Luxury Trend Report | 1
2012 Four Seasons Luxury Trend Report
THE LUXURY CONSUMER IN THE NEW DIGITAL WORLD: THEN & NOW
| January 20122
strong performance in China and Latin America, are driving growth in the sector. All combined, the global luxury market is expected to grow by 10 percent in 2013, according to consulting firm Bain & Company.
The luxury category encompasses a wide reach of products and services including apparel, furniture, restaurants, spirits and liqueurs, watches and jewellery, and more. In the U.S., the luxury market has expanded tremendously over the last several years, from $1.2 trillion in 2009 to $1.6 trillion in 2011, according to the 2011 Ipsos Mendel- sohn Affluent Survey Program4. While the U.S. will continue to be the single most important market for luxury in the short term - due to its concentration of wealth and the propensity of Americans to spend - China is poised to ultimately be the largest market for luxury products and services in the near future. According to consulting firm McKinsey's Understanding China's Growing Love of Luxury report, China is on track to reach $27 billion, accounting for more than 20 percent of the global luxury market.6
LUXURY HOTELS BOUNCE BACK WORLDWIDE
According to Smith Travel Research (STR)5, 2010 saw an unprec- edented rebound in the global luxury hotel segment and since then, nearly every global region has seen significant growth; this rebound has continued in 2011. In the U.S. alone, the travel category totalled $137.3 billion in 20114. Most regions saw substantial increases in a key industry metric: revenue per available room.
The global luxury landscape and the luxury customer have evolved dramatically over the last tumultuous and transformative three years. The advent of unprecedented new technological innovations, coupled with the increased skepticism left over from the global financial crisis, mean that today's consumers are demanding honest, accurate, timely and engaging information. They are looking for intrinsic value and a deeper relationship with the brands with whom they choose to support and interact. According to The Affluence Collaborative1, a research powerhouse that dives deep into the habits of high-income consumers, the affluent2 seek out companies and brands that can simplify and improve their lives. In the travel sector, this translates into increased expectations around personalization cut- ting across all touch points - including digital media platforms - as luxury travellers research, purchