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One of the most comprehensive studies on luxury ever undertaken. By atelier, a division of Leo Burnett.
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The New Shape of LuxuryOne 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 everundertaken have been released today. Surveying 5,713 luxury consumers in theUK and US, the research asked respondents to rate brands and experiences on103 different attributes. The results were analysed to define the shape of themodern luxury market and reveal some startling findings.
Executive summary
Today luxury means many things to many people, and the traditional model ofluxury - 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 wedefine as luxuries in modern society are changing and now stretches fromsimple things like having more time right through to the chance of becoming aspace tourist (if you have the money!). The lesson for traditional luxury brandsis they need to keep pace. New forms of luxury like ethical luxury and altruisticluxury are breaking developments. Others like pampering and escapist luxuryare not seen as extravagances like luxury of old; they are essential elements inpeople’s lives. With luxury products increasingly within the reach of all, and,ultimately, becoming less and less differentiating, brands must plan and act asrelevantly as possible. The research has revealed 14 key dimensions in luxurybrand DNA, some of which offer no surprises, others which will shake-up upeven the most experienced luxury marketer.
Key findings
Luxury is changing dramatically:
• The old model of luxury, based on affluence and exclusivity, is now onlyone part of the story:
- Only 7% of luxury consumers agree ‘luxury is all about being part of anexclusive 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 ofluxury have also emerged:
- Status, extravagance, connoisseurship, seduction and brandsbeing uber-premium (the ultimate of their kind) are still key dimensionswith 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 luggageConsumer 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 famousConsumer Description: ‘Crafted from superior workmanship’
Top Brands: Chanel, Tiffany's, Breitling
Seduction - the route to romance, think flowers and lingerieConsumer 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 coffeeConsumer Description: ‘Luxury that has an element of honesty and sincerity’
Top Brands: Aveda, Whole Foods
Pampering - well-being, like spa treatments, are increasingly essentialConsumer Description: ‘A relaxing, mellow, laid-back experience’
Top Brands: Marriott, Hyatt, spa treatments
Altruism - giving something back, donating wealth to charity like Bill GatesConsumer Description: ‘Makes you feel like you're really doing something forothers or for the world’
Top Brands: Mac, Project Red
Escapism - getting away from it all and taking a breakConsumer 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 beConsumer Description: ‘Makes you feel like you're exploring all sorts of newpossibilities’
Top Brands: Fructis, Cosmetic surgery, Personal trainer, Unforgivable fragrance
Achievement - increasing your power, get yourself a blackberryConsumer Description: ‘Helps you become who you want to be’
Top Brands: Blackberry, Brooks Brothers.
Adventure - doing something a bit edgy and out thereConsumer 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 trendsConsumer 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 excitingnew way’
Top Brands: Links, Bobbi Brown, Juicy Couture.
The new shape of luxury revealed:
CONTACT INFORMATION
Janet CarpenterGeneral [email protected]: +44 (0) 20 7071 1154
Ben HourahineResearch [email protected]: +44 (0) 20 7071 1303
Janice CapewellPR [email protected]: +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 (£20,000) per year35-65s who earn at least $50,000 (£30,000) 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.
