Luxury customers do not intend to slow down their spending in 2023
Recent research by Kantar Insight and Altiant reveals that luxury shoppers’ purchase intentions are expected to increase next year.
The “Territories of Desire” study conducted in late October by Kantar Insights and Altiant in the US, China and Europe, highlights the attractiveness of luxury purchases for the top 5% of the population (in terms of annual household income).
Respondents report purchasing an average of six luxury product/service categories in 2022, with an overall spend of $43,000. 65% of respondents also said they intend to increase their spending in 2023 on at least one of these categories.
“The luxury industry is dynamic; this is true regardless of the category studied. But certain areas are particularly popular and will benefit from this growth. In first place we find the luxury hotel industry, followed by gourmet restaurants, spas and luxury beauty salons. These desires naturally echo the post-confinement period,” explains Françoise Hernaez, Head of Luxury, Kantar Insights.
We note that the increase in purchase intentions is particularly marked in China (39% on average). Conversely, in the UK, intentions are declining: the proportion of the population wishing to reduce their spending in 2023 is much higher than the average (27% against 12%).
Where do people shop?
The physical point of sale still plays an essential role in consumption, with a forecast increase of +26%. At the same time, online spending is expected to continue to grow strongly at +32%.
In China, the increase in online purchases is mainly on the mobile, while in France, the share of online purchases is also expected to increase, but on the computer.
“Our study, which includes open-ended questions, has enabled us to identify three key themes for a successful shopping journey. Luxury consumers value: rare moments in shop, holistic experiences (with coherence of all dimensions in the relationship with the brand) and artistic, festive or educational events organised by the brands for VIP customers,” says Adrien Germain-Thomas, Head of Commerce and eCommerce at Kantar Insights.
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Featured photo : © Iles Canaries
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Passionnée depuis son plus jeune âge par l’art et la mode, Hélène s’oriente vers une école de stylisme, l’Atelier Chardon-Savard à Paris, avec une option Communication. Afin d’ajouter des cordes à son arc, elle décide de compléter sa formation par un MBA en Management du Luxe et Marketing Expérientiel à l’Institut Supérieur de Gestion à Paris dont elle sort diplômée en 2020. Elle a notamment écrit des articles lifestyle et beauté pour le magazine Do it in Paris et se spécialise en rédaction d’articles concernant le luxe, l’art et la mode au sein du magazine Luxus Plus.********** [EN] Passionate about art and fashion from a young age, Hélène went to a fashion design school, Atelier Chardon-Savard in Paris, with a Communication option. In order to add more strings to her bow, she decided to complete her education with an MBA in Luxury Management and Experiential Marketing at the Institut Supérieur de Gestion in Paris from which she graduated in 2020. She has written lifestyle and beauty articles for Do it in Paris magazine and specializes in writing articles about luxury, art and fashion for Luxus Plus magazine.