EDITORS AT ROBB REPORT, THE LEADING VOICE IN LUXURY
Celebrating its 40th anniversary this year, Robb Report has long been known as the authoritative voice in the global luxury market. Widely regarded as the single most influential journal of living life to the fullest, Robb Report covers the newest in what matters most to its discerning and exceptionally affluent audience. Fox PR asked the experts at Robb Report to share their insight into some of the key trends currently shaping the luxury industry.
Growth of Experiential Luxury
The shift in preference for experiencing luxury vs. owning luxury continues to rise. Experimental luxury accounts for almost 55% of total luxury purchases worldwide and is growing at a rate 50% faster than the gains of luxury good sales. Experiential luxury also fuels individuals who seek personal growth, authenticity, adventure challenges, charitable and environmental causes.
Experiential luxury is not always at odds with luxury goods; luxury goods purchases can fuel experiences, such a new state-of-the-art kitchen becoming the centre of family life, or a new yacht becoming the meeting ground for fun and the sun with friends and colleagues.
SOURCES. BOSTON CONSULTING GROUP LUXURY REDUX JUNE 2012.THE CULTUREUR 7/3/15.
The New Sharing Economy
The sharing economy is hitting the luxury market with the same full force as the mass market. There has been a differential shift in the value of sharing vs. owning, and ownership no longer has the cachet it once had. There is now a “permission” among Affluents to rent or share just about anything, whether it is villa in the Mediterranean, a vintage roadster, a private jet, a luxury watch or the ultimate designer dress.
Sharing’s added benefit is freedom from the responsibility of owning, which means less hassle and less red tape. In addition, sharing opens up a whole new realm of opportunities and experiences as it allows one to test the waters and/or explore new choices on a whim. In this case, less is truly more.
While challenging, the sharing economy represents new opportunities for luxury marketeers to reach current customers in new ways, as well as reach aspiring Affluents with opportunities to experience luxury goods and services they may not have been able to afford before.
SOURCE NEW YORK TIMES. 2/16/16, FOUR SEASONS: HOW LUXURY BRANDS SHOULD FOCUS ON THE PRINCIPLES OF CONTENT MARKETING, JANUARY 016
The Expanding Influence of Digital
E-commerce continues to rise and remains one of the hottest topics in luxury. While it currently accounts for just 6% of global personal luxury good sales, this figure represents just a small share of the total effect of digital interaction. According to McKinsey’s latest research study, three-in four luxury purchases are influenced by digital in some manner whether the item is bought online or not.
All elements of digital activity impact luxury behaviours and attitudes whether it is social media, web surfing, online research, email, texting and more. In fact, Word of Mouth (including social media) is now the #1 influencer on luxury purchasers, ahead of all other influencers including magazines, events and store display.
Embracing the new digital reality calls for an evolving approach in determining how luxury brands can successfully engage with consumers across digital platforms.
SOURCE: MCKINSEY & COMPANY, DIGITAL INSIDE, JULY 2015, BOSTON CONSULTING GROUP, SELECT KEY TRENDS IN THE LUXURY INDUSTRY, JANUARY 2016
Targeting the Future: The Affluent Millennial
The number of affluent millennial households (Age 18-34, $100,000+) is expected to become the most significant audience for luxury brands within the next five years. Affluent Millennials influence the influencers (mass millennials) and are more likely to participate in online ratings/review sites than non-affluent Millennials. Affluent
- 64% women
- Progressive and positive in their outlook for the future
- More likely to define themselves by what they do versus what they own
- Focused on researching everything they buy and do
- More focused on charitable endeavours/social responsibility