tomorrows luxuries barry clark director, future foundation

Tomorrow’s Luxuries

Barry Clark

Director, Future Foundation

Luxury

A life of luxury…

…although luxury isn’twhat it used to be.

Luxury20297: Luxury

The changing language of luxury

‘Old’ luxuryNot a necessity

Quality (best of its kind)

Expensive

Elite

Traditional

Materialistic

21st century luxuryNot a necessity

Best quality for amount spent

Not necessarily expensive

Can be mass market

Not necessarily traditional

Can be materialistic but also

• Personal

• Authentic

• More likely be experiential

Source: nVision2005

Luxury8195: Consumer Perceptions of Luxury

Household disposable income growthTotal increase from 1980 in real terms - nVision/Experian forecastAugust 2006 - based projection

-25%

0%

25%

50%

75%

100%

125%

150%1

98

01

98

11

98

21

98

31

98

41

98

51

98

61

98

71

98

81

98

91

99

01

99

11

99

21

99

31

99

41

99

51

99

61

99

71

99

81

99

92

00

02

00

12

00

22

00

32

00

42

00

52

00

62

00

72

00

82

00

92

01

0

Source: National Statistics/nVisionBase: UK

Luxury20299: Luxury

Splashing out on luxury, by gender, age and social grade% who agree/strongly agree they can afford to splash out on luxury goods sometimesAs I read out a statement please say from this card how much you agree or disagree with each. We are only interested in your attitudes, opinions and views - yours alone, not those of anyone else. Firstly …: ‘I can afford to splash out on luxury goods sometimes’

0%

10%

20%

30%

40%

50%

60%A

ll

Me

n

Wo

me

n

16

-24

25

-34

35

-44

45

-54

55

-64

65

+

AB

C1

C2

DE

Tend to agree

Agree strongly

Source: nVision ResearchBase: 1,000 aged 16+ in the UK, 2004

Luxury18875: The European New Car Market

The car market brand winners and losers in Western Europe

Change in total market share from 2001 to 2005Western Europe includes EU 15, Norway, Switzerland and Iceland.

-2.5%

-2.0%

-1.5%

-1.0%

-0.5%

0.0%

0.5%

1.0%

1.5%

Fia

t

GM

/ V

auxh

all

Peu

geot

Ren

ault

Vol

ksw

agen

For

d

Saa

b

Vol

vo

Aud

i

Min

i

BM

W

Source: European Automobile Manufacturers Association/nVision

Luxury16448: Luxury

Aspirations in the EU 15% saying selected lifestyle factors are absolutely necessary to live properly“For each of the following, please tell me if you think it absolutely necessary to live properly nowadays?”

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Good job

Sufficient accomodation

Good education

Sufficient leisure time and means to enjoy it

Able to go out with friends/family

Ability to be useful to others

Friendly neighbours

To feel recognised by society

At least 1 holiday a year 2002

1993

Source: Eurobarometer/nVisionBase: 16,000 aged 15+

Luxury19580: Luxury

"I'm often under time pressure in my everyday life”% who agree / strongly agree, by gender within country“Please indicate how much you agree or disagree with each of the statements that I read out…"

0%

10%

20%

30%

40%

50%

60%

70%

80%F

inla

nd

Sw

ed

en

De

nm

ark

No

rwa

y

Ire

lan

d

Sp

ain

Ne

the

rlan

ds

GB

Fra

nce

Italy

Ge

rma

ny

Po

lan

d

Ru

ssia

Hu

ng

ary

Cze

ch R

ep

All

Men Women

Source: nVision ResearchBase: 11,000 aged 15+ / 5,000 aged 16-64 (Nordics), 2006

Luxury19660: Luxury

Perception of luxury in Europe, by gender% who choose the following as the 'best' or the 'second best' description of ‘luxury’ in their life

“Looking at all these things, can you tell me, for you, which of the following things would be the best description of ‘luxury’ in your life?… and which of the others is the second best description, if any?

