Luxury Customers Becoming More Aware of Price and Quality

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Luxury Customers Becoming More Aware of Price and Quality
Wed 04-11-2015

Ina new study titled "The Luxury Customer Journey", done uxury consultancy Havas LuxHub, it was found that more than %60 of customers in the UAE and Saudi Arabia are well aware of goods prior to purchase.

Passion for “new” things drives customers in the UAE and Saudi Arabia to crave for launches across luxury brands, a new study reveals.

The study has found out that customers in Arab nations are fond of purchasing abroad and religious or national holidays are increasingly becoming important to them when it comes to buying goods from luxury brands.

The study conducted in eight markets with more than 6,400 consumers and 25 brands, notes that customers have become increasingly price- and quality-conscious during the recent economic slowdown.

Customers in emerging markets, according to the research, “are increasingly gaining ground, moving quickly up the luxury pyramid, from affordable and accessible logoed products to niche and exclusive goods.”

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Of the respondents in the survey, %47 have identified that “high quality” was the most associated feature of top well-known luxury fashion brands, while %32 favor fashion, as in being considered “fashionable”, and a little more than one-fourth of them perceive the brands as “recognisable”.

The study reveals that e-commerce has not yet grown much for luxury fashion brands as only %16 of customers buy luxury items online. However, it notes that more than %40 of traditional sales are strongly impacted by digital content, online advertising and web editorial.

More than %60 of 800 respondents from the UAE and Saudi Arabia, where social media plays a major role in brand awareness, said they know exactly what they want before entering a boutique and they collect product and brand information before they venture out to purchase a fashion luxury product.

Isabelle Harvie-Watt, Global CEO of Havas LuxHub, says: “Brands, particularly the traditional luxury fashion brands, need to shift their focus to their customers and on how to engage them.  They need to know their data; they need to understand their customer; they need to be global yet increasingly local and personalised in their approach; they need to become much more digital but at the same time experiential.”