends on a
multi-brand strategy, and it operates within both the luxury space and the sport & lifestyle space. Its
luxury and designer brands include Gucci, Bottega Veneta, Saint Laurent, Alexander McQueen,
Balenciaga, and Stella McCartney. In 2013, luxury sales accounted for 26% of total revenue, an increase
of 7% over 2012.
Kering’s revenue increased slightly in 2013, but its profit margins were essentially nonexistent. During
that fiscal year, the company acquired a majority stake in luxury fashion brand Christopher Kane. It also
acquired jewelry group Pomellato and completed the integration of luxury companies Qeelin and Brioni.
Kering directly operates 1,149 stores worldwide – 197 of which are in North America – and its brands are
distributed in more than 120 countries. The company also operates several localized e-commerce sites.
What’s more, all of its brands boast mobile sites. The company expects that e-commerce will drive its
growth.
Kering’s headquarters are in Paris, France. The company employs more than 35,000 people.
Brand spotlight: Gucci
Gucci was founded in Florence, Italy, in 1921. The brand’s “Made in Italy” slogan is seen as an integral
part of the company. Throughout its expansion in the 1970s and ’80s, Gucci moved into new headquarters
at Casellina, outside of Florence. All of its leather goods, shoes, and ready-to-wear items are still produced
in its Florence workshops, which employ more than 45,000 people in Italy alone. Nearly 9,500 people are
employed directly by the brand.
Gucci Group makes and markets men’s and women’s ready-to-wear lines, upscale handbags and other
leather goods, shoes, cosmetics, fragrances, skincare, jewelry, and watches. The brand’s collection also
includes a children’s assortment of ready-to-wear and accessories emblazoned with a teddy bear icon. The
company noted a “growing appetite for specific product categories” in 2013, opening more stores
dedicated to children and men. Gucci opened its first men’s flagship store in Milan in June 2013.
Gucci directly operates more than 474 stores worldwide and wholesales its products through franchisees
and high-end department stores. The company has continued to expand into Asia with new stores and is
extending its reach into high-growth markets such as China, India, and Brazil. Gucci’s revenues decreased
slightly to €3.56 million (about $4.55 million) in 2013. Asia remains the label’s most lucrative market,
comprising 36% of sales. North America accounted for 20% of sales in 2013.
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Leading Companies
US, December 2014
PVH (Phillips-Van Heusen)
PVH (Phillips-Van Heusen) Corp. is a global apparel company headquartered in New York City. The
company focuses specifically on lifestyle apparel, and it owns several lifestyle brands, including Calvin
Klein, Tommy Hilfiger, Van Heusen, IZOD, and ARROW. Sales of Tommy Hilfiger accounted for 42%
of the company’s revenue in 2013, and sales of Calvin Klein accounted for 34%. It also licenses Kenneth
Cole, Michael Kors, DKNY, US POLO ASSN, John Varvatos, and more.
In fiscal 2013, the company’s revenue was about $8.19 billion, an increase of 35% over 2012. That growth
was primarily driven by the acquisition of Warnaco, an American textile and clothing corporation. The
company also expects to report revenue growth in 2014 and 2015, most of which should be generated
from international operations. It also plans to build its brand portfolio through acquisition and licensing
opportunities.
As of Feb. 2, 2014, PVH had 16,700 full-time employees and 16,500 part-time employees.
Brand spotlight: Calvin Klein
Acquired by PVH in 2003, Calvin Klein is a men’s and women’s apparel brand. The company sells its
products using several labels, each of which has its own marketing identity. Its highest-end brand, or
“halo” brand, is Calvin Klein Collection. Calvin Klein Collection features luxury apparel and accessories
for men and women. It is sold in department and specialty stores. Other Calvin Klein brands include
Calvin Klein Platinum Label, Calvin Klein White Label, Calvin Klein Jeans, and Calvin Klein Underwear.
Calvin Klein sells its products through wholesalers and through 3,000 retail stores across North America,
Europe, Asia/Australia, and Latin America. The majority of sales (57%) are generated in North America.
Calvin Klein also operates e-commerce sites in the US; e-commerce sites for Europe, Brazil, China,
Canada, and Mexico are in the works.
Ralph Lauren
Ralph Lauren Corp. was originally founded as Polo Fashions in 1968. The company’s brands include Polo
by Ralph Lauren, Lauren Ralph Lauren, Lauren, Purple Label, Blue Label, Black Label, Pink Pony, Ralph,
RRL, Club Monaco, Rugby, RLX, Denim & Supply Ralph Lauren, Chaps, American Living, and various
trademarks pertaining to fragrances and cosmetics. Ralph Lauren designs and markets apparel and
accessories, home furnishings, and fragrances. These are sold at some 11,000 retail locations worldwide,
including many upscale and mid-tier department stores. The company directly operates about 433 stores
under the Ralph Lauren, Club Monaco, and Rugby names. It also operates eight e-commerce sites.
Ralph Lauren’s accessory lines include strategic partnerships with licensees such as Richemont, with
which it formed Ralph Lauren Watch and Jewelry Co., and the Italian eyewear company Luxottica Group,
which designs, manufactures, and distributes Ralph Lauren-branded prescription frames and sunglasses.
Other major licensing partners include Hanes for undergarments and sleepwear, L'Oréal for fragrance,
Warnaco for Chaps sportswear, Peerless Inc. for men’s clothing, and Home Depot for Ralph Lauren paint.
In recent years, Ralph Lauren has expanded its business through acquisitions. Looking forward, the
company plans to expand its international presence in Asia and Europe, extend its direct-to-consumer
reach via its stores and e-commerce sites, and innovate in emerging categories.
Ralph Lauren is headquartered in New York City.
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Leading Companies
US, December 2014
Coach
Coach Inc. was founded in 1941 as a family-run workshop. It produces high-end leather goods and
accessories, including handbags, wallets, and luggage. The company also licenses its name for watches,
eyewear, fragrances, scarves, and footwear. The luxury brand sells direct-to-consumer at its Coach
boutiques, through its catalog, and on its e-commerce site. It is also a wholesaler for 1,000 department
stores in North America, the biggest being Macy’s, Nordstrom, Dillard’s, and Lord & Taylor.
Internationally, the brand is sold in roughly 35 countries, including Japan, China, Macau, Singapore,
Taiwan, South Korea, and the UK. It also opened locations in Germany in 2013. At the close of its fiscal
year 2014, it operated 332 retail stores. It anticipates the closure of 70 retail stores in fiscal year 2015.
In Coach’s fiscal year 2014, the brand’s revenue decreased to $4.81 billion from $5.08 billion in 2013.
Regionally, the US represented about 65% of Coach’s net sales in fiscal 2014.
Other leading companies
Automotive

BMW: BMW was founded in 1913, and started building cars in 1928. As a brand, it operates in nearly
every segment in the luxury vehicle market with the exception of premium pickup and exotic. Its bestknown vehicle is the entry-level BMW 3-Series. BMW also owns MINI and Rolls-Royce Motor Cars.
The company is headquartered in Munich, Germany.

Mercedes-Benz: Part of Daimler AG, Mercedes-Benz distributes and markets Mercedes-Benz,
Maybach, Smart Car, and Sprinter products in the US. Daimler’s headquarters is located in Stuttgart,
Germany.

Volkswagen: Volkswagen, originally founded in 1937, helped create today’s Audi, developing the
brand into its luxury vehicle product. Its entry-level product, the Audi A4, is the brand’s best-known
vehicle. Volkswagen also sells Bentley, and ultra-luxury brand. The company’s headquarters are
located in Wolfsburg, Germany.
Fashion and accessories

Burberry: Burberry was founded in 1856 and has been famously associated with its gabardinechecked fabric, invented by founder Thomas Burberry. Burberry-lined “trench” coats, worn by British
soldiers in World War I, became a company icon. Burberry operates retail and wholesale businesses
and a licensing network, selling men’s, women’s, and children’s apparel and accessories. The brand’s
non-apparel categories include leather goods, handbags, watches, beauty, and fragrance. Burberry is
headquartered in London, UK.

Hermès: Hermès was founded in 1837 by harness-maker Thierry Hermès. The company, which got
its start making harnesses for horse-drawn carriages, makes and sells luxury goods in nearly 15
categories, including leather goods, scarves, ties, watches, stationery, gloves, tableware, jewelry,
perfume, men’s and women’s apparel, footwear, textiles, and home goods. Unlike many other luxury
goods companies, Hermès does not grant licenses to other companies, and it makes most of the
products it sells. The company is headquartered in Paris, France.
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Leading Companies
US, December 2014

Prada: The Prada brand was created in 1913. The brand’s iconic trademarks, which are recognized
around the world, incorporate the Savoy coat of arms and Savoy figure-of-eight knot, reflecting its
heritage as an official supplier to the former royal family of Italy. The Prada brand targets an
international customer base that is modern, sophisticated, attuned to stylistic innovations, and expects
craftsmanship of the highest quality. Prada is headquartered in Milan, Italy.

Salvatore Ferragamo: Salvatore Ferragamo, founded in 1927, is the parent company of the
Ferragamo Group, a top brand in the luxury goods industry. The company focuses on the creation,
manufacture, and sale of footwear, leather goods, clothing, silk products, and other accessories and
perfumes for men and women, all made in Italy. Its product portfolio also includes eyewear, watches,
and perfume. It is headquartered in Florence, Italy.

Tiffany & Co.: Charles Lewis Tiffany and John Young founded Tiffany & Young in New York City
in 1837. Today the company is known as a high-end jewelry specialist. While jewelry remains the
core of its business, Tiffany & Co. does sell other offerings, including silverware, timepieces,
perfumes, crystal, china and other tableware, eyewear, glassware, stationery, desk accessories, clocks
and writing instruments, and some novelties, such as key chains. Many products are packaged in the
company’s trademarked Tiffany Blue.
Personal care, fragrance, and beauty

Estée Lauder: Founded in 1946, Estée Lauder has gained a worldwide reputation for elegance,
luxury, and superior quality through technological advancements and innovation. The company’s
products come with a promise to uphold the finest standards of excellence. Touting extensive research
and stringent product evaluation, Estée Lauder provides skincare, make-up, and fragrance products
that are both gentle and highly effective. Brands include Estée Lauder, Aramis, Clinique,
Prescriptives, Lab Series Skincare for Men, Origins, and Tommy Hilfiger. The company’s
headquarters are located in New York City.

Shiseido: Shiseido is one of the leading cosmetics companies in the world, and it has built a solid
position in global markets. As the largest cosmetics manufacturer in Japan, Shiseido makes and
markets make-up and skincare products for men and women. It also manufactures toiletries, sun care
items, fragrances, professional salon haircare products, and pharmaceuticals. Its 1-plus brands include
namesake Shiseido, Elixir Superieur, Maquillage, and Integrate. In 2012, the company acquired San
Francisco-based Bare Escentuals, maker of mineral-based make-up, for $1.7 billion in its effort to gain
a foothold in the US cosmetics market. It is headquartered in Tokyo, Japan.
Travel

Hilton Worldwide: Hilton Worldwide is one of the largest hospitality companies in the world. It
operates more than 4,100 properties in the world, accounting for more than 685,000 rooms. Its brand
portfolio includes the flagship full-service Hilton Hotels & Resorts brand, luxury hotel brands Waldorf
Astoria Hotels & Resorts and Conrad Hotels & Resorts, upscale full-service hotel brands Curio – A
Collection by Hilton, DoubleTree by Hilton and Embassy Suites Hotels, upper midscale brands Hilton
Garden Inn and Homewood Suites by Hilton, midscale brands Hampton Inn and Home2 Suites by
Hilton, and timeshare brand Hilton Grand Vacations (HGV).
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Leading Companies
US, December 2014

Marriott Hotels: Founded in 1927, Marriott International has grown to be a leading lodging company
with more than 4,000 properties in 78 countries and territories worldwide. Marriott Hotel brands
include Gaylord Hotels, The Ritz-Carlton, JW Marriott, Autograph Collection Hotels, AC Hotels,
Courtyard by Marriott, SpringHill Suites by Marriott, TownePlace Suites by Marriott, Marriott
Executive Apartments, Marriott Vacation Club, Grand Residences by Marriott, Marriott Conference
Centers, The Ritz-Carlton Destination Club, Residence Inn by Marriott, Fairfield Inn & Suites by
Marriott, Marriott Hotels & Resorts, Renaissance Hotels, EDITION, and Bulgari Hotels & Resorts.

Starwood Hotels: Starwood Hotels & Resorts Worldwide Inc. was founded in 1991 and is one of the
leading hotel and leisure companies in the world with nearly 1,200 properties across 100 countries.
Starwood is a fully integrated owner, operator, and franchisor of hotels, resorts, and residences.
Company brands include the St. Regis, The Luxury Collection, W, Westin, Le Méridien, Sheraton,
Four Points by Sheraton, Aloft, and Element.
Department stores

Barneys New York: Barneys New York, or more commonly known as simply Barneys, was
established in 1923 by Barney Pressman. Pressman sold his wife’s engagement ring in exchange for a
lease of a 500-square-foot store at Seventh Avenue and 17th Street in New York City. Today, Barneys
remains a luxury department store offering men’s, women’s, and children’s apparel, accessories,
footwear, housewares/home décor, cosmetics and more from well-known designers as well as
emerging designers. Barneys is known for its bi-annual warehouse sale, which draws a significant
number of shoppers by offering savings of up to 75% off prices.

Bloomingdale’s: Bloomingdale’s was founded in the late 1800s by brothers Joseph and Lyman
Bloomingdale. The brothers opened their first store in New York’s Lower East side in 1872 selling a
variety of European fashions. By 1886, the store moved to 59th Avenue and Lexington Street and
continued to expand until it covered a full city block by 1921. Today, this location remains
Bloomingdale’s flagship location in New York City. Bloomingdale’s is now owned by Macy’s, Inc.
and operates 37 stores. It offers prestige brands and higher price points than Macy’s, which is more
moderately priced.

Neiman Marcus: Neiman Marcus is a luxury department store retailer with 41 locations in the US.
The company sells products from high-end fashion designers in clothing and footwear, as well as a
selection of accessories, home décor, cosmetics, and jewelry. Neiman Marcus focuses on superior
customer service in addition to offering a variety of luxury brands. The Neiman Marcus website,
www.neimanmarcus.com, functions as an e-commerce site. The company also has a smartphone app
called NM Service. Other Neiman Marcus brands include CUSP and Bergdorf Goodman.

Lord & Taylor: Lord & Taylor was founded in 1826 by Samuel Lord and George Washington
Taylor. The first store was opened on Catherine Street in New York selling hosiery, women’s
clothing, and accessories. In 1906, Lord & Taylor moved to Fifth Avenue and is considered the
pioneer in bringing upscale department stores to Fifth Avenue in New York City. It was the first store
to implement window displays. Today, there are 49 Lord & Taylor stores, which are concentrated
along the Eastern seaboard with the exception of locations in Illinois and Michigan. In October 2013,
Lord & Taylor opened the doors to a store in Boca Raton, Florida, reinstating its presence in the state
after an absence of a decade. The retailer also operates two Lord & Taylor Home stores, several outlet
stores, and an e-commerce site at lordandtaylor.com. Hudson’s Bay Company owns the brand.
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Leading Companies

US, December 2014
Saks Fifth Avenue: Saks Fifth Avenue was founded in 1924 by Horace Saks and Bernard Gimbel
with the opening of its flagship New York City store. Today, Saks Fifth Avenue sells upscale designer
apparel, accessories, jewelry, cosmetics, and home décor items. The company operates 39 US stores,
five international stores, and an e-commerce site, saks.com. The company also operates 72 US-based
outlet stores under the OFF 5th moniker. Like Lord & Taylor, it is owned by Hudson’s Bay Company.
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Innovations and Innovators
US, December 2014
Overview
The luxury market is ever evolving, and brands must constantly innovate if they want to stay ahead of the
curve. Over the last few years, many companies have innovated in one of the five following ways:

Appealing to multicultural audiences: Brands are trying to attract new customers by showing their
cultural awareness. They are launching products and programs aimed at specific religious, ethnic, and
cultural groups.

Launching relevant, but unexpected products: Companies are expanding both the width and depth
of their product lines in ways that are delightfully surprising, yet make perfect sense.

Offering customized products: Many companies are trying to tap into the Millennial market by
offering customizable products.

Incorporating new technologies: As wearable technologies become more commonplace, fashion and
technology are beginning to merge.

Creating elite spaces for consumers online: Companies are creating corners of the internet where
luxury consumers can find relevant products and like-minded individuals.
These themes are discussed in further detail below.
Theme: Appeal to multicultural audiences
Multicultural groups, including Asians and Hispanics, are important to the luxury market (see Impact of
Race and Hispanic Origin), and companies are creating culturally relevant campaigns tailored to these
specific groups.
Armani launches luxury chocolates for Ramadan
In 2013, Giorgio Armani launched a limited-edition box of chocolates aimed at Muslims observing
Ramadan, a month-long season of fasting. The chocolates were meant to be consumed as part of the Iftar,
an evening meal that occurs after sunset. This is the time when Muslims break their daily fast and snack
on foods such as dried fruits, eggs, and sweets.
Armani’s chocolates were filled with dried fruits and honey and infused with flavors such as saffron and
cardamom. To abide by sharia, or Islamic law, they were also free of alcohol derivatives. In Islam, the
color green is often associated with Eid al-Fitr (the day after Ramadan ends), so the chocolates were
decorated with green sugar and packaged in Arabic-inspired gold and green boxes.
The chocolates were sold at Armani Dulci shops in New York, Milan, and the Middle East.
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US, December 2014
Bloomingdale’s celebrates the Year of the Horse
In 2014, luxury retailer Bloomingdale’s dedicated a month to the celebration of Chinese New Year.
Across the US, Bloomingdale’s stores set up pop-up shops, hosted special cultural events, and gave away
prizes in red envelopes, which symbolize good luck and are intended to ward off evil spirits. The retailer
even commissioned exclusively designed products, such as red Longchamp tote bags with horse imagery
and red chinchilla jackets from Carmen Marc Valvo Couture.
Theme: Launch relevant, but unexpected products
Luxury products are viewed by many as unique or one of a kind (see What Defines Luxury), and luxury
brands must often strike the right balance between leaning on their legacy and introducing fresh concepts.
The products below exemplify the successful marriage of innovation and heritage.
Christian Louboutin launches nail polish that is applied to the underside of nails
Christian Louboutin shoes are easily recognized by their signature red soles. Inspired by that iconic pop of
color, Christian Louboutin launched a red nail polish in October 2014 called Loubi Under Red.
Loubi Under Red is designed to be applied to the underside of nails, usually with another color on top.
This allows women to accent their manicures the same way that Louboutin accents by his red soles. The
product’s patented sponge applicator also allows precise application of designs on top of the nail.
Loubi Under Red is available on ChristianLouboutin.com for $45.
Louis Vuitton’s ‘Iconoclast’ partnership with Karl Lagerfeld offers monogrammed
punching bag
Louis Vuitton collaborated with six renowned fashion designers in 2014 to launch the Iconoclast
collection, a line of products that celebrate the brand’s trademarked monogram. Most of the designers,
including Christian Louboutin, Cindy Sherman, and Rei Kawakubo, designed some sort of bag or luggage.
Chanel’s Karl Lagerfeld, however, designed a full-size punching bag, complete with a monogrammed
carrying case and boxing gloves.
Though the punching bag was not intended for broad distribution – only 25 were created, each with an
estimated cost of $175,000 – it is an excellent example of creative product design within the luxury
category.
Theme: Let consumers customize their products
Some 25% of luxury buyers define luxury purchases as those that can be customized, a percentage that is
even higher (38%) for luxury buying adults aged 18-24. To tap into this market, many companies are
launching customizable products and even customizable ad campaigns (see Marketing Strategies).
Stuart Weitzman, Prada launch customizable shoe collections
In October 2014, footwear designer Stuart Weitzman launched “SWxYou (Stuart Weitzman by You): The
5050,” a program that allows consumers to customize the brand’s 5050 boots.
Customers first select from three variations of the boot: flat, high heel, and wedge. Then, they select from
several suedes, haircalfs, and nappas. Lastly, they designate their size and width.
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US, December 2014
The boots can only be customized on the brand’s website. Prices range from $635-800.
In the same month that Stuart Weitzman launched its customizable shoe program, Prada launched a
collection of colorful brogue-style shoes that are made to order based on customer specifications.
Interested customers select from one of 32 leather uppers and then select one of five micro soles to match.
They also have the option of embossing their initials on the soles. From order to delivery, the process
takes about 60 days.
Prada’s Made-to-Order Micro Soles are being sold in three US stores. The price of the shoes is not listed
online.
Burberry launches monogrammed blankets
In addition to launching a customizable perfume bottle (see Marketing Strategies), Burberry has launched
a blanket poncho that can be monogrammed with buyers’ initials. The lambswool and cashmere poncho
costs $1,395 and is available from Burberry’s website.
Burberry also offers customizable metal nameplates and monogrammed scarves.
Theme: Can’t beat technology companies? Then join them.
With wearable technology growing in popularity and competition from technology companies looming –
one of Apple’s 18K gold smartwatches is rumored to cost as much as $5,000 – luxury companies are
integrating more technology into their product design.
Ralph Lauren moves wearable technology from hardlines to softlines
Though most workout apparel companies use fabric technology to wick moisture and maintain
breathability, Ralph Lauren took the idea of apparel technology even further in 2014 when it debuted Polo
Tech, a line of nylon workout shirts and shorts that measure biometric data.
The Polo Tech pieces are woven with silver fiber sensors that track data about stress levels, heart rate,
calories burned, distance, intensity of movement, and more. This data is relayed in real time to user
smartphones through a small, detachable Bluetooth device so that users can track their progress and, in
theory, improve their workouts. The apparel also comes with the added benefit of convenience. Polo Tech
users do not have to strap on additional gear that may be bulky or unsightly. As Ralph Lauren told The
New York Times, the idea works because “we live in our clothes.”
The Polo Tech gear will be available to the public in 2015. Ralph Lauren has not revealed the retail price
of the pieces, but it has indicated that their cost will run in line with other Polo Ralph Lauren offerings.
Diane Von Furstenberg launches line of eyewear for Google Glass
In June 2014, Diane Von Furstenberg launched Made for Glass, a line of prescription frames designed
specifically to work with Google Glass, a wearable optical technology. At launch, the line contained
frames in black, white, pink, blue, and brown. It also included aviator and navigator style shades that
could be attached to Google’s Explorer Edition frames.
The Diane Von Furstenberg Made for Glass line is being sold online on NET-A-PORTER and on Google
Play. The frames retail for $225, and the shades retail for $120.
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US, December 2014
TAG Heuer announces plans to launch smartwatch
Swiss watchmaker TAG Heuer revealed in September 2014 that it was developing its own smartwatch.
The company has not revealed many details about the watch other than it will not be a copy of the Apple
Watch.
Theme: Create elite spaces for luxury consumers online
As part of their attempt to maintain the appearance of exclusivity, companies are creating online spaces
where refined consumers can feel comfortable discussing – and selling – the fruits of their luxurious
lifestyles.
Auctionata brings verified luxury goods to auction online
Launched in 2012, Auctionata is a premier online auction website that sells everything from vintage
Tiffany earrings to paintings from acclaimed Russian painter André Lanskoy. Experts evaluate each item
that goes on the website, and “highly experienced” professionals run all of the auctions. Moreover, all
purchases come with an authenticity guarantee.
Anyone can request a valuation to list an item on the website – the first five valuations are free – and
auctions are open to bidding by anyone on the site. The site also offers a shop where users can purchase
items for a pre-set price.
Composer launches social networking site for affluent consumers
In September 2014, Minnesota-based composer James Touchi-Peters launched the Netropolitan Club, a
social media website more akin to an online country club. Billed as a place “for people with more money
than time,” the Netropolitan Club allows users to discuss wine, luxury cars, European vacations, and
lucrative business decisions without fear of judgment or backlash.
The company refuses to reveal the number of members on its site, and display advertising cannot be
purchased; however, those who are willing to pay a $9,000 upfront cost and a $3,000 annual membership
fee can create pages for their businesses.
James Edition serves as Craigslist for the wealthy
Described as “The world’s luxury marketplace,” JamesEdition.com is a website where consumers can
purchase luxury cars, motorcycles, watches, yachts, jets, and more. According to the website, the company
offers only the highest-end products, and its listings come from professional dealers.
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Marketing Strategies
US, December 2014
Overview
Analyzing brand positions of leading companies is important to understanding the competitive landscape,
creating advertising collateral, and launching successful marketing campaigns. It also allows companies to
compare their own brand positions, and see if other, more compelling positions should be adopted. Below
are several themes Mintel has discovered that occur repeatedly in the marketing strategies developed by
luxury companies. These themes include:

Highlighting history;

Celebrity endorsement;

Involving consumers;

