February 13, 2024
(press release)
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The luxury landscape in Asia has seen a significant transformation in recent years, with renowned luxury maisons venturing into the food and beverage space as they look to entice consumers who are more “experience-driven”, says GlobalData, a leading data and analytics company. The trend is now expanding into more Asian countries given the region’s rising disposable incomes, increasing, urbanization, and a penchant for luxury brands among consumers. The key consumer base for this trend includes young shoppers who look for opportunities to interact with brands on a more personal level. For instance, luxury house Louis Vuitton recently opened a chocolate boutique in Singapore, its first outside France. LVMH’s perfume brand, Acqua Di Parma unveiled its Yellow Café in Seoul, creating instances of unique discovery and delight for consumers. Parthasaradhi Reddy, Consumer Lead Analyst at GlobalData, comments: “Asian consumers are becoming more “experience-driven”, and therefore brands need to also operate on the experiential level. LVMH is tapping into this consumer desire to escape predictable and mundane brand engagements in favor of more intimate experiences with 27% of Asian millennials affirming that they find novel/unique to be an essential feature* when making purchase decisions.” Tim Hill, Key Account Director, GlobalData Singapore, adds: “Luxury houses are embracing the trend of experience economy to provide additional sensory aspects by diversifying their portfolio into atypical arenas such as food & beverages to create deeper bonds and build loyalty among consumers.” Reddy continues: “Young Asians with high disposable incomes and a desire for unique experiences are driving this transformation of luxury in the region. In a recent GlobalData survey, 28% of Gen Y and 25% of Gen Z respondents claimed that new experiences associated with product purchases are essential to them*, fuelling opportunities for luxury houses to cross over into other sectors and create exclusive experiences.” Hill concludes: “The experiential aspect has been gaining even more importance in the luxury market, as consumers value the immersive shopping experience in specialist boutiques and outlets, making room for brands to redefine luxury in the Asian market to drive sales. As the trend catches the fancy of more consumers, more luxury brands will venture into the foodservice business.” *GlobalData 2023 Q4 Consumer Survey – Asia and Australasia, published in December 2023, 6000 respondents
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