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Going on expensive holidays

Driving an expensive car

Living in a nice area

Wearing designer clothes

Having time on my own

Eating good quality food

Having beautiful homefurnishings

Having time just to relax

Enjoying the best homeentertainment technology

Having nice toiletries andpampering yourself

Men Women

Source: nVision ResearchBase: 1,000 per country aged 15+, 2004

Luxury17658: Luxury

Importance of being rich, by country% who think the description is like/not like them“Here we briefly describe some people. Please read each description tick the box on each line that shows how much each person is or is not like you…It is important to him/her to be rich. He/she wants to have a lot of money and expensive things”

-80%

-60%

-40%

-20%

0%

20%

40%

60%

80%G

ree

ce

Au

stria

Po

rtu

ga

l

Ire

lan

d

Sp

ain

Ne

the

rlan

ds

Be

lgiu

m

Ge

rma

ny

Fin

lan

d

Lu

xem

bo

urg

UK

Sw

ed

en

De

nm

ark

Sw

itze

rlan

d

No

rwa

y

Fra

nce

Slo

vaki

a

Cze

ch R

ep

Hu

ng

ary

Po

lan

d

Est

on

ia

Slo

ven

ia All

Very much/Like me Somewhat/A little like me Not/Not at all like me

Source: European Social Survey/nVisionBase: 2,000 per country aged 15+, 2005


“I prefer to spend money on durable things that I can keep rather than on things that give me temporary enjoyment like a holiday, eating out and so on”

Proportion who agree or strongly agree, by age

0%

10%

20%

30%

40%

50%

60%

All 16-24 25-34 35-44 45-54 55-64 65+

1983 2003

Source: nVision Research/Taylor Nelson SofresBase: 1000 adults 16+, UK


Concerns with having the best money can buy, by gender, age and social grade

Proportion who are concerned with having the best money can buy"Some of the things people have told us they are concerned about are listed here. For each item, please tell me whether you find you are concerned about it at all…Having the best money can buy"

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

All

Ma

le

Fe

ma

le

16

-24

25

-34

35

-44

45

-54

55

-64

65

+

AB

C1

C2

DE

1986 2004

Source: nVision Research/Taylor Nelson SofresBase: 1000 adults aged 16+, UK

Luxury13787: Graphics from nVision for Barry Clark

Concern with self expression through clothing or productsProportion concerned about expressing their personality through clothing/products"Some of the things people have told us they are concerned about are listed here. For each item, please tell me whether you find you are concerned about it at all…Buying products and wearing clothes that express my personality"

0%

10%

20%

30%

40%

19

82

19

84

19

86

19

88

19

90

19

92

19

94

19

96

19

98

20

00

20

02

20

04



Contrasting perceptions of luxuryProportion of adults who choose various aspects of life to be the best and worst description of luxury to them“Can you tell me, for you, which of the following things would be the best description of ‘luxury’ in your life?”

Having nice toiletries and pampering myself

Enjoying best home entertainment technology

Wearing nice clothes


Having nice home furnishings




Driving a nice car

Going on nice holidays

Bestdescription

Worstdescription

30% 20% 10% 0% 10% 20% 30%

Source: nVision ResearchBase: 1000 adults aged 16+, UK, 2004

Luxury17655: Luxury

Conspicuous consumption versus creativity across Europe, by country

% who think the descriptions is like/very much like them“Here we briefly describe some people. Please read each description tick the box on each line that shows how much each person is or is not like you… It is important to him/her to be rich. He/she wants to have a lot of money and expensive things….Thinking up new ideas and being creative is important to him/her. He likes to do things in his/her own original way”

0%

10%

20%

30%

40%

50%

60%

70%

80%

Sw

itze

rlan

d

Gre

ece

Lu

xem

bo

urg

Au

stria

Fra

nce

De

nm

ark

Ne

the

rlan

ds

Ge

rma

ny

Sp

ain

Be

lgiu

m

Ire

lan

d

UK

No

rwa

y

Fin

lan

d

Sw

ed

en

Po

rtu

ga

l

Hu

ng

ary

Slo

ven

ia

Cze

ch R

ep

Slo

vaki

a

Po

lan

d

Est

on

ia All

Thinking up new ideas and being creative is important to me. I like to do things in own original wayImportant for me to be rich. I want a lot of money and expensive things

Source: European Social Survey/nVisionBase: 2,000 per country aged 15+, 2005


Wish for fulfilment, by gender and ageProportion choosing to fulfil themselves as their main wish out of a list of five given options

"If you had just one wish, which one of these would you choose? To be more highly esteemed/to have less fear/to be able to afford something/to be able to fulfil yourself/to have more friendship"