Creating art instead of ads; and

Mobilizing marketing.
These five strategies are discussed in further detail below. Though each of the following case studies is
categorized under a specific theme, many of these campaigns use more than one of these strategies.
Strategy: Highlighting history
Heritage is an important element of luxury (see What Defines Luxury), and therefore many luxury brands
incorporate their history into their advertisements.
Case study: The late Coco Chanel stars in “Inside CHANEL” campaign
“Inside CHANEL” is the first digital campaign for Chanel. Originally launched in October 2012, the
campaign tells the story of the brand, its founder, and its legacy. Today, the campaign continues to evolve,
with new content added every few months.
Tactics and media
The campaign depends heavily on short films, which are housed on video sharing sites (ie YouTube and
Vimeo), and the interactive microsite Inside-Chanel.com. These videos are supplemented by images of old
advertisements, historical photos, fashion sketches, and a brand timeline. “Inside CHANEL” has also been
promoted on Chanel’s social channels and through media relations; chapters five through 10 of the video
series were launched exclusively on Elle.com.
Creative and messaging
The campaign is stylized in a way that is reflective of Coco Chanel’s minimalist design philosophy. Most
of the clips are in black and white with red, gold, and beige accents. The editing is fast-paced and uses
quick cuts and quick dialogue to propel the story forward.
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US, December 2014
The videos focus primarily on Coco Chanel. They describe her creative process, her inspirations, her
genius, her fearlessness, and her legacy. The videos frequently mention that Coco’s designs were
revolutionary for her time. They paint Coco as a creative rebel who refused to be constrained by her
gender, her upbringing, or society’s expectations. By focusing on these elements of Chanel’s history, the
videos position the brand as not only elegant, but also classic, mysterious, and continually innovative.
The videos also frequently mention Coco’s involvement with celebrities, artists, intellectuals, and
members of high society. Marilyn Monroe, Igor Stravinsky, and Andy Warhol are all named. This focus
makes the brand seem elite and almost untouchable. It signals to consumers that they don’t lose money
when they pay for Chanel; instead, they gain the privilege of being involved with the brand.
FIGURE 23: CHANEL, “PARIS BY CHANEL – INSIDE CHANEL,” CHAPTER 12, SEPT. 17, 2014
http://www.youtube.com/watch?v=F3QAxtE1L20&index=1&list=PLEE61EDB90F0AA88F
SOURCE: YOUTUBE/CHANEL CHANNEL
FIGURE 24: CHANEL, “THE COLORS – INSIDE CHANEL,” CHAPTER 11, MAY 23, 2014
http://www.youtube.com/watch?v=TaCdAscgpU0&list=PLEE61EDB90F0AA88F&index=2
SOURCE: YOUTUBE/CHANEL CHANNEL
Response
The “Inside CHANEL” campaign has gained the attention of many since it launched. On its own, the
“Paris by Chanel” YouTube video had nearly 3.14 million views on Dec. 1, 2014. What’s more,
consumers seem captivated by the campaign.
“This is advertisement done right,” commented one viewer on YouTube. “I was going to skip past this
when I saw it in an add [sic] before my video played but I got entranced and ended up watching the entire
thing. It was breathtaking, just as one would expect from Chanel.”
Another said, “This is quite possibly the most incredible and interesting video i've [sic] ever seen!”
Industry experts have also been impressed by the effort. In fact, Luxury Daily named Chanel its 2013
Luxury Marketer of the year. Mickey Alam Khan, EIC (editor in chief) of the site, had the following to
say about the brand:
“Chanel proved itself the master of the narrative in 2013. Each piece of communication and marketing was
another link in the grand construct of the Chanel story. A luxury brand’s key achievement is to stir longing
and emotion for craftsmanship and high quality, and Chanel elevated the standard with marketing whose
finesse was unmatched and much admired.”
Case study: DKNY’s Donna Karan iconizes her Cashmere Mist fragrance
In July 2014, Donna Karan launched “The Making of an Icon,” a campaign that details the history of the
brand’s Cashmere Mist fragrance.
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US, December 2014
Tactics and media
The Donna Karan campaign for Cashmere Mist is similar to Chanel’s “Inside CHANEL” campaign. The
main component of the campaign is a microsite, CashmereMist.DonnaKaran.com, which features a threechapter documentary film. At launch, the campaign also included an online sweepstakes, which has since
ended.
The five videos for “The Making of an Icon” were filmed in a standard documentary style. The videos
feature interviews with people close to the perfume, such as Donna Karan, perfumer Nick Calderone, and
Allure EIC Linda Wells. These interview clips are interspersed with artistic videography and historical
photos. While the interview clips are in color, many of the artistic clips are black and white.
The documentary focuses primarily on the craftsmanship of the fragrance and its bottle design. This
emphasis elevates the perfume above cheap, mass produced fragrances.
FIGURE 25: DONNA KARAN, “CASHMERE MIST: THE MAKING OF AN ICON CHAPTER 2 –THE SCENT,” JULY 15, 2014
http://www.youtube.com/watch?v=ml9loz3qwtI&list=PLjv0lpdwdt47qJCOKAi94KXedfoRgiXED
SOURCE: YOUTUBE/DONNA KARAN CHANNEL
Response
Together, the campaign videos had received more than 3,700 views on YouTube as of Dec. 1, 2014. The
campaign also earned mentions on websites such as Beauty Fashion. Data about the microsite’s traffic was
not available.
Strategy: Celebrity endorsement
Luxury companies and celebrity spokespeople often go hand in hand. While a relatively small share of
consumers (13%) define luxury purchases as those endorsed by an “A-list” celebrity (see What Defines
Luxury), celebrity associations are effective at increasing awareness and sales. For example, among the
top-selling 100 fragrances in 2012, 31 were tied to celebrities. By using celebrities to promote their
products, brands communicate that their products are exclusive or only available to those who are of a
certain status. The use of celebrities also can awaken in consumers a desire for a life of luxury and
glamour.
Case study: Dior brings back Charlize Theron for new J’adore campaign
Dior unveiled the newest installment of its advertising campaign starring actor Charlize Theron in
September 2014. The campaign promotes the J’adore fragrance collection, which relaunched for the 2015
holiday season.
Tactics and media
The campaign makes use of both traditional and digital advertising tactics, including online banner ads,
social media posts, print ads, and a microsite. The focus of the campaign is a commercial directed by
French fashion photographer and music video director Jean-Baptise Mondino called “The Future is Gold.”
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US, December 2014
The “Future is Gold” video opens with Theron walking through a gilded hall, complete with golden
statues, chandeliers, and Renaissance style art. As she walks, a long sash falls from the dome at the top of
the building. She throws off her wrap, kicks off her shoes, tears off her necklace, and climbs the sash.
When she emerges through the top of the dome, the shining, futuristic city of Dubai is revealed. At the end
of the spot, a J’Adore bottle is shown in front of the Dubai skyline.
During the ad, Theron says the following: “The past can be beautiful, a memory, a dream, but it’s no place
to live. And now is the time. The only way out is up. It’s not heaven. It’s a new world. The future is gold.
J’adore Dior.”
FIGURE 26: CHRISTIAN DIOR, J’ADORE, “THE FUTURE IS GOLD,” SEPT. 2, 2014
http://www.youtube.com/watch?v=Rm-vBq-1T1k
SOURCE: YOUTUBE/CHRISTIAN DIOR CHANNEL
Luxury brands risk losing cachet when they abandon pedigree in favor of forward-looking messages;
however, Dior’s campaign is effective in many regards. “The Future is Gold” positions Dior as a company
that breaks convention, and it indicates that Dior’s best is yet to come. The campaign even subtly
discredits some of Dior’s past-looking competitors. If a brand must focus on its past, the ad proposes, then
it is probably not doing anything worth your time in the present.
The ad also effectively positions J’adore as an authentic, quality product that can stand on its own – no
feints or focus-shifting diversions required. By passing over the complex grandeur of the Renaissance for
the clean lines of Dubai, and by having Theron shed her outfit’s layers, the ad suggests that unnecessary
details only exist to weigh down or distract.
Lastly, the ad is effective at conveying luxury through its imagery. Everything from Theron’s dress to the
Dubai skyscrapers shimmers with gold. If the skyline in the background or the glimmering waters were to
lose their golden sheen, the ad would not feel as indulgent and rich as it does.
Response
As of Dec. 1, 2014, “The Future is Gold” had received nearly 23 million views on YouTube, thanks in part
to a paid YouTube advertising strategy. About 21 million of those views happened in the ad’s first month,
and the pre-roll ad has been well-received by many consumers.
“I’m not one for adverts,” said one YouTube commenter, “but this is stunning, the words, the song and of
course Charlize Theron!”
“This is truly the most beautiful Dior ad ever,” said another. “The art direction and work of Jean-Baptiste
Mondino is absolutely breathtaking. And of course, Ms. Theron is stunning along with the J'adore
fragrance. Merci, Dior.”
Case study: Nicholas Hoult stars in “British Intelligence” campaign for Jaguar
On Oct. 6, 2014, Jaguar launched “British Intelligence,” a campaign starring actor Nicholas Hoult. The
campaign builds on the brand’s spring 2014 “British Villains” campaign, which featured British actors
Tom Hiddleston, Mark Strong, and Sir Ben Kingsley, among others.
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US, December 2014
For more about luxury cars, see Mintel’s Luxury Cars – US, October 2014.
Tactics and media
The campaign is led by a video called “British Intel,” which exists in 30-second and 90-second versions.
The shorter version is airing on TV, and the longer “film” is available online. In addition to the main spot,
three supplementary web films were created. These spots are viewable on YouTube and on the “Why
Jaguar” landing page on Jaguar’s website. To drive traffic to these films, Jaguar is promoting the
campaign through its social channels. The campaign hashtag is #MethodToOurMadness.
Other elements of the campaign include digital, mobile, and print advertisements, custom content, usergenerated content, experiential pop-up shops, and TV product placements. Furthermore, Jaguar is creating
an augmented reality experience for Google Glass users: consumers who view select print ads while using
Google Glass’s Blippar app will be treated to video content and additional features.
The video advertisement stars British actor Hoult, known for his breakout roles in About a Boy and XMen: First Class, in the role of evil genius. It takes place in a secret, underground “innovation lab,” which
is full of Jaguar models and floating, holographic car parts. Throughout the ad, Hoult describes the
benefits of Jaguar vehicles as he moves around the room and assembles the suspended elements, simply by
waving his hands. At the end of the ad, he blasts out of the underground lair in a Jaguar F-Type R Coup.
FIGURE 27: JAGUAR USA, “BRITISH INTEL,” OCT. 6, 2014
https://www.youtube.com/watch?v=ZJX3n8Z4jPo
SOURCE: YOUTUBE/JAGUAR USA
The ad successfully emphasizes the premium performance and luxurious craftsmanship of Jaguar cars.
Hoult’s character seems like he has just stepped out of a James Bond movie, and viewers instantly
recognize the character as a suave, debonair type who can afford imported cigars and expensive bottles of
scotch. He is automatically associated with sophistication, and that association is projected upon his cars.
Furthermore, the ad’s script and imagery succeed at emphasizing the car’s quality. By the end of the hightech lab tour, viewers think of Jaguars as anything but unskillfully made, mass-produced cars – and that
craftsmanship is something that many people are willing to pay for.
Response
On October 13 – one week after the campaign launched – Hashtracking estimated that the campaign
hashtag had been tweeted 1,500 times. The “British Intel” film had more than 101,000 views on YouTube
as of Dec. 1, 2014, and several commenters had praised the ad. One viewer even suggested that the
commercial should become a feature-length movie. The ad was also selected as an Editor’s Pick by
Creativity, which said that the copywriting and Hoult’s charismatic delivery “enlivened…what might be
rather dry automotive talk.”
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US, December 2014
Strategy: Involve consumers
Thanks to modern technology, brands now have direct access to consumers and vice versa. Though many
brands and consumers are still figuring out how to navigate this rocky terrain, the relationship between
both parties has obviously evolved; brands can no longer ignore the (very public) cries of consumers, and
consumers can hardly distance themselves from their involvement with brands. This evolution also means
that brands can no longer talk at consumers or tell them what to do à la “try our brand because it’s great”
advertising. Instead, brands must involve consumers, communicate with them, and build relationships.
This strategy is not only cost effective – why pay to distribute your message if someone else will distribute
it for you? – but also appeals to Millennials who tend to want control over the media they consume.
Case study: Burberry uses customizable ad campaign to support launch of fragrance
In September 2014, UK-based luxury company Burberry launched My Burberry, a fragrance inspired by
the brand’s iconic trench coat. The scent is sold in a bottle that can be customized with consumers’ initials,
so the launch was supported by a customizable ad campaign featuring British models Kate Moss and Cara
Delevingne.
Tactics and media
The campaign makes use of multiple tactics, including print ads, in-store signage, a website landing page,
video ads, mobile elements, and social content on Facebook, Twitter, Instagram, and YouTube. Most of
the ads feature imagery from the photo and video shoot with Delevingne and Moss.
The campaign also includes digital billboards in New York and London that can be customized by
viewers. To personalize the billboard, viewers simply log on to MyBurberry.com and submit their initials.
After a short countdown, their initials are monogrammed on the billboard’s perfume bottle. Those who are
not near the interactive billboards can create a shareable mockup of the monogrammed bottle online.
The campaign depends heavily on imagery and uses very little language. The interactive billboard shows
Moss and Delevingne on the right and a large bottle of My Burberry on the left. The entire ad is black and
white except for the golden bottle of My Burberry. In the center of the billboard, the copy reads,
“Monogram yours and see it here,” followed by, “MyBurberry.com.”
This ad concept is effective in many regards: it captures consumer attention, drives product recall, leads
consumers to imagine they own the product, and encourages social sharing. The creative is also effective.
By showing the bottle of My Burberry in color against a colorless background, the ad draws attention to
the product and evokes its warm fragrance. Moreover, the copy tells consumers what to do without being
needlessly complex or clever. After all, the billboard concept is clever enough to stand on its own.
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US, December 2014
The video ad from the campaign is similar in tone. The black-and-white film is set to the song “I Put a
Spell on You,” as performed by Jeff Beck featuring Joss Stone. It opens with several close-ups of
Delevingne’s and Moss’s faces. The video then zooms out to reveal that the two are wearing nothing but
Burberry trench coats. The remainder of the ad shows the women striking poses atop a giant bottle of My
Burberry, whispering, laughing, and having fun together. Toward the end of the commercial, the two
women spray perfume into the air, and the spray is edited to look like rain (one of the inspirations for the
scent). At the end of the ad, the film transitions to color, and a bottle of My Burberry is shown sitting in
the rain. A voiceover speaks the only line of the ad: “My Burberry – The new fragrance for women.”
FIGURE 28: BURBERRY, “INTRODUCING MY BURBERRY – THE NEW FRAGRANCE FOR W OMEN,” SEPT. 1, 2014
http://www.youtube.com/watch?v=u1OwrDmO8mY
SOURCE: YOUTUBE/BURBERRY
According to fashion photographer Mario Testino, the commercial reflects the customizable nature of the
product. The script for the ad was minimal, and the models were only directed up to a point so that their
magnetic personalities could shine through. This strategy paid off handsomely for the brand; the
mesmerizing ad has been described as playful, steamy, and seductive, much like the My Burberry scent.
The ad also does a nice job of subtly branding My Burberry as luxurious. The use of iconic British models
speaks to the premium nature of the product, and the black-and-white videography oozes refined
sophistication. Even when the women are posing nude, the artful editing keeps the commercial from
diving into cheap territory. Overall, the commercial and its derivatives convey that My Burberry is a highend-but-not-stuffy product for confident and classy women.
Response
The campaign has thrived online: the YouTube video had more than 3.4 million views as of Dec. 1, 2014,
and the brand’s social posts have netted thousands of interactions. In fact, an individual Instagram video
about Moss’s involvement earned more than 21,000 likes from fans.
The campaign also appears to have helped drive traffic to the Burberry website. Compete estimates that
the number of unique visitors to the website grew by more than 110,000 in the month of the launch – a
month-over-month increase of 50%.
Case study: Saks Fifth Avenue launches #SaksStyle content hub
During New York Fashion Week 2014, Saks Fifth Avenue unveiled a content hub on its website called
#SaksStyle.
Tactics and media
The #SaksStyle hub includes user-generated photos aggregated from Twitter, Instagram, Tumblr, and
direct uploads. The photos all include products that are available at Saks Fifth Avenue. To drive purchases
of these products, the photos also include “Shop Now” links, which take viewers to the e-commerce page
for the displayed items in each photo. If viewers are looking for specific styles, they can sort the photos by
product category, trends, and more.
To support the launch, Saks Fifth Avenue used social promotion, in-store signage, media relations, and
blogger/influencer relations. It also co-hosted a launch party with Tumblr.
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US, December 2014
Because the content on the #SaksStyle content hub is user-generated, the campaign does not include much
company-created creative. The campaign’s social posts simply educate consumers about the hub and how
it works.
Response
On Dec. 1, 2014 – a few months after the launch of the content hub – nearly 8,000 Instagram photos had
been tagged with the #SaksStyle hashtag, according to Iconosquare.
Strategy: Create art instead of ads
Art and luxury maintain a symbiotic relationship. Of luxury buyers, 59% define luxury goods as those that
use craftsmanship, 26% have attended a cultural event in the past 12 months, and 16% have purchased
hand-crafted artwork (see What Defines Luxury and Participation in Upscale Activities). In other words,
involvement with the aptly named “high arts” allows brand and consumers alike to show off their good
taste and elevate their status. For this reason, luxury brands often sponsor art-related brands, release artsy
advertising, and replace words like commercial with words like film.
Case study: Giorgio Armani collaborates with world-class film schools
As an extension of a short-film campaign that began in spring 2014, Giorgio Armani collaborated with
film schools from across the globe to create artistic content for the brand.
Tactics and media
Armani tapped students from film schools in New York, Los Angeles, London, Rome, Paris, and Hong
Kong to create short films that celebrate life as seen through the lens of Armani glasses. The films were
screened at a star-studded party at the 2014 Toronto International Film Festival (for which Armani was a
sponsor), and afterwards they were made available online at framesoflife.armani.com and on YouTube.
Armani has promoted the films through its social channels and through media relations.
The six films differ in tone and style; however, they all share a certain artistry, and the inclusion of
Armani glasses makes the eyewear part of that art. Take, for example, “Ella,” the submission from the
New York University Tisch School of the Arts. The near four-minute film follows a young woman
wearing Armani glasses as she lives an everyday life in New York City. Throughout the journey, she
describes the games she plays inside her head, such as counting the number of blocks she walks with a
stranger after exiting the subway. She also discusses the importance of choosing perspective and of
framing life. Though not much happens in the film, per se, it turns the often-mundane parts of life into
something beautiful.
FIGURE 29: GIORGIO ARMANI, “ELLA,” SEPT. 9, 2014
http://www.youtube.com/watch?v=RJ-kTTDEZCk
SOURCE: YOUTUBE/ARMANI
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US, December 2014
Though Armani did not create the video, the company could not have asked for a better entry. In every
sense, it is a masterfully crafted and subtle piece of work. Unlike many branded films that place the brand
first, this film places art first – and that restraint is what makes the video so effective an advertisement.
Many luxury buyers also attend cultural activities (see Participation in Luxury Activities). By supporting
art in lieu of excessive self-promotion, Armani positions itself as a vehicle to a refined and cultured
lifestyle.
The creative used by Armani to promote the films also emphasize artistry. The black-and-white microsite
closely resembles a site that would be used for a film festival, and the film industry’s iconic laurel leaves
were used throughout.
Response
As of Dec. 1, 2014, the six films from the project have received more than 1.6 million views on YouTube.
The project also earned mentions in several large circulation magazines, including Vogue, Style, WWD,
and Variety.
Strategy: Mobilizing marketing
Though the appearance of exclusivity is important to luxury, luxury companies are beginning to jump into
the mobile space with apps that educate consumers about their brand offerings.
Case study: Hermès breaks the mold with Tie Break app
French fashion house Hermès launched Tie Break, a content-rich app promoting the brand’s ties, in
August 2014.
Tactics and media
The Tie Break app is the main vehicle for delivering advertising messages for the campaign. It houses
content such as arcade-style games, GIFs, tie tutorials, and production secrets. It also allows users to
browse pieces from Hermès’ fall/winter 2014 neckwear line, digitally try ties against their shirt, and
purchase products in-app.
Though the app in and of itself is an advertisement for the brand, the company has used online videos and
media relations to promote the app’s launch. The app also earned its own page on the Hermès site.
The app’s tagline – “A random dose of Hermès” – perfectly sums up the game. The app is colorful and
quirky like many of the ties it promotes. With everything from GIFs of men disappearing to maze games,
users can spend hours on the app.
FIGURE 30: HERMÈS, “TIE BREAK APP – A RANDOM DOSE OF HERMÈS,” AUG. 7, 2014
http://www.youtube.com/watch?v=Pj0_3qTNRTA
SOURCE: YOUTUBE/HERMÈS
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The lightheartedness of the app is a breath of fresh air in a category that sometimes takes itself too
seriously. Whereas some luxury brands feel as if they are relics of a bygone era, 177-year-old Hermès
feels like a contemporary, young, and hip luxury brand. Of course, not all brands would see success with
this casual approach – zaniness is not usually synonymous with decadence – but Hermès succeeds because
it never lets consumers forget that, all fun aside, its handmade products are of the highest quality.
Response
The app earned mentions on consumer facing websites such as Esquire, GQ, Complex, and Ask Men. As of
Dec. 1, 2014, the app had been installed on Android devices between 5,000 and 10,000 times. Information
about installs on Apple devices was not readily available. On both the Apple iTunes and Google Play
stores, the app had an average rating of four out of five stars.
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What Defines Luxury
US, December 2014
What Defines Luxury
Key points

To be considered a luxury item, products must demonstrate their elevated status in multiple
ways. Attributes most likely associated with luxury include use of higher-quality
materials/craftsmanship, a long-standing history of exclusivity, designer labels, and higher price
points.

Compared to men, women tend to emphasize quality, visibility, and uniqueness. Women are also
more likely to view luxury purchases as those that are unnecessary.

As household income increases, so does the importance of higher quality. Conversely,
uniqueness and guarantees are more important to less affluent consumers and to younger age
groups (who tend to have lower household incomes).
Quality, legacy, labels, high prices are hallmarks of luxury
“Luxury products are premium, upscale products that are higher quality than most brands.
Sometimes they are sold in only specific locations. They generally cost more money as well.”
“A luxury product is something that is not a necessity but is considered to be something that brings
happiness, pleasure, and status. Qualities that make a product a luxury item are unique quality,
craftsmanship, and being expensive.”
Consumer definitions of luxury are very personal. The majority of respondents do not agree on any one
description, although nearly half say that luxury products are created using high-quality materials and
craftsmanship. This discord presents a challenge to luxury marketers who must demonstrate why their
product should be considered a luxury and – very often – why that product is worth a higher price. For the
majority of consumers, price alone is not an indicator of luxury.
Compared to all adults, the 70% of respondents who buy luxury goods are slightly more unified in their
definition of the category. Most often, they associate luxury with quality, craftsmanship, and exclusivity.
Key analysis: Marketers can appeal to the most consumers at once by positioning their product as high
quality and exclusive and by emphasizing visible labels/trademarks. However, because definitions of
luxury are so fragmented, brands may benefit from custom research that further identifies how their
target consumers define luxury.
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What Defines Luxury
US, December 2014
FIGURE 31: HOW LUXURY PURCHASES ARE DEFINED, BY ALL AND BY LUXURY GOODS BUYERS, SEPTEMBER 2014
All
Base: internet users aged 18+
Use of higher-quality materials and craftsmanship
Brands with a long-standing history of exclusivity (ie a high-end brand that is rarely
seen in everyday life)
Designer labels or visible designer trademark patterns/initials
Paying a higher price
Unique, one-of-a-kind, or limited-availability items
A non-necessity item (anything you want but don’t need)
Choice to customize (fabrics, hardware, finish, initials, etc)
Free repairs or replacement if product fails to satisfy
Endorsed by an “A-list” celebrity
Other
Don’t know
2,000
%
Buy luxury
goods
1,249
%
49
43
59
50
43
41
38
28
21
17
13
1
11
47
43
46
30
25
22
14
-
Women care more about quality, visibility, and uniqueness
“I feel that luxury is something that brings you great satisfaction or is extravagant. It’s something
that you won’t find in all stores and something unique with a ‘wow’ factor.”
– Female, aged 55+, luxury item owner
When it comes to definitions of luxury, there are few differences by gender; however, women are more
likely than men to define luxury purchases as those that are high quality, have visible designer labels, and
are non-necessities. They are also slightly more likely to feel that uniqueness is a trait of luxury items.
Companies that wish to benefit from a luxury halo should emphasize these attributes in their
marketing of products geared toward women. Furthermore, brands that market to women should
remind them that their “unnecessary” desires are valid and that indulging oneself can be warranted. This is
especially true for mothers (households with children over index in buying luxury items – see Luxury
Purchasing Habits), who may feel a sense of guilt about splurging on an item for themselves instead of for
their families.
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What Defines Luxury
US, December 2014
FIGURE 32: HOW LUXURY PURCHASES ARE DEFINED, BY GENDER, SEPTEMBER 2014
Base: internet users aged 18+ who buy luxury goods
Brands with a long-standing history of exclusivity (ie a high-end brand that is rarely
Designer labels or visible designer trademark patterns/initials
A non-necessity item (anything you want but don’t need)
Choice to customize (fabrics, hardware, finish, initials, etc)
All
1,249
%
Male
575
%
Female
674
%
59
50
55
49
62
51
47
46
43
30
25
22
14
41
43
43
23
25
24
15
53
48
44
35
26
21
13
Regardless of income, luxury should be visible
Affluence has little effect on how consumers define luxury; regardless of household income level, luxury
buyers want to feel special and have others take note of their good taste. Marketers can use this desire to
their advantage, especially on social networking sites where consumers often go to show off their
successes. Marketers must be careful, however, that their products don’t lose the appearance of
exclusivity.
“The last luxury item I purchased was an Omega watch….I do care to wear it on special occasions
to show off my high taste.”
“I would like to have a car that is worth about a quarter million dollars. I think it would be fun to
drive out and have people comment about my expensive vehicle.”
Despite general similarities, three key differences about affluence and luxury exist:

Affluence positively correlates with desire for quality. Luxury owners with household incomes of
$150K+ are 22% more likely than those with less than $25K to associate luxury with quality and
craftsmanship. Affluent consumers can afford better quality in all areas of their life, so they have even
higher expectations for their luxury purchases.

The association of luxury with uniqueness trends downward as income increases. Because less
affluent consumers cannot necessarily afford the best-quality products, they seem to look instead for
products that are unique or different.
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What Defines Luxury

US, December 2014
Less affluent consumers look for guarantees. These consumers allocate a greater share of their
wealth when they purchase luxury items, so they want to know that their investment is worth the cost.
Luxury brands should assure these consumers that their products are durable. They should also strive
to guarantee satisfaction and offer product warranties when possible.
FIGURE 33: HOW LUXURY PURCHASES ARE DEFINED, BY HOUSEHOLD INCOME, SEPTEMBER 2014
who buy luxury goods
Use of higher-quality materials
and craftsmanship
Brands with a long-standing
history of exclusivity (ie a highend brand that is rarely seen in
everyday life)
Designer labels or visible
designer trademark
patterns/initials
Unique, one-of-a-kind, or limitedavailability items
A non-necessity item (anything
you want but don’t need)
Choice to customize (fabrics,
hardware, finish, initials, etc)
Free repairs or replacement if
product fails to satisfy
All
<$25K
$50K74.9K
230
$75K99.9K
193
$100K149.9K
286
$150K+
139
$25K49.9K
260
1,249
%
%
%
%
%
%
%
59
55
56
56
59
60
67
50
51
44
52
51
51
53
47
48
50
46
39
50
49
46
53
43
50
39
44
52
43
30
45
30
47
29
44
35
44
25
40
29
42
28
25
32
23
26
24
25
26
22
35
22
23
16
20
24
14
16
15
13
13
12
13
141
Key luxury qualities consistent across age groups
There’s not much difference across age groups in defining the key qualities of luxury, although younger
luxury goods buyers appear to pay more attention to some of the more nuanced qualities. Luxury goods
buyers aged 18-24 are more likely to think of luxury items as those that are unique, expensive,
customizable, and endorsed by celebrities. Often, these young consumers are still constructing their
identities, so it is unsurprising that they are drawn to products that help them express their unique selves or
guide them on how to look or behave. Many luxury brands, such as Prada and Burberry, have launched
customizable programs that solidify the status and worth of their products in the eyes of these consumers
(see Innovations and Innovators and Marketing Strategies).
Younger luxury goods buyers are also more likely to define luxury items as those that come with
guarantees or warranties; nearly one third of 18-24-year-olds say that luxury products are those that offer
free repairs or replacements. This is likely because younger consumers tend to have less cash to spend and
want to make sure they’re getting the most value for their money.
67
What Defines Luxury
US, December 2014
FIGURE 34: HOW LUXURY PURCHASES ARE DEFINED, BY AGE, SEPTEMBER 2014
Use of higher-quality materials
and craftsmanship
history of exclusivity (ie a highend brand that is rarely seen in
everyday life)
designer trademark
patterns/initials
A non-necessity item (anything
you want but don’t need)
All
1,249
18-24
170
25-34
258
35-44
243
45-54
233
55-64
194
65+
151
%
%
%
%
%
%
%
59
59
59
62
54
63
55
50
52
45
48
52
55
50
47
46
50
45
48
48
45
46
57
41
43
40
49
51
43
30
54
38
46
31
42
24
38
30
43
29
40
25
25
38
29
29
20
16
19
22
28
27
23
19
18
18
14
17
22
16
9
9
7
68
Luxury Purchasing Habits and Shopping Behaviors
US, December 2014
Key points

Most luxury consumers want to bag a steal when they buy luxury items. Some 62% of luxury
buyers say they only purchase luxury items when they are drastically reduced in price.

After $50K, household income does not necessarily correlate with luxury purchasing.
Consumers from average-income households are nearly as likely as consumers from highincome households to purchase luxury products when those products are deemed worth the
price.

