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Understanding Luxury Consumer Behavior: Insights from Dr. Satyendra Singh

Delve into the world of luxury consumer behavior with Dr. Satyendra Singh, an expert in marketing and international business. Explore the nuances of premium products, modern luxury consumers, and online vs. offline behaviors. Discover key insights on attitudes towards luxury products in different regions, emerging luxury markets, and the prevalence of fake luxury goods. Gain valuable knowledge to navigate the complex landscape of luxury consumption.

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Understanding Luxury Consumer Behavior: Insights from Dr. Satyendra Singh

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  1. Welcome toLuxury Consumer Behavior byDr. Satyendra SinghProfessor, Marketing and International BusinessUniversity of WinnipegCanadas.singh@uwinnipeg.cahttps://abem.uwinnipeg.cahttps://www.abem.ca/conference

  2. What is a Premium Product?

  3. What is Consumer Behaviour?

  4. Luxury Consumers Traditional Head-to-toe covered, loyal to single brand,… Buy established brand Hermes, Dior,… Modern Not brand loyal, or loyal to one brand,… They know what they want Different desire and expectations Smart, educated, savvy discerning consumers High status

  5. Modern Consumers Parent and children dress alike  ↓gap Cosmetics, surgery,… Luxury market cannot be segmented 40s, 50s, 60s does not matter Presidents: Zimbabwe, Italy 80s Group pressure >individual taste ↑group pressure in Japan, France, Spain…

  6. Types of Consumers Purchaser They’ve knowledge to buy products Browser For entertainment May come back  need more time to make decision Opinion leader Meeting point Sephora store (10,000 visits weekend) We display our history and heritage That’s why we have museum section in luxury stores

  7. Product Display Level Eye: ↑ 50% Hand: ↓30-40% Floor:??? End-of-aisle Not brand loyal, or loyal to one brand,… Stand alone Windows displays brand image, communications…

  8. In-store Consumer Behaviour Time spent Women (W) + W = 8 min W + child = 7 min W alone = 5 min W + Man = 4 min Stealing33% by customers, 66% by staff Always take receiptstaff makes fake returns RFID Radio Frequency Identification

  9. Online Consumer Behaviour OnlinePull consumers to store Offline sales people use knowledge for $ Debate Luxury cannot be sold online Pradawww for info only Some brands sale limited (e.g., old) products online. Others sale through luxury e-stores

  10. Bluefly.com

  11. designerimports.com

  12. Forzieri.com

  13. Glam.com

  14. Neimanmarcus.com

  15. Net-a-porter.com

  16. Yoox.com

  17. Attitude towards Luxury Products? (10-pt scale) China = 8.2 Mexico = 8.0 India = 7.3 UK = 7.3 USA = 6.8 S. Korea = 6.4 Germany = 6.1 difficult relationship with luxury Italy = 6.1 and France = 5.7 Catholic countries Helping poor and controlling desire is important Japan = 5.6 Symbolic revenge of WWII Not liking may not mean customer’ll not buy luxury products

  18. Europe -- UK, Italy, Spain Germany 25% of population >60 Older people in Europe than USA

  19. Italy Inspired by art Flashy watches mechanical Curves in jewellery

  20. Germany Quality is important Simple watches Quartz

  21. Japan Like cosmetics, ready-to-wear,… Do not like perfumes It hides natural body odour Encroaches personal space

  22. India 70,000 millionaires 50% of population < 50 by 2020 Jewelleries gold, diamonds, gems,… Industrial names Sony, Mercedez, BMW… Own luxury world’s thinnest watch Sarieseven becoming popular abroad To be served Indian palace train,…

  23. World’s thinnest (3.5mm) Indian watch

  24. Hilton in Sari

  25. Victoria Bechman in Sari

  26. German model Claudia Ciesla in Sari

  27. Palace on wheelIndian Service Luxury

  28. Palace on wheels -- Inside

  29. Palace on wheels -- Inside

  30. HK/SP/Thailand/Taiwan Full of young people Stylish, sleek Ready-to-wear Brand visibility is important

  31. China Largest emerging luxury market in the world 300,000 millionaires in China 12% of luxury goods are sold in China To be 26% by 2020 Cosmetics ↑whitening products Silk, Wine, whisky,…

  32. Russia 90,000 millionaires Moscow alone spends $2b/year on luxury Russians love luxury banned before Flashy New wealthSkiing Courchevel French Alp

  33. Other Emerging Luxury Markets Columbia Indonesia Vietnam Egypt Turkey South Africa CIVETS

  34. Types of Fake Luxury Products Counterfeit industry $600b (x4 luxury industry!!) Counterfeit 100% copy Deceive customers as real PiratedCopied Customers know it ImitationNot 100% identical Customers know it Custom-madeCould be real Replica made by legitimate craftsman through some connection

  35. Where are Fake Luxury Products? China, HK, Thailand, Morocco, Taiwan, Turkey, S Korea Customers age: 25-35 London Oxford Street ManhattanCanal Street Shanghai Xiang-Yang Road (Closed now!) …

  36. Fake KFC in Iran

  37. Fake Apple Store in Iran

  38. Fake Lxury Bag

  39. Fake Luxury Products Prevention France: criminal activities buyer and seller If caught, 2 years in jail LV sued Carrefour for $40,000Shanghai store Hermes post warnings on Internet LV, Burberry,… and police raid fake shops LV spends $15m-$20m/year to combat fake luxury How to detect it? Click 

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