Worldwide luxury consumer habits change
As income levels improve, there is a clear and consistent shift in the types of products and services consumers buy globally and luxury brands should take note, according to a study by Credit Suisse.
Credit Suisse found that 38 percent of survey respondents expected some improvement in their personal finances over the next six months. Consumers in China and Brazil are the most confident. Credit Suisse teamed up with global market research firm AC Nielson to conduct the research.
The study explained the spending profile of consumers within Brazil, Russia, India and China, as well as Egypt, Indonesia and Saudi Arabia.
Consumers from these countries represent more than 3 billion of the world’s population and make up a combined gross domestic income in excess of 10 trillion.Based on the findings from the survey, consumers in the emerging world are confident their income growth will increase in the next 12 months.
Brazilian consumers rank as the most optimistic. This outlook suggests that more consumers are planning on purchasing cars, for example.
Consumer purchasing plans for cars are among the highest for the countries covered in this survey.
Luxury automakers should implement a strategy to reach these soon-to-be consumers.
Spending intentions are seeing positive growth in China. The positive income growth is expected to continue and accelerate over the next year.
Demand for computers and smartphones stands out as the strongest across the survey.
With the ever-growing demand for computers and smartphones in China, luxury brands should make sure affluents are able to reach marketing platforms across all channels.
According to the survey, 30 percent of high-income earners expressed an intention to buy a car, specifically on the premium brand side.
Consumers in Indonesia are looking beyond the essentials and the higher-income households register strong buying intentions.
Consumers in emerging markets will have a greater impact on the global economy, and marking campaigns in these countries are essential, according to Credit Suisse. The demand for smartphones and computers in these countries means that consumers can integrate their smartphones into their online shopping and browsing behavior.As the number of mobile-reliant shoppers continues to grow, especially in emerging markets, luxury brands need to capitalize on the marketing opportunity.
Consumers in these countries are also purchasing cars, and luxury brands need to make sure potential buyers can access the brands marketing channels and dealerships.