Respondents aged 18-34 – especially those with household incomes of $75K+ – are more likely
than any other age group to buy luxury products; however, luxury marketers should not ignore
older consumers. More than six out of 10 consumers aged 55+ buy luxury items.
Majority of luxury buyers purchase luxury items at a discount
Some 62% of luxury buyers purchase luxury goods infrequently and only at steep discounts,
demonstrating a general desire to avoid paying full price for luxury. Nonetheless, brands must walk a fine
line when offering coupons or sales. As discussed in “Attitudes toward exclusivity” in the Consumer
Attitudes about Luxury section, brands that have a reputation for offering coupons to everyone,
everywhere often find their luxury halo beginning to fade. Though these findings seem contradictory,
luxury brands can find success with discount strategies; they simply must preserve consumers’ notions
that their coupons are rare and/or available exclusively to special customers (see ad from Neiman Marcus
below).
69
US, December 2014
FIGURE 35: NEIMAN MARCUS, EMAIL ADVERTISEMENT, OCTOBER 2014
SOURCE: COMPEREMEDIA, MEDIA ID: 20141021-051107
Nearly one quarter of respondents say they are willing to pay full price, but only when they think the cost
is justified. These consumers need to be convinced of a product’s value and worth. Though all brands
should highlight their product’s benefits when creating advertisements, this is especially important for
luxury brands targeting these consumers. One way to create value is to position products as treats that
validate personal accomplishments, such as receiving a promotion/pay raise at work, getting a new job, or
successfully starting a new business.
“I bought one of my Armani suits because I got a big promotion, and I was told to spend some
money on a good suit. I didn’t expect to spend that much money on a suit but to tell the truth it was
worth it.”
“About 15 years ago, I bought a very expensive Kenneth Cole leather jacket for myself. I had
always wanted a leather jacket and had just gotten a raise. I saw the jacket in a store while I was
buying a briefcase; I bought it entirely on impulse.”
70
US, December 2014
Those who say the majority of their purchases are luxury goods and that they are unconcerned with prices
comprise the smallest group of respondents (3%). Still, when projected onto the total US population,
approximately 7.5 million adults in the US buy luxury without concern for price. These consumers are the
target of top-tier luxury brands like Patek Philippe and Rolls-Royce. These high-end brands are unlikely to
discount their prices to boost sales and accessibility because being out of the price range of all but the
most affluent consumers adds to the brand’s image of luxury and exclusivity.
Only 30% of respondents say they do not buy luxury goods at all. These respondents are more likely to be
older (aged 65+), less affluent (household earnings less than $25K), single, and unemployed. Men aged
55+ are the least likely demographic to buy luxury goods. These groups do not represent consumer targets
for a majority of luxury brands.
purchases?”
71
US, December 2014
FIGURE 37: LUXURY PURCHASING HABITS OF LUXURY GOODS BUYERS, SEPTEMBER 2014
purchases?”
Women more likely to be deal seekers
Women are more likely than men to define luxury items as non-necessities (see What Defines Luxury), and
as an extension of that, they are less inclined than men to splurge on full-price luxury items. When sales
from women are lagging, brands may need to work a little harder to prove their value or they may need to
begin selectively offering discounts.
FIGURE 38: LUXURY PURCHASING HABITS, BY GENDER, SEPTEMBER 2014
purchases?”
All
1,780
%
Male
835
%
Female
945
%
Buys luxury (net)
I only buy luxury goods (infrequently) if they are drastically reduced in price (at
least 40-50% off) such as those found in outlet malls or on eBay
I sometimes buy luxury goods even if they’re not on sale if I think they’re worth
the price
The majority of my purchases are luxury goods and I’m not concerned with the
price
70
44
69
38
71
48
23
27
20
3
4
3
I don’t buy any luxury goods, regardless of sale prices
30
31
29
Base: internet users aged 18+ who have an opinion of luxury
72
US, December 2014
Luxury buyers are savvy shoppers regardless of income
Statistically speaking, with the exception of those from households earning less than $25K, respondents
from all other household income brackets are equally as likely to purchase luxury goods. When these
lower-income respondents do buy luxury, they tend to buy reduced-price items. This is true of all
respondents from households that earn less than $75K.
Starting at $50K – about the median household income in the US – more respondents indicate that they
purchase full-price luxury items if they are worth the price. The tendency to buy worthwhile items at full
price increases slightly as household income increases, but even consumers from high-income households
want to be convinced of a luxury product’s value.
For respondents who are not concerned about price, purchasing does not necessarily correlate with
household income.
Key analysis: Though consumers from high-income households tend to have more discretionary
income, luxury marketers should not ignore middle-income consumers.
FIGURE 39: LUXURY PURCHASING HABITS, BY HOUSEHOLD INCOME, SEPTEMBER 2014
purchases?”
$50K74.9K
322
$75K99.9K
258
$100K149.9K
401
$150K+
248
$25K49.9K
366
%
%
%
%
%
%
%
Buys luxury (net)
I only buy luxury goods
(infrequently) if they are drastically
reduced in price (at least 40-50%
off) such as those found in outlet
malls or on eBay
I sometimes buy luxury goods even
if they’re not on sale if I think
they’re worth the price
The majority of my purchases are
luxury goods and I’m not concerned
with the price
70
44
56
39
71
51
71
46
75
43
71
43
76
33
23
15
17
23
28
24
37
3
2
4
2
3
4
6
I don’t buy any luxury goods,
regardless of sale prices
30
44
29
29
25
29
24
Base: internet users aged 18+ who
have an opinion of luxury
All
<$25K
1,780
185
73
US, December 2014
Young affluents more willing to splurge
Luxury buying peaks between ages 25 and 34, and declines with age (see Appendix – Other Useful
Consumer Tables). Respondents 18-34 who have household earnings of at least $75K are the most likely
to purchase luxury goods without concern for price; however, respondents aged 35-54 are still very
interested in luxury. Increased age often comes with their greater financial commitments (children
entering college, house payments, pending retirement), so these consumers sometimes need more
convincing.
FIGURE 40: LUXURY PURCHASING HABITS, BY AGE AND HOUSEHOLD INCOME, SEPTEMBER 2014
purchases?”
All
1,780
18-34,
<$75K
339
18-34,
$75K+
246
35-54,
<$75K
293
35-54,
$75K+
375
55+,
<$75K
304
55+,
$75K+
223
%
%
%
%
%
%
%
Buys luxury (net)
I only buy luxury goods
(infrequently) if they are drastically
reduced in price (at least 40-50%
off) such as those found in outlet
malls or on eBay
I sometimes buy luxury goods even
if they’re not on sale if I think
they’re worth the price
The majority of my purchases are
luxury goods and I’m not concerned
with the price
70
44
71
47
76
41
67
41
75
41
64
49
68
40
23
20
27
23
31
13
25
3
3
9
3
3
1
2
I don’t buy any luxury goods,
regardless of sale prices
30
29
24
33
25
36
32
74
Premium Brands – Ownership and Acquisition
US, December 2014
Key points

The most commonly owned premium brands include Ralph Lauren, Coach, Calvin Klein,
Chanel, and Gucci.

About eight out of 10 premium brand owners have purchased a premium brand within the last
three years.

More men than women purchased premium brands during the last three years; however,
women are more likely than men to own premium brands.

Consumers from middle to upper household income brackets ($25K-149.9K) are similar in their
ownership of most premium brands.
Popular premium brands are accessible, established
Consumers drawn to accessible luxury
Naturally, the most commonly owned brands are those that offer multiple product tiers including entry
level. Ralph Lauren and Calvin Klein offer labels with lower price points, and Coach offers wristlets and
jewelry pieces that can cost less than $100.
“I have clothes by Ralph Lauren, Michael Kors, handbags by Gucci, perfume by Calvin Klein. I am
not sure if that’s luxury. I purchase them on sale, and I enjoy them. Cheap luxury, LOL.”
These brands tend to be viewed as more accessible and, perhaps, less intimidating than higher-end brands;
when asked to personify a premium brand, one male respondent said Calvin Klein would be a fun-loving,
very popular, all-American male who has many friends. The same respondent said that he and Calvin
Klein would watch sports together and that they would eat casual foods (pizza and hamburgers).
Key analysis: Brands with entry-level products can encourage future purchases by building loyalty and
hooking consumers on the rush of buying luxury. The most successful entry-level products are those
that are approachable, scalable (eg wallets that can be upgraded to purses), and do not diminish the
value of costlier products. They should give consumers a little taste, but leave them wanting more.
Incidentally, the top three brands are also US brands, which may suggest an inclination to purchase
American-made products.
Consumers purchase established premium brands
Nearly eight out of 10 premium brand owners purchased an established premium brand within the last
three years (see Appendix – Other Useful Consumer Tables), and the popularity of most brands appears to
be stable or growing. Based on the data, Michael Kors seems to have witnessed some of the fastest
ownership growth, a finding that is consistent with the brand’s meteoric rise in sales in recent years.
75
US, December 2014
Even the brands that appear to have declined in popularity, such as Tiffany, Swarovski, and Burberry, are
not set to disappear from consumers’ shopping bags anytime soon. In fact, sales of Tiffany and Burberry
in the Americas have been increasing (regional sales for Swarovski are not readily available). This may be
at least partially attributed to sales in emerging American countries, such as Brazil. Alternatively, these
companies may be selling fewer but more expensive products and/or selling to more international travelers
on American soil. Another possible explanation is that their products are being gifted more often; in
Mintel’s survey, respondents who did not own a premium brand were not asked about their brand
purchases.
Key analysis: The luxury market is mature, and heritage premium brands have a strong foothold. If
luxury newcomers want to steal market share from these established brands, they must work twice as
hard to differentiate themselves and to convince consumers of their brand’s value. Nonetheless,
established brands should not become complacent. In order to survive, these brands must continually
acquire new customers and transform past customers into repeat purchasers. Customer relationship
management should be a key part of this process, especially for brands with lower profit margins.
FIGURE 41: PREMIUM BRANDS OWNED AND PURCHASED IN THE LAST THREE YEARS, SEPTEMBER 2014
Base: 2,000 internet users aged 18+/1,309 who own any premium brands evaluated
76
US, December 2014
More men than women have purchased premium brands in recent years
Over the last three years, despite a higher incidence of ownership among women, more male than female
premium brand owners purchased these items. There are a few possible explanations:
Women became more cautious during the economic downturn: Women – who tend to see luxury items
as unnecessary (see What Defines Luxury) – may be retaining cautious spending habits adopted during the
recession (see Mintel’s The Budget Shopper – US, December 2014).
Men are taking a greater interest in their appearance: As described by Mintel’s trend Man in the
Mirror, many modern men take pride in maintaining a well-groomed appearance. Likewise, men may be
increasingly interested in purchasing luxury clothing and accessories that elevate their status in the eyes of
others. This hypothesis is supported by examples in the market; designers Tory Burch, Michael Stars, and
Clover Canyon have all recently launched men’s lines, while Dolce & Gabbana, Hermès, Lanvin, and
Ralph Lauren have launched men’s-only flagships.
Men buy premium brands as gifts for women: Men may buy luxury products as gifts for women,
creating the illusion that luxury purchasing among women has slowed.
The brands most commonly owned by men are Ralph Lauren, Calvin Klein, and Armani. Over the last
three years, two of these brands – Ralph Lauren and Calvin Klein – appear to have increased in popularity
among male premium brand owners. Many women also own these two brands, although their popularity
among female premium brand owners seems to have decreased in recent years.
77
US, December 2014
FIGURE 42: PREMIUM BRANDS OWNED AND PURCHASED IN THE LAST THREE YEARS, BY GENDER, SEPTEMBER 2014
own any premium brand
Any own/any purchase in the last
three years (nets)
Ralph Lauren
Coach
Calvin Klein
Chanel
Gucci
Armani
Tiffany
Michael Kors
Burberry
Swarovski
Dior
Rolex
Louis Vuitton
Dolce & Gabbana
Versace
Cartier
Omega
Prada
Vera Wang
Montblanc
Bulgari
Marc Jacobs
Breitling
Fendi
Tory Burch
TAG Heuer
Hermés
Christian Louboutin
Jimmy Choo
Balenciaga
None of these
Brands
owned
All
2,000
Female
1,052
Purchased in
last three years
All
1,309
Male
948
Male
591
Female
718
%
%
%
%
%
%
65
62
68
79
83
75
27
26
24
15
15
14
13
13
12
12
10
9
9
8
7
7
7
6
6
6
5
5
4
4
4
4
3
3
2
2
35
27
11
26
13
16
21
9
7
10
9
11
14
8
9
9
10
11
5
2
8
6
4
7
4
3
6
3
3
2
2
38
27
40
23
17
14
8
17
18
14
14
9
5
10
8
5
4
3
8
10
4
4
5
2
4
5
2
3
2
3
2
32
24
22
22
11
10
11
7
13
7
7
6
6
5
7
3
4
4
4
5
3
3
3
3
2
4
2
2
1
2
1
21
30
8
28
12
14
19
5
7
7
7
7
11
6
9
5
7
7
4
1
5
5
3
5
2
2
4
3
2
2
1
17
18
33
17
10
8
5
8
19
7
8
5
2
5
5
2
2
1
3
8
1
2
3
1
2
5
1
1
1
2
2
25
Consumers from $150K+ households more likely to own premium brands
Premium brand ownership rates are very similar across household incomes brackets, with the exception of
those at the highest and lowest ends of the spectrum.
78
US, December 2014
Respondents with household incomes of $150K+ are significantly more likely than other respondents to
own most premium brands; however, some exceptions do exist. Affluence has little effect on likelihood to
own Calvin Klein, Chanel, Armani, Dolce & Gabbana, and Versace. As previously discussed, these brands
offer entry-level luxury products, which encourage purchases among consumers with lower household
incomes.
Key analysis: Accessibility seems to have little effect on ownership rates among those with higher
household incomes, even though consumers tend to view these brands as less exclusive and less
desirable (see “Attitudes toward exclusivity” in the Consumer Attitudes Toward Luxury section).
FIGURE 43: PREMIUM BRANDS OWNERSHIP, BY HOUSEHOLD INCOME, AUGUST 2014
Base: internet users
aged 18+
Ralph Lauren
Coach
Calvin Klein
Chanel
Gucci
Armani
Tiffany
Michael Kors
Burberry
Swarovski
Dior
Rolex
Louis Vuitton
Dolce & Gabbana
Versace
Cartier
Omega
Prada
Vera Wang
Montblanc
Bulgari
Marc Jacobs
Breitling
Fendi
Tory Burch
TAG Heuer
Hermés
Christian Louboutin
Jimmy Choo
Balenciaga
None of these
All
<$25K
$50K74.9K
348
$75K99.9K
286
$100K149.9K
428
$150K+
300
$25K49.9K
437
2,000
%
%
%
%
%
%
%
27
26
24
15
15
14
13
13
12
12
10
9
9
8
7
7
7
6
6
6
5
5
4
4
4
4
3
3
2
2
35
17
19
19
8
12
7
6
7
7
5
5
6
6
6
6
1
3
3
5
2
1
3
1
2
2
2
1
54
27
24
23
14
16
12
11
10
11
10
8
7
6
7
5
5
5
6
6
3
3
4
2
3
2
1
2
3
1
1
37
26
26
23
14
10
15
10
12
10
10
7
7
9
9
7
5
5
6
5
7
6
3
3
2
3
3
2
2
1
1
36
28
26
29
18
16
19
16
11
13
14
13
12
9
10
8
12
10
6
6
8
6
6
7
6
5
6
5
4
2
2
26
29
31
25
19
15
16
16
18
14
14
12
11
10
8
8
9
7
9
7
6
6
5
7
4
5
5
3
4
6
4
30
38
35
29
18
23
19
26
22
21
21
18
17
18
10
8
12
14
8
8
11
8
6
7
9
8
7
7
3
1
5
20
201
79
US, December 2014
High net worth women report greater incidences of premium brand
ownership
More than eight out of 10 HNWW (high net worth women, those with $500K+ in household investments)
own a premium brand, and compared to all respondents, rates of individual brand ownership are higher
among this demographic. The differences are greatest for Coach, Chanel, Tiffany, and Swarovski – brands
that market heavily to female consumers.
Generally, HNWW are also more likely than the general population to have purchased a premium brand
during the last few years. When compared to the general men’s population, however, male consumers are
still more likely than HNWW to have purchased brands such as Ralph Lauren, Calvin Klein, and Gucci.
For more information about this demographic, see Mintel’s High Net Worth Women – US, December
2014.
80
US, December 2014
FIGURE 44: PREMIUM BRANDS PURCHASED IN THE LAST THREE YEARS, BY ALL AND HIGH NET WORTH WOMEN, SEPTEMBER 2014
“And which have you purchased in the last three years?”
Brands
owned
aged 18+/women with at
least $500K in
household investments
Ralph Lauren
Coach
Calvin Klein
Chanel
Gucci
Armani
Tiffany
Michael Kors
Burberry
Swarovski
Dior
Rolex
Louis Vuitton
Dolce & Gabbana
Versace
Cartier
Omega
Prada
Vera Wang
Montblanc
Bulgari
Marc Jacobs
Breitling
Fendi
Tory Burch
TAG Heuer
Hermés
Christian Louboutin
Jimmy Choo
Balenciaga
None of these
Purchased
in last three
years
All
1,309
HNWW
416
Difference
All
2,000
HNWW
500
Difference
%
%
% point
%
%
%point
27
26
24
15
15
14
13
13
12
12
10
9
9
8
7
7
7
6
6
6
5
5
4
4
4
4
3
3
2
2
35
38
45
32
31
25
18
29
25
25
29
20
15
20
14
11
15
10
15
15
9
12
11
6
11
13
6
11
7
9
7
17
11
19
7
16
10
4
16
12
13
17
10
5
11
6
4
8
3
9
9
4
8
7
1
7
9
2
8
4
6
5
-18
24
22
22
11
10
11
7
13
7
7
6
6
5
7
3
4
4
4
5
3
3
3
3
2
4
2
2
1
2
1
21
27
30
20
19
13
12
15
19
14
15
10
5
13
9
7
8
4
8
9
1
7
7
3
5
10
2
6
6
6
2
23
4
9
-2
8
2
1
8
6
7
8
4
-1
8
2
4
3
5
4
-1
3
4
3
6
4
5
4
1
81
US, December 2014
Qualitative brand personification
Introduction
In the qualitative research, Mintel explored consumers’ opinions of their chosen premium brands through
a projective technique where participants are asked to select a brand from the options shown below,
imagine that it were a person, and explain who the brand is. The responses provide insightful feedback on
what consumers think subconsciously about brands, the impact marketing efforts have on opinions, and
whether it is a brand they can relate to.
Brands chosen for discussion include Michael Kors, Omega, Armani, Kenneth Cole, Jimmy Choo, and
Calvin Klein.
FIGURE 45: COMMONLY OWNED PREMIUM BRANDS
SOURCE: COMPANY W EBSITES
Brand personification
Overall, respondents seem to identify with the luxury brands they described, and many saw similarities
between themselves and the brand. When they didn’t identify with the brand, the differences tended to be
aspirational. Most of the brands were described as the best version of a person, and respondents often
wanted to be more like the brand they described.
82
US, December 2014
The brand traits are discussed in further detail below.
Gender: Michael Kors, Omega, Armani, Kenneth Cole, and Calvin Klein were described as men. These
brands sell products aimed at both men and women, but their masculine designs seem to carry precedent.
Jimmy Choo, which markets primarily to women, was described as female. The majority of respondents
identified their brand as sharing their own gender, with the exception of one woman who described
Michael Kors.
Age: Brands were often described as old enough to be established financially, yet young enough to lead an
active lifestyle. Most of the brands were described as being in their 30s or 40s, and one respondent
described his brand as being in “the prime of his life.” Consumers aged 18-24 tended to describe their
brands as slightly older than themselves. Older respondents described their brands as being the same age
as them or younger. This reflects the aspirational nature of luxury.
Marriage and family life: Most luxury brands were viewed as single, unattached, and living carefree
lifestyles.
“[Kenneth Cole] is an urban white male in his early 30s. He is single, no children, and lives off his
investments, giving him free time to explore the world.”
– Male, aged 35-44, luxury item owners
“I am Michael Kors… I cater to women because I have dated a lot, but never married. I spend a lot
of my time boating and traveling to private islands.”
These quotes again speak to the aspirational nature of luxury. Few consumers can afford to live these
glamorous and carefree lifestyles. Most must live in a structured and sometimes monotonous world where
their obligations at work and home take precedent. However, luxury goods can make them feel as if they
lead a more exciting life.
These quotes may also speak to the popularity of these brands. The description of Michael Kors as a man
who dates many women can be explained by the brand’s recent popularity among women, though it may
also suggest a lack of brand loyalty.
The only brand that was described as being married or having children was Omega. Consumers may think
that this brand requires a greater commitment to buy or that it is an established brand for established
people.
Race: All of the respondents who identified a race said their brand was White. Information about the
respondents’ races was not available, but consumers who are Black, Asian, and other races may struggle to
identify with these brands.
Career: Most brands were described as business executives. Respondents used words like self-made,
powerful, hardworking, respectable, and successful. Respondents rarely described their brands as having
professional faults, again reflecting their aspirational nature.
83
US, December 2014
“[Armani] would be someone I admire and strive to be like at work.”
Michael Kors was the only brand described as being lazy. The respondent may feel as if the brand’s luxury
status has not been earned.
“I [Michael Kors] was born a spoiled rich kid… I have others produce my watches while I go out
and enjoy the good life….You will never catch me playing sports as that would be too exhausting
and I might get injured. I go to the spa frequently and get pampered there from head to toe.”
Accessibility and likability: Respondents generally described their brand as likable and relatable. Some
respondents viewed the brands as role models, again reflecting their aspirational nature. Even when they
described their brands negatively or said they had little in common with the brand, all described their
chosen brand as someone with whom they would spend time. Most were also described as being
interesting or fun.
“[Armani] is a confident person that makes people respect him. Everyone knows how cool and
special he is. He is confident, kind, commanding, charismatic, and special. He enjoys being the best
at what he does. For fun, he goes out and has some drinks.”
“[Calvin Klein is an] all-American male. Caucasian… [He is] fun loving. Very popular. Lots of
friends. Business minded, but knows how to party hard and let loose…I would be friends with this
person because he is diverse and has many interests. I have many interests and could watch a sports
game with this person. I am not White and don’t consider myself to be all American.”
– Male, aged 25-34, does not own a luxury item
“[Jimmy Choo] is a successful and confident person who looks down at others in her five-inch
heels. This person likes to wine and dine with friends in her free time and have a little house party
for fun. I'd never catch this person doing anything not fancy. I do think I might be friends with this
person, because I can see this person just having girl gossip time.”
“[Omega] is an honest, hardworking person and is very kind at heart. Besides relaxing in his spare
time, he also runs many charities for children, poor, and deprived people, as well as preserving
nature. He is so kind by heart that I have never seen him cheating anybody or speaking badly about
anybody. I would really like to be friends with him, as I also think the world is a community and
think of the benefits of humankind. The thing we don’t share in common is that I am not so much
rich.”
– Male, aged 25-34, does not own a luxury item
84
Luxury Goods Retailing
US, December 2014
Key points

Today’s luxury consumer buys across channels and across markets (ie at home and abroad).

Department stores and brands’ official sites are the two most popular channels.

Respondents who buy online tend to be younger, and respondents who buy from department
stores tend to be older.

Compared to female luxury buyers, male luxury buyers are more likely to purchase luxury
products online.

The most popular categories of luxury goods are fashion/footwear and fashion accessories.
Plurality of luxury purchases made in department stores and online
In-person luxury shopping remains popular among luxury buyers. Most recent luxury buyers purchased
their luxury goods in-store in the US. For in-country and in-store purchases, department stores are the
most common luxury-buying destination. Though this category includes high-end department stores such
as Neiman Marcus, it also includes accessible retailers and mass merchandisers that offer luxury capsule
collections. Target’s Missoni collection, Kohl’s Vera Wang collection, and H&M’s Alexander Wang
collection all serve as examples. When offered infrequently, these collections allow luxury brands to raise
awareness and get their products into the hands of new consumers; some 39% of respondents have
recently shopped at Target, but only 2% have shopped at Neiman Marcus.
Key analysis: Luxury brands can introduce consumers to their brand by offering limited (but
aspirational and high-quality) products in department stores. This way, consumers can get their hands
on a coveted brand while luxury brands can preserve their exclusive image by not being fully accessible.
More than half of recent luxury buyers have purchased luxury goods online. In fact, buying online from an
official brand website is just as common as buying from a department store.
Key analysis: The majority of luxury buyers have purchased a luxury item online, but about half are
buying from non-branded websites. Though many luxury companies have entered the online space
somewhat cautiously, brands without e-commerce sites are missing an opportunity to connect with
customers and grow revenue streams.
Though not a majority, four out of 10 recent luxury buyers purchased a luxury good in another country,
and international expansion can be a driver of growth for luxury companies (see “International tourism” in
Market Drivers).
85
US, December 2014
FIGURE 46: W HERE RESPONDENTS BOUGHT LUXURY GOODS IN THE LAST 18 MONTHS, MAY 2014
months.”
Base: 526 internet users aged 18+ who have bought luxury branded items in the last 18 months
All
%
Bought in-store in country (net)
Department store
Stand-alone brand store (eg Louis Vuitton, Burberry)
Multi-brand specialist shop (eg jewelry/watches, clothing specialist, perfumery)
Duty-free shop
Other type of store (eg outlet store)
71
37
31
21
6
10
Online (net)
Online – from the official brand’s website
Online – from another website (eg NET-A-PORTER, eBay, other third-party site)
54
37
26
Bought in-store abroad (net)
Department store
Stand-alone brand store (eg Louis Vuitton, Burberry)
Multi-brand specialist shop (eg jewelry/watches, clothing specialist, perfumery)
Duty-free shop
Other type of store (eg outlet store)
40
17
15
12
6
4
86
US, December 2014
FIGURE 47: RETAILERS SHOPPED AT IN THE LAST THREE MONTHS, APRIL 2013-JUNE 2014
“Have you shopped at any of the following retailers in the last three months?”
Base: 23,050 adults aged 18+
All
%
Target
Macy’s
T.J. Maxx
Ross Dress for Less
Nordstrom
Ulta
Sephora
Ralph Lauren
Bloomingdale’s
Lord & Taylor
Saks Fifth Avenue
Neiman Marcus
Herberger’s
Nine West
Brooks Brothers
Burberry
39
20
11
11
5
5
4
2
2
2
2
2
2
1
1
1
SOURCE: EXPERIAN MARKETING SERVICES, SPRING 2014 SIMMONS NHCS ADULT STUDY 12-MONTH. COPYRIGHT: [2014]
EXPERIAN INFORMATION SOLUTIONS, INC. ALL RIGHTS RESERVED/MINTEL
Online shoppers tend to be younger, slightly less affluent
As can be expected, online luxury buyers skew younger than department store buyers; some 61% of recent
luxury buyers aged 18-24 say they purchased an item online, compared to 44% of those aged 55+.
Furthermore, online stores are the number one luxury shopping destination for recent luxury buyers aged
18-24. For other age groups, the number one luxury shopping destination is a brick-and-mortar store
within the US.
Online buyers also tend to be slightly less affluent compared with department store buyers, but not
significantly so. This may be explained by the fact that about one quarter of recent luxury buyers have
purchased from third-party websites like eBay, where discounted and secondhand luxury can be
purchased.
Key analysis: The next generation of luxury consumers is changing the luxury retailing landscape.
Consumers aged 18-24 are slightly more likely to purchase luxury goods online than they are to
purchase luxury goods in-store, a trend that will likely continue as the world becomes more digitized.
With this data in hand, luxury goods retailers can no longer ignore online channels or the internet’s
impact on the purchasing process.
87
US, December 2014
FIGURE 48: W HERE THEY SHOP FOR LUXURY, BY AGE AND HOUSEHOLD INCOME, MAY 2014
months.”
* affluence represents gross household income on 1-5 scale, where 1 = <$50K, 2 = $50K-74.9K, 3 = $75K-99.9K, 4=
$100K-149.9K, 5= $150K+.
Bubble size represents purchase in past 18 months. Cross hairs represent average age and affluence of total sample
88
US, December 2014
FIGURE 49: MOST POPULAR LOCATIONS WHERE LUXURY BRANDED ITEMS WERE BOUGHT, BY AGE AND HOUSEHOLD INCOME, MAY
2014
months.”
Base: 526 internet users aged 18+ who have bought luxury branded items in the past 18 months
Sample size
Any online
%
Any in-store in
home country
%
Any in-store in
another country
%
#
All
526
54
71
40
Age:
18-24*
25-34
35-44
45-54*
55+*
84
153
114
89
86
61
59
61
40
44
58
69
75
76
74
42
42
45
33
33
Household income:
<$50K
$50K-74.9K*
$75K-99.9K*
$100K-149.9K
$150K+
116
85
96
123
106
56
61
53
51
51
66
65
76
77
69
42
35
40
38
42
* small sub-sample (75-100)
Male luxury buyers significantly more likely than women to buy premium
brands online
Recent male luxury buyers are significantly more likely than those who are female to have purchased a
luxury item online. It is possible that men are more likely to prefer low-fuss internet shopping. It is also
possible that men are more interested in product specs, which can easily be compared online. Either way,
brands that primarily target men should consider offering an e-commerce site.
89
US, December 2014
FIGURE 50: MOST POPULAR LOCATIONS WHERE LUXURY BRANDED ITEMS WERE BOUGHT, BY GENDER, MAY 2014
months.”
Base: 526 internet users 18+ who have bought luxury branded items in the past 18 months
Majority of recent luxury buyers purchased apparel, fashion accessories
The majority of recent luxury buyers have purchased footwear, fashion, and fashion accessories. The most
popular sub-categories include menswear, women’s handbags, womenswear, and footwear. The least
commonly purchased items include miscellaneous items (eg key rings, photo frames, organizers), writing
instruments, and luggage bags.
90
US, December 2014
FIGURE 51: LUXURY BRANDED ITEMS BOUGHT IN THE PAST 18 MONTHS, BY CATEGORY, MAY 2014
“Thinking about luxury branded items, which of the following products have you bought in the
last 18 months?”
Base: 526 internet users aged 18+ who bought luxury branded items in the last 18 months
* other includes cosmetics, fragrances, skincare, writing instruments/accessories, and other small miscellaneous
items/gifts
91
US, December 2014
FIGURE 52: LUXURY BRANDED ITEMS BOUGHT IN THE PAST 18 MONTHS, MAY 2014
“Thinking about luxury branded items, which of the following products have you bought in the
last 18 months?”
All
%
Any clothing/footwear (net)
Any fashion accessories/leather goods/luggage/bags (net)
Any watches/jewelry (net)
Other (net)
Menswear
Woman's handbag
Womenswear
Footwear
Jewelry
Fashion accessories (eg hats, scarves, gloves, eyewear)
Cosmetics/Fragrances/Skincare
Watch/Other timepiece
Small leather goods (eg wallets, purses, digital cases)
Childrenswear
Luggage/Other bags
Writing instrument/accessories
Other small miscellaneous items/gifts (eg key rings, photo frames, organizers, lighters)
71
63
44
19
41
41
38
33
32
28
28
24
21
19
15
14
8
92
Participation in Upscale Activities
US, December 2014
Key points

Buyers of luxury goods also enjoy a luxury lifestyle; they over index in participation of upscale
or premium activities. In addition, the likelihood to be involved with upscale activities increases
as premium brand ownership increases.

Male and female luxury buyers alike are involved with upscale activities. They report similar
incidences of participation in “couple” types of activities, such as dining out, but their
involvement in more individualized activities varies.

