The New Shape of Luxury One of the most comprehensive studies on luxury ever undertaken By atelier a division of Leo Burnett
The new shape of luxury New research from atelier and Leo Burnett reveals the shape of modern luxury. The results of one of the most comprehensive pieces of luxury research ever undertaken have been released today. Surveying 5,713 luxury consumers in the UK and US, the research asked respondents to rate brands and experiences on 103 different attributes. The results were analysed to define the shape of the modern luxury market and reveal some startling findings.
Executive summary Today luxury means many things to many people, and the traditional model of luxury - based on affluence and exclusivity - is now only one part of the story. As this research reveals luxury’s recent history is one of expansion. What we define as luxuries in modern society are changing and now stretches from simple things like having more time right through to the chance of becoming a space tourist (if you have the money!). The lesson for traditional luxury brands is they need to keep pace. New forms of luxury like ethical luxury and altruistic luxury are breaking developments. Others like pampering and escapist luxury are not seen as extravagances like luxury of old; they are essential elements in people’s lives. With luxury products increasingly within the reach of all, and, ultimately, becoming less and less differentiating, brands must plan and act as relevantly as possible. The research has revealed 14 key dimensions in luxury brand DNA, some of which offer no surprises, others which will shake-up up even the most experienced luxury marketer.
Key findings Luxury is changing dramatically: • The old model of luxury, based on affluence and exclusivity, is now only one part of the story: - Only 7% of luxury consumers agree ‘luxury is all about being part of an exclusive club’. • Luxury now means many things to many people: - 68% of luxury consumers agree ‘time is the biggest luxury’. • Luxury has expanded and includes a broad array of elements: - This new research has discovered 14 key dimensions in the luxury market. • Traditional elements within luxury remain important, but new forms of luxury have also emerged: - Status, extravagance, connoisseurship, seduction and brands being uber-premium (the ultimate of their kind) are still key dimensions with luxury. - The research has also found nine new dimensions in the luxury market.
The meaning of luxury Status - keeping up with the Joneses..., how big is your TV? Consumer Description: ‘Shows status’, ‘Makes you feel like part of the elite class’. Top Brands: Gucci, Harrod's, Cartier Extravagance - showing off with your Louis Vuitton luggage Consumer Description: ‘Makes you feel like you're really living in the lap of luxury’ Top Brands: Versace, Prada, Hermes Connoisseurship - great taste, buying a banksy before he was famous Consumer Description: ‘Crafted from superior workmanship’ Top Brands: Chanel, Tiffany's, Breitling Seduction - the route to romance, think flowers and lingerie Consumer Description: ‘Sensuous and seductive’ Top Brands: Calvin Klein, Max Factor, Lancome Uber-Premium - the best of its kind, is that a Bang & Olufsen MP3 player? Consumer Description: ‘The ultimate of its kind’, ‘The best you can possibly get’ Top Brands: Cartier, Belugia Caviar, Amex Platinum
Ethical - paying for peace-of-mind, think fair-trade coffee Consumer Description: ‘Luxury that has an element of honesty and sincerity’ Top Brands: Aveda, Whole Foods Pampering - well-being, like spa treatments, are increasingly essential Consumer Description: ‘A relaxing, mellow, laid-back experience’ Top Brands: Marriott, Hyatt, spa treatments Altruism - giving something back, donating wealth to charity like Bill Gates Consumer Description: ‘Makes you feel like you're really doing something for others or for the world’ Top Brands: Mac, Project Red Escapism - getting away from it all and taking a break Consumer Description: ‘Stimulating and intriguing’, escape from reality. Top Brands: Piloting your own Lear Jet, Abercrombie & Kent, Aman resorts [more brands being tested] Actualization - finding the inner you or becoming who you want to be Consumer Description: ‘Makes you feel like you're exploring all sorts of new possibilities’ Top Brands: Fructis, Cosmetic surgery, Personal trainer, Unforgivable fragrance Achievement - increasing your power, get yourself a blackberry Consumer Description: ‘Helps you become who you want to be’ Top Brands: Blackberry, Brooks Brothers.
Adventure - doing something a bit edgy and out there Consumer Description: ‘Daring and adventurous’, ‘A little bit risky and edgy’ Top Brands: Hummer, Porsche, Space Tourism Cutting Edge - being up-to-the-minute and ahead of the trends Consumer Description: ‘Up-to-the-minute current’, ‘cutting edge’ Top Brands: D&G, Davidoff, David Beckham Fragrance Creative - expressing yourself baby! Consumer Description: ‘Creative’, ‘Allows you to express yourself in an exciting new way’ Top Brands: Links, Bobbi Brown, Juicy Couture.
The new shape of luxury revealed:
CONTACT INFORMATION Janet Carpenter General Manager janet.carpenter@atelier-lb.co.uk Tel: +44 (0) 20 7071 1154 Ben Hourahine Research Analyst ben.hourahine@leoburnett.co.uk Tel: +44 (0) 20 7071 1303 Janice Capewell PR Manager janice.capewell@leoburnett.co.uk Tel: +44 (0) 20 7071 1203
Research Details: Comprehensive study in US & UK with Luxury Consumers (5,713) 18-34s who earn at least $35,000 (ÂŁ20,000) per year 35-65s who earn at least $50,000 (ÂŁ30,000) per year 108 brands / experiences rated in US, 68 the UK Each respondent rated one brand or experience on 103 different attributes. The results were clustered to define the shape of the luxury market.