0%

10%

20%

30%

40%

50%

60%

All Male Female 16-24 25-34 35-44 45-54 55-64 65+

1986 2002 2005



The need for new experiences, by gender, age and social gradeProportion who strongly or moderately feel they must satisfy their need for new experiences“For each item I read out will you please tell me whether you feel the need for it strongly, moderately, slightly, or not at all. Firstly…To satisfy my need for new experiences”*2006 Question wording: "Please say how much you agree or disagree with the following statements…I feel the need for new experiences"

0%

10%

20%

30%

40%

50%

60%

70%

80%A

ll

Ma

le

Fe

ma

le

16

-34

35

-54

55

+

AB

C1

C2

DE

1983 2004 2006*

Source: nVision Research/Taylor Nelson SofresBase: 1,000-1,230 adults 16+, UK


Luxury in the form of good quality foodProportion of adults who choose eating good quality food to be the best description of luxury to them, by gender, age and social grade"Looking at all these things, can you tell me, for you, which of the following things would be the best description of ‘luxury’ in your life?…Driving a nice car/Eating good quality food/Enjoying the best home entertainment technology/Wearing nice clothes/Going on nice holidays/Having nice home furnishings/Living in a nice area/Having nice toiletries and pampering myself/having time on my own/Having time just to relax"

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

All

Me

n

Wo

me

n

16

-24

25

-34

35

-44

45

-54

55

-64

65

+

AB

C1

C2

DE

Source: nVision ResearchBase: 1000 adults aged 16+, UK, 2004

Luxury20311: Luxury

Luxury: Materialism, enrichment or time?


Enjoying the best home entertainment technology

Having beautiful home furnishings


Having nice toiletries and pampering myself

Materialism

Eating good quality foodGoing on expensive holidaysLiving in a nice area

Enrichment

Having time on my ownHaving time just to relax

Time

The ‘old’ version of luxury: exclusive, expensive, best quality, self-indulgent, conspicuous, tangible, ‘overt materialism’

Emphasis on ‘quality of life’, experiential, personal, authentic, ‘subtle/covert materialism’

The value of relaxing and de-stressing from the pace of everyday life, focus on self-development and quality of life, intangible, non-material

Source: nVision2005

Luxury19668: Luxury

Perception of luxury in Europe: Materialism, enrichment or time?“Looking at all these things, can you tell me, for you, which of the following things would be the best description of ‘luxury’ in your life?…and which of the others is the second best description of luxury in your life, if any?”

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%Ita

ly

Ge

rma

ny

Sp

ain

GB

Fra

nce

Sw

ed

en

Hu

ng

ary

Po

lan

d

Cze

ch R

ep

All

Materialism Enrichment Time


Luxury19669: Luxury

Perception of luxury in Europe: Materialism, enrichment or time?

Age-profiles“Looking at all these things, can you tell me, for you, which of the following things would be the best description of ‘luxury’ in your life?...and which of the others is the second best description of luxury in your life, if any?”

0%

10%

20%

30%

40%

50%

60%

Materialism Enrichment Time

15-29 30-44 45-59 60+


Luxury19664: Luxury

Perception of luxury in Europe: East vs. West% of people who chose the following as the thing that is the best or second best description of luxury in their life“Looking at all these things, can you tell me, for you, which of the following things would be the best description of ‘luxury’ in your life?… and which of the others is the second best description, if any?

0% 10% 20% 30% 40%

Going on expensive holidays



Having beautiful home furnishings




Enjoying the best home entertainment technology


Having nice toiletries and pampering yourself

WesternEurope*

Eastern Europe*


Luxury

The changing nature of luxury

• “The massification of luxury”

• The concept of luxury is increasingly fragmented and individual

• The definition of luxury is now more experiential rather than being rooted in materialism

• Consumers increasingly pick and choose luxury items

• As luxury changes the role of price becomes less clear and time and experience become more important factors

• The challenge is to connect emotionally with consumers and emphasise the experience that they will have

Luxury

Managing the ‘massification of luxury’

tomorrows luxuries barry clark director, future foundation

Documents

luxury perception of

life of luxury

best description of

luxury goods

luxury aspirations

luxury importance

luxury isnt

worst description of