Household income correlates with upscale activities participation. Luxury buyers with
household incomes of $150K+ are 26% more likely than those with household incomes of <$25K
to have participated in any upscale activity during the last year.
More than three quarters of luxury buyers participate in “upscale” activities
The concept of luxury extends beyond consumer goods, and the majority (60%) of consumers say they
have participated in at least one upscale activity during the last year. This percentage is even higher among
those who buy luxury goods (74%).
The most common premium/upscale activities include eating at a fine dining restaurant, purchasing tickets
for a cultural event, and staying at a luxury hotel. Buyers of luxury goods over index in participation in
each of these individual activities, and luxury brands targeting these consumers may benefit from
advertising at these locations and from building partnerships with upscale activity companies.
Several companies do this already – Four Seasons serves Dom Perignon on its branded private jet, Delta
uses Porsche vehicles to transfer guests between connecting flights, and Saks Fifth Avenue offers personal
shopping appointments to Four Seasons hotel guests who have lost their luggage in transit – but
opportunities abound. One idea is that premium brands could offer luxury amenity kits or branded
cashmere blankets to guests traveling first class on airlines, on cruises, or in luxury rental cars.
93
US, December 2014
FIGURE 53: PREMIUM SERVICES/ACTIVITIES OF THE LAST 12 MONTHS, BY ALL AND LUXURY GOODS BUYERS, SEPTEMBER 2014
All
Eaten a meal at an upscale fine dining restaurant (ie those with white tablecloth,
extensive wine list, and high average check prices)
Purchased tickets for the theater, performing arts, or cultural event (eg symphony,
ballet, opera, musical theater such as touring Broadway shows, etc)
Stayed overnight in a premium/luxury brand hotel or resort (eg Conrad, Fairmont, Four
Seasons, Inter-Continental, St. Regis, Ritz Carlton, W Hotel or similar)
Had a spa treatment (eg massage, wax, facial treatment, body treatment, laser
treatment, etc – outside of a manicure/pedicure)
Purchased original, hand-crafted artwork (eg paintings, sculpture, photography,
decorative arts)
Flown domestically in a premium service class (first, business, executive class)
Attended a fund-raiser dinner/event where tickets were priced at $100+ per person
Rented a luxury/premium make of car while traveling
Flown internationally in a premium service class (first, business, executive class)
Taken a cruise on a premium or luxury cruise line (eg Celebrity Cruises, Crystal
Cruises, Cunard Line, Regent Seven Seas, Seabourn, Silversea Cruises, or similar)
None of the above
2,000
%
Buy luxury
goods
1,249
%
34
44
20
26
17
22
17
23
12
16
11
8
8
8
8
13
10
10
10
9
40
26
Luxury brand ownership goes hand in hand with upscale services
Ownership of multiple premium brands is positively correlated with participation in premium services
activities, which suggests that luxury is a lifestyle for many consumers. These types of luxury consumers
seem to desire the best in every aspect of their lives and to think of luxury goods as another component of
their lifestyle. Marketers should pamper them from start to finish to fulfill this desire and to earn a spot
within their life of luxury.
Luxury marketers wishing to reach premium brand owners who are already invested in the luxury lifestyle
may create or sponsor upscale activities. For example, BMW sponsored both the London and New York
City Frieze Art Fairs, Land Rover sponsored the Central Park Horse Show, Swarovski sponsored the
Academy of Motion Picture Arts and Science’s Hollywood Costume Exhibit, and Armani sponsored the
Toronto Film Festival (see “Creating art instead of ads” in Marketing Strategies).
Brands can also strategically place their advertising at locations where upscale activities happen. When
doing this, they should keep in mind that the popularity of certain activities changes depending on the
number of luxury brands owned. Among luxury buyers who own one to five luxury brands, purchasing a
ticket for a performance is the second most popular activity, but among luxury buyers who own six plus
premium brands, purchasing a ticket is the third most popular activity and staying at a premium brand
hotel is the second.
94
US, December 2014
FIGURE 54: PREMIUM SERVICES/ACTIVITIES OF THE LAST 12 MONTHS, BY COUNT OF LUXURY BRANDS OWNED, SEPTEMBER 2014
All
Base: internet users aged 18+ who buy luxury
goods
Eaten a meal at an upscale fine dining
restaurant (ie those with white tablecloth,
extensive wine list, and high average check
prices)
Purchased tickets for the theater, performing
arts, or cultural event (eg symphony, ballet,
opera, musical theater such as touring
Broadway shows, etc)
Had a spa treatment (eg massage, wax, facial
treatment, body treatment, laser treatment, etc
– outside of a manicure/pedicure)
Stayed overnight in a premium/luxury brand
hotel or resort (eg Conrad, Fairmont, Four
Seasons, Inter-Continental, St. Regis, Ritz
Carlton, W Hotel or similar)
Purchased original, hand-crafted artwork (eg
paintings, sculpture, photography, decorative
arts)
Flown domestically in a premium service class
(first, business, executive class)
Attended a fund-raiser dinner/event where
tickets were priced at $100+ per person
Flown internationally in a premium service
class (first, business, executive class)
Rented a luxury/premium make of car while
traveling
Taken a cruise on a premium or luxury cruise
line (eg Celebrity Cruises, Crystal Cruises,
Cunard Line, Regent Seven Seas, Seabourn,
Silversea Cruises, or similar)
None of the above
1-2 types
of luxury
brands
owned
3-5 types
of luxury
brands
owned
6+ types
of luxury
brands
owned
1,249
None of
these
luxury
brands
owned
227
361
363
298
%
%
%
%
%
44
20
37
50
64
26
13
20
29
39
23
11
16
28
35
22
11
15
21
42
16
10
11
15
26
13
3
8
13
25
10
3
5
11
21
10
4
5
8
22
10
3
5
8
21
9
3
6
8
19
26
55
34
16
7
Male and female luxury buyers both participate in upscale activities, but
specific activities vary by gender
Male and female luxury buyers are equally likely to have participated in an upscale activity in the past
year. Statistically speaking, both genders are also equally as likely to dine at an upscale restaurant, stay at
a premium/luxury brand hotel, and purchase original artwork. Couples often undertake these types of
activities together.
95
US, December 2014
The similarities end there as more women receive spa treatments, while more men fly first class (both
domestically and internationally), rent luxury cars, and attend fundraisers. These travel-related activities
are often undertaken during business travel, and male business travelers average more business trips than
do female business travelers (see Mintel’s The Business Traveler – US, June 2013). Furthermore, certain
activities, such as renting a car, are still considered more masculine than feminine. In other words, luxury
goods companies should consider their target consumer when developing partnerships with activity
providers or when placing advertising at activity-based locations.
FIGURE 55: PREMIUM SERVICES/ACTIVITIES OF THE LAST 12 MONTHS, BY GENDER, SEPTEMBER 2014
Eaten a meal at an upscale fine dining restaurant (ie those with white
tablecloth, extensive wine list, and high average check prices)
Purchased tickets for the theater, performing arts, or cultural event (eg
symphony, ballet, opera, musical theater such as touring Broadway shows,
etc)
Had a spa treatment (eg massage, wax, facial treatment, body treatment,
laser treatment, etc – outside of a manicure/pedicure)
Stayed overnight in a premium/luxury brand hotel or resort (eg Conrad,
Fairmont, Four Seasons, Inter-Continental, St. Regis, Ritz Carlton, W Hotel
or similar)
Purchased original, hand-crafted artwork (eg paintings, sculpture,
photography, decorative arts)
Flown domestically in a premium service class (first, business, executive
class)
Attended a fund-raiser dinner/event where tickets were priced at $100+ per
person
Flown internationally in a premium service class (first, business, executive
class)
Taken a cruise on a premium or luxury cruise line (eg Celebrity Cruises,
Crystal Cruises, Cunard Line, Regent Seven Seas, Seabourn, Silversea
Cruises, or similar)
None of the above
All
1,249
%
Male
575
%
Female
674
%
44
45
44
26
23
27
23
13
32
22
22
23
16
17
15
13
15
10
10
12
9
10
13
7
10
9
12
12
7
7
26
26
26
Involvement in luxury activities increases with income
The share of luxury goods buyers who participate in luxury activities generally increases as household
income increases, and respondents with household incomes of $150K+ always report the most
involvement. Many activities that have similar participation rates across household income brackets (eg
renting a premium/luxury car, taking a cruise, flying internationally first class) are related to taking a
vacation – a time when consumers usually treat themselves – or traveling for business – an activity that
consumers do not usually pay for themselves.
Overall, affluence is a greater indicator than age of participation in luxury activities.
96
US, December 2014
FIGURE 56: PREMIUM SERVICES/ACTIVITIES OF THE LAST 12 MONTHS, BY HOUSEHOLD INCOME, SEPTEMBER 2014
buy luxury goods
Eaten a meal at an upscale fine
dining restaurant (ie those with
white tablecloth, extensive wine list,
and high average check prices)
Purchased tickets for the theater,
performing arts, or cultural event
(eg symphony, ballet, opera,
musical theater such as touring
Broadway shows, etc)
Had a spa treatment (eg massage,
wax, facial treatment, body
treatment, laser treatment, etc –
outside of a manicure/pedicure)
Stayed overnight in a
premium/luxury brand hotel or
resort (eg Conrad, Fairmont, Four
Seasons, Inter-Continental, St.
Regis, Ritz Carlton, W Hotel or
similar)
Purchased original, hand-crafted
artwork (eg paintings, sculpture,
Flown domestically in a premium
service class (first, business,
executive class)
Attended a fund-raiser dinner/event
where tickets were priced at $100+
per person
Flown internationally in a premium
executive class)
Rented a luxury/premium make of
car while traveling
Taken a cruise on a premium or
luxury cruise line (eg Celebrity
Cruises, Crystal Cruises, Cunard
Line, Regent Seven Seas,
Seabourn, Silversea Cruises, or
similar)
None of the above
All
<$25K
$50K74.9K
230
$75K99.9K
193
$100K149.9K
286
$150K+
139
$25K49.9K
260
1,249
%
%
%
%
%
%
%
44
27
35
43
51
48
64
26
14
19
23
26
33
37
23
17
17
22
25
24
39
22
9
16
23
27
23
40
16
11
15
15
18
16
18
13
6
9
8
14
15
26
10
6
7
7
13
12
19
10
7
7
7
12
11
16
10
5
10
10
10
9
12
9
6
7
9
11
10
11
26
43
34
25
19
23
10
141
97
US, December 2014
FIGURE 57: PREMIUM SERVICES/ACTIVITIES OF THE LAST 12 MONTHS, BY AGE AND HOUSEHOLD INCOME, SEPTEMBER 2014
All
Base: internet users aged 18+ who buy
luxury goods
prices)
performing arts, or cultural event (eg
symphony, ballet, opera, musical theater
such as touring Broadway shows, etc)
Had a spa treatment (eg massage, wax,
facial treatment, body treatment, laser
treatment, etc – outside of a
manicure/pedicure)
Purchased original, hand-crafted artwork
(eg paintings, sculpture, photography,
decorative arts)
Flown domestically in a premium service
traveling
Taken a cruise on a premium or luxury
cruise line (eg Celebrity Cruises, Crystal
Cruises, Cunard Line, Regent Seven Seas,
Seabourn, Silversea Cruises, or similar)
None of the above
1,249
18-34,
<$75K
240
18-34,
$75K+
188
35-54,
<$75K
195
35-54,
$75K+
281
55+,
<$75K
194
55+,
$75K+
151
%
%
%
%
%
%
%
44
40
51
35
48
33
62
26
22
31
16
30
20
38
23
26
28
15
28
13
27
22
20
29
13
28
16
27
16
19
23
13
14
9
16
13
7
20
9
18
8
13
10
9
17
6
14
5
11
10
8
18
8
11
4
10
10
10
15
11
10
6
5
9
11
15
7
10
4
7
26
24
12
36
22
41
23
98
Consumer Attitudes about Luxury
US, December 2014
Key points

About four in 10 luxury buyers say they would rather spend money on travel or vacation than
on luxury goods; among women, this increases to nearly half (47%). About one third would
rather spend extra money on dining out.

The majority of luxury buyers (93%) have not increased their luxury spending in the last 12
months. Those aged 25-34 and luxury buyers whose households earn $150K+ are most likely to
have increased their luxury spending (10% and 12%, respectively).

Luxury buyers are more likely to avoid owning items with obvious trademarks (eg logos and
monograms) than they are to say they enjoy owning them. Most, however, seem to feel
indifferent about products sporting these designs.

A small but opinionated minority of luxury buyers say that they do not consider premium
brands to be luxury once they become attainable by most shoppers. Consumers aged 25-34 are
most likely to agree, although they are also the most likely to say that they seek out designers
they see often.

Luxury buyers over index in agreeing that purchasing luxury products makes them feel good.
They are also significantly more likely than average to agree that luxury products are better
quality than mid-priced products.

A majority of respondents say they are not interested in purchasing knockoffs. Those who show
the greatest interest are young (aged 18-24) and less affluent (household incomes of less than
$25K).

Based on their attitudes, luxury buyers aged 25-34 represent a sound target for luxury brands.
Compared to other age groups, 25-34s are most likely to have increased their luxury spending,
enjoy owning obvious trademarks, seek out designers they see, and say that purchasing luxury
makes them feel good.
99
US, December 2014
Attitudes toward luxury goods and spending
For most consumers, participation in activities does not occur at the expense of luxury
purchases
The majority of respondents – whether luxury buyers or not – do not think that activities such as travel and
dining out compete with luxury goods for their extra income. This indicates that many who do not buy
luxury goods have other reasons for not doing so. It also indicates that spending on those types of
activities is not generally a threat to luxury businesses. This may be explained by the fact that travel is
often a catalyst for luxury purchases. In fact, some 40% of American adults who have recently made
luxury purchases say they bought a luxury item in-store in a country other than the US (see Luxury Goods
Retailing). What’s more, as discussed in Market Drivers, travelers generally allocate room in their travel
budgets for shopping (the number one activity for international leisure visitors is shopping, with 91%
participation).
FIGURE 58: ATTITUDES TOWARD SPENDING, BY ALL AND LUXURY GOODS BUYERS, SEPTEMBER 2014
Attitudes toward luxury goods and spending by gender, age, and household income
Gender: Compared to male luxury buyers, women luxury buyers are less willing to give up their travel
budget for luxury goods; however, both genders have a similar interest in dining out, and the same
percentage of men and women have increased their luxury spending.
Age: Older and younger luxury buyers (those aged 55+ and aged 18-24) are more likely to say that they
would rather spend money on activities than on luxury goods. Compared to consumers aged 25-54, these
consumers may have fewer commitments and more time to participate in these types of activities.
100
US, December 2014
Key analysis: Luxury buyers aged 18-44 are more likely than older respondents to have increased their
spending on luxury goods over the last year. Many of these consumers are in the process of climbing
the career ladder, and the resulting paycheck increases likely encourage them to spend more.
Household income: Luxury goods buyers from lower-income (<$25K) and higher-income ($150K+)
households are less likely than luxury goods buyers with mid-level incomes to say they would choose an
activity over a luxury goods purchase. Households that earn less than $25K probably do not agree with
these statements because they cannot afford either vacations or luxury products, and these respondents are
the least likely to have increased their luxury spending. On the other hand, many consumers from $150K+
households have increased their luxury goods spending, indicating an interest in these types of products.
FIGURE 59: ATTITUDES TOWARD LUXURY PURCHASES – SPENDING, BY GENDER, AGE, AND HOUSEHOLD INCOME, SEPTEMBER
2014
Base
#
I would rather
spend extra
money on
travel/vacation
than on luxury
goods
%
I would
rather spend
extra money
on dining out
than on
luxury goods
%
In the last 12 months,
I have increased the
amount I spend on
my luxury/designer
brands compared to
the previous years
%
1,249
42
32
7
Gender:
Male
Female
575
674
37
47
33
31
7
7
Age:
18-24
25-34
35-44
45-54
55-64
65+
170
258
243
233
194
151
49
38
35
40
48
50
42
28
21
29
39
40
9
10
8
6
4
3
Household income:
<$25K
$25K-49.9K
$50K-74.9K
$75K-99.9K
$100K-149.9K
$150K+
139
260
230
193
286
141
35
43
44
44
47
35
32
34
37
28
33
24
6
5
7
6
8
12
All
Attitudes toward logo visibility
101
US, December 2014
About one in four avoid obvious designer logos
People seem relatively indifferent toward owning luxury goods with obvious designer trademarks, such as
logos and monograms. However, avoiding items with noticeable brand markings is a more common
sentiment than enjoying ownership of these types of luxury goods. Even though 43% of respondents
define luxury goods as those with visible trademarks (see What Defines Luxury), some consumers seem to
perceive these logos as gaudy, brash, and tacky – the opposite of the image they are trying to portray.
“I use [my Fendi leather purse] when I go to fancy outings, like lunch, dinner, etc. I don’t take it
with me when I’m going on a quick run to the grocery store because I think a luxury bag at a
grocery store is just ‘show-off-ish.’”
Luxury products that are dependent on highly visible trademarks are also easier to knock off – just throw
some monograms on a bag, and from a distance, people are none the wiser. This, in turn, can lead to the
perception that a brand is less exclusive. When masses of women are sporting bags with an obvious logo,
whether real or fake, consumers may begin to see that brand as more common and less desirable (see
“Attitudes toward quality, authenticity, and the hedonistic thrill of buying luxury” in this section). Though
visibility and exclusivity are equally important qualifiers of luxury (see What Defines Luxury), one should
not come at the expense of the other.
Key analysis: Though most luxury consumers do not appear to be too concerned about noticeable
trademarks, luxury brands may wish to offer products with varying levels of brand visibility.
Furthermore, luxury marketers should not fear discreet branding; when defining a luxury product,
quality is a more important than visibility (see What Defines Luxury).
Compared to all respondents, luxury goods buyers are 38% more likely to be interested in owning
trademark-branded items, but again, most do not seem to care either way.
102
US, December 2014
FIGURE 60: ATTITUDES TOWARD LOGO VISIBILITY, SEPTEMBER 2014
Attitudes toward logo visibility by gender, age, and household income
Gender: About the same percentage of male and female luxury buyers say that obvious trademarks are
not their style. However, men are significantly more likely than women to enjoy owning these trademarks
and, as it would follow, are probably more likely to seek them out.
Age: Luxury buyers aged 18-24 are divided on their opinions about visibility. This age group is the most
averse to owning obvious designers, yet they are similar in saying they enjoy owning these types of
products. About half do not agree with either statement, which indicates ambivalence toward designer
labels.
Buyers aged 65+ are the least likely to enjoy owning obvious designers, but the majority still do not avoid
designer labels. This age group seems to feel the most indifferent about visible trademarks.
Luxury buyers aged 25-34 are the only respondents that noticeably over index in enjoyment of designer
labels. These consumers are 50% more likely than general respondents to agree with this statement.
Household income: Attitudes toward noticeable trademarks are not heavily correlated with household
income; however, luxury buyers from households of $150K+ show the most interest in luxury labels.
103
US, December 2014
FIGURE 61: ATTITUDES TOWARD LUXURY PURCHASES – LOGO VISIBILITY, BY GENDER, AGE, AND HOUSEHOLD INCOME, SEPTEMBER
2014
Base
#
I avoid owning
obvious designer
initials/patterns/
logos because it's
not my taste/style
%
I enjoy owning obvious
designer
initials/patterns/logos
because it lets others know
that I have taste/style
%
1,249
26
18
Gender:
Male
Female
575
674
26
27
20
15
Age:
18-24
25-34
35-44
45-54
55-64
65+
170
258
243
233
194
151
32
26
25
27
26
24
19
27
20
12
14
8
Household income:
<$25K
$25K-49.9K
$50K-74.9K
$75K-99.9K
$100K-149.9K
$150K+
139
260
230
193
286
141
26
25
29
23
29
25
17
18
15
19
16
22
luxury goods
All
Attitudes toward exclusivity
More than one in 10 do not think luxury and attainability can coincide
Popularity is usually a mark of product success; however, popularity can reduce the perceived exclusivity
of a luxury product and diminish its value, as indicated by 12% of consumers who feel that once a luxury
items becomes attainable for most consumers that it is no longer considered luxury. Luxury buyers over
index in holding this belief, and Mintel’s qualitative research supports this notion as well. Responses to
the questions “Which brands would you not put in a luxury time capsule?” and “Which luxury brands are
least desirable to you?” indicate that a lack of exclusivity diminishes a brand’s luxury status.
“I would not place brands like Seiko and Citizen [in a time capsule containing luxury]. They are
non-luxurious brands making products affordable to common people.”
“I wouldn’t put Chanel or Coach [in a luxury time capsule] because they are too common now.”
104
US, December 2014
“The items that will not go into the capsule are Calvin Klein, Chanel, Michael Kors, Dior, and
Ralph Lauren….They are not considered luxury to me. I have purchased them on sale prices.”
“The so-called luxury brands available in stores like Marshalls and TJMaxx at throwaway prices
are least desirable for me. The luxury items I desire are limited in quantity, made with high
craftsmanship, and should be unique.”
Though the consumers who hold this belief represent a small minority, they seem to have strong opinions
on this matter. Moreover, marketers must remember that exclusivity is one of the top three defining traits
of luxury products (see What Defines Luxury).
Key analysis: To successfully position a luxury product, marketers must strike the right balance
between appeasing consumers who desire exclusivity (15% of luxury buyers) and the consumers who
seek out products they commonly see (14% of luxury buyers). One possibility is to offer limited-edition
collections in addition to broader collections.
FIGURE 62: ATTITUDES TOWARD EXCLUSIVITY, SEPTEMBER 2014
105
US, December 2014
Attitudes toward exclusivity by gender, age, and household income
Gender: Male luxury buyers are significantly more likely than female luxury buyers to seek out luxury
brands they commonly see, though the majority of men do not agree with either statement.
Age: Luxury buyers aged 25-34 report the strongest collective agreement with both statements on
exclusivity, with 21% saying they do not consider attainable brands to be luxury brands and another 27%
saying that they seek out brands they commonly see. Compared to other age groups, respondents aged 2534 are also the most likely to say they enjoy owning products with obvious trademarks. This age group
seems more concerned with luxury’s visibility, and they seem to want to be seen. Consumers aged 25-34
tend to be establishing themselves and earning steady incomes for the first time in their life, and they
likely want their products to reflect their growing status.
After age 34, agreement with both statements trends downward. Only 3% of luxury buyers aged 65+ agree
that they seek out luxury brands they often see. These consumers are usually less attuned to trends and
have already established which products and brands they like.
Household income: In general, household income does not impact luxury buyers’ attitudes toward
exclusivity, with one notable exception: luxury goods buyers with household incomes of $150K+ are
much more likely than those from lower income brackets to say they seek out luxury brands they see.
These consumers may have a greater awareness of luxury brands or they may have a greater interest in
showing off their status.
106
US, December 2014
FIGURE 63: ATTITUDES TOWARD LUXURY PURCHASES – EXCLUSIVITY, BY GENDER, AGE, AND HOUSEHOLD INCOME, SEPTEMBER
2014
Base
#
Once a luxury/designer brand
becomes attainable by most
shoppers, I no longer consider
it a luxury/designer brand
%
The more I see
luxury/designer
brands the more I
seek them out
%
1,249
15
14
Gender:
Male
Female
575
674
16
14
17
12
Age:
18-24
25-34
35-44
45-54
55-64
65+
170
258
243
233
194
151
15
21
17
15
10
10
14
27
16
11
9
3
Household income:
<$25K
$25K-49.9K
$50K-74.9K
$75K-99.9K
$100K-149.9K
$150K+
139
260
230
193
286
141
12
12
15
16
19
16
14
12
14
17
13
22
buy luxury goods
All
Attitudes toward quality, authenticity, and the hedonistic thrill of buying
luxury
Roughly one quarter of luxury buyers say luxury is better quality and makes them feel
good; most are not interested in knockoffs
Luxury goods buyers are significantly more likely than general respondents to agree that purchasing
luxury goods makes them feel good. They are also significantly more likely to agree that luxury products
are better quality than mid-priced products. These perceptions help explain a few of the reasons why
luxury buyers choose to buy luxury products. Luxury companies wanting to sell the benefit of luxury itself
may wish to reinforce these beliefs in their communications with consumers.
For the majority, the disadvantages of owning a knockoff outweigh the advantages; most are interested in
owning an authentic luxury product. Still, some 15%* of respondents in both groups agree that they
would rather purchase a knockoff if no one could tell the difference. Though this group is relatively
small, its members are obviously interested in luxury brands and may be convinced to purchase authentic
luxury, if the price and value are right.
* Note to reader: Mintel suspects that more people are interested in purchasing knockoffs than indicated here.
107
US, December 2014
Respondents may be reluctant to agree with this statement if they perceive it to be self-incriminating.
FIGURE 64: ATTITUDES TOWARD QUALITY, AUTHENTICITY, AND HEDONISTIC THRILL OF BUYING LUXURY, SEPTEMBER 2014
Qualitative findings: Knockoffs viewed as both fun and guilt inducing
To understand further the feelings associated with knockoff ownership, Mintel asked respondents to react
to the following fictional vignette:
“Taylor owns a convincing imitation or replica of a luxury item. Taylor’s friend Alex does not
know the product is a replica and asks Taylor where the item was purchased. What do you
think Taylor should say? If you were Taylor, what would you say? Imagine that Taylor tells Alex
that the item is a replica. How do you think Alex would respond?”
Some respondents viewed knockoff ownership as a fun ruse. They seem to think that owning a knockoff
was fun precisely because people thought it was authentic when it was not, and they got a thrill from the
idea of owning what they perceived to be a similar item for a lower price. These respondents usually said
that Taylor should reveal that the product is a replica, but they also thought that Alex should express
disbelief, comment on how real the product looked, or show interest in buying a replica himself/herself,
thereby validating the game and the worth of the product.
108
US, December 2014
“Taylor should say it’s a fake…. If Taylor said it was fake, Alex would probably be like, ‘Wow,
that’s a very good replica,’ and would want to know where she got it.”
“Taylor should tell the truth; I would tell the truth. I’d say that it’s a fake, but I got a great deal on
it. Hopefully, Alex would respond with telling me how real it looks.”
“TAYLOR: I got it as a gift from my ex.
“ALEX: Can you find out where he got it?
“TAYLOR: That’s the point of having an ex, so I don’t have to ask him anything. Plus, it’s a
knockoff.
“ALEX: Really? Can’t even tell the difference.”
– Male, aged 25-34, not a luxury item owner
Key analysis: Some individuals who buy knockoffs like the idea of owning a luxury product, but they
also enjoy the thrill of finding deep discounts. These consumers may be convinced to buy authentic
luxury products instead of replicas if sales are offered (for more information about discounted luxury,
see Luxury Purchasing Habits and Shopping Behaviors).
Other respondents seemed to associate ownership of knockoffs with guilt and shame. Many said that they
would never be caught in this situation, and they usually thought that Taylor should end the conversation
quickly and discreetly.
“I think Taylor is going to tell Alex that she received it as a gift which would end the conversation.”
“I wouldn't lie or tell her it’s fake. I’d just tell her I have my ways.”
Knockoff buyers who share these sentiments are probably interested in owning luxury items but may not
be able to justify the cost.
Attitudes about quality, authenticity, and the hedonistic thrill of buying luxury by gender,
age, and household income
Gender: Female luxury buyers are significantly more likely than male luxury buyers to say they would
purchase a knockoff if no one could tell the difference.
Age: Luxury buyers aged 18-24, who tend to have less discretionary income, are more interested than all
other age groups in purchasing knockoffs. Respondents aged 25-44 are also more likely than those aged
45+ to say that purchasing luxury makes them feel good. Feelings of pleasure when buying luxury are
most prevalent among luxury buyers aged 25-34; nearly four out of 10 agree with the statement.
109
US, December 2014
Statistically, luxury buyers from all age groups are similarly likely to agree that luxury products are better
quality than mid-priced products.
Household income: Luxury buyers from households that earn $150K+ are more likely to agree that
purchasing luxury brands makes them feel good. These consumers tend to have more discretionary income
and probably experience less buyer’s remorse when purchasing luxury products. They are also the most
likely to agree that luxury products are better in quality.
Conversely, luxury buyers from households that earn less than $25K are most likely to say they would
purchase knockoffs. These consumers likely struggle to afford full-price luxury products.
FIGURE 65: ATTITUDES TOWARD LUXURY PURCHASES – QUALITY, AUTHENTICITY, AND HEDONISTIC THRILL OF BUYING LUXURY, BY
GENDER, AGE, AND HOUSEHOLD INCOME, SEPTEMBER 2014
Base
Purchasing
luxury/designer
brands makes
me feel good
I think all
luxury/designer
products are of
better quality
than mid-priced
products
#
%
%
If no one can tell the
difference, I would
rather purchase a lookalike or “knockoff”
product instead of
paying for the authentic
brand
%
1,249
27
26
15
Gender:
Male
Female
575
674
27
27
26
27
11
18
Age:
18-24
25-34
35-44
45-54
55-64
65+
170
258
243
233
194
151
28
38
33
19
19
19
24
24
29
24
29
28
24
13
10
13
15
18
Household income:
<$25K
$25K-49.9K
$50K-74.9K
$75K-99.9K
$100K-149.9K
$150K+
139
260
230
193
286
141
23
24
24
28
27
38
27
25
27
25
24
34
20
19
14
11
14
10
All
110
Impact of Race and Hispanic Origin
US, December 2014
Key points

Regardless of race or Hispanic origin, the plurality of consumers define luxury items as those
that use high-quality materials/craftsmanship, have a long-standing history of exclusivity, and
have visible designer labels or trademarks.

Blacks and Whites are less likely than other races to pay full price for luxury goods.

Hispanics and Asians are the two groups most likely to own a premium brand. For both groups,
about three quarters of respondents owned at least one premium brand.

The majority of Whites, Asians, Hispanics, and non-Hispanics have participated in one of the
upscale activities evaluated during the last year; however, only about half of Blacks have done
so.

