Consumer Attitudes Towards Luxury Brands - UK
Report description
- Emma Clifford, Fashion and Clothing Analyst
Some questions answered in the report include:
Who buys luxury brands?
Which features do brands need to be considered 'luxury'?
How is the luxury clothing market performing?
Is the boundary between luxury and mainstream within the clothing market blurring?
What are the main factors boosting the premium clothing market?
How are multiple media channels being used within the luxury clothing market?
Table of contents
INTRODUCTIONDefinition
ABBREVIATIONS
EXECUTIVE SUMMARY
The market
Market factors
Ageing population presents a challenge
Figure 1: Trends in the age structure of the UK population, 2006-16
Socio-economic shifts present opportunities
Figure 2: Forecast growth of the UK population, by socio-economic group, 2006-11 and 2011-16
The consumer
Quality and exclusivity are the constituent elements of luxury
Figure 3: Definitions of a luxury brand, by gender, July 2011
High price and designer labels define luxury for under-25s
Young women associate customisation with luxury
Two thirds of adults buy luxury brands
Figure 4: Views on shopping for luxury brands, September 2011
Four in ten are premium bargain hunters
Men are most willing to pay the full retail price
Older shoppers and Es eschew luxury goods
The feelgood factor associated with luxury items stimulates sales
Figure 5: Motivations for buying luxury goods for self, by gender, September 2011
Over-55s and ABs look for quality and extra features
The younger generation make image-driven ‘tribal’ luxury purchases
Clothing is the top luxury purchase
Figure 6: Categories in which luxury brands have been purchased in the last 12 months, by gender,
September 2011
Figure 7: Consumers buying luxury clothing, by age, socio-economic group and working status, September
2011
25-34s are the main purchasers of non-clothing luxury goods
Department stores dominate within the luxury sector
Figure 8: Retailers where luxury/designer brands have been purchased, by socio-economic group,
September 2011
Under-25s are attracted to designer stores
Guilty consciences impede spending
Figure 9: Attitudes towards designer brands, September 2011
Half of shoppers shun obvious designer imagery
Exclusivity and advertising is important for young shoppers
What we think
ISSUES IN THE MARKET
Who buys luxury brands?
Which features do brands need to be considered ‘luxury’?
How is the luxury clothing market performing?
Is the boundary between luxury and mainstream within the clothing market blurring?
What are the main factors boosting the premium clothing market?
How are multiple media channels being used within the luxury clothing market?
FUTURE OPPORTUNITIES
Trend: Make it Mine
Trend: Prove It
INTERNAL MARKET ENVIRONMENT
Key points
Spending on womenswear
Figure 10: Annual expenditure on womenswear, 2007-11
Spending on menswear
Figure 11: Expenditure on menswear, 2007-11
Under-25s are most image-conscious
Figure 12: Attitudes towards appearance, by gender and age group, 2011
Figure 13: Attitudes towards appearance, 2007-11
Demand for designer clothes peaks among 15-24s
Figure 14: Consumers wearing designer clothes, by gender, age and socio-economic group, 2011
Figure 15: Consumers who think that wearing a ‘designer’ label improves a person’s image, by gender, age
and socio-economic group, 2011
Longevity is important
Figure 16: Selected attitudes towards fashion and clothing, by gender and socio-economic group, 2011
The young generation are avid followers of fashion
Figure 17: Consumers who wear just anything and don’t worry about it vs. those who like to keep up to date
with the latest fashions, by gender, age and socio-economic group, 2011
Figure 18: Trends in attitudes towards fashion and clothing, 2007-11
Style versus comfort
Figure 19: Consumers who buy clothes for comfort, not for style, vs. those who care more about style and
attractiveness than quality, by gender, age and socio-economic group, 2011
Under-25s are big spenders
Figure 20: Attitudes towards buying clothing, 2007-11
BROADER MARKET ENVIRONMENT
Key points
ABs to boost market
Figure 21: Forecast growth of the UK population, by socio-economic group, 2006-11 and 2011-16
C2s are aspirational buyers
Ageing population presents a challenge
Figure 22: Trends in the age structure of the UK population, 2006-11
Figure 23: Trends in the age structure of the UK population, 2006-11 and 2011-16
Rise in 25-34s counters the decline in under-25s
Decline in UK residents travelling abroad
Figure 24: Number of overseas visits by UK residents, by region visited, 2003-10
Youth unemployment continues to breach record highs
Figure 25: Number of unemployed 16-24s in the UK, January-August 2011
Under-25s are most optimistic about their finances
Figure 26: Current financial situation, by age, June 2011
Turbulence in the eurozone but UK GDP growth stronger than expected
Figure 27: Trends in GDP quarterly percentage change, Q1 2004-Q2 2011
Consumer confidence remains in deep negative territory
Figure 28: Trends in consumer confidence, January 2008-September 2011
STRENGTHS AND WEAKNESSES IN THE MARKET
Strengths
Weaknesses
WHO’S INNOVATING?
