Luxury Institute News

November 29, 2012

Wealthy Shoppers Reveal Spending Plans, Attitudes On Global Luxury Industry

Posted in China,Europe,Japan,Luxury Brands,Luxury Market,Press Releases,WealthSurvey,Wealthy Consumer
Tags: France, Germany, Italy, Milton Pedraza, U.S., United Kingdom —

(NEW YORK) November 29, 2012 – Wealthy shoppers from seven global luxury markets share opinions and observations on issues confronting providers of high-end goods and services in the new 2012 State Of The Luxury Industry Global Trends survey from the independent and objective New York-based Luxury Institute. Respondents are among the top 10% of earners in the U.S., United Kingdom, France, Germany, Italy, China and Japan, with minimum income of $150,000 in the U.S.

Despite an economic slowdown and a crackdown on conspicuous consumption, 43% of wealthy Chinese consumers still plan to spend more on luxury products in the coming year. This varies dramatically from the 10% of Japanese and 9% of American consumers who say they’ll boost luxury spending, while in Germany and Italy, where only 5% of wealthy shoppers plan to spend more.

Indicative of strength in U.S. luxury retail, wealthy Americans plan to increase spending in all surveyed luxury categories compared to last year. Notable areas where recoveries are underway: ready-to-wear , jewelry, and private jet travel. Yachting also has the wind at its back, with 22% of U.S. consumers planning to spend more on luxury boating in 2012.

Everywhere except for Japan, discounting has enhanced luxury goods’ appeal and stimulated spending. Wealthy Chinese (59%) and Italian (53%) shoppers are most likely to say that discounting has improved their view of luxury and prompted greater expenditures.

“Product differentiation and exceptional service are what keep luxury relevant,” says Luxury Institute CEO Milton Pedraza. “Especially in an uncertain economy, firms need to give wealthy shoppers reasons to buy more.”

About the Luxury Institute (www.LuxuryInstitute.com)
The Luxury Institute is the objective and independent global voice of the high net-worth consumer. The Institute conducts extensive and actionable research with wealthy consumers about their behaviors and attitudes on customer experience best practices. In addition, we work closely with top-tier luxury brands to successfully transform their organizational cultures into more profitable customer-centric enterprises. Our Luxury CRM Culture consulting process leverages our fact-based research and enables luxury brands to dramatically Outbehave as well as Outperform their competition. The Luxury Institute also operates LuxuryBoard.com, a membership-based online research portal, and the Luxury CRM Association, a membership organization dedicated to building customer-centric luxury enterprises.

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September 12, 2012

In Asian Luxury Hotels, Wealthy Chinese Love Lodging With Hyatt And Marriot, But Japan Prefers Putting On the Ritz

Posted in China,Customer Experience,Customer Service/CRM,Hotel/Resort,Japan,LBSI,Luxury Brands,Press Releases,Travel & Leisure
Tags: Grand Hyatt, InterContinental, JW Marriott, Ritz-Carlton, St.Regis —

(NEW YORK) September 12, 2012 – U.S. hotel operators prove popular among wealthy travelers in Asia’s two biggest markets, according to two new Luxury Brand Status Index (LBSI) surveys of affluent Chinese and Japanese by the independent and objective New York-based Luxury Institute. Japanese travelers earning at least 15 million yen per year ($190,000) evaluated 20 luxury hotel brands, and Chinese consumers with minimum annual income of one million yuan ($157,000) considered 26 luxury-lodging names.

Wealthy respondents rated hotels 1-10 on criteria including quality of accommodations, exclusivity, degree of status enhancement and ability to deliver special guest experiences. They also indicated which hotel brands they planned to stay with this year, and whether they’re willing to pay premium prices or to recommend a brand to people close to them.

In China, St. Regis (8.41) earns the highest LBSI score, but the JW Marriott (36%) and Grand Hyatt (34%) were most frequently visited in the past year by wealthy Chinese travelers and are the two hotels where they plan to stay next. Along with InterContinental, Marriott and Hyatt are also the two most likely brands to receive favorable recommendations from wealthy Chinese travelers.

In Japan, Ritz-Carlton ranks at the top for both popularity and prestige. Ritz earns the second-highest (7.62) LBSI score, just behind Peninsula Hotels (7.66), but it is deemed the hotel most worthy of a price premium. Ritz-Carlton is also the most popular choice for the next hotel visit.

“Luxury hotels don’t achieve consistently superior ratings by accident,” says Luxury Institute CEO Milton Pedraza. “Standards, systems and training underpin excellence in any service business, especially luxury.”

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September 7, 2012

Rolls-Royce targets blooming Asia-Pacific market in boutique expansion

Posted in Automobiles,China,Japan,Luxury Brands,Uncategorized
Tags: Bangkok, Milton Pedraza, Rolls-Royce, Thailand —

British automaker Rolls-Royce Motor Cars is keeping its brand top-of-mind with trend-savvy, affluent consumers in Thailand through a new boutique experience set to open in the fourth quarter of this year.