Asians and Hispanics are most likely to say that buying luxury makes them feel good. NonHispanics and Whites are most likely to say that they would rather put extra money toward a
vacation than spend it on luxury goods.
The core defining traits of luxury are the same regardless of race, Hispanic
origin
Most groups are statistically similar in their agreement that top two defining traits of luxury are
quality and a long-standing history of exclusivity. The similarities extend further down the line for
Whites and Blacks, but for other groups, a few key differences exist:

Asians are less likely than Whites and Blacks to say that designer labels, high prices, uniqueness, and
the ability to customize are hallmarks of luxury.

Compared to most other groups, Asians are less certain about their definition of luxury. This may
account for their comparatively low agreement with certain statements.

Non-Hispanics are more likely than Hispanics to define luxury items as non-necessities or high-priced
items. In all other regards, the two groups are statistically similar.
111
US, December 2014
FIGURE 66: HOW LUXURY PURCHASES ARE DEFINED, BY RACE/HISPANIC ORIGIN, SEPTEMBER 2014
Base: internet users aged
18+
Use of higher-quality
materials and craftsmanship
history of exclusivity (ie a
high-end brand that is rarely
designer trademark
patterns/initials
Unique, one-of-a-kind, or
limited-availability items
A non-necessity item
(anything you want but don’t
need)
Endorsed by an “A-list”
celebrity
Other
Don’t know
All
White
Black
Other race
Hispanic
Not
Hispanic
293
Asian or
Pacific
Islander
117
2,000
1,508
82*
298
1,702
%
%
%
%
%
%
%
49
50
46
49
40
46
50
43
44
42
40
39
44
43
43
43
45
33
38
40
43
41
38
42
38
39
39
32
32
34
35
37
36
42
38
28
28
22
28
32
20
29
21
22
20
14
29
22
21
17
18
14
9
23
17
17
13
13
17
12
15
13
14
1
11
0
10
0
12
1
15
2
16
1
12
0
11
* small sub-sample (75-100).
“Other races,” including Asians, more likely than average to pay full price
for luxury
The luxury purchasing habits of Whites and Blacks are similar to those of the average. For both groups,
about seven out of 10 adults purchase luxury; however, the group called “Other race” gave responses that
were significantly different. This group is nearly 40% more likely than the average to say that they
sometimes purchase full-price luxury goods when they can be convinced of their value, and they are less
likely to say they regularly purchase discounted luxury. Based on the demographic breakdown of this
survey, the majority of this group is probably Asian and likely reflects their habits.
No significant differences exist between Hispanics and non-Hispanics.
112
US, December 2014
FIGURE 67: LUXURY PURCHASING HABITS, BY RACE/HISPANIC ORIGIN, SEPTEMBER 2014
purchases?”
Asians, Hispanics most likely to own a premium brand
Blacks and Whites are similar in premium brand ownership, overall; however, Blacks are significantly
more likely to own Gucci, and Whites are significantly more likely to own Swarovski. Asians, on the other
hand, are noticeably more likely than Blacks and Whites to own many premium brands. For example,
Calvin Klein – the number two or number three brand for most groups – is the number one brand for
Asians. In addition, Asians are nearly twice as likely as Blacks and Whites to own Burberry. This may be
explained in part by the fact that 76% of Asians own at least one premium brand, compared to 65% of
Whites and 66% of Blacks.
Differences also exist among Hispanics and non-Hispanics. Some 75% of Hispanics own a premium
brand, compared to 64% of non-Hispanics. Furthermore, Hispanics report greater incidences of ownership
for almost every brand. Some brands with significant differences include Chanel, Gucci, Armani, Dior,
Rolex, and Louis Vuitton.
The popularity of premium brands among Asians and Hispanics may be explained by their young
populations; luxury buying peaks between ages 25 and 34, and declines with age (see Appendix – Other
Useful Consumer Tables). According to the 2010 Current Population Survey, the median age of Asians in
2010 was 35.4 years, compared to 36.7 years for the general population. In 2010, the median age of
Hispanics was 27 years.
113
US, December 2014
FIGURE 68: PREMIUM BRANDS OWNED, BY RACE/HISPANIC ORIGIN, SEPTEMBER 2014
“Which, if any, of the following premium brands do you own?”
Ralph Lauren
Coach
Calvin Klein
Chanel
Gucci
Armani
Tiffany
Michael Kors
Burberry
Swarovski
Dior
Rolex
Louis Vuitton
Dolce & Gabbana
Versace
Cartier
Omega
Prada
Vera Wang
Montblanc
Bulgari
Marc Jacobs
Breitling
Fendi
Tory Burch
TAG Heuer
Hermés
Christian Louboutin
Jimmy Choo
Balenciaga
None of these
All
White
Black
Other
race
Hispanic
Not
Hispanic
293
%
Asian or
Pacific
Islander
117
%
2,000
%
1,508
%
82*
%
298
%
1,702
%
27
26
24
15
15
14
13
13
12
12
10
9
9
8
7
7
7
6
6
6
5
5
4
4
4
4
3
3
2
2
35
27
26
24
16
14
15
14
13
11
12
10
10
8
8
7
7
7
6
6
6
5
5
5
4
4
4
3
3
2
3
35
27
28
26
12
19
14
10
15
12
8
10
8
10
10
7
6
4
6
6
5
4
4
3
4
3
2
2
3
4
1
34
30
31
34
17
16
18
18
10
21
17
15
9
14
3
3
7
13
8
7
8
7
5
5
6
5
7
7
2
2
24
18
15
15
11
15
10
6
9
13
4
12
9
9
9
9
1
1
7
2
6
2
4
2
1
2
1
2
4
1
48
29
25
28
21
23
22
14
11
13
14
16
16
15
14
11
9
11
9
6
10
8
4
9
7
5
5
4
4
4
2
25
27
27
24
14
14
13
13
13
12
11
9
8
8
7
6
6
6
6
6
5
4
5
4
4
4
3
3
3
2
2
36
Nearly half of Blacks have not participated in an upscale activity
Whites and Asians are more likely than Blacks to participate in most upscale activities. Whites and Asians
also have overall higher participation rates. Nearly half of Blacks have not participated in any upscale
activity evaluated during the last year.
Unlike premium brand ownership, Hispanics and non-Hispanics have generally similar rates of
participation; however, Hispanics are significantly more likely than non-Hispanics to have stayed
overnight at a premium or luxury hotel, attended a fundraiser, flown internationally first class, or taken a
premium cruise.
114
US, December 2014
FIGURE 69: PREMIUM SERVICES/ACTIVITIES OF THE LAST 12 MONTHS, BY RACE/HISPANIC ORIGIN, SEPTEMBER 2014
prices)
manicure/pedicure)
decorative arts)
traveling
Cruises, Cunard Line, Regent Seven Seas,
Seabourn, Silversea Cruises, or similar)
None of the above
All
White
Black
Other
race
Hispanic
Not
Hispanic
293
%
Asian or
Pacific
Islander
117
%
2,000
%
1,508
%
82*
%
298
%
1,702
%
34
35
26
40
16
32
34
20
22
15
21
12
20
20
17
18
13
21
13
24
16
17
19
12
16
9
16
17
12
13
9
9
10
11
12
11
11
10
9
4
11
10
8
9
7
9
5
11
8
8
8
9
7
6
10
7
8
8
5
12
12
13
7
8
8
5
6
4
12
7
40
37
49
38
59
35
41
Hispanics, Asians most likely to say that purchasing luxury makes them
feel good
All four races are statistically similar in their agreement with statements about spending and exclusivity. A
couple significant differences exist, however, in their attitudes toward logo visibility and
quality/authenticity:

Whites are significantly more likely than Asians and Blacks to say they avoid owning obvious
designer logos.
115

US, December 2014
Asians are significantly more likely than Blacks to say that purchasing luxury makes them feel good.
Hispanics and non-Hispanics also report different incidences of agreement with select statements:

Non-Hispanics are significantly more likely than Hispanics to say that they would rather spend extra
money on a vacation instead of on luxury goods.