Key points
Designer brands flock to London
Multiple media advances
Customisation spurs individuality
Designer collaborations make luxury brands accessible
Retailers branching into more premium lines
Online price promotions
Breaking the plus-size taboo?
RETAIL COMPETITOR ANALYSIS
Key points
Figure 29: Number of stores of top designer brands, 2010
The market for designer brands is buoyant
Figure 30: Key financials of top designer brands (global), 2009-10
BRAND COMMUNICATION AND PROMOTION
Key points
Adspend tentatively picks up in 2010
Figure 31: Main monitored media advertising expenditure of designer/high-end clothing brands, 2007-11
Press advertising holds supremacy
Figure 32: Main monitored media advertising expenditure of designer/high-end clothing brands, % share by
media type, 2007-10
Chanel continues to dominate in adspend
Figure 33: Main monitored media advertising expenditure, by designer/high-end clothing brands, 2007-10
THE CONSUMER - WHAT DEFINES A LUXURY BRAND?
Key points
Luxury brands denote quality
Figure 34: Definitions of a luxury brand, by gender, September 2011
Luxury brands have an air of exclusivity
Under-25s and Ds align luxury brands with high prices
Figure 35: Consumers who define luxury brands as having a high price, September 2011
Designer labels define luxury goods for 16-24s and Ds
Figure 36: Consumers who define luxury brands as having a designer label or visible trademark, September
2011
Women think customisation is a defining factor
Status and respect is key for younger generation
Figure 37: Consumers who define luxury brands as something that gives the owner status or respect,
September 2011
One in seven think celebrity endorsement defines high-end items
THE CONSUMER - VIEWS ON SHOPPING FOR LUXURY BRANDS
Key points
Figure 38: Views on shopping for luxury brands, September 2011
Four in ten look for discounts
Figure 39: Consumers who only buy luxury brands if they are drastically reduced in price, by gender, age
and socio-economic group, September 2011
Men and under-35s are most willing to pay full price
Figure 40: Consumers who sometimes buy luxury brands at full price as they think they’re worth the price,
by gender, age and socio-economic group, September 2011
Figure 41: Consumers who try to budget other household expenses and dining out in order to buy luxury
brands, by gender, age and socio-economic group, September 2011
One in 50 are prolific buyers of luxury brands
Over-55s and Es avoid premium items
Figure 42: Consumers who don’t buy any luxury or high-end brands regardless of sale prices, by gender,
age and socio-economic group, September 2011
THE CONSUMER - MOTIVATIONS FOR BUYING LUXURY GOODS FOR SELF
Key points
Figure 43: Motivations for buying luxury goods for self, by gender, September 2011
Females are indulgent shoppers
Figure 44: Consumers who are motivated to buy luxury goods for themselves as treat purchases, by age
and socio-economic group, September 2011
Older ABs are attracted to quality
Figure 45: Consumers who are motivated to buy luxury goods for themselves because of the
quality/craftsmanship, by age and socio-economic group, September 2011
Working under-25s like to reward themselves
Technological features draw in over-55 men
Under-25 shoppers are image-driven
Figure 46: Motivations for buying luxury goods for self, by gender and age, September 2011
THE CONSUMER - CATEGORIES LUXURY BRANDS ARE PURCHASED IN
Key points
Figure 47: Categories in which luxury brands have been purchased in the last 12 months, by gender,
September 2011
Clothing is the top luxury category
Figure 48: Consumers buying luxury clothing, by age, socio-economic group and working status, September
2011
Beauty versus electronics
Under-35 C2s drive luxury footwear sales
Figure 49: Consumers buying luxury footwear, by age and socio-economic group, September 2011
25-34s buy watches and jewellery
Bags are mainly bought by female 25-34s
Figure 50: Consumers buying luxury handbags or manbags, by age and socio-economic group, September
2011
Furniture and home appliances
THE CONSUMER - WHERE LUXURY OR DESIGNER BRANDS ARE PURCHASED
Key points
Figure 51: Retailers where luxury/designer brands have been purchased, by gender, September 2011
Department stores are the leaders in luxury
Figure 52: Retailers where luxury/designer brands have been purchased, by socio-economic group,
September 2011
DEs seek out luxury brands in discount retailers
Third party etailers are preferred by under-35 C2s
Outlet malls and designer villages are favoured by ABs
Independent boutiques most popular in London
One in ten shop at designer stores
AB 25-34s stock up on luxury goods when they travel
THE CONSUMER - ATTITUDES TOWARDS DESIGNER BRANDS
Key points
Figure 53: Attitudes towards designer brands, September 2011
Most people feel guilty spending a lot
Over-55s and Es avoid flamboyant designer symbols
Figure 54: Consumers who avoid owning obvious designer initials/patterns/logos because it’s not their
taste/style, by gender, age and socio-economic group, September 2011
Half of Britons believe luxury brands promise high quality materials
Figure 55: Consumers who think that designer/luxury brands are made from better quality materials and
those who think designer/luxury brands are designed/styled better, by gender, age and socio-economic
group, September 2011
25-34 ABs think designer brands are styled better
Exclusivity is a key factor for under-25 ABs
Designer brands are price prohibitive for a third of Britons
Figure 56: Consumers who would like to own designer/luxury brands but cannot afford them, by gender,
age and socio-economic group, September 2011
A fifth of under-25s get the designer ‘bug’
APPENDIX - INTERNAL MARKET ENVIRONMENT
Figure 57: Annual expenditure on clothing, by category, 2007-11
Figure 58: Annual expenditure on clothing, by category, 2007-11
Figure 59: Annual expenditure on womenswear, by demographics, 2011
Figure 60: Annual expenditure on menswear, by demographics, 2011
Figure 61: Attitudes towards appearance, by demographics, 2011
Figure 62: Attitudes towards fashion and clothing, by demographics, 2011
Figure 63: Attitudes towards buying clothing, by demographics, 2011
Figure 64: Agreement with the statements on personal appearance, by demographics, 2011
APPENDIX - THE CONSUMER - WHAT DEFINES A LUXURY BRAND?