The new Rolls-Royce Central Bangkok boutique will be the first of its kind in Asia. The automaker has additional plans expand its presence in Thailand due to strong interest from consumers in the emerging market, which seems to welcome status brands with open arms, experts say.

“Rolls-Royce understands that Asia has a lot more opportunities than just China,” said Milton Pedraza, CEO of the Luxury Institute, New York. “It has large populations that are growing in their economic and demographic profiles.

“The slowdown in China, while it is still a wonderful opportunity, is causing the brand to move further out,” he said. “Now you have to open your eyes a little wider, and you will find out that Asia is much bigger than China with a tremendous amount of growth opportunity.”

Click the link to read the entire article which includes quotes from Milton Pedraza, CEO of Luxury Institute: http://www.luxurydaily.com/rolls-royce-targets-blooming-asia-pacific-market-in-boutique-expansion/

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June 18, 2011

Wealthy Consumers From China And Japan Rank Luxury Brands In Four Categories; Lots Of Love In Asia for Chanel, Hermès and European Stalwarts

Posted in China,Fashion,Handbags,Hotel/Resort,Japan,LBSI,Luxury Market,Men's,Press Releases

(NEW YORK) June 17, 2011 – A new series of Luxury Brands Status Index (LBSI) surveys from the independent and objective New York City-based Luxury Institute reveals firsthand impressions and rankings of dozens of luxury brands by high net-worth consumers from Japan and China. Respondents were 21 years of age and older, earning the equivalent of at least $185,000 per year—one million Chinese renminbi or 15 million Japanese yen.

Wealthy Japanese and Chinese shoppers rated each brand on quality, exclusivity, social status and overall ownership experience. Also considered were price worthiness, willingness to recommend the brand and likelihood of purchase.

Based on overall LBSI scores, the top luxury brands rank as follows:

Hotels
- China: Fairmont Hotels & Resorts; JW Marriott; Aman Resorts
- Japan: Ritz-Carlton; Orient-Express Hotels; Aman Resorts
Handbags
- China: Chanel; Louis Vuitton; Dior
- Japan: Hermès; Chanel; Louis Vuitton
Women’s Fashion
- China: Chanel; Dior; Hermès
- Japan: Hermès; Chanel; Louis Vuitton
Men’s Fashion
- China: Giorgio Armani; Versace; Brioni
- Japan: Hermès; Louis Vuitton; Burberry

“European luxury brands are warmly received by wealthy shoppers throughout Asia,” says Milton Pedraza, CEO of the Luxury Institute. “Japan’s market is more mature and surprisingly resilient so far in the wake of the tsunami and quake, while growth stays red hot in China. Firms need to know where they
rank.”

For greater details on brand rankings in each category and other purchase considerations of wealthy Japanese and Chinese consumers, visit LuxuryInstitute.com.

About Luxury Institute (www.LuxuryInstitute.com)

The Luxury Institute is the objective and independent global voice of the high
net-worth consumer. The Institute conducts extensive and actionable research
with wealthy consumers about their behaviors and attitudes on customer
experience best practices. In addition, we work closely with top-tier luxury
brands to successfully transform their organizational cultures into more
profitable customer-centric enterprises. Our Luxury CRM Culture consulting
process leverages our fact-based research and enables luxury brands to
dramatically Outbehave as well as Outperform their competition. The Luxury Institute also operates LuxuryBoard.com, a membership-based online research portal, and the Luxury CRM Association, a membership organization dedicated to building customer-centric luxury enterprises.

For Further Information, Please Contact:
The Luxury Institute, LLC
Martin Swanson
Vice President
(914) 909-6350
mswanson@luxuryinstitute.com

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June 2, 2010

News Release: Japanese High Net-Worth Consumers Rate the “Best of the Best” Luxury Brands in Five Fashion Categories

Posted in Fashion,Handbags,Japan,LBSI,Press Releases,Shoes

(NEW YORK) June 2, 2010 – The objective and independent New York City-based Luxury Institute reported today the results of the “Best of the Best” luxury fashion brands in Japan based on the 2010 Luxury Brand Status Index (LBSI) survey. This survey identifies the top brands that deliver true luxury based solely on the unbiased ratings of wealthy Japanese consumers. The following five luxury categories were rated: Women’s Fashion, Women’s Shoes, Women’s Handbags, Men’s Fashion, and Men’s Shoes.

The LBSI asks high net-worth consumers to rate luxury brands by category across four equally weighted components: Consistently Superior Quality, Uniqueness and Exclusivity, Making the Customer Feel Special Across the Entire Experience and Being Consumed by People Who Are Admired and Respected.