Hispanics are significantly more likely than non-Hispanics to say that luxury makes them feel good.
Hispanics are also more likely to say that luxury products are better quality than mid-priced products.
FIGURE 70: ATTITUDES TOWARD LUXURY PURCHASES, BY RACE/HISPANIC ORIGIN, SEPTEMBER 2014
Spending:
I would rather spend extra money
on travel/vacation than on luxury
goods
I would rather spend extra money
on dining out than on luxury goods
In the last 12 months, I have
increased the amount I spend on
my luxury/designer brands
compared to the previous years
Logo visibility:
I avoid owning obvious designer
initials/patterns/logos because it's
not my taste/style
I enjoy owning obvious designer
initials/patterns/logos because it
lets others know that I have
taste/style
Quality and authenticity:
Purchasing luxury/designer brands
makes me feel good
I think all luxury/designer products
are of better quality than mid-priced
products
If no one can tell the difference, I
would rather purchase a look-alike
or “knockoff” product instead of
paying for the authentic brand
All
White
Black
Other
race
Hispanic
Not
Hispanic
293
%
Asian or
Pacific
Islander
117
%
2,000
%
1,508
%
82*
%
298
%
1,702
%
40
41
36
36
34
34
41
32
34
28
25
28
29
32
6
7
4
3
4
7
6
27
28
18
19
39
23
27
13
13
14
15
9
17
12
19
20
16
25
7
24
18
19
18
22
24
11
28
17
15
15
13
12
12
14
15
116
Exclusivity
shoppers, I no longer consider it a
luxury/designer brand
The more I see luxury/designer
brands the more I seek them out
None of the above
US, December 2014
12
12
13
13
10
15
12
12
12
13
15
11
14
12
16
15
19
20
24
14
16
117
Appendix – Other Useful Market Tables
US, December 2014
Appendix – Other Useful Market Tables
Market drivers
FIGURE 71: INTERNATIONAL INBOUND TOURISM, 2000-13
2000
2005
2010
2011
2012
2013
Europe
Asia
North
America
Africa
Middle
East
Total
000
South &
Central
America
000
000
000
000
000
000
388
489
486
516
534
563
110
154
205
218
234
248
92
90
100
102
107
110
37
43
51
54
56
58
26
35
50
49
52
56
24
36
58
55
52
52
677
847
950
994
1035
1087
SOURCE: UNTWO/MINTEL
FIGURE 72: OVERSEAS LEISURE VISITORS TO THE US, 2006-13
2006
2007
2008
2009
2010
2011
2012
2013
Visitors
000
%change
Index (2006 = 100)
13,196
14,192
16,092
15,560
17,900
18,849
19,970
21,370
7.5
13.4
-3.3
15.0
5.3
5.9
7.0
100
108
122
118
136
143
151
162
SOURCE: US DEPARTMENT OF COMMERCE, INTERNATIONAL TRADE ADMINISTRATION, NATIONAL TRAVEL AND TOURISM OFFICE,
"2013 SECTOR PROFILE: LEISURE"/MINTEL
118
Appendix – Other Useful Consumer Tables
US, December 2014
What defines luxury
FIGURE 73: HOW LUXURY PURCHASES ARE DEFINED, BY ATTITUDES TOWARD LUXURY PURCHASE – SPENDING, SEPTEMBER 2014
luxury goods
Use of higher-quality materials and
craftsmanship
Brands with a long-standing history of
exclusivity (ie a high-end brand that is
rarely seen in everyday life)
Designer labels or visible designer
trademark patterns/initials
A non-necessity item (anything you
want but don’t need)
Free repairs or replacement if product
fails to satisfy
Endorsed by an ‘A-list’ celebrity
All
I would rather
spend extra
money on
travel/vacation
than on luxury
goods
I would rather
spend extra
money on dining
out than on
luxury goods
1,249
530
400
In the last 12
months, I have
increased the
amount I spend on
my luxury/designer
brands compared to
the previous years
88*
%
%
%
%
59
62
61
75
50
56
57
73
47
52
50
59
46
52
53
60
43
30
50
38
52
37
40
31
25
26
29
38
22
21
25
30
14
12
15
28
119
US, December 2014
FIGURE 74: HOW LUXURY PURCHASES ARE DEFINED, BY ATTITUDES TOWARD LUXURY PURCHASE – LOGO VISIBILITY,
SEPTEMBER 2014
All
I avoid owning
obvious designer
initials/patterns/logos
because it's not my
taste/style
1,249
%
330
%
I enjoy owning
obvious designer
initials/patterns/log
os because it lets
others know that I
have taste/style
219
%
Brands with a long-standing history of exclusivity (ie
a high-end brand that is rarely seen in everyday life)
Designer labels or visible designer trademark
patterns/initials
A non-necessity item (anything you want but don’t
need)
Choice to customize (fabrics, hardware, finish,
initials, etc)
59
50
62
52
61
58
47
43
58
46
43
30
48
47
39
49
43
21
25
31
34
22
14
27
13
25
25
120
US, December 2014
FIGURE 75: HOW LUXURY PURCHASES ARE DEFINED, BY ATTITUDES TOWARD LUXURY PURCHASE – QUALITY AND AUTHENTICITY,
SEPTEMBER 2014
luxury goods
Use of higher-quality materials and
craftsmanship
Brands with a long-standing history of
exclusivity (ie a high-end brand that is
rarely seen in everyday life)
Designer labels or visible designer
trademark patterns/initials
A non-necessity item (anything you want
but don’t need)
Choice to customize (fabrics, hardware,
finish, initials, etc)
Free repairs or replacement if product fails
to satisfy
All
Purchasing
luxury/designer
brands makes
me feel good
I think all
luxury/designer
products are of
better quality
than mid-priced
products
1,249
335
328
If no one can tell
the difference, I
would rather
purchase a lookalike or “knockoff”
product instead of
paying for the
authentic brand
186
%
%
%
%
59
68
71
61
50
58
63
56
47
54
54
58
46
50
54
58
43
30
47
24
46
30
57
37
25
33
32
32
22
26
27
29
14
20
16
17
121
US, December 2014
FIGURE 76: HOW LUXURY PURCHASES ARE DEFINED, BY ATTITUDES TOWARD LUXURY PURCHASE – EXCLUSIVITY, SEPTEMBER
2014
All
The more I see
luxury/designer
brands the
more I seek
them out
1,249
%
181
%
Once a luxury/designer
brand becomes
attainable by most
shoppers, I no longer
consider it a
189
%
Brands with a long-standing history of exclusivity (ie a
high-end brand that is rarely seen in everyday life)
Designer labels or visible designer trademark
patterns/initials
A non-necessity item (anything you want but don’t
need)
Choice to customize (fabrics, hardware, finish, initials,
etc)
59
50
56
54
60
54
47
51
51
46
43
30
52
45
17
50
46
34
25
38
29
22
14
31
28
23
15
Luxury purchasing habits and shopping behaviors
purchases?”
All
%
Buys luxury
I don’t buy any luxury goods, regardless of sale prices
I only buy luxury goods (infrequently) if they are drastically reduced in price (at least 40-50% off)
such as those found in outlet malls or on eBay
I sometimes buy luxury goods even if they’re not on sale if I think they’re worth the price
The majority of my purchases are luxury goods and I’m not concerned with the price
70
30
44
23
3
122
US, December 2014
FIGURE 78: LUXURY PURCHASING HABITS, BY AGE, SEPTEMBER 2014
purchases?”
Buys luxury
I don’t buy any luxury goods, regardless
of sale prices
I only buy luxury goods (infrequently) if
they are drastically reduced in price (at
least 40-50% off) such as those found in
outlet malls or on eBay
I sometimes buy luxury goods even if
they’re not on sale if I think they’re worth
the price
The majority of my purchases are luxury
goods and I’m not concerned with the
price
All
1,780
18-24
240
25-34
345
35-44
331
45-54
337
55-64
290
65+
237
%
%
%
%
%
%
%
70
30
71
29
75
25
73
27
69
31
67
33
64
36
44
49
42
39
43
43
48
23
20
25
30
25
22
14
3
2
8
5
1
2
2
FIGURE 79: LUXURY PURCHASING HABITS, BY RACE/HISPANIC ORIGIN, SEPTEMBER 2014
purchases?”
Base: internet users aged 18+ who have
an opinion of luxury
Buys luxury
I don’t buy any luxury goods, regardless of
sale prices
I only buy luxury goods (infrequently) if
they are drastically reduced in price (at
least 40-50% off) such as those found in
outlet malls or on eBay
I sometimes buy luxury goods even if
they’re not on sale if I think they’re worth
the price
The majority of my purchases are luxury
goods and I’m not concerned with the
price
All
White
Black
Hispanic
259
Other
race
168
263
Not
Hispanic
1,517
1,780
1,353
%
%
%
%
%
%
70
30
70
30
70
30
73
27
70
30
70
30
44
44
47
38
45
43
23
23
20
32
21
24
3
4
3
2
4
3
123
US, December 2014
FIGURE 80: LUXURY PURCHASING HABITS, BY ATTITUDES TOWARD LUXURY PURCHASE, SEPTEMBER 2014
purchases?”
Base
Buys
luxury
I don’t buy
any luxury
goods,
regardless
of sale
prices
1,780
%
70
%
755
Spending:
I would rather spend extra
money on travel/vacation than
on luxury goods
I would rather spend extra
money on dining out than on
luxury goods
increased the amount I spend
on my luxury/designer brands
Logo visibility:
initials/patterns/logos because
it's not my taste/style
initials/patterns/logos because it
lets others know that I have
taste/style
Purchasing luxury/designer
brands makes me feel good
I think all luxury/designer
products are of better quality
than mid-priced products
would rather purchase a lookalike or “knockoff” product
instead of paying for the
authentic brand
Exclusivity:
shoppers, I no longer consider it
a luxury/designer brand
None of the above
I sometimes
buy luxury
goods even if
they’re not on
sale if I think
they’re worth
the price
The majority
of my
purchases are
luxury goods
and I’m not
concerned
with the price
30
%
I only buy luxury
goods
(infrequently) if
they are drastically
reduced in price (at
least 40-50% off)
such as those
found in outlet
malls or on eBay
44
%
23
%
3
%
70
30
50
19
1
607
66
34
47
18
1
113
78
22
31
37
10
506
65
35
45
19
1
248
88
12
41
38
10
376
89
11
39
43
7
365
90
10
48
35
6
276
67
33
55
11
1
231
78
22
28
41
10
238
79
21
48
28
3
189
47
53
32
13
2
124
US, December 2014
Premium brands: Ownership and acquisition – brands owned
FIGURE 81: LUXURY BRANDS OWNED, SEPTEMBER 2014
Ralph Lauren
Coach
Calvin Klein
Chanel
Gucci
Armani
Tiffany
Michael Kors
Burberry
Swarovski
Dior
Rolex
Louis Vuitton
Dolce & Gabbana
Versace
Cartier
Omega
Prada
Vera Wang
Montblanc
Bulgari
Marc Jacobs
Breitling
Fendi
Tory Burch
TAG Heuer
Hermés
Christian Louboutin
Jimmy Choo
Balenciaga
None of these
All
2,000
%
Buy luxury goods
1,249
%
27
26
24
15
15
14
13
13
12
12
10
9
9
8
7
7
7
6
6
6
5
5
4
4
4
4
3
3
2
2
35
37
35
31
20
19
19
18
17
17
14
13
11
11
11
9
8
8
8
8
7
6
6
5
4
5
5
4
3
3
2
18
125
US, December 2014
FIGURE 82: LUXURY BRANDS OWNED BY LUXURY GOODS BUYERS, BY GENDER, SEPTEMBER 2014
Ralph Lauren
Coach
Calvin Klein
Chanel
Gucci
Armani
Tiffany
Michael Kors
Burberry
Swarovski
Dior
Louis Vuitton
Dolce & Gabbana
Rolex
Versace
Vera Wang
Prada
Omega
Cartier
Montblanc
Bulgari
Marc Jacobs
Breitling
Tory Burch
TAG Heuer
Fendi
Hermés
Christian Louboutin
Jimmy Choo
Balenciaga
None of these
All
1,249
%
Male
575
%
Female
674
%
37
35
31
20
19
19
18
17
17
14
13
11
11
11
9
8
8
8
8
7
6
6
5
5
5
4
4
3
3
2
18
38
15
34
17
21
27
12
8
14
10
14
10
11
16
11
2
6
14
11
10
8
4
9
2
7
4
5
3
2
2
21
35
51
30
23
18
11
22
25
19
18
12
12
11
6
7
14
10
3
5
5
5
7
2
7
2
5
4
3
3
3
16
126
US, December 2014
FIGURE 83: LUXURY BRANDS OWNERSHIP, BY AGE, AUGUST 2014
aged 18+
Ralph Lauren
Coach
Calvin Klein
Chanel
Gucci
Armani
Tiffany
Michael Kors
Burberry
Swarovski
Dior
Rolex
Louis Vuitton
Dolce & Gabbana
Versace
Cartier
Omega
Prada
Vera Wang
Montblanc
Bulgari
Marc Jacobs
Breitling
Fendi
Tory Burch
TAG Heuer
Hermés
Christian Louboutin
Jimmy Choo
Balenciaga
None of these
All
2,000
18-24
270
25-34
384
35-44
369
45-54
384
55-64
320
65+
273
%
%
%
%
%
%
%
27
26
24
15
15
14
13
13
12
12
10
9
9
8
7
7
7
6
6
6
5
5
4
4
4
4
3
3
2
2
35
25
29
21
13
13
17
11
15
11
10
9
8
9
7
7
6
4
6
7
4
3
8
4
4
6
2
3
2
1
1
31
26
26
33
26
21
26
18
18
18
15
19
17
12
13
12
10
11
10
7
7
10
8
9
7
8
5
4
7
5
6
23
30
27
28
17
18
17
15
14
13
10
10
11
13
11
6
10
6
10
5
6
7
5
7
4
5
5
4
3
3
3
28
24
24
26
10
16
9
13
13
10
12
7
7
7
7
7
6
5
6
7
4
3
3
2
3
3
4
4
2
2
2
40
30
27
21
11
8
8
9
8
12
10
7
5
4
5
3
4
4
3
5
6
3
2
1
2
0
2
2
1
1
0
43
29
26
14
13
10
8
11
8
8
13
7
7
7
5
5
4
8
1
5
8
1
1
2
3
1
1
2
1
1
1
45
127
US, December 2014
FIGURE 84: LUXURY BRANDS OWNED, BY HOUSEHOLD INCOME, SEPTEMBER 2014
buy luxury goods
Ralph Lauren
Coach
Calvin Klein
Chanel
Gucci
Armani
Tiffany
Michael Kors
Burberry
Swarovski
Dior
Louis Vuitton
Dolce & Gabbana
Rolex
Versace
Vera Wang
Prada
Omega
Cartier
Montblanc
Bulgari
Marc Jacobs
Breitling
Tory Burch
TAG Heuer
Fendi
Hermés
Christian Louboutin
Jimmy Choo
Balenciaga
None of these
All
<$25K
$50K74.9K
230
$75K99.9K
193
$100K149.9K
286
$150K+
139
$25K49.9K
260
1,249
%
%
%
%
%
%
%
37
35
31
20
19
19
18
17
17
14
13
11
11
11
9
8
8
8
8
7
6
6
5
5
5
4
4
3
3
2
18
30
31
27
12
19
12
10
14
11
9
6
9
11
5
9
9
5
4
1
2
1
5
1
4
0
3
3
1
0
1
29
35
31
30
20
22
15
14
13
16
12
11
6
9
7
7
9
8
5
6
4
4
5
2
3
2
4
3
4
1
1
21
35
33
32
17
12
20
13
16
13
13
8
10
11
8
9
7
8
7
5
9
8
3
3
3
5
3
2
3
2
1
22
35
30
35
22
22
22
18
13
18
17
16
12
13
13
10
7
7
10
11
10
6
7
7
7
7
5
6
3
3
2
13
38
41
30
22
16
20
19
20
18
13
13
12
10
12
8
8
11
7
9
7
7
6
7
4
6
3
4
2
6
5
17
48
44
37
23
32
23
36
30
30
26
24
23
13
23
12
11
10
18
14
13
11
9
9
11
9
11
11
4
2
6
6
141
128
US, December 2014
FIGURE 85: LUXURY BRANDS OWNED, BY RACE/HISPANIC ORIGIN, SEPTEMBER 2014
luxury goods
Ralph Lauren
Coach
Calvin Klein
Chanel
Gucci
Armani
Tiffany
Michael Kors
Burberry
Swarovski
Dior
Louis Vuitton
Dolce & Gabbana
Rolex
Versace
Vera Wang
Prada
Omega
Cartier
Montblanc
Bulgari
Marc Jacobs
Breitling
Tory Burch
TAG Heuer
Fendi
Hermés
Christian Louboutin
Jimmy Choo
Balenciaga
None of these
All
White
Black
Hispanic
181
Other
race
122
184
Not
Hispanic
1,065
1,249
946
%
%
%
%
%
%
37
35
31
20
19
19
18
17
17
14
13
11
11
11
9
8
8
8
8
7
6
6
5
5
5
4
4
3
3
2
18
37
35
30
21
18
19
18
17
16
16
12
10
11
11
9
9
8
9
8
8
7
5
5
5
5
4
4
3
3
3
18
37
38
36
17
24
17
13
22
16
9
13
13
14
9
10
8
8
5
8
4
5
6
4
4
2
6
2
3
3
1
16
31
30
34
18
23
19
17
15
28
13
16
17
7
10
8
7
10
9
6
11
5
7
6
6
6
6
7
2
1
1
19
41
32
35
28
28
27
17
16
17
17
18
18
19
17
14
7
11
14
9
13
11
5
8
5
6
7
6
3
4
3
10
36
35
31
18
18
17
18
17
17
14
12
10
10
10
8
9
8
7
8
7
5
6
4
5
4
4
4
3
2
2
20
129
US, December 2014
FIGURE 86: LUXURY BRANDS OWNED, BY AGE AND HOUSEHOLD INCOME, SEPTEMBER 2014
All
Ralph Lauren
Coach
Calvin Klein
Chanel
Gucci
Armani
Tiffany
Michael Kors
Burberry
Swarovski
Dior
Louis Vuitton
Dolce & Gabbana
Rolex
Versace
Vera Wang
Prada
Omega
Cartier
Montblanc
Bulgari
Marc Jacobs
Breitling
Tory Burch
TAG Heuer
Fendi
Hermés
Christian Louboutin
Jimmy Choo
Balenciaga
None of these
1,249
18-34,
<$75K
240
18-34,
$75K+
188
35-54,
<$75K
195
35-54,
$75K+
281
55+,
<$75K
194
55+,
$75K+
151
%
%
%
%
%
%
%
37
35
31
20
19
19
18
17
17
14
13
11
11
11
9
8
8
8
8
7
6
6
5
5
5
4
4
3
3
2
18
33
34
31
18
15
18
13
17
15
9
12
7
10
7
9
8
8
4
4
4
4
7
3
6
3
4
3
3
1
1
22
28
32
34
33
29
35
26
22
24
18
25
19
16
23
15
10
14
16
12
9
12
11
11
11
7
6
6
5
7
6
7
33
30
36
16
25
18
13
15
12
12
8
11
13
6
9
8
10
5
6
5
7
3
2
3
4
3
2
4
1
1
19
41
38
34
18
21
17
25
21
19
16
12
16
11
13
9
9
10
9
12
8
7
7
8
6
8
6
8
3
4
4
16
37
31
22
17
13
12
12
10
14
14
7
8
7
8
7
10
3
9
4
7
4
4
2
1
1
3
4
2
1
1
28
50
45
30
18
13
12
15
17
19
18
13
7
9
9
5
7
3
7
8
13
4
1
2
1
5
3
3
1
2
1
17
130
US, December 2014
FIGURE 87: LUXURY BRANDS OWNED, BY LUXURY PURCHASING HABITS, SEPTEMBER 2014
All
Ralph Lauren
Coach
Calvin Klein
Chanel
Gucci
Armani
Tiffany
Michael Kors
Burberry
Swarovski
Dior
Louis Vuitton
Dolce & Gabbana
Rolex
Versace
Vera Wang
Prada
Omega
Cartier
Montblanc
Bulgari
Marc Jacobs
Breitling
Tory Burch
TAG Heuer
Fendi
Hermés
Christian Louboutin
Jimmy Choo
Balenciaga
None of these
Value
buyers***
Always
buyers****
1,249
%
Infrequent/
discount
buyers**
775
%
413
%
61*
%
37
35
31
20
19
19
18
17
17
14
13
11
11
11
9
8
8
8
8
7
6
6
5
5
5
4
4
3
3
2
18
35
35
29
16
14
14
14
17
13
14
9
8
8
7
7
9
6
5
5
5
5
5
4
4
3
4
3
2
2
2
21
40
36
35
25
26
26
23
19
23
15
18
16
15
15
11
7
12
11
12
12
7
7
5
6
7
5
7
2
3
3
14
33
31
34
39
36
33
28
15
26
13
30
21
25
28
20
10
13
25
8
15
20
7
18
8
7
8
7
10
15
5
8
* small sub-sample less than 75
** respondents who only buy luxury goods infrequently and if they are drastically reduced in price
*** respondents who sometimes buy full price luxury good, but only if they are worth the price
*** respondents who buy luxury purchases the majority of the time and are not concerned with price
131
US, December 2014
FIGURE 88: LUXURY BRANDS OWNED, BY REPERTOIRE OF LUXURY BRANDS OWNED, SEPTEMBER 2014
All
Ralph Lauren
Coach
Calvin Klein
Chanel
Gucci
Armani
Tiffany
Michael Kors
Burberry
Swarovski
Dior
Louis Vuitton
Dolce & Gabbana
Rolex
Versace
Vera Wang
Prada
Omega
Cartier
Montblanc
Bulgari
Marc Jacobs
Breitling
Tory Burch
TAG Heuer
Fendi
Hermés
Christian Louboutin
Jimmy Choo
Balenciaga
None of these
1,249
%
1-2 types of
luxury
brands
owned
361
%
3-5 types of
luxury
brands
owned
363
%
6+ types of
luxury
brands
owned
298
%
37
35
31
20
19
19
18
17
17
14
13
11
11
11
9
8
8
8
8
7
6
6
5
5
5
4
4
3
3
2
18
31
29
21
5
4
6
7
6
5
8
1
2
3
2
1
4
5
1
1
2
1
2
1
2
1
-
47
47
41
22
18
16
19
25
20
15
10
9
10
7
7
10
7
6
5
9
6
5
3
3
5
4
4
3
2
2
-
59
54
56
50
54
51
42
34
42
33
39
34
30
33
28
19
27
21
26
19
17
16
14
15
11
14
12
8
8
7
-
132
US, December 2014
FIGURE 89: LUXURY BRANDS OWNED, BY LUXURY BRANDS OWNED, PART I, SEPTEMBER 2014
Ralph Lauren
Coach
Calvin Klein
Chanel
Gucci
Armani
Tiffany
Michael Kors
Burberry
Swarovski
Dior
Rolex
Louis Vuitton
Dolce & Gabbana
Versace
Cartier
Omega
Prada
Vera Wang
Montblanc
Bulgari
Marc Jacobs
Breitling
Fendi
Tory Burch
TAG Heuer
Hermés
Christian Louboutin
Jimmy Choo
Balenciaga
None of these
All
2,000
%
Ralph Lauren
543
%
Coach
526
%
Calvin Klein
485
%
Chanel
305
%
Gucci
298
%
27
26
24
15
15
14
13
13
12
12
10
9
9
8
7
7
7
6
6
6
5
5
4
4
4
4
3
3
2
2
35
100
42
50
23
25
22
23
24
22
18
18
14
16
15
12
10
11
11
13
10
6
8
5
7
6
5
5
4
3
2
-
44
100
38
22
22
17
29
30
23
21
14
10
16
12
8
6
6
10
12
6
5
8
4
5
6
4
4
2
3
2
-
56
41
100
26
29
30
21
25
24
19
21
16
17
18
14
11
11
12
12
10
9
7
6
5
6
5
5
4
4
2
-
40
38
41
100
44
38
28
21
27
26
37
23
25
23
21
23
18
21
14
14
15
13
11
10
13
6
8
7
7
10
-
45
39
48
45
100
43
30
22
29
23
34
32
30
23
25
22
19
22
13
13
13
10
12
12
11
6
9
6
7
4
-
133
US, December 2014
FIGURE 90: LUXURY BRANDS OWNED, BY LUXURY BRANDS OWNED, PART II, SEPTEMBER 2014
Ralph Lauren
Coach
Calvin Klein
Chanel
Gucci
Armani
Tiffany
Michael Kors
Burberry
Swarovski
Dior
Rolex
Louis Vuitton
Dolce & Gabbana
Versace
Cartier
Omega
Prada
Vera Wang
Montblanc
Bulgari
Marc Jacobs
Breitling
Fendi
Tory Burch
TAG Heuer
Hermés
Christian Louboutin
Jimmy Choo
Balenciaga
None of these
All
2,000
%
Armani
289
%
Tiffany
264
%
Michael Kors
260
%
Burberry
244
%
Swarovski
233
%
27
26
24
15
15
14
13
13
12
12
10
9
9
8
7
7
7
6
6
6
5
5
4
4
4
4
3
3
2
2
35
41
30
50
40
45
100
24
17
30
21
30
30
23
24
24
25
22
20
10
15
15
10
15
10
9
9
9
7
6
4
-
48
58
39
32
34
26
100
34
29
23
24
22
24
11
13
21
14
20
13
10
10
13
6
10
11
8
9
5
5
4
-
49
60
47
25
25
19
35
100
26
27
17
13
23
18
10
12
6
13
17
8
7
15
5
13
12
3
5
7
5
4
-
50
50
47
34
35
35
31
28
100
27
23
22
28
19
15
15
15
20
13
14
11
9
9
9
15
9
11
6
6
2
-
41
46
39
34
30
27
26
30
28
100
26
19
20
15
13
15
17
13
16
14
11
11
8
8
11
7
8
5
6
3
-
134
US, December 2014
FIGURE 91: LUXURY BRANDS OWNED, BY LUXURY BRANDS OWNED, PART III, SEPTEMBER 2014
Ralph Lauren
Coach
Calvin Klein
Chanel
Gucci
Armani
Tiffany
Michael Kors
Burberry
Swarovski
Dior
Rolex
Louis Vuitton
Dolce & Gabbana
Versace
Cartier
Omega
Prada
Vera Wang
Montblanc
Bulgari
Marc Jacobs
Breitling
Fendi
Tory Burch
TAG Heuer
Hermés
Christian Louboutin
Jimmy Choo
Balenciaga
None of these
All
2,000
%
Dior
201
%
Rolex
188
%
Louis Vuitton
177
%
Dolce & Gabbana
165
%
Versace
139
%
27
26
24
15
15
14
13
13
12
12
10
9
9
8
7
7
7
6
6
6
5
5
4
4
4
4
3
3
2
2
35
48
37
50
56
51
43
32
22
28
30
100
33
26
24
27
24
23
25
13
17
16
14
16
15
13
9
8
9
6
4
-
40
28
41
38
51
46
31
18
28
23
36
100
29
21
24
29
25
20
11
21
19
9
16
11
10
12
9
9
9
7
-
50
47
46
44
50
37
36
33
39
27
29
31
100
19
25
24
20
23
14
16
15
15
10
11
16
10
10
7
6
6
-
48
39
52
43
42
41
18
28
28
22
30
24
21
100
26
12
16
22
16
15
14
15
11
10
9
8
4
8
6
7
-
46
31
47
45
54
49
25
19
26
22
40
33
32
31
100
24
21
25
11
18
17
7
13
9
6
9
7
8
7
7
-
135
US, December 2014
FIGURE 92: LUXURY BRANDS OWNED, BY LUXURY BRANDS OWNED, PART IV, SEPTEMBER 2014
Ralph Lauren
Coach
Calvin Klein
Chanel
Gucci
Armani
Tiffany
Michael Kors
Burberry
Swarovski
Dior
Rolex
Louis Vuitton
Dolce & Gabbana
Versace
Cartier
Omega
Prada
Vera Wang
Montblanc
Bulgari
Marc Jacobs
Breitling
Fendi
Tory Burch
TAG Heuer
Hermés
Christian Louboutin
Jimmy Choo
Balenciaga
None of these
All
2,000
%
Cartier
136
%
Omega
134
%
Prada
129
%
Vera Wang
123
%
Montblanc
116
%
27
26
24
15
15
14
13
13
12
12
10
9
9
8
7
7
7
6
6
6
5
5
4
4
4
4
3
3
2
2
35
42
25
38
51
49
54
41
23
26
26
35
40
31
15
24
100
26
26
10
17
21
15
21
21
13
13
13
13
10
9
-
45
24
39
42
42
47
28
11
28
30
34
35
27
19
22
27
100
18
7
18
16
6
17
7
10
16
9
5
9
5
-
47
43
47
50
52
44
41
26
37
24
39
29
32
29
27
28
19
100
15
16
17
18
12
18
18
12
8
9
12
6
-
59
50
48
36
32
24
27
35
25
30
21
16
20
21
12
11
7
15
100
6
4
15
7
11
10
3
7
7
11
4
-
47
29
41
37
34
37
22
17
29
28
29
34
24
21
22
20
21
17
6
100
17
9
15
8
9
16
10
9
9
7
-
136
US, December 2014
FIGURE 93: LUXURY BRANDS OWNED, BY LUXURY BRANDS OWNED, PART V, SEPTEMBER 2014
Ralph Lauren
Coach
Calvin Klein
Chanel
Gucci
Armani
Tiffany
Michael Kors
Burberry
Swarovski
Dior
Rolex
Louis Vuitton
Dolce & Gabbana
Versace
Cartier
Omega
Prada
Vera Wang
Montblanc
Bulgari
Marc Jacobs
Breitling
Fendi
Tory Burch
TAG Heuer
Hermés
Christian Louboutin
Jimmy Choo
Balenciaga
None of these
All
2,000
%
Bulgari
98*
%
Marc Jacobs
90*
%
Breitling
88*
%
Tory Burch
80*
%
Fendi
80*
%
27
26
24
15
15
14
13
13
12
12
10
9
9
8
7
7
7
6
6
6
5
5
4
4
4
4
3
3
2
2
35
35
27
47
46
39
45
28
19
29
26
33
37
28
23
24
30
22
22
5
20
100
12
15
14
12
12
6
7
9
12
-
51
47
40
43
32
31
38
43
26
28
31
19
29
28
11
23
9
26
21
12
13
100
16
16
23
6
11
14
4
8
-
28
23
33
40
42
49
19
15
24
20
36
35
20
20
20
33
26
17
9
19
17
16
100
22
15
13
9
20
13
13
-
43
40
36
51
43
31
35
39
45
33
34
23
36
19
11
21
16
29
15
13
15
26
16
29
100
8
13
18
14
18
-
48
33
33
39
44
38
34
43
28
24
39
26
24
21
16
35
13
29
18
11
18
18
24
100
29
8
13
20
9
13
-
137
US, December 2014
FIGURE 94: LAST WATCH BRAND PURCHASED, BY RACE/HISPANIC ORIGIN, APRIL 2013-JUNE 2014
“What was the last brand of watch you purchased for yourself?”
Base: adults aged 18+ who purchased a
watch for themselves in the past 12 months
All
3,976
White
2,865
Black
452
Asian
133
Hispanic
1,346
Not Hispanic
2,630
%
%
%
%
%
%
4
4
4
1
1
1
1
4
3
4
1
1
-
5
3
5
1
4
1
8
10
5
4
4
8
4
1
2
1
1
4
3
4
1
1
-
Citizen
Bulova
Seiko
TAG Heuer
Gucci
Tissot
Omega
FIGURE 95: LAST WATCH BRAND PURCHASED, BY HOUSEHOLD INCOME, APRIL 2013-JUNE 2014
“What was the last brand of watch you purchased for yourself?”
Base: adults aged 18+ who
purchased a watch for
themselves in the past 12
months
Citizen
Bulova
Seiko
TAG Heuer
Gucci
Tissot
Omega
Rolex
Raymond Weil
Patek Philippe
Cartier
All
<$25K
$50K74.9K
694
$75K99.9K
489
$100K149.9K
553
$150K249.9K
453
$250K+
674
$25K49.9K
910
3,976
%
%
%
%
%
%
%
%
4.3
4.2
4.1
0.7
0.7
0.6
0.5
0.5
0.4
0.2
0.1
2.1
3.2
2.7
0.3
1.3
0.5
0.9
0.3
-
3.4
3.1
3.2
0.7
1.1
1.0
0.2
0.2
0.4
-
6.0
4.2
3.3
0.5
0.2
0.6
0.5
0.6
0.1
-
7.0
5.2
5.9
1.9
1.2
1.8
0.3
0.6
-
5.5
4.7
3.1
0.5
0.4
0.4
1.7
0.1
0.8
0.6
-
2.8
6.6
8.2
1.2
0.3
0.4
0.5
0.1
0.3
0.4
5.4
3.8
6.1
0.6
0.1
0.9
3.3
0.4
203
138
US, December 2014
FIGURE 96: BRAND OF NAIL POLISH/NAIL CARE PRODUCTS USED BY WOMEN, BY AGE, APRIL 2013-JUNE 2014
“Which of the following nail polish/nail care brands do you use?”
Base: women aged 18+ who use nail polish
Estée Lauder
Chanel
Lancôme
All
8,446
%
18-24
779
%
25-34
1,166
%
35-44
1,480
%
45-54
1,704
%
55-64
1,674
%
65+
1,643
%
3
2
2
3
4
2
1
3
2
2
2
3
3
2
2
4
2
3
4
1
1
FIGURE 97: BRAND OF PERFUME, TOILET WATER, OR COLOGNE USED MOST OFTEN, BY GENDER, APRIL 2013-JUNE 2014
“Which of the following brands of perfume, cologne, or toilet water do you personally use?”
[Most often]
Base: adults aged 18+ who use perfume, cologne, or toilet water
Ralph Lauren
Chanel
Estée Lauder
Dolce & Gabbana
Giorgio Armani
Gucci
Tommy Hilfiger
Clinique
Christian Dior
Kenneth Cole
Donna Karan/DKNY
Elizabeth Arden
Givenchy
Lancôme
Vera Wang
Marc Jacobs
Yves St. Laurent
Guerlain Shalimar
All
12,547
%
Male
3,702
%
Female
8,845
%
8
7
7
6
5
5
4
4
3
2
2
2
2
2
2
2
1
1
15
3
2
7
9
7
6
1
2
6
1
3
1
1
1
1
-
5
9
9
5
3
4
2
5
4
1
3
3
2
3
3
3
1
1
SOURCE: SERVICES, SPRING 2014 SIMMONS NHCS ADULT STUDY 12-MONTH. COPYRIGHT: [2014] EXPERIAN INFORMATION
SOLUTIONS, INC. ALL RIGHTS RESERVED/MINTEL
139
US, December 2014
FIGURE 98: BRAND OF PERFUME, TOILET WATER, OR COLOGNE USED MOST OFTEN, BY AGE, APRIL 2013-JUNE 2014
[Most often]
Base: adults aged 18+ who use
perfume, cologne, or toilet water
Ralph Lauren
Chanel
Estée Lauder
Dolce & Gabbana
Giorgio Armani
Gucci
Tommy Hilfiger
Clinique
Christian Dior
Kenneth Cole
Donna Karan/DKNY
Elizabeth Arden
Givenchy
Lancôme
Vera Wang
Marc Jacobs
Yves St. Laurent
Guerlain Shalimar
All
12,547
18-24
1,203
25-34
1,762
35-44
2,211
45-54
2,599
55-64
2,432
65+
2,340
%
%
%
%
%
%
%
8
7
7
6
5
5
4
4
3
2
2
2
2
2
2
2
1
1
10
5
2
7
5
7
3
2
2
3
1
1
1
1
2
2
-
9
7
3
7
6
5
6
3
4
3
3
2
1
2
2
4
1
-
10
5
5
7
7
5
4
4
4
3
2
2
3
2
3
1
2
-
7
7
7
7
5
5
3
3
3
4
2
3
3
3
2
2
2
1
7
7
10
5
4
4
4
4
3
1
4
3
4
3
2
1
1
1
4
12
14
2
3
1
1
6
3
1
3
3
1
2
2
1
2
2
140
US, December 2014
FIGURE 99: BRAND OF PERFUME, TOILET WATER, OR COLOGNE USED MOST OFTEN, BY HOUSEHOLD INCOME, APRIL 2013-JUNE
2014
[Most often]
Base: adults aged 18+ who use
Ralph Lauren
Chanel
Estée Lauder
Dolce & Gabbana
Giorgio Armani
Gucci
Tommy Hilfiger
Clinique
Christian Dior
Kenneth Cole
Donna Karan/DKNY
Elizabeth Arden
Givenchy
Lancôme
Vera Wang
Marc Jacobs
Yves St. Laurent
Guerlain Shalimar
All
<$25K
$50K74.9K
2,226
$75K99.9K
1,672
$100K149.9K
1,749
$150K249.9K
1,260
$250K+
2,086
$25K49.9K
2,956
12,547
%
%
%
%
%
%
%
%
8
7
7
6
5
5
4
4
3
2
2
2
2
2
2
2
1
1
8
7
7
5
3
3
3
4
4
1
2
4
3
2
1
1
1
1
5
5
8
5
4
4
3
4
2
1
2
3
2
3
1
2
1
1
9
7
7
6
5
6
4
3
3
2
3
1
3
2
3
2
1
1
7
6
6
6
5
7
5
3
5
3
4
2
2
3
3
2
2
-
10
8
5
7
8
3
4
3
4
6
1
2
2
2
2
3
2
1
12
11
5
11
10
6
2
3
4
4
3
3
1
2
4
2
3
-
8
7
5
7
5
3
2
4
3
3
1
1
2
4
2
3
2
-
598
141
US, December 2014
Premium brands: Ownership and acquisition – brands purchased in last
three years
FIGURE 100: LUXURY BRANDS PURCHASED IN THE LAST THREE YEARS, SEPTEMBER 2014
Base: 1,309 internet users aged 18+ who own any luxury brand
All
%
Any purchase in the last three years (net)
Ralph Lauren
Coach
Calvin Klein
Chanel
Gucci
Armani
Tiffany
Michael Kors
Burberry
Swarovski
Dior
Rolex
Louis Vuitton
Dolce & Gabbana
Versace
Cartier
Omega
Prada
Vera Wang
Montblanc
Bulgari
Marc Jacobs
Breitling
Fendi
Tory Burch
TAG Heuer
Hermés
Christian Louboutin
Jimmy Choo
Balenciaga
None of these
79
24
22
22
11
10
11
7
13
7
7
6
6
5
7
3
4
4
4
5
3
3
3
3
2
4
2
2
1
2
1
21
142
US, December 2014
FIGURE 101: LUXURY BRANDS PURCHASED IN THE LAST THREE YEARS, BY AGE, SEPTEMBER 2014
Base: internet users aged 18+ who own any
luxury brand
Ralph Lauren
Coach
Calvin Klein
Chanel
Gucci
Armani
Tiffany
Michael Kors
Burberry
Swarovski
Dior
Rolex
Louis Vuitton
Dolce & Gabbana
Versace
Cartier
Omega
Prada
Vera Wang
Montblanc
Bulgari
Marc Jacobs
Breitling
Fendi
Tory Burch
TAG Heuer
Hermés
Christian Louboutin
Jimmy Choo
Balenciaga
None of these
All
1,309
18-24
186
25-34
295
35-44
264
45-54
230
55-64
183
65+
151
%
%
%
%
%
%
%
79
24
22
22
11
10
11
7
13
7
7
6
6
5
7
3
4
4
4
5
3
3
3
3
2
4
2
2
1
2
1
21
83
22
26
19
11
9
13
4
15
6
7
5
6
4
3
3
5
2
4
3
2
2
4
2
3
5
1
2
1
1
17
88
19
20
27
20
16
19
9
16
11
10
13
12
8
11
5
7
8
5
5
3
7
5
6
3
7
4
3
3
5
2
12
89
30
23
25
12
12
13
11
13
9
6
6
7
9
9
3
6
6
6
4
3
4
3
4
2
4
3
3
2
2
2
11
77
22
20
24
6
11
5
6
15
4
7
3
2
5
6
3
4
1
3
7
2
3
1
3
1
3
3
1
2
23
70
27
27
20
7
4
7
4
10
5
7
3
3
2
5
3
1
2
1
7
2
3
2
1
1
1
30
52
21
15
10
5
3
5
3
9
2
5
3
1
1
3
3
1
1
1
5
1
1
1
1
1
48
143
US, December 2014
FIGURE 102: LUXURY BRANDS PURCHASED IN THE LAST THREE YEARS, BY HOUSEHOLD INCOME, SEPTEMBER 2014
who own any luxury brand
Any purchase in the last three
years (net)
Ralph Lauren
Coach
Calvin Klein
Chanel
Gucci
Armani
Tiffany
Michael Kors
Burberry
Swarovski
Dior
Rolex
Louis Vuitton
Dolce & Gabbana
Versace
Cartier
Omega
Prada
Vera Wang
Montblanc
Bulgari
Marc Jacobs
Breitling
Fendi
Tory Burch
TAG Heuer
Hermés
Christian Louboutin
Jimmy Choo
Balenciaga
None of these
All
<$25K
$50K74.9K
222
$75K99.9K
212
$100K149.9K
300
$150K+
139
$25K49.9K
276
1,309
%
%
%
%
%
%
%
79
68
76
77
82
82
87
24
22
22
11
10
11
7
13
7
7
6
6
5
7
3
4
4
4
5
3
3
3
3
2
4
2
2
1
2
1
21
19
20
19
5
7
6
1
10
4
3
1
4
1
4
4
1
1
1
5
1
1
1
1
3
1
1
32
27
22
22
8
11
8
6
11
5
6
4
4
1
6
3
3
2
3
7
2
4
2
1
2
1
1
1
1
24
23
22
22
10
7
11
5
14
7
5
5
5
4
6
3
4
3
4
4
5
5
1
2
1
2
2
1
1
1
23
21
14
25
13
10
12
8
11
7
6
6
7
6
9
3
8
7
4
3
2
3
4
5
1
5
3
3
2
2
18
22
24
21
15
12
14
7
16
8
9
9
6
8
7
4
5
3
6
6
2
4
3
5
2
5
3
2
2
4
3
18
28
26
23
13
14
13
16
18
10
14
10
10
11
9
4
6
8
3
6
3
4
4
5
4
6
4
4
1
1
2
13
160
144
US, December 2014
FIGURE 103: LUXURY BRANDS PURCHASED IN THE LAST THREE YEARS, BY AGE AND HOUSEHOLD INCOME, SEPTEMBER 2014
All
who own any luxury brand
Any purchase in the last three
years (net)
Ralph Lauren
Coach
Calvin Klein
Chanel
Gucci
Armani
Tiffany
Michael Kors
Burberry
Swarovski
Dior
Rolex
Louis Vuitton
Dolce & Gabbana
Versace
Cartier
Omega
Prada
Vera Wang
Montblanc
Bulgari
Marc Jacobs
Breitling
Fendi
Tory Burch
TAG Heuer
Hermés
Christian Louboutin
Jimmy Choo
Balenciaga
None of these
1,309
18-34,
<$75K
261
18-34,
$75K+
220
35-54,
<$75K
200
35-54,
$75K+
294
55+,
<$75K
176
55+,
$75K+
158
%
%
%
%
%
%
%
79
82
91
78
87
60
65
24
22
22
11
10
11
7
13
7
7
6
6
5
7
3
4
4
4
5
3
3
3
3
2
4
2
2
1
2
1
21
25
25
26
10
10
11
3
14
8
5
5
7
2
5
3
3
3
3
4
3
4
3
2
2
4
1
2
2
1
1
18
15
18
22
24
18
22
12
17
11
13
15
13
12
12
6
9
10
8
5
3
6
6
7
4
9
5
4
4
5
2
9
26
20
23
8
11
8
7
11
6
5
4
3
4
9
4
2
3
5
5
3
5
1
2
1
1
2
1
1
1
1
22
26
22
26
10
12
11
10
16
7
8
6
6
9
6
2
7
4
5
6
3
2
3
5
2
5
4
4
1
1
3
13
21
18
13
6
5
6
3
8
3
5
2
3
1
2
3
2
2
1
9
2
1
1
1
1
1
40
28
25
18
6
3
6
4
11
4
7
3
1
3
6
3
1
1
1
4
1
3
1
1
1
1
35
145
US, December 2014
FIGURE 104: LUXURY BRANDS PURCHASED IN THE LAST THREE YEARS, BY SPENDING, SEPTEMBER 2014
luxury brand
Ralph Lauren
Coach
Calvin Klein
Chanel
Gucci
Armani
Tiffany
Michael Kors
Burberry
Swarovski
Dior
Rolex
Louis Vuitton
Dolce & Gabbana
Versace
Cartier
Omega
Prada
Vera Wang
Montblanc
Bulgari
Marc Jacobs
Breitling
Fendi
Tory Burch
TAG Heuer
Hermés
Christian Louboutin
Jimmy Choo
Balenciaga
None of these
All
I would
rather spend
extra money
on travel/
vacation
than on
luxury goods
I would
rather spend
extra money
on dining out
than on
luxury goods
1,309
496
365
In the last 12
months, I have
increased the
amount I spend
on my luxury/
designer
brands
compared to
the previous
years
112
%
%
%
%
79
24
22
22
11
10
11
7
13
7
7
6
6
5
7
3
4
4
4
5
3
3
3
3
2
4
2
2
1
2
1
21
71
22
23
19
8
7
5
5
13
5
6
5
3
3
4
2
2
2
1
6
1
2
1
1
1
4
1
2
1
1
1
29
67
20
16
18
7
7
8
5
9
4
5
6
4
2
2
2
2
2
2
5
2
3
2
2
2
2
1
1
1
1
1
33
97
36
32
38
20
21
25
11
28
15
11
15
14
13
18
5
14
7
11
11
8
4
10
8
4
13
5
4
3
5
2
3
146
US, December 2014
FIGURE 105: LUXURY BRANDS PURCHASED IN THE LAST THREE YEARS, BY LOGO VISIBILITY, SEPTEMBER 2014
Base: internet users aged 18+ who own any luxury brand
Ralph Lauren
Coach
Calvin Klein
Chanel
Gucci
Armani
Tiffany
Michael Kors
Burberry
Swarovski
Dior
Rolex
Louis Vuitton
Dolce & Gabbana
Versace
Cartier
Omega
Prada
Vera Wang
Montblanc
Bulgari
Marc Jacobs
Breitling
Fendi
Tory Burch
TAG Heuer
Hermés
Christian Louboutin
Jimmy Choo
Balenciaga
None of these
All
I avoid owning
obvious designer
initials/patterns/
logos because it's
not my taste/style
1,309
%
305
%
I enjoy owning
obvious designer
initials/patterns/
logos because it
lets others know
that I have
taste/style
246
%
79
24
22
22
11
10
11
7
13
7
7
6
6
5
7
3
4
4
4
5
3
3
3
3
2
4
2
2
1
2
1
21
71
22
16
20
10
9
12
4
13
5
8
5
4
3
5
2
3
3
3
4
3
3
2
4
4
4
1
2
1
2
1
29
93
25
30
27
17
18
19
10
15
11
11
10
13
12
13
7
8
9
7
8
3
5
4
4
2
3
5
4
2
4
3
7
147
US, December 2014
FIGURE 106: LUXURY BRANDS PURCHASED IN THE LAST THREE YEARS, BY QUALITY AND AUTHENTICITY, SEPTEMBER 2014
luxury brand
Ralph Lauren
Coach
Calvin Klein
Chanel
Gucci
Armani
Tiffany
Michael Kors
Burberry
Swarovski
Dior
Rolex
Louis Vuitton
Dolce & Gabbana
Versace
Cartier
Omega
Prada
Vera Wang
Montblanc
Bulgari
Marc Jacobs
Breitling
Fendi
Tory Burch
TAG Heuer
Hermés
Christian Louboutin
Jimmy Choo
Balenciaga
None of these
All
Purchasing
luxury/
designer
brands makes
me feel good
I think all
luxury/
designer
products are of
better quality
than midpriced
products
1,309
366
332
If no one can
tell the
difference, I
would rather
purchase a
look-alike or
“knockoff”
product
instead of
paying for the
authentic
brand
171
%
%
%
%
79
24
22
22
11
10
11
7
13
7
7
6
6
5
7
3
4
4
4
5
3
3
3
3
2
4
2
2
1
2
1
21
91
28
27
27
17
18
19
11
19
12
10
11
11
8
13
7
9
7
7
6
4
3
6
5
3
6
5
4
2
3
2
9
85
31
28
27
16
15
16
9
19
8
11
11
10
7
8
4
6
6
7
7
4
5
3
4
3
4
3
2
1
4
1
15
70
20
23
18
3
4
6
5
13
5
7
4
1
2
5
2
2
1
2
6
1
1
2
1
2
1
1
30
148
US, December 2014
FIGURE 107: LUXURY BRANDS PURCHASED IN THE LAST THREE YEARS, BY EXCLUSIVITY, SEPTEMBER 2014
Base: internet users aged 18+ who own any luxury brand
Ralph Lauren
Coach
Calvin Klein
Chanel
Gucci
Armani
Tiffany
Michael Kors
Burberry
Swarovski
Dior
Rolex
Louis Vuitton
Dolce & Gabbana
Versace
Cartier
Omega
Prada
Vera Wang
Montblanc
Bulgari
Marc Jacobs
Breitling
Fendi
Tory Burch
TAG Heuer
Hermés
Christian Louboutin
Jimmy Choo
Balenciaga
None of these
All
The more I see
luxury/designer
brands the more I
seek them out
1,309
%
231
%
Once a
luxury/designer
brand becomes
attainable by most
shoppers, I no
longer consider it
a luxury/designer
brand
213
%
79
24
22
22
11
10
11
7
13
7
7
6
6
5
7
3
4
4
4
5
3
3
3
3
2
4
2
2
1
2
1
21
97
27
23
33
20
22
25
9
18
14
10
16
16
13
15
8
11
9
9
4
5
8
5
6
3
6
6
3
1
6
3
3
85
21
21
21
19
14
14
8
14
6
7
6
7
5
8
3
7
4
5
3
3
4
5
7
3
8
3
2
4
2
3
15
149
US, December 2014
Luxury goods retailing
FIGURE 108: MOST POPULAR LOCATIONS WHERE LUXURY BRANDED ITEMS WERE BOUGHT IN THE LAST 18 MONTHS, BY GENDER,
MAY 2014
months.”
Sample size
Any online
Any in-store in home
country
#
%
%
Any in-store in
another
country
%
All
526
54
71*
40
Gender:
Male
Female
279
247
59
49
71
71
42
37
FIGURE 109: RETAILERS PURCHASED FROM ONLINE IN PAST THREE MONTHS, BY GENDER, APRIL 2013-JUNE 2014
“Which of the following retailers have you purchased from in the past three months, either
online or by mail?”
Base: adults aged 18+ who ordered products or services online in the past three
months
eBay
Nordstrom
Sephora
Neiman Marcus
Bloomingdale’s
Saks Fifth Avenue
Lord & Taylor
All
12,949
Male
4,995
Female
7,954
%
%
%
18
2.5
1.4
0.9
0.7
0.5
0.5
23
1.4
0.3
0.7
0.3
0.2
0.2
15
3.3
2.3
1.0
0.9
0.8
0.7
150
US, December 2014
Participation in upscale activities
FIGURE 110: PREMIUM SERVICES/ACTIVITIES OF THE LAST 12 MONTHS, BY GENDER, SEPTEMBER 2014
Eaten a meal at an upscale fine dining restaurant (ie those with white
tablecloth, extensive wine list, and high average check prices)
Purchased tickets for the theater, performing arts, or cultural event (eg
symphony, ballet, opera, musical theater such as touring Broadway shows,
etc)
Had a spa treatment (eg massage, wax, facial treatment, body treatment,
laser treatment, etc – outside of a manicure/pedicure)
Stayed overnight in a premium/luxury brand hotel or resort (eg Conrad,
Fairmont, Four Seasons, Inter-Continental, St. Regis, Ritz Carlton, W Hotel
or similar)
Purchased original, hand-crafted artwork (eg paintings, sculpture,
Flown domestically in a premium service class (first, business, executive
class)
Attended a fund-raiser dinner/event where tickets were priced at $100+ per
person
Flown internationally in a premium service class (first, business, executive
class)
Taken a cruise on a premium or luxury cruise line (eg Celebrity Cruises,
Crystal Cruises, Cunard Line, Regent Seven Seas, Seabourn, Silversea
None of the above
All
1,249
%
Male
575
%
Female
674
%
44
45
44
26
23
27
23
13
32
22
22
23
16
17
15
13
15
10
10
12
9
10
13
7
10
9
12
12
7
7
26
26
26
151
US, December 2014
FIGURE 111: PREMIUM SERVICES/ACTIVITIES OF THE LAST 12 MONTHS, BY AGE, SEPTEMBER 2014
luxury goods
extensive wine list, and high average
check prices)
manicure/pedicure)
Stayed overnight in a premium/luxury
brand hotel or resort (eg Conrad,
