This site is for me unbelievable. Tells you much more about the world and where it’s going than many sociology books. Check it HERE
And the citation directly from the page:
The main drivers of growing luxury demand in this region are the Affluent Asians. While much has been speculated about the attractiveness of their consumption patterns, there is a lot to be learnt about this consumer base. Especially in terms of the spending habits, financial appetite, travel patterns, luxury definitions and favorite brands of the Affluent Asians.
Affluential Insights aims to understand the consumption patterns, brand preferences and detailed insights of the Affluent Asian consumer.
The Asian luxury market is already the biggest destination for many luxury brands. In 2013, Asia displaced North America to become the region with highest number of high net worth individuals. With high consumer spending, the luxury goods and services sector has seen growing demand from the region’s nouveau riche customers. Varying consumer behaviour across countries like China, India, Indonesia and Singapore add another dimension to the interesting mix of millionaires and nouveau riche in the region.
We see that there are mature markets like Singapore and Hong Kong, where luxury is a way of life. We also see that there are emerging markets like Indonesia with potentially strong growth. To top this off we see two key markets that dominate the luxury industry, by the sheer size of their estimated markets – China and India. China and India have established themselves as big luxury spenders in the region, with market potential worth approximately US$20 billion and US$9 billion respectively. However, when we look at per capita luxury spending in these markets, these figures represent just the tip of the iceberg. Luxury expenditure per capita for China is at US$15 per annum, while it is even lower in India (around US$8.3). In contrast, in mature markets like Singapore, luxury spend is approximately US$1000 per capita. Using Singapore as a benchmark, only 1 per cent of the luxury potential in China and India has been tapped, and this potential is sure to excite luxury oriented companies around the globe.
In Affluential Insights, we present
Affluential Brand Rankings that measure the strength of your brand among the affluent. Measured against the six dimensions of luxury, the Affluential brand rankings summarize how a brand stands against its competition among the affluent. We dive deeper into key categories such as fashion and accessories.
Affluential Reports and Affluential Monitors include the monthly pulse of the affluent among six key economies that include India, China, Malaysia, Indonesia, Hong Kong and Singapore.
Actually, I began to think about luxury and its signs recently because of different insight. I remember how possession of a mobile phone (half kilo brick) was a manifestation of wealth and prestige. Over time, more people were able to afford such gadget, with finally reaching 4 year old children as well (just imagine child in kindergarten with iPhone 5, sorry, imagination is not required, it already happened).
Analogical story happened with many other things and commodities – washing machines, cars, flights, computers. There are still some gadgets that defending their position of “sign of status” devices, such as watches, pens (mont-blanc e.t.c.) and suits, but just wait until this generation of geeks would grow up, and see if they will value expensive pens as much as previous generations.
So what would be the next generation sign of wealth – I think one big answer is “independence from gadgets”. Nowadays we are more attached to our mobile phones than they are to us. The true luxury wouldn’t be possessing the newest model of iPhone, true luxury would be doesn’t have to have any phone. Having your own secretary would be the best solution, and being master of your own time the most valuable thing. And the same with other stuff.