The “Best of the Best” are: (LBSI score out of 10)

Women’s Fashion (Ready-to-wear)

o Hermes-7.28
o Chanel-7.27
o Giorgio Armani-6.80

Women’s Handbags

o Hermes-7.77
o Chanel-7.06
o Louis Vuitton-7.01

Women’s Shoes

o Christian Louboutin-7.39
o Hermes-7.20
o Ferragamo-7.18

Men’s Fashion (Ready-to-wear)

o Ermenegildo Zegna- 7.17
o Hermes-7.01
o Giorgio Armani-6.89

Men’s Shoes

o John Lobb-7.34
o Testoni-7.32
o Ferragamo-7.11

“Japan may be a challenging market for luxury, but it is still a huge market compared to most other geographies”, said Milton Pedraza, CEO of the Luxury Institute. “We see major efforts on the part of our luxury brand clients to differentiate themselves by dramatically out-behaving their competition rather than merely outperforming on products. Extraordinary customer experiences will be the drivers of luxury success in Japan’s large, but stagnant market”

The proprietary Luxury Brand Status Index (LBSI) survey is the only unbiased measure of the prestige of leading brands among wealthy Japanese. A national sample of 600 wealthy Japanese consumers, half male/half female, with a minimum household income of 15 million Yen (approximately $165k) was surveyed online. Males rated only the men’s categories and females rated only the women’s categories.

About the Luxury Institute

The Luxury Institute is the uniquely independent and impartial ratings, research and Luxury CRM consulting institution that is the trusted and respected voice of the high net-worth consumer. The Institute provides a portfolio of proprietary publications, research and consulting services that guide and educate high net-worth individuals and the companies that cater to them on leading edge trends, high net-worth consumer rankings and ratings of luxury brands, and best practices. The Luxury Institute also operates LuxuryBoard.com, the world’s first global, membership-based online community for luxury goods and services executives, professionals and entrepreneurs.

Contact:
The Luxury Institute, LLC
Martin Swanson
Vice President Business Development
(914) 909-6350
mswanson@luxuryinstitute.com

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June 4, 2009

Japanese High Net-Worth Consumers Rank the “Best of the Best” Luxury Brands in Six Categories

Posted in Automobiles,Fashion,Handbags,Japan,LBSI,Press Releases,Shoes

(NEW YORK) June 4, 2009 – The Luxury Institute reported today the results of the “Best of the Best” luxury brands in Japan based on the 2009 Luxury Brand Status Index (LBSI) survey, which identifies the top brands that deliver true luxury based solely on the unbiased ratings of wealthy Japanese consumers. The following six luxury categories were rated: Women’s Fashion (29 brands), Women’s Shoes (18 brands), Handbags (30 brands), Men’s Fashion (22 brands), Men’s Shoes (18 brands) and Automobiles (20 brands).

Which luxury providers deliver the best combination of quality, exclusivity, customer experience and peer prestige in Japan?

The “Best of the Best” are: (LBSI score out of 10)

Women’s Fashion
Hermes- 7.38
Chanel- 7.20
Louis Vuitton- 7.01
Women’s Shoes
Manolo Blahnik- 8.18
Jimmy Choo- 7.58
Hermes- 7.45
Handbags
Hermes- 7.76
Louis Vuitton- 7.24
Chanel- 7.20

Men’s Fashion
Ermenegildo Zegna- 7.08
Giorgio Armani- 6.97
Louis Vuitton- 6.71

Men’s Shoes
Salvatore Ferragamo- 6.82
Versace- 6.59
Giorgio Armani- 6.38

Automobiles
Mercedes-Benz- 7.47
Porsche- 7.21
Lexus- 6.99

“Japan continues to be a critical market for luxury due to its highly discerning and still affluent consumers,” said Milton Pedraza, CEO of the Luxury Institute. “The Luxury Institute conducts more surveys globally with wealthy consumers than all other entities in the world combined, and we also clearly see that luxury is no longer ‘back to basics’ .While some are busy predicting the death of luxury around the developed world, we predict that luxury will regain its luster, and with a vengeance, when truly wealthy consumers fatten their wallets again and can focus on acquiring the best. It is a historical fact that luxury is cyclical and dramatically outperforms in up cycles and dramatically underperforms in down cycles. We predict that savvy Japanese wealthy consumers will not be fooled again by faux luxury brands.”

The proprietary Luxury Brand Status Index (LBSI) survey is the only unbiased measure of the prestige of leading brands among wealthy Americans. A national sample of 600 wealthy Japanese consumers, with an average household income of ¥50,000,000 Japanese Yen (or $525,000 US Dollars) was surveyed online.

About the Luxury Institute (www.LuxuryInstitute.com)

The Luxury Institute is the uniquely independent and impartial ratings and research institution that is the trusted and respected voice of the high net-worth consumer. The Institute provides a portfolio of proprietary publications and research and consulting services that guides and educates high net-worth individuals and the companies that cater to them on leading edge trends, high net-worth consumer rankings and ratings of luxury brands, and best practices. The Luxury Institute also operates the LuxuryBoard.com (www.LuxuryBoard.com), the world’s first global, membership-based online community for luxury goods and services executives, professionals and entrepreneurs.

For Further Information, Please Contact:

The Luxury Institute, LLC
Martin Swanson
Business Development
Phone: (914) 909-6350
E-mail: mswanson@luxuryinstitute.com

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