Fairmont, Four Seasons, InterContinental, St. Regis, Ritz Carlton, W
Hotel or similar)
decorative arts)
where tickets were priced at $100+ per
person
service class (first, business, executive
class)
Rented a luxury/premium make of car
while traveling
Cruises, Cunard Line, Regent Seven
Seas, Seabourn, Silversea Cruises, or
similar)
None of the above
All
1,249
18-24
170
25-34
258
35-44
243
45-54
233
55-64
194
65+
151
%
%
%
%
%
%
%
44
46
45
43
42
51
38
26
25
26
26
22
31
23
23
23
29
21
25
23
14
22
18
28
25
19
20
23
16
22
20
13
14
15
9
13
9
16
19
9
10
9
10
12
13
11
9
8
7
10
7
16
14
6
8
5
10
10
13
15
5
7
3
9
7
17
11
6
4
7
26
22
16
24
31
29
38
152
US, December 2014
FIGURE 112: PREMIUM SERVICES/ACTIVITIES OF THE LAST 12 MONTHS, BY RACE/HISPANIC ORIGIN, SEPTEMBER 2014
buy luxury goods
dining restaurant (ie those with white
tablecloth, extensive wine list, and
high average check prices)
symphony, ballet, opera, musical
theater such as touring Broadway
shows, etc)
wax, facial treatment, body treatment,
laser treatment, etc – outside of a
manicure/pedicure)
Fairmont, Four Seasons, InterContinental, St. Regis, Ritz Carlton,
W Hotel or similar)
executive class)
per person
executive class)
while traveling
Line, Regent Seven Seas, Seabourn,
Silversea Cruises, or similar)
None of the above
All
1,249
White
946
Black
181
Other race
122
Hispanic
184
Not Hispanic
1,065
%
%
%
%
%
%
44
47
34
42
42
45
26
27
20
24
24
26
23
25
18
19
20
24
22
24
15
23
32
21
16
17
11
13
13
16
13
14
8
11
13
12
10
10
9
10
13
10
10
9
6
19
15
9
10
9
12
8
14
9
9
10
7
6
13
8
26
24
35
30
22
27
153
US, December 2014
FIGURE 113: PREMIUM SERVICES/ACTIVITIES OF THE LAST 12 MONTHS, BY AGE AND HOUSEHOLD INCOME, SEPTEMBER 2014
All
luxury goods
extensive wine list, and high average
check prices)
manicure/pedicure)
Hotel or similar)
decorative arts)
while traveling
Cruises, Cunard Line, Regent Seven
Seas, Seabourn, Silversea Cruises, or
similar)
None of the above
1,249
18-34,
<$75K
240
18-34,
$75K+
188
35-54,
<$75K
195
35-54,
$75K+
281
55+,
<$75K
194
55+,
$75K+
151
%
%
%
%
%
%
%
44
40
51
35
48
33
62
26
22
31
16
30
20
38
23
26
28
15
28
13
27
22
20
29
13
28
16
27
16
19
23
13
14
9
16
13
7
20
9
18
8
13
10
9
17
6
14
5
11
10
8
18
8
11
4
10
10
10
15
11
10
6
5
9
11
15
7
10
4
7
26
24
12
36
22
41
23
154
US, December 2014
FIGURE 114: PREMIUM SERVICES/ACTIVITIES OF THE LAST 12 MONTHS, BY SPENDING, SEPTEMBER 2014
All
buy luxury goods
dining restaurant (ie those with white
tablecloth, extensive wine list, and
high average check prices)
shows, etc)
wax, facial treatment, body
treatment, laser treatment, etc –
Stayed overnight in a
premium/luxury brand hotel or resort
(eg Conrad, Fairmont, Four
Seasons, Inter-Continental, St.
Regis, Ritz Carlton, W Hotel or
similar)
executive class)
per person
executive class)
Rented a luxury/premium make of
car while traveling
Line, Regent Seven Seas,
Seabourn, Silversea Cruises, or
similar)
None of the above
I would rather
spend extra
money on dining
out than on
luxury goods
1,249
I would rather
spend extra
money on
travel/vacation
than on luxury
goods
530
400
In the last 12 months,
I have increased the
amount I spend on
my luxury/designer
brands compared to
the previous years
88*
%
%
%
%
44
49
50
67
26
30
31
34
23
24
22
43
22
21
18
41
16
15
14
28
13
9
10
33
10
8
8
23
10
6
6
19
10
6
7
19
9
7
8
18
26
26
26
9
155
US, December 2014
FIGURE 115: PREMIUM SERVICES/ACTIVITIES OF THE LAST 12 MONTHS, BY LOGO VISIBILITY, SEPTEMBER 2014
goods
Eaten a meal at an upscale fine dining restaurant
(ie those with white tablecloth, extensive wine
list, and high average check prices)
Purchased tickets for the theater, performing
arts, or cultural event (eg symphony, ballet,
opera, musical theater such as touring Broadway
shows, etc)
treatment, body treatment, laser treatment, etc –
Stayed overnight in a premium/luxury brand hotel
or resort (eg Conrad, Fairmont, Four Seasons,
Inter-Continental, St. Regis, Ritz Carlton, W Hotel
or similar)
paintings, sculpture, photography, decorative
arts)
Attended a fund-raiser dinner/event where tickets
were priced at $100+ per person
Flown internationally in a premium service class
traveling
Taken a cruise on a premium or luxury cruise line
(eg Celebrity Cruises, Crystal Cruises, Cunard
Line, Regent Seven Seas, Seabourn, Silversea
None of the above
All
I avoid owning
obvious designer
initials/patterns/
logos because it's
not my taste/style
1,249
330
I enjoy owning
obvious designer
initials/patterns/
logos because it
lets others know
that I have
taste/style
219
%
%
%
44
46
56
26
31
29
23
24
30
22
22
29
16
18
25
13
10
21
10
11
17
10
11
16
10
6
23
9
9
17
26
26
11
156
US, December 2014
FIGURE 116: PREMIUM SERVICES/ACTIVITIES OF THE LAST 12 MONTHS, BY QUALITY AND AUTHENTICITY, SEPTEMBER 2014
luxury goods
restaurant (ie those with white
tablecloth, extensive wine list, and high
average check prices)
shows, etc)
wax, facial treatment, body treatment,
laser treatment, etc – outside of a
manicure/pedicure)
Hotel or similar)
class)
where tickets were priced at $100+ per
person
class)
while traveling
cruise line (eg Celebrity Cruises,
Crystal Cruises, Cunard Line, Regent
Seven Seas, Seabourn, Silversea
None of the above
All
Purchasing
luxury/designer
brands makes
me feel good
I think all
luxury/designer
products are of
better quality
than mid-priced
products
1,249
335
328
If no one can tell
the difference, I
would rather
purchase a lookalike or
“knockoff”
product instead
of paying for the
authentic brand
186
%
%
%
%
44
58
57
35
26
34
29
19
23
31
27
23
22
33
28
13
16
22
21
14
13
23
16
8
10
17
14
6
10
18
11
5
10
17
14
6
9
15
10
4
26
13
20
39
157
US, December 2014
FIGURE 117: PREMIUM SERVICES/ACTIVITIES OF THE LAST 12 MONTHS, BY EXCLUSIVITY, SEPTEMBER 2014
goods
Eaten a meal at an upscale fine dining restaurant
(ie those with white tablecloth, extensive wine list,
and high average check prices)
Purchased tickets for the theater, performing arts,
or cultural event (eg symphony, ballet, opera,
musical theater such as touring Broadway shows,
etc)
treatment, body treatment, laser treatment, etc –
Stayed overnight in a premium/luxury brand hotel
or resort (eg Conrad, Fairmont, Four Seasons,
Inter-Continental, St. Regis, Ritz Carlton, W Hotel
or similar)
paintings, sculpture, photography, decorative arts)
Attended a fund-raiser dinner/event where tickets
were priced at $100+ per person
Flown internationally in a premium service class
traveling
Taken a cruise on a premium or luxury cruise line
(eg Celebrity Cruises, Crystal Cruises, Cunard
Line, Regent Seven Seas, Seabourn, Silversea
None of the above
All
The more I see
luxury/designer
brands the more I
seek them out
1,249
181
Once a
luxury/designer
brand becomes
attainable by most
consider it a
luxury/designer
brand
189
%
%
%
44
57
50
26
31
32
23
30
26
22
33
28
16
27
19
13
29
14
10
19
15
10
25
10
10
24
14
9
19
9
26
6
17
158
US, December 2014
Attitudes toward luxury goods and spending
FIGURE 118: ATTITUDES TOWARD LUXURY PURCHASES, SEPTEMBER 2014
All
%
Buy luxury
goods
%
2,000
1,249
Spending:
I would rather spend extra money on travel/vacation than on luxury goods
I would rather spend extra money on dining out than on luxury goods
In the last 12 months, I have increased the amount I spend on my luxury/designer
brands compared to the previous years
40
32
6
42
32
7
Logo visibility:
I avoid owning obvious designer initials/patterns/logos because it's not my taste/style
I enjoy owning obvious designer initials/patterns/logos because it lets others know that
I have taste/style
27
13
26
18
Purchasing luxury/designer brands makes me feel good
I think all luxury/designer products are of better quality than mid-priced products
If no one can tell the difference, I would rather purchase a look-alike or “knockoff”
product instead of paying for the authentic brand
19
19
15
27
26
15
12
15
12
14
16
7
All
Exclusivity:
Once a luxury/designer brand becomes attainable by most shoppers, I no longer
consider it a luxury/designer brand
The more I see luxury/designer brands the more I seek them out
None of the above
159
US, December 2014
FIGURE 119: ATTITUDES TOWARD LUXURY PURCHASE – SPENDING, BY RACE/HISPANIC ORIGIN, SEPTEMBER 2014
Base
I would rather
spend extra
money on
travel/vacation
than on luxury
goods
I would
rather spend
extra money
on dining out
than on
luxury goods
#
%
%
In the last 12
months, I have
increased the
amount I
spend on my
luxury/
designer
brands
compared to
the previous
years
%
All
1,249
42
32
7
Race/Hispanic origin:
White
Black
Other race
Hispanic
Not Hispanic
946
181
122
184
1,065
44
38
35
35
44
34
28
21
28
33
8
6
5
7
7
luxury goods
160
US, December 2014
FIGURE 120: ATTITUDES TOWARD LUXURY PURCHASE – SPENDING, BY DEMOGRAPHICS, SEPTEMBER 2014
%
I would
rather
spend
extra
money on
dining out
than on
luxury
goods
%
In the last 12
months, I have
increased the
amount I spend
on my
luxury/designer
brands
compared to the
previous years
%
1,249
42
32
7
Age:
18-24
25-34
35-44
45-54
55-64
65+
170
258
243
233
194
151
49
38
35
40
48
50
42
28
21
29
39
40
9
10
8
6
4
3
Household income:
<$25K
$25K-49.9K
$50K-74.9K
$75K-99.9K
$100K-149.9K
$150K+
139
260
230
193
286
141
35
43
44
44
47
35
32
34
37
28
33
24
6
5
7
6
8
12
Age and household income:
18-34, <$75K
18-34, $75K+
35-54, <$75K
35-54, $75K+
55+, <$75K
55+, $75K+
240
188
195
281
194
151
48
36
30
43
47
52
40
27
25
25
37
43
9
11
4
9
4
3
530
100
58
4
400
77
100
4
88*
24
16
100
330
58
46
3
219
24
15
18
luxury goods
All
Spending:
I would rather spend extra money on
travel/vacation than on luxury goods
I would rather spend extra money on dining
out than on luxury goods
In the last 12 months, I have increased the
amount I spend on my luxury/designer
Logo visibility:
initials/patterns/logos because it's not my
taste/style
initials/patterns/logos because it lets others
know that I have taste/style
Base
I would rather
spend extra
money on
travel/vacation
than on luxury
goods
#
161
Purchasing luxury/designer brands makes
me feel good
I think all luxury/designer products are of
better quality than mid-priced products
If no one can tell the difference, I would
rather purchase a look-alike or “knockoff”
product instead of paying for the authentic
brand
Exclusivity:
The more I see luxury/designer brands the
more I seek them out
Once a luxury/designer brand becomes
attainable by most shoppers, I no longer
US, December 2014
335
26
19
18
328
34
27
12
186
67
60
4
181
19
18
18
189
40
29
8
FIGURE 121: ATTITUDES TOWARD LUXURY PURCHASE – LOGO VISIBILITY, BY RACE/HISPANIC ORIGIN, SEPTEMBER 2014
Base
I avoid owning
obvious designer
initials/patterns/
logos because it's
not my taste/style
#
%
I enjoy owning
obvious
designer
initials/patterns/
logos because
it lets others
know that I have
taste/style
%
All
1,249
26
18
White
Black
Other race
Hispanic
Not Hispanic
946
181
122
184
1,065
28
18
26
21
27
17
20
19
24
16
162
US, December 2014
FIGURE 122: ATTITUDES TOWARD LUXURY PURCHASE – LOGO VISIBILITY, BY DEMOGRAPHICS, SEPTEMBER 2014
Base
I avoid owning
obvious designer
initials/patterns/
logos because it's
not my taste/style
#
%
I enjoy owning
obvious designer
initials/patterns/
logos because it
lets others know
that I have
taste/style
%
1,249
26
18
Age:
18-24
25-34
35-44
45-54
55-64
65+
170
258
243
233
194
151
32
26
25
27
26
24
19
27
20
12
14
8
Household income:
<$25K
$25K-49.9K
$50K-74.9K
$75K-99.9K
$100K-149.9K
$150K+
139
260
230
193
286
141
26
25
29
23
29
25
17
18
15
19
16
22
18-34, <$75K
18-34, $75K+
35-54, <$75K
35-54, $75K+
55+, <$75K
55+, $75K+
240
188
195
281
194
151
32
23
23
27
23
28
22
27
14
17
12
11
530
36
10
400
38
8
88*
11
45
330
100
0
219
0
100
All
Spending:
I would rather spend extra money on travel/vacation than
on luxury goods
I would rather spend extra money on dining out than on
luxury goods
In the last 12 months, I have increased the amount I
spend on my luxury/designer brands compared to the
previous years
Logo visibility:
I avoid owning obvious designer initials/patterns/logos
because it's not my taste/style
I enjoy owning obvious designer initials/patterns/logos
because it lets others know that I have taste/style
163
Purchasing luxury/designer brands makes me feel good
I think all luxury/designer products are of better quality
If no one can tell the difference, I would rather purchase
a look-alike or “knockoff” product instead of paying for
the authentic brand
Exclusivity:
The more I see luxury/designer brands the more I seek
them out
Once a luxury/designer brand becomes attainable by
most shoppers, I no longer consider it a luxury/designer
brand
US, December 2014
335
328
10
18
38
27
186
37
9
181
12
40
189
34
12
FIGURE 123: ATTITUDES TOWARD LUXURY PURCHASE – QUALITY AND AUTHENTICITY, BY RACE/HISPANIC ORIGIN, SEPTEMBER
2014
Base
Purchasing
luxury/designer
brands makes
me feel good
I think all
luxury/designer
products are of
better quality
than mid-priced
products
#
%
%
If no one can
tell the
difference, I
would rather
purchase a
look-alike or
“knockoff”
product instead
of paying for
the authentic
brand
%
All
1,249
27
26
15
White
Black
Other race
Hispanic
Not Hispanic
946
181
122
184
1,065
28
24
25
32
26
26
29
27
40
24
16
13
12
14
15
luxury goods
164
US, December 2014
FIGURE 124: ATTITUDES TOWARD LUXURY PURCHASE – QUALITY AND AUTHENTICITY, BY DEMOGRAPHICS, SEPTEMBER 2014
Base
Purchasing
luxury/designer
brands makes
me feel good
I think all
luxury/designer
products are of
better quality
than mid-priced
products
#
%
%
If no one can
tell the
difference, I
would rather
purchase a
look-alike or
“knockoff”
product instead
of paying for
the authentic
brand
%
1,249
27
26
15
Age:
18-24
25-34
35-44
45-54
55-64
65+
170
258
243
233
194
151
28
38
33
19
19
19
24
24
29
24
29
28
24
13
10
13
15
18
Household income:
<$25K
$25K-49.9K
$50K-74.9K
$75K-99.9K
$100K-149.9K
$150K+
139
260
230
193
286
141
23
24
24
28
27
38
27
25
27
25
24
34
20
19
14
11
14
10
18-34, <$75K
18-34, $75K+
35-54, <$75K
35-54, $75K+
55+, <$75K
55+, $75K+
240
188
195
281
194
151
29
40
21
30
21
17
22
26
27
26
30
28
19
14
14
10
19
13
530
16
21
24
400
16
23
28
88*
67
43
9
luxury goods
All
Spending:
I would rather spend extra money on dining
out than on luxury goods
165
Logo visibility:
taste/style
initials/patterns/logos because it lets others
know that I have taste/style
me feel good
brand
Exclusivity:
US, December 2014
330
10
18
21
219
58
41
8
335
100
41
10
328
41
100
12
186
18
21
100
181
62
40
5
189
25
25
15
FIGURE 125: ATTITUDES TOWARD LUXURY PURCHASE – EXCLUSIVITY, BY RACE/HISPANIC ORIGIN, SEPTEMBER 2014
Base
The more I see
luxury/designer
brands the more I
seek them out
#
brand becomes
attainable by most
consider it a
%
All
1,249
15
14
White
Black
Other race
Hispanic
Not Hispanic
946
181
122
184
1,065
15
15
15
17
15
14
15
18
16
14
%
166
US, December 2014
FIGURE 126: ATTITUDES TOWARD LUXURY PURCHASE – EXCLUSIVITY, BY DEMOGRAPHICS, SEPTEMBER 2014
Base
The more I see
luxury/designer
brands the more I
seek them out
#
brand becomes
attainable by most
consider it a
%
1,249
15
14
Age:
18-24
25-34
35-44
45-54
55-64
65+
170
258
243
233
194
151
15
21
17
15
10
10
14
27
16
11
9
3
Household income:
<$25K
$25K-49.9K
$50K-74.9K
$75K-99.9K
$100K-149.9K
$150K+
139
260
230
193
286
141
12
12
15
16
19
16
14
12
14
17
13
22
18-34, <$75K
18-34, $75K+
35-54, <$75K
35-54, $75K+
55+, <$75K
55+, $75K+
240
188
195
281
194
151
15
23
14
17
10
9
18
27
14
14
7
7
530
14
6
400
14
8
88*
17
36
330
19
7
219
11
33
All
Spending:
I would rather spend extra money on dining out
than on luxury goods
amount I spend on my luxury/designer brands
Logo visibility:
taste/style
initials/patterns/logos because it lets others know
%
167
Purchasing luxury/designer brands makes me
feel good
I think all luxury/designer products are of better
quality than mid-priced products
If no one can tell the difference, I would rather
purchase a look-alike or “knockoff” product
instead of paying for the authentic brand
Exclusivity:
The more I see luxury/designer brands the more I
seek them out
attainable by most shoppers, I no longer consider
it a luxury/designer brand
US, December 2014
335
14
33
328
14
22
186
15
5
181
-
100
189
100
-
FIGURE 127: ATTITUDES TOWARD LUXURY PURCHASE, BY SPENDING, SEPTEMBER 2014
buy luxury goods
Spending:
dining out than on luxury goods
increased the amount I spend on my
luxury/designer brands compared to
the previous years
Logo visibility:
initials/patterns/logos because it's not
my taste/style
initials/patterns/logos because it lets
others know that I have taste/style
All
I would rather
spend extra
money on
travel/vacation
than on luxury
goods
I would rather
spend extra
money on dining
out than on
luxury goods
1,249
530
400
In the last 12
months, I have
increased the
amount I spend
on my
luxury/designer
brands
compared to the
previous years
88*
%
%
%
%
42
100
77
24
32
58
100
16
7
4
4
100
26
36
38
11
18
10
8
45
168
Purchasing luxury/designer brands
makes me feel good
I think all luxury/designer products are
of better quality than mid-priced
products
would rather purchase a look-alike or
“knockoff” product instead of paying
for the authentic brand
Exclusivity:
shoppers, I no longer consider it a
US, December 2014
27
16
16
67
26
21
23
43
15
24
28
9
15
14
14
17
14
6
8
36
FIGURE 128: ATTITUDES TOWARD LUXURY PURCHASE, BY LOGO VISIBILITY, SEPTEMBER 2014
Spending:
I would rather spend extra money on travel/vacation
I would rather spend extra money on dining out than
on luxury goods
spend on my luxury/designer brands compared to the
previous years
Logo visibility:
I avoid owning obvious designer initials/patterns/logos
because it's not my taste/style
I enjoy owning obvious designer initials/patterns/logos
because it lets others know that I have taste/style
All
I avoid owning
obvious designer
initials/patterns/
logos because it's
not my taste/style
1,249
%
330
%
I enjoy owning
obvious
designer
initials/patterns/
logos because it
lets others know
that I have
taste/style
219
%
42
58
24
32
46
15
7
3
18
26
100
0
18
0
100
169
Purchasing luxury/designer brands makes me feel
good
I think all luxury/designer products are of better quality
purchase a look-alike or “knockoff” product instead of
paying for the authentic brand
Exclusivity:
Once a luxury/designer brand becomes attainable by
most shoppers, I no longer consider it a
The more I see luxury/designer brands the more I seek
them out
US, December 2014
27
10
58
26
18
41
15
21
8
15
19
11
14
7
33
FIGURE 129: ATTITUDES TOWARD LUXURY PURCHASE, BY QUALITY AND AUTHENTICITY, SEPTEMBER 2014
luxury goods
Spending:
dining out than on luxury goods
Logo visibility:
taste/style
initials/patterns/logos because it lets
others know that I have taste/style
All
Purchasing
luxury/designer
brands makes
me feel good
I think all
luxury/designer
products are of
better quality
than mid-priced
products
1,249
335
328
If no one can tell
the difference, I
would rather
purchase a lookalike or
“knockoff”
product instead of
paying for the
authentic brand
186
%
%
%
%
42
26
34
67
32
19
27
60
7
18
12
4
26
10
18
37
18
38
27
9
170
me feel good
brand
Exclusivity:
US, December 2014
27
100
41
18
26
41
100
21
15
10
12
100
15
14
14
15
14
33
22
5
FIGURE 130: ATTITUDES TOWARD LUXURY PURCHASE, BY EXCLUSIVITY, SEPTEMBER 2014
Spending:
I would rather spend extra money on travel/vacation
I would rather spend extra money on dining out than
on luxury goods
spend on my luxury/designer brands compared to
the previous years
Logo visibility:
initials/patterns/logos because it's not my taste/style
initials/patterns/logos because it lets others know
Purchasing luxury/designer brands makes me feel
good
I think all luxury/designer products are of better
quality than mid-priced products
purchase a look-alike or “knockoff” product instead
of paying for the authentic brand
All
The more I see
luxury/designer
brands the more I
seek them out
1,249
%
181
%
Once a
luxury/designer
brand becomes
attainable by most
shoppers, I no
longer consider it a
luxury/designer
brand
189
%
42
19
40
32
18
29
7
18
8
26
12
34
18
40
12
27
62
25
26
40
25
15
5
15
171
Exclusivity:
Once a luxury/designer brand becomes attainable
by most shoppers, I no longer consider it a
The more I see luxury/designer brands the more I
seek them out
US, December 2014
15
0
100
14
100
0
FIGURE 131: ATTITUDES ABOUT APPAREL (ANY AGREE), BY GENDER, APRIL 2013-JUNE 2014
“To what extent do you agree or disagree with each of the following statements about
apparel?” [Any agree]
Base: all adults aged 18+
Most everything I wear is of the highest quality
Top designers make quality clothes
My budget allows for me to buy expensive designer clothes
A designer label improves a person’s image
I am willing to spend more than I can really afford, to get the clothes that I want
All
24,073
%
Male
10,338
%
Female
13,735
%
25
23
13
13
12
25
21
14
13
11
24
25
12
12
12
FIGURE 132: ATTITUDES ABOUT APPAREL (ANY AGREE), BY AGE, APRIL 2013-JUNE 2014
Most everything I wear is of the highest
quality
My budget allows for me to buy expensive
designer clothes
A designer label improves a person’s
image
I am willing to spend more than I can
really afford, to get the clothes that I want
All
24,073
%
18-24
2,099
%
25-34
2,915
%
35-44
3,854
%
45-54
4,938
%
55-64
4,881
%
65+
5,386
%
25
22
22
23
24
28
29
23
13
26
14
24
15
25
13
22
15
22
12
21
10
13
18
15
14
10
10
10
12
17
13
12
10
9
10
172
US, December 2014
FIGURE 133: ATTITUDES ABOUT APPAREL (ANY AGREE), BY RACE AND HISPANIC ORIGIN, APRIL 2013-JUNE 2014
designer clothes
I am willing to spend more than I can really afford,
to get the clothes that I want
All
White
Black
Asian
Hispanic
24,073
%
18,175
%
2,139
%
742
%
7,448
%
Not
Hispanic
16,625
%
25
23
13
23
22
11
33
26
17
37
35
26
23
30
16
25
22
13
13
12
10
10
18
16
27
16
17
14
12
11
FIGURE 134: ATTITUDES ABOUT APPAREL (ANY AGREE), BY HOUSEHOLD INCOME, APRIL 2013-JUNE 2014
Most everything I wear is of
the highest quality
Top designers make quality
clothes
My budget allows for me to
buy expensive designer
clothes
A designer label improves a
person’s image
I am willing to spend more
than I can really afford, to
get the clothes that I want
All
<$25K
$50K74.9K
4,257
%
$75K99.9K
3,127
%
$100K149.9K
3,566
%
$150K249.9K
2,568
%
$250K+
3,845
%
$25K49.9K
5,429
%
24,073
%
25
20
20
25
23
29
32
38
23
21
22
22
22
26
28
30
13
8
8
11
13
16
24
29
13
14
11
11
12
13
14
15
12
12
10
12
11
13
11
13
1,281
%
173
US, December 2014
FIGURE 135: ATTITUDES ABOUT APPAREL (ANY AGREE), BY RACE AND AGE GROUPS, APRIL 2013-JUNE 2014
All
Most everything I wear is of the highest
quality
designer clothes
A designer label improves a person’s
image
I am willing to spend more than I can
really afford, to get the clothes that I want
24,073
%
White,
18-34
3,326
%
White,
35+
14,849
%
Black,
18-34
514
%
Black,
35+
1,625
%
Asian,
18-34
184
%
Asian,
35+
558
%
25
19
24
29
35
37
37
23
13
23
12
21
11
25
19
27
17
39
22
33
28
13
13
9
22
16
30
25
12
14
9
18
15
23
11
FIGURE 136: ATTITUDES ABOUT APPAREL (ANY AGREE), BY HISPANIC ORIGIN AND AGE GROUPS, APRIL 2013-JUNE 2014
My budget allows for me to buy expensive designer clothes
I am willing to spend more than I can really afford, to get
the clothes that I want
All
Hispanic,
18-34
2,104
%
NonHispanic,
18-34
2,910
%
NonHispanic,
35+
13,715
%
24,073
%
25
23
13
13
12
22
29
16
18
16
22
24
14
15
15
27
21
12
10
10
174
US, December 2014
FIGURE 137: ATTITUDES ABOUT APPAREL (ANY AGREE), BY REGION, APRIL 2013-JUNE 2014
My budget allows for me to buy expensive designer
clothes
I am willing to spend more than I can really afford, to get
the clothes that I want
24,073
%
Northeast
4,448
%
Midwest
5,048
%
South
9,633
%
West
4,944
%
25
23
13
27
24
14
21
19
11
26
25
14
24
24
14
13
12
14
12
12
11
12
11
13
12
FIGURE 138: AGREEMENT THAT “A DESIGNER LABEL IMPROVES A PERSON’S IMAGE,” BY GENDER, AGE, AND HOUSEHOLD INCOME,
APRIL 2013-JUNE 2014
#
%
All
24,073
13
Gender:
Male
Female
10,338
13,735
13
12
Age:
18-24
25-34
35-44
45-54
55-64
65+
2,099
2,915
3,854
4,938
4,881
5,386
18
15
14
10
10
10
Household income:
<$25K
$25K-49.9K
$50K-74.9K
$75K-99.9K
$100K-149.9K
$150K-249.9K
$250K+
3,845
5,429
4,257
3,127
3,566
2,568
1,281
14
11
11
12
13
14
15
175
US, December 2014
FIGURE 139: ATTITUDES TOWARD DESIGNER QUALITY, BY GENDER, AGE, AND HOUSEHOLD INCOME, APRIL 2013-JUNE 2014
Base: all adults
aged 18+
#
It’s worth paying extra for
quality goods
%
Top designers make quality
clothes
%
All
24,073
59
23
Gender:
Male
Female
10,338
13,735
61
58
21
25
Age:
18-24
25-34
35-44
45-54
55-64
65+
2,099
2,915
3,854
4,938
4,881
5,386
48
58
59
58
64
65
26
24
25
22
22
21
Household income:
<$25K
$25K-49.9K
$50K-74.9K
$75K-99.9K
$100K-149.9K
$150K-249.9K
$250K+
3,845
5,429
4,257
3,127
3,566
2,568
1,281
49
56
61
60
64
70
65
21
22
22
22
26
28
30
FIGURE 140: ATTITUDES/OPINIONS ABOUT MONEY, QUALITY, AND STATUS (ANY AGREE), BY GENDER, APRIL 2013-JUNE 2014
“To what extent do you agree or disagree with each of the following statements about your
personal views?” [Any agree]
I enjoy owning good quality things
It’s worth paying extra for quality goods
Money is the best measure of success
I like other people to think I’m a financial success
All
24,073
%
Male
10,338
%
Female
13,735
%
64
59
20
18
66
61
22
19
63
58
19
17
176
US, December 2014
FIGURE 141: ATTITUDES/OPINIONS ABOUT MONEY, QUALITY, AND STATUS (ANY AGREE), BY AGE, APRIL 2013-JUNE 2014
I like other people to think I’m a financial
success
All
24,073
%
18-24
2,099
%
25-34
2,915
%
35-44
3,854
%
45-54
4,938
%
55-64
4,881
%
65+
5,386
%
64
59
20
18
59
48
27
22
67
58
21
24
66
59
20
20
62
58
20
15
68
64
18
14
63
65
17
15
FIGURE 142: ATTITUDES/OPINIONS ABOUT MONEY, QUALITY, AND STATUS (ANY AGREE), BY RACE/HISPANIC ORIGIN, APRIL 2013JUNE 2014
I like other people to think I’m a financial
success
All
White
Black
Asian
Hispanic
24,073
%
18,175
%
2,139
%
742
%
7,448
%
Not
Hispanic
16,625
%
64
59
20
18
64
60
17
17
68
57
29
18
68
66
30
32
54
47
28
18
66
61
19
18
177
US, December 2014
FIGURE 143: ATTITUDES/OPINIONS ABOUT MONEY, QUALITY, AND STATUS (ANY AGREE), BY HOUSEHOLD INCOME, APRIL 2013JUNE 2014
All
<$25K
$50K74.9K
4,257
%
$75K99.9K
3,127
%
$100K149.9K
3,566
%
$150K249.9K
2,568
%
$250K+
3,845
%
$25K49.9K
5,429
%
24,073
%
I enjoy owning good
quality things
It’s worth paying extra for
quality goods
Money is the best
measure of success
I like other people to think
I’m a financial success
64
54
60
67
66
69
74
73
59
49
56
61
60
64
70
65
20
21
21
20
20
18
20
20
18
14
15
16
19
22
24
23
1,281
%
Teens and luxury
FIGURE 144: RETAILERS SHOPPED AT IN PAST THREE MONTHS, BY GENDER AND BY AGE, APRIL 2013-JUNE 2014
“Which of the following retailers have you shopped at in the past three months?”
Base: all teens aged 12-17
Macy’s
Ross Dress for Less
Marshalls
T.J. Maxx
Ralph Lauren
Nordstrom
Herberger’s
Bloomingdale’s
Neiman Marcus
Lord & Taylor
Saks Fifth Avenue
Brooks Brothers
Nine West
All
1,580
%
Male
741
%
Female
839
%
12-14
783
%
15-17
797
%
23
15
11
11
6
5
4
4
4
4
3
2
2
17
8
9
9
8
2
3
3
3
3
2
3
2
30
22
13
13
4
8
6
4
4
4
4
1
2
27
16
13
13
8
6
7
5
5
4
4
2
2
20
14
10
9
4
5
2
3
3
3
2
2
2
SOURCE: EXPERIAN MARKETING SERVICES, SPRING 2014 SIMMONS NCS TEENS STUDY 12-MONTH. COPYRIGHT: [2013]
178
US, December 2014
FIGURE 145: RETAILERS SHOPPED AT IN PAST THREE MONTHS, BY GENDER BY AGE, APRIL 2013-JUNE 2014
“Which of the following retailers have you shopped at in the past three months?”
Base: all teens aged 12-17
Macy’s
Ross Dress for Less
Marshalls
T.J. Maxx
Ralph Lauren
Nordstrom
Herberger’s
Bloomingdale’s
Neiman Marcus
Lord & Taylor
Saks Fifth Avenue
Brooks Brothers
Nine West
All
1,580
%
Male 12-14
349
%
Male 15-17
392
%
Female 12-14
434
%
Female 15-17
405
%
23
15
11
11
6
5
4
4
4
4
3
2
2
23
12
12
15
10
2
4
3
4
3
4
4
1
11
5
6
3
5
3
2
3
3
3
1
3
2
32
21
14
11
5
10
10
6
6
6
5
1
2
28
23
13
15
3
6
2
3
3
3
3
1
3
FIGURE 146: BRAND OF NAIL POLISH/NAIL CARE PRODUCTS USED BY TEEN GIRLS, BY AGE, APRIL 2013-JUNE 2014
“Which of the following nail polish/nail care brands do you use?”
Base: girls aged 12-17 who use nail polish
Chanel
Lancôme
Estée Lauder
All females
662
%
Female 12-14
337
%
Female 15-17
325
%
7
3
3
4
4
1
11
3
4
179
US, December 2014
FIGURE 147: BRAND OF PERFUME, TOILET WATER, OR COLOGNE USED MOST OFTEN, BY GENDER AND BY AGE, APRIL 2013-JUNE
2014
[Most often]
Base: teens aged 12-17 who use
Ralph Lauren
Gucci
Chanel
Tommy Hilfiger
Marc Jacobs
Clinique
Estée Lauder
Dolce & Gabbana
Donna Karan/DKNY
Christian Dior
Giorgio Armani
Vera Wang
All
863
Male
260
Female
603
12-14
397
15-17
466
%
%
%
%
%
7
5
4
4
3
2
2
2
2
1
1
1
14
9
3
4
2
1
3
-
3
3
5
4
5
4
3
1
2
2
1
2
7
6
3
3
3
4
1
1
1
1
2
7
3
5
5
4
1
4
3
2
2
2
1
FIGURE 148: BRAND OF PERFUME, TOILET WATER, OR COLOGNE USED MOST OFTEN, BY GENDER AND AGE, APRIL 2013-JUNE
2014
[Most often]
Base: teens aged 12-17 who use
Ralph Lauren
Gucci
Chanel
Tommy Hilfiger
Marc Jacobs
Clinique
Estée Lauder
Dolce & Gabbana
Donna Karan/DKNY
Christian Dior
Giorgio Armani
Vera Wang
All
863
Male, 12-14
110
Male, 15-17
150
Female, 12-14
287
Female, 15-17
316
%
%
%
%
%
7
5
4
4
3
2
2
2
2
1
1
1
12
16
5
1
2
-
16
2
1
7
4
1
4
-
4
1
3
4
4
6
1
1
2
3
2
4
7
4
5
1
6
2
3
3
1
1
180
Appendix – Trade Associations
US, December 2014
Appendix – Trade Associations
The following trade associations are associated with the premium and luxury goods industry in the US.
Descriptions provided based on association’s self-description available online.
American Marketing Association (AMA)
311 S. Wacker Drive
Suite 5800
Chicago, IL 60606
Tel: 312.542.9000
Fax: 312.542.9001
Web: www.ama.org
Established in 1937, the AMA is one of the largest marketing associations in the world, with more than
30,000 members who work, teach, and study in the field of marketing across the globe. The AMA’s
principal role is to serve as a forum to connect like-minded individuals and foster knowledge sharing,
provide resources, tools, and training, and support marketing practice and thought leadership around the
globe.
Luxury Marketing Council
Tel: 212.517.4614 (New York chapter)
Web: www.luxurycouncil.com
The Luxury Marketing Council is a business-building, revenue-generating global community of CEOs and
CMOs, and other marketing executives who are considered leaders in the field of luxury marketing. They
proclaim to set the “gold standard” for the intelligent exploration of best marketing practices and trends in
the luxury marketplace, as well as to inspire luxury brands to more creatively and profitably work
together. Members of the Luxury Marketing Council are top executives with significant decision-making
authority who agree that luxury brands can no longer afford to “go it alone.”
National Retail Federation (NRF)
1101 New York Ave NW
Washington, D.C. 20005
Tel: 800.673.4692 or 202.783.7971
Fax: 202.737.2849
Web: www.nrf.com
As the world’s largest retail trade association, NRF’s mission is to conduct programs and services in
research, education, training, information technology, and government affairs to protect and advance the
interests of the retail industry. NRF’s membership includes the leading department, specialty, independent,
discount, and mass merchandise stores in the US and 50 nations around the world. NRF represents more
than 100 state, national, and international trade organizations, which have members in most lines of
retailing.
181
Appendix: Research methodology
US Methodology
US, December 2014
US Methodology
Mintel is an independent market analysis company that prides itself on supplying objective
information on a whole range of markets and marketing issues.
There are five main sources of research that are used in the compilation of Mintel reports:
•
Consumer research
•
Social media research
•
Desk research
•
Trade research
•
Statistical forecasting
Reports are written and managed by analysts with experience in the relevant markets.
Mintel analyzes and interprets data from a variety of sources. Sources are identified below each
Figure, table and graph. Data sourced as 'Mintel' are derived from multiple sources, then
interpreted and expanded by Mintel analysts. When referenced as 'estimated' the information is
either not finalized in the original source or has been extrapolated by Mintel analysts.
Consumer research
In-depth consumer research examines how social, economic, cultural and psychological
influences affect attitudes and purchasing decisions. Mintel combines exclusive primary research
with syndicated data to provide an accurate and unique analysis. For additional analysis of
consumer survey data, or with questions about our research methodology, please contact Mintel
at 312.932.0400.
Primary Data Analysis
For each report, Mintel develops custom primary research questions and uses specialty research
firms for data collection.
Sampling
Online surveys
Mintel uses set quotas based on gender, age, household income, and region to ensure that survey
samples are proportionally representative of the entire U.S. adult internet population.
183
US Methodology
US, December 2014
Specific quotas for a sample of 2,000 adults aged 18+ are shown below:
Age groups by gender
%
N
Male, 18-24
Male, 25-34
Male, 35-44
Male, 45-54
Male, 55-64
Male, 65-74
Male, 75+
6.8
9.4
8.7
9.1
7.6
4.0
1.8
136
187
174
183
152
80
36
Female, 18-24
Female, 25-34
Female, 35-44
Female, 45-54
Female, 55-64
Female, 65-64
Female, 75+
6.7
9.9
9.7
10.1
8.4
5.1
2.8
134
197
195
201
168
102
55
Total
100
2,000
%
N
Northeast
Midwest
South
West
18.2
21.3
37.5
22.9
365
427
750
458
Total*
100
2,000
%
N
Less than $25,000
$25,000 - $49,999
$50,000 - $74,999
$75,000 - $99,999
$100,000 and over
13.6
21.4
19.2
14.1
31.8
272
427
383
281
637
Total
100
2,000
Region
Household income
184
US Methodology
US, December 2014
%
N
Household with children aged 5 and under
Household with children aged 6-11
Household with children aged 12-17
Household with no children
13.1
13.1
13.1
60.8
262
262
262
1,214
Total
100
2,000
Children in the household
To ensure an adequate representation of these groups in our survey results and to allow for more
realistic interpretation of our reported findings, Hispanic and African American respondents are
over-sampled relative to the overall population.
%
N
White
Black
Asian
Other race
75.1
15.1
5.8
4.0
1,502
301
116
81
Total
100
2,000
%
N
Hispanic
Not Hispanic
15.1
84.9
302
1,698
Total
100
2,000
Race
Ethnicity
When necessary, Mintel uses specialist panels or targeted sample to capture responses from hard
to reach demographic groups or target markets.
Lightspeed GMI
Founded in 1996, Lightspeed GMI’s double opt-in U.S. online consumer panel contains
approximately 1.45 million U.S. consumers. Lightspeed GMI recruits its panelists through many
different sources including web advertising, permission-based databases and partner-recruited
panels. Lightspeed GMI also has a number of specialty panels, including a Hispanic and an
African American panel, which Mintel uses to collect data for some of its reports. Lightspeed
GMI’s African American panel consists of over 87,000 African American panelists and its
Hispanic panel is made up of over 66,000 Hispanic panelists.
185
US Methodology
US, December 2014
Secondary Data Analysis
In addition to exclusively commissioned surveys, Mintel gathers syndicated data from the most
respected consumer research firms. This allows Mintel analysts to form objective and cohesive
analyses of consumer attitudes and behavior.
Experian Simmons National Consumer Studies
Mintel reports frequently draw on the Experian Simmons National Consumer surveys conducted
by Experian Marketing Services. The Experian Simmons National Consumer Study (NCS) is a
comprehensive survey of American consumers aged 18 and older. It provides single-source
measurement of major media, products, services, and in-depth consumer demographic and
lifestyle/psychographic characteristics.

