Luxury Consumers Similar Around the World

According to a new report from the Consumer Research Center of The Conference Board, luxury consumers across the U.S. and much of Western Europe are remarkably similar in many ways, especially in the emphasis they place on experiences, rather than something that one has or owns.

“Consumers have remarkably similar perspectives on how to define luxury,” says Lynn Franco, director of The Conference Board Consumer Research Center. “The largest share of luxury consumers (44 percent) and the largest share of consumers in each country most strongly agree that ‘luxury is having enough time to do whatever you want and being able to afford it.’ So, for luxury consumers worldwide, time is the ultimate luxury.”

The report is based on an online survey of 1,800 affluent consumers in the U.S., China, France, Germany, Italy, Japan and the UK. Respondents were in the top 25 percent income brackets.

Some 35 percent of respondents named time the most highly valued luxury, followed by life experiences (25 percent), followed by having comfort, beauty and quality (18 percent).

About one-fourth or fewer luxury consumers strongly agree that:

• Luxury is less about the material things one has or one owns and more out how one experiences life, a sense of happiness and satisfaction (26 percent strongly agree).
• Luxury is being comfortably well off and not having to worry about tomorrow (25 percent strongly agree).
• Luxury is the finer things in life that surround you with extreme comfort, beauty and quality (25 percent strongly agree).
• Luxury is the “best of the best” in all aspects of your life (18 percent strongly agree).

Luxury consumers’ favorite pursuits worldwide include high-tech activities and travel. High-tech activities, such as using a personal computer, the Internet, or a cell phone, are enjoyed by nearly three-fourths of all luxury consumers. Travel comes next, with 69 percent of luxury consumers worldwide reporting an interest.

The most popular status luxuries owned across the countries surveyed were collections of antiques and rare items (30 percent); original art, paintings and sculpture (31 percent) and vacation/second home (27 percent). American luxury consumers led in ownership of antiques or collections of rare items, while the Italian luxury consumers were more likely to own original art. The Italian luxury consumers also enjoy the highest share of vacation or second homes.

The next most widely owned status luxuries included collections of fine jewelry and watches (24 percent), fine musical instruments (22 percent), and collections of fine wine and spirits. Chinese luxury consumers led the other countries in ownership of fine jewelry and watches and in fine wine and spirits ownership, while French consumers have the highest incidence of the fine musical instrument ownership.

Compared with luxury consumers living in other countries, Japanese consumers trail in their participation in the various lifestyle activities included in the survey, such as photography (enjoyed by only 30 percent in Japan, compared to the international average of 59 percent); avid book reading (35 percent versus a 58 percent average of all countries); and listening to music (37 percent versus 56 percent).

Other key differences across cultures include:

• American consumers are noted for their interest in cable/satellite television, pets, physical fitness and health foods, electronics and investing in stocks and bonds.
• British consumers are distinctive in their strong interest in Internet and cell phone usage, videos/DVDs, wine, gourmet goods, health foods, avid book reading and cable/satellite TV.
• German consumers are more involved in reading books, attending cultural events, gardening, and home furnishings. Italian consumers share many of the same interests as those in Germany, but they are more active in travel. French consumers are similar to those in Germany and Italy too, but with an even greater interest in gourmet food and wine.
• China has the greatest interest in photography, electronics and home furnishings.

“For the largest share of luxury consumers, luxury is not specifically related to how much something costs or what brand it might be,” says Pamela Danziger, president of Unity Marketing and author of the report. “Luxury is highly personal and something the individual interprets and judges for him or herself. But, while luxury is highly personal and separated from price and brand, luxury is expected to be something with a quality that sets it far above the ordinary product.”