Discussion sur l'Ifop Connexion (document en anglais)

Ifop Connexion’s thematic discussions provide a convivial setting for us to meet our clients.

For this latest edition, Ifop chose to intervene on a key topic for players in the Luxury market, that of the Luxury consumer in emerging countries and the issues for those involved in marketing in these areas.

live N°19

This session was chaired by Stéphane Truchi, Chairman of Ifop’s Board of Directors,

With:

Mr. Xavier Guéroux, Director of

Richemont Marketing Services,

Mme. Leslie Serrero, Executive Vice President, Strategic Marketing,

Lacoste SA,

Mme. Nadine Cottet, Global Consumer Insight Leader, Fine Writing Division, Newell Rubbermaid.

This new Ifop Live brings you the findings emerging from this session which revealed the results of the new Ifop Living Luxury study and the experiences of 3 brands and groups present in emerging countries: Richemont, Lacoste and Newell Rubbermaid.

Have a pleasant reading!

Ifop’s Communication, divisions.

Strategic

Planning

and Luxury

Thoughts on...

Living Luxury in Emerging MarketsTM « Luxury in emerging countries »

Thoughts on findings from the Living Luxury in Emerging MarketsTM study by Stéphane Truchi, Chairman of Ifop.

Although the luxury market was shaken by the 2008 crisis, it has witnessed a considerable upturn since 2010, having reaped the benefits from the combination of various factors:

- Over a longer timescale: democratization of luxury in mature countries

has enabled development of a solid client base ; at the same time hyper luxury has witnessed expansion as a response to the need of the very wealthy classes to differentiate themselves from those accessing luxury at a later stage.

- More recently: the boom in emerging countries of the middle class and development of very rich or even very wealthy classes, lies behind the majority of luxury market growth.

Data illustrating the extent of the phenomenon:

- China (Continental China, Hong-Kong, Macao and Taiwan) saw its luxury

sector grow by nearly 30% in 2010 (source : Bain & Co),

- Whereas Japan only progressed by 2%, and America and Europe by 7 to

8%.

Analysis of two main indicators in emerging countries, the number of millionaires (in US$) and of individuals belonging to the 10% of the population with the highest incomes (Top 10) highlight three major areas of potential:

Potential +++

- China : 670.000 millionaires / 135 million in the Top 10 (25.000$ and more) - India : 140.000 millionaires / 120 million in the Top 10 (35.000$ and more)

Living LUXURY

in Emerging MarketsTM

An exclusive study for those actively involved in the luxury sector and needing to understand luxury consumers in emerging countries, so as to adapt implantation strategies, offers and communication.

This study provides what is required to decode relationships to luxury, an essential prerequisite for adopting the most suitable approach to markets in Brazil, Russia, India, China, Mexico and Argentina.

It investigates key aspects of luxury consumer sociology in these countries: lifestyle and consumer behavior, attitude to money, notions of status and success, aspirational figures, main influences and media practices, the relationship to luxury and the way it is perceived and experienced, brands perceived as a reference, etc...

1

Potential ++

- Brazil : 150.000 millionaires / 20 million in the Top 10 (35.000$ and more)

- Russia : 120.000 millionaires / 14 million in the Top 10 (25.000$ and

more)

Potential +

- Mexico : 70.000 millionaires / 11 million in the Top 10 (60.000$ and more)

IFOP’s luxury department launched a study focusing on purchasers of luxury products in Brazil, Russia, China, Mexico and Argentina in order to meet the needs of luxury brands which are faced with intense development in emerging countries and require bearings to fully understand this new clientele and adapt strategies to local markets.

The Living Luxury in Emerging MarketsTM study provides in-depth cross-analysis of quantitative data with prospective research carried out by teams of experts selected by IFOP, thus enabling

subscribers to gain access to key data for involvement on these markets:

- Consumer insight: luxury consumers in these countries are described from all perspectives,

- Data concerning brands present and their perception in these areas,

- Information shared by experts regarding social and economic dynamics at work in these societies

and feedback from those actively involved in the luxury markets.

Living Luxury in Emerging MarketsTM Key conclusions.

1/ An optimistic overall environment encouraging consumption of luxury goods

The study reveals that luxury goods buyers in BRICs are particularly confident in the economic growth of their countries, in India (77%), Brazil (66%) and China (62%); Mexico and Argentina on the other hand are some way behind (32% and 33%). As regards purchasing power, there is unanimity over improvement during the next 12 months.

2/ Quality remains the key value of luxury

Even though quality is the most important attribute of luxury for respondents as a whole, there are some country-dependent factors which also explain enthusiasm for luxury:

In China: luxury is a means of conveying a trendy lifestyle, a unique personality and expresses a desire to display social distinction, something which can be observed in all emerging countries.

In

...