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    Italy Luxury Association Releases Industry Consumption Outlook Report

    2015/1/27 22:09:00 37

    ItalyLuxury Goods AssociationConsumption Outlook

    Recently, Italy The luxury industry association (Altagamma) held the "Altagamma Consumer and Retail Insight" forum in Milan. In the second half of 2014, the trend of fashion changed, and the uncertain consumers made the executives of different brands feel awkward. Therefore, locating the target customers and identifying the habits of consumers is the focus of this forum.

       Luxury advertising

    According to the US report, the same year last year, two industry outlook reports were released at the Forum:

    The "True Luxury Global Consumer Insight" report with the Boston Consulting Group (BCG) Second Edition

    The third edition of the "The Altagamma Retail Evolution" report with Exane BNP Paribas in Paris

    Among the most interesting predictions are:

    It is estimated that the total annual consumption of luxury goods in the world will reach 1 trillion and 10 billion euros by 2021.

    Experiential luxury consumption growth will exceed individual shopping consumption.

    More points are as follows:

       Macro data

    BCG visited more than 20 countries and 40 thousand consumers, focusing on consumers who spend more than 20 thousand euros per year, pointing out that in 2014, the total number of luxury consumers in the world totaled 390 million, with a total consumption of 755 billion euros. Only the core high-end consumers who occupied only 4% of the total number of the total luxury goods market contributed nearly 30% of the total luxury goods market.

    It is estimated that by 2021, the number of luxury consumers will rise to 465 million, personal shopping consumption will increase by 4.7% annually, and experiential luxury consumption will increase by 6.7%.

    Antonio Achille, managing director and partner of BCG, said, "consumer confidence in luxury goods industry, including experiential luxury consumption, will increase in 2015. 40% of the growth of the luxury industry will be attributed to those top luxury goods.

       Brand and user

    Luxury consumers are becoming more and more knowledgeable. They are more concerned about the intrinsic value of products, such as process and quality, and especially on the place of origin. 80% of consumers chose Italy as the preferred place for luxury goods, followed by the preferred place of origin for cars, Germany and the first choice of watches in Switzerland.

    25% of luxury brands lose the risk of exclusivity. Luxury is no longer a matter of course.

    Consumers are more and more sensitive to word of mouth. The reputation of social media and bloggers is stronger than traditional media such as magazines.

    75% of consumers thirst for full channel retail services, such as integrated delivery service, enjoying the same promotional efforts and customer feedback in all channels. Brand's official website is the first choice for online consumers.

    The buying behavior of consumers around the world has become increasingly complex and difficult to predict. Ferragamo's CEO Michele Norsa says, "the real challenge is to conquer new customers in different geographical and age groups, and provide them with tools to communicate with brands." He believes that attracting customers in emerging markets is more important than developing new customers in mature markets.

    The added value of brand becomes more important. Simone Dominic, general manager of Coin and Excelsior, a retail chain, advocates the use of new methods to differentiate brands, such as brand stories.


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