The allure of luxury goods

The results of the UK Luxury Benchmark survey from Ledbury Research, run in partnership with the Walpole – the UK’s luxury industry body have just been released.

Reading through the summary of findings from the report, it is very obvious that the market dynamics are changing, especially where and when the purchase is made. BRIC markets are in, and the marque of luxury appeals to a a much wider, emerging market, where the consumers are younger and mostly found online.

Following are the highlights..

UK Luxury Benchmark Report 2012

– The UK luxury goods market stood at £5.8bn by the end of 2011.
– The internet has extended the reach of luxury brands: today’s luxury consumer is new to the brand, younger, and found online.
– Tourism remains a key factor in the success of the UK luxury market, and 63% of brands have made plans to specifically target this audience.
– Though London dominates the revenues of the luxury sector in the UK, 60% of stores are based outside the capital.
– Looking abroad, British luxury brands are heavily involved in overseas operations. There is strong interest in the BRIC economies, China in particular, but other emerging regions are beginning to make their mark.
– Assessing the marketing activity of the leading brands, it is clear that focus remains on reaching these younger consumers and growing the client base.
– While 74% of British luxury brands are optimistic for the year ahead, many have expressed a level of cautiousness. This is reflected in the mixed expectations for sales in 2012.

Understanding Markets

We have just finished putting together industry-specific, country market maps for a client. A lot of effort and research has gone into them, but – what a level of understanding when you then look at them in detail!

Market Maps come in many guises. We consider them an important element in our work, whether we are carrying out strategic reviews, market segmentation or value and supply chain analysis. Together with competitive landscapes, where we plot our clients next to their competition within a market and competitive attractiveness matrix, we find that market maps help us to focus attention on key elements within the market space. For our clients, the graphic representations help with the visualisation of the power play in the markets.

What are Market Maps?
We prefer to look at them as playing fields, where we highlight the terrain, understand the strategies and the power struggles at play. We have developed our own unique methodologies, tools and presentation for market mapping. In our work, market maps help us identify key customer and consumer insights, and ensures we have full awareness of the the total market place.