20,000 Adults 18+

Two-phase data collection
o
Phase 1: A telephone placement interview for a self-administered mail survey is
conducted with any adult aged 18 or over in the household
o
Phase 2: Self-administered survey is mailed to each qualified household member

Upfront cash incentives/sweepstakes offer

All qualified household members aged 18 or over participate by completing their own
personal booklets

Principal shopper completes one Household Survey

Conducted and released quarterly - Winter, Spring, Summer and Fall

Ability to look at full-year and quarterly data
The Experian Simmons National Hispanic Study (NHCS) is the only national, multi-media
syndicated research instrument targeting the Hispanic market, and is particularly valuable in
identifying media habits, product and service usage and attitudes and opinions among this
segment.

7,500 Hispanic adults 18+

Two-phase data collection
o
Phase 1: A telephone placement interview for a self-administered mail survey is
conducted with any adult aged 18 or over in the household
o
Phase 2: Self-administered survey is mailed to each qualified household member
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US Methodology
US, December 2014

Survey offered in Spanish or English - respondent’s choice

Incentive/sweepstakes offer

Conducted and released quarterly - Winter, Spring, Summer and Fall

Ability to look at full-year and quarterly data
The samples for the Kids and Teens Studies are taken from the same households participating in
the adult study. The Kids and Teens Studies provide in-depth insight into these consumer
segments to understand their effect on the marketplace, and how and where to reach them.

2,500 Teens 12-17 and 2,600 Kids 6-11

Both samples gathered from within NCS participating households

Upfront incentive/sweepstakes offer

All teens or kids in household participate by completing their own personal booklets

Released twice a year—Spring and Fall data releases
In some instances Mintel uses Experian’s Mosaic segmentation system to further analyze
Experian Simmons NHCS data. Mosaic is a household-based segmentation system, which
classifies all U.S. households and neighborhoods into 71 unique Mosaic segments and 19
groupings that share similar demographic and socioeconomic characteristics. Descriptive content
is sourced from Simmons NCS/NHCS data.
As of the Fall 2013 Simmons National Consumer Study, all of the Mosaic groups and types are
listed below:
A - Power Elite
A01 - American Royalty
A02 - Platinum Prosperity
A03 - Kids and Cabernet
A04 - Picture Perfect Families
A05 - Couples with Clout
A06 - Jet Set Urbanites
B - Flourishing Families
B07 - Generational Soup
B08 - Babies and Bliss
B09 - Family Fun-Tastic
B10 - Cosmopolitan Achievers
% of U.S.
Households
4.35
0.32
1.13
0.59
0.93
0.98
0.40
4.29
1.11
1.46
1.18
0.54
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US Methodology
C - Booming with Confidence
C11 - Aging of Aquarius
C12 - Golf Carts and Gourmets
C13 - Silver Sophisticates
C14 - Boomers and Boomerangs
D - Suburban Style
D15 - Sports Utility Families
D16 - Settled in Suburbia
D17 - Cul-de-sac Diversity
D18 - Suburban Attainment
E - Thriving Boomers
E19 - Full Pockets, Empty Nests
E20 - No Place Like Home
E21 - Unspoiled Splendor
F - Promising Families
F22 - Fast Track Couples
F23 - Families Matter Most
G - Young, City Solo
G24 - Status Seeking Singles
G25 - Urban Edge
H - Middle Class Melting Pot
H26 - Progressive Potpourri
H27 - Birkenstocks and Beemers
H28 - Everyday Moderates
H29 - Destination Recreation
I - Family Union
I30 - Stockcars and State Parks
I31 - Blue Collar Comfort
I32 - Steadfast Conventionalists
I33 - Balance and Harmony
J - Autumn Years
J34 - Aging in Place
J35 - Rural Escape
J36 - Settled and Sensible
K - Significant Singles
K37 - Wired for Success
K38 - Gotham Blend
K39 - Metro Fusion
K40 - Bohemian Groove
US, December 2014
5.73
2.33
0.25
1.00
2.15
4.42
1.34
0.74
0.67
1.68
5.31
1.02
1.84
2.45
3.13
1.59
1.54
1.65
0.81
0.84
4.99
1.47
1.00
1.58
0.94
5.95
1.83
1.50
1.46
1.16
7.86
3.31
1.92
2.63
5.57
1.52
1.08
0.93
2.04
188
US Methodology
US, December 2014
L - Blue Sky Boomers
L41 - Booming and Consuming
L42 - Rooted Flower Power
L43 - Homemade Happiness
M - Families in Motion
M44 - Red, White, and Bluegrass
M45 - Diapers and Debit Cards
N - Pastoral Pride
N46 - True Grit Americans
N47 - Countrified Pragmatics
N48 - Rural Southern Bliss
N49 - Touch of Tradition
O - Singles and Starters
O50 - Full Steam Ahead
O51 - Digital Dependents
O52 - Urban Ambition
O53 - Colleges and Cafes
O54 - Striving Single Scene
O55 - Family Troopers
P - Cultural Connections
P56 - Mid-Scale Medley
P57 - Modest Metro Means
P58 - Heritage Heights
P59 - Expanding Horizons
P60 - Striving Forward
P61 - Humble Beginnings
Q - Golden Year Guardians
Q62 - Reaping Rewards
Q63 - Footloose and Family Free
Q64 - Town Elders
Q65 - Senior Discounts
R - Aspirational Fusion
R66 - Dare to Dream
R67 - Hope for Tomorrow
S - Economic Challenges
S68 - Small Town Shallow Pockets
S69 - Urban Survivors
S70 - Tight Money
S71 - Tough Times
5.70
0.73
2.09
2.87
4.08
2.51
1.57
5.08
1.41
1.35
1.43
0.89
8.17
0.73
3.90
0.91
0.08
0.83
1.71
6.20
1.27
0.74
0.67
1.70
0.74
1.09
9.02
1.51
0.65
4.59
2.28
2.79
2.00
0.79
5.47
2.22
1.61
0.89
0.75
189
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Qualitative Research
Toluna/ 2020 Research
Toluna in partnership with 20/20 Research provide Mintel with qualitative bulletin board software. This
allows the creation of Internet-based, ‘virtual’ venues where participants recruited from Mintel’s online
surveys gather and engage in interactive, text-based discussions led by Mintel moderators.
Further Analysis
Mintel employs numerous quantitative data analysis techniques to enhance the value of our consumer
research. The techniques used vary form one report to another. Below describes some of the more
commonly used techniques.
Repertoire Analysis
This is used to create consumer groups based on reported behaviour or attitudes. Consumer responses of
the same value (or list of values) across a list of survey items are tallied into a single variable. The
repertoire variable summarises the number of occurrences in which the value or values appear among a list
of survey items. For example, a repertoire of brand purchasing might produce groups of those that
purchase 1-2 brands, 3-4 brands and 5 or more brands. Each subgroup should be large enough (ie N=75+)
to analyse.
Cluster Analysis
This technique assigns a set of individual people in to groups called clusters on the basis of one or more
question responses, so that respondents within the same cluster are in some sense closer or more similar to
one another than to respondents that were grouped into a different cluster.
Correspondence Analysis
This is a statistical visualisation method for picturing the associations between rows (image, attitudes) and
columns (brands, products, segments, etc.) of a two-way contingency table. It allows us to display brand
images (and/or consumer attitudes towards brands) related to each brand covered in this survey in a joint
space that is easy to understand. The significance of the relationship between a brand and its associated
image is measured using the Chi-square test. If two brands have similar response patterns regarding their
perceived images, they are assigned similar scores on underlying dimensions and will then be displayed
close to each other in the perceptual map.
CHAID analysis
CHAID (Chi-squared Automatic Interaction Detection), a type of decision tree analysis, is used to
highlight key target groups in a sample by identifying which sub-groups are more likely to show a
particular characteristic. This analysis subdivides the sample into a series of subgroups that share similar
characteristics towards a specific response variable and allows us to identify which combinations have the
highest response rates for the target variable. It is commonly used to understand and visualise the
relationship between a variable of interest such as “interest in trying a new product” and other
characteristics of the sample, such as demographic composition.
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Key Driver Analysis
Key driver analysis can be a useful tool in helping to prioritise focus between different factors which may
impact key performance indicators (eg satisfaction, likelihood to switch providers, likelihood to
recommend a brand, etc). Using correlations analysis or regression analysis we can get an understanding
of which factors or attributes of a market have the strongest association or “link” with a positive
performance on key performance indicators (KPIs). Hence, we are able to identify which factors or
attributes are relatively more critical in a market category compared to others and ensures that often
limited resources can be allocated to focusing on the main market drivers.
Social Media Research
To complement our exclusive consumer research, Mintel tracks and analyses social media data
for inclusion in Mintel reports. Using Infegy’s Atlas software, Mintel 'listens in' on online
conversations across a range of social platforms including Facebook, Twitter, consumer forums
and the wider web.
Atlas provides rich consumer insight via the analysis of commentary posted publicly on the
internet. The system performs comprehensive and broad collection of data from millions of
internet sources, working to ensure a faithful and extensive sampling of feedback from the widest
range of individuals. The dataset contains commentary posted in real time, as well as a substantial
archive dating back through 2007.
Trade research
Informal
Mintel conducts informal trade research for all reports. This involves contacting key players in
the trade not only to gain information concerning their own operations, but also to obtain
explanations and views of the strategic issues pertinent to the market being researched in order to
address current brand and marketing issues. To ensure accuracy, Mintel sends draft copies of
reports to key industry representatives for review, taking their feedback into consideration before
publishing the report. Comments, where appropriate, are incorporated into the report.
Formal
Internally, Mintel’s analysts undertake extensive trade interviews with selected key experts in the field for
the majority of reports. The purpose of these interviews is to assess key issues in the market place in order
to ensure that any research undertaken takes these into account.
In addition, using experienced external researchers, trade research is undertaken for some reports. This
takes the form of full trade interview questionnaires and direct quotes are included in the report and
analysed by experts in the field. This gives a valuable insight into a range of trade views of topical issues.
Direct quotations are included in the reports, giving valuable insight into a range of trade views
on topical issues.
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Desk Research
Mintel has an internal team of market analysts who monitor: government statistics, consumer and trade
association statistics, manufacturer sponsored reports, annual company reports and accounts, directories
and press articles from around the world and online databases. The latter are extracted from hundreds of
publications and websites, both U.S. and overseas. All information is cross-referenced for immediate
access. Data from other published sources are the latest available at the time of writing the report. This
information is supplemented by an extensive library of Mintel’s reports produced since 1972 globally and
added to each year by the 500+ reports which are produced annually.
In addition to in-house sources, researchers also occasionally use outside libraries or data from Trade
Associations. Other information is also gathered from store and exhibition visits across the U.S., as well as
using other databases within the Mintel Group, such as the Global New Product Database (GNPD), which
monitors FMCG sales promotions.
Intelligence gathered through desk research is used to guide research and enrich data findings.
Statistical Forecasting
Statistical modelling
For the majority of reports, Mintel produces five-year forecasts based on an advanced statistical
technique known as ‘multivariate time series auto-regression’ using the statistical software
package SPSS.
The model is based on historical market size data taken from Mintel’s own market size database
and supplemented by published macroeconomic and demographic data from various private and
public sources including the Federal Reserve Board, the U.S. Commerce Department, the Census
Bureau, the Council of Economic Advisers, and the Congressional Budget Office.
The model searches for relationships between actual market sizes and a selection of relevant and
significant macroeconomic and demographic factors (independent variables) to identify those
predictors having the most influence on the market.
Factors used in a forecast are stated in the relevant report section alongside an interpretation of
their role in explaining the development in demand for the product or market in question.
Qualitative insight
At Mintel we understand that historic data is limited in its capacity to act as the only force behind
the future state of markets. Thus, rich qualitative insights from industry experts regarding past
and future events that may impact the market play a crucial role in our post statistical modeling
evaluation process.
As a result, the Mintel forecast allows for additional factors or market conditions outside of the
capacity of the data analysis to impact the market forecast model; using a rigorous statistical
process complemented by in-depth market knowledge and expertise.
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The Mintel fan chart
Forecasts of future economic outcomes are always subject to uncertainty. In order to raise
awareness amongst our clients and to illustrate this uncertainty, Mintel has introduced a new way
of displaying market size forecasts in the form of a fan-chart.
Next to historical market sizes and a current year estimate, the fan chart illustrates the probability
of various outcomes for the market value/volume over the next five years.
At a 95% confidence interval, we are saying that 95 out of 100 times the forecast will fall within
these outer limits, which we call the best and worst case forecasts. These, based on the
statistically driven forecast, are the highest (best case) and lowest (worst case) market sizes the
market is expected to achieve.
Over the next five years, the widening bands successively show the developments that occur
within 95%, 90%, 70% and 50% probability intervals. Statistical processes predict the central
forecast to fall within the darker shaded area which illustrates 50% probability, i.e. a 5 in 10
chance.
A general conclusion: Based on our current knowledge of given historic market size data as well
as projections for key macro- and socio-economic measures that were used to create the forecast,
we can assume that in 95% of the time the actual market size will fall within the purple shaded
fan. In 5% of all cases this model might not be correct due to random errors and the actual market
size will fall out of these boundaries.
Weather analogy
To illustrate uncertainty in forecasting in an everyday example, let us assume the following
weather forecast was produced based on the meteorologists’ current knowledge of the previous
weather condition during the last few days, atmospheric observations, incoming weather fronts
etc.
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Now, how accurate is this forecast and how certain can we be that the temperature on Saturday
will indeed be 15°C?
To state that the temperature in central London on Saturday will rise to exactly 15°C is possible
but one can’t be 100% certain about that fact.
To say the temperature on Saturday will be between 13°C and 17°C is a broader statement and
much more probable.
In general, we can say that based on the existing statistical model, one can be 95% certain that the
temperature on Saturday will be between 13°C and 17°C, and respectively 50% certain it will be
between about 14.5°C and 15.5°C. Again, only in 5% of all cases this model might not be correct
due to random errors and the actual temperature on Saturday will fall out of these boundaries and
thus will be below 13°C or above 17°C.
(To learn more about uncertainty in weather forecasts visit:
http://research.metoffice.gov.uk/research/nwp/ensemble/uncertainty.html)
194

The Premium Brand and Luxury Consumer

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