Figure 65: Most popular definitions of a luxury brand, by demographics, September 2011
Figure 66: Next most popular definitions of a luxury brand, by demographics, September 2011
APPENDIX - THE CONSUMER - VIEWS ON SHOPPING FOR LUXURY BRANDS
Figure 67: Views on shopping for luxury brands, by demographics, September 2011
Figure 68: Definitions of a luxury brand, by views on shopping for luxury brands, September 2011
APPENDIX - THE CONSUMER - MOTIVATIONS FOR BUYING LUXURY GOODS FOR SELF
Figure 69: Most popular motivations for buying luxury goods for self, by demographics, September 2011
Figure 70: Next most popular motivations for buying luxury goods for self, by demographics, September
2011
Figure 71: Views on shopping for luxury brands, by most popular motivations for buying luxury goods for
self, September 2011
Figure 72: Views on shopping for luxury brands, by next most popular motivations for buying luxury goods
for self, September 2011
Figure 73: Definitions of a luxury brand, by most popular motivations for buying luxury goods for self,
September 2011
Figure 74: Definitions of a luxury brand, by next most popular motivations for buying luxury goods for self,
September 2011
APPENDIX - THE CONSUMER - CATEGORIES LUXURY BRANDS ARE PURCHASED IN
Figure 75: Most popular categories luxury brands have been purchased in the last 12 months, by
demographics, September 2011
Figure 76: Next most popular categories luxury brands have been purchased in the last 12 months, by
demographics, September 2011
Figure 77: Categories luxury brands have been purchased in the last 12 months, by most popular definitions
of a luxury brand, September 2011
Figure 78: Categories luxury brands have been purchased in the last 12 months, by next most popular
definitions of a luxury brand, September 2011
Figure 79: Categories luxury brands have been purchased in the last 12 months, by most popular
motivations for buying luxury goods for self, September 2011
Figure 80: Categories luxury brands have been purchased in the last 12 months, by next most popular
motivations for buying luxury goods for self, September 2011
APPENDIX - THE CONSUMER - WHERE LUXURY OR DESIGNER BRANDS ARE PURCHASED
Figure 81: Most popular retailers where luxury/designer brands have been purchased, by demographics,
September 2011
Figure 82: Next most popular retailers where luxury/designer brands have been purchased, by
demographics, September 2011
Figure 83: Motivations for buying luxury goods for self, by most popular retailers where luxury/designer
brands have been purchased, September 2011
Figure 84: Motivations for buying luxury goods for self, by next most popular retailers where luxury/designer
brands have been purchased, September 2011
Figure 85: Categories luxury brands have been purchased in the last 12 months, by most popular retailers
where luxury/designer brands have been purchased, September 2011
Figure 86: Categories luxury brands have been purhcased in the last 12 months, by next most popular
retailers where luxury/designer brands have been purchased, September 2011
APPENDIX - THE CONSUMER - ATTITUDES TOWARDS DESIGNER BRANDS
Figure 87: Agreement with the statements ‘I avoid owning obvious designer initials/patterns/logos because
it’s not my taste/style’ and ‘Once a luxury/designer brand is worn/bought by lots of people, I no longer
consider them luxury’, by demographics, September 2011
Figure 88: Agreement with the statements ‘Designer/luxury brands are made from better quality materials’
and ‘Designer/luxury brands are designed/styled better’, by demographics, September 2011
Figure 89: Agreement with the statements ‘The more I see luxury/designer brands the more I seek them
out’ and ‘I would like to own designer/luxury brands but cannot afford them’, by demographics, September
2011
Figure 90: Agreement with the statement ‘I would feel guilty spending a lot of money on a designer/luxury
brand’, by demographics, September 2011
APPENDIX: UK RESEARCH METHODOLOGY
Statistical Forecasting
Statistical modelling
Qualitative insight
The Mintel fan chart
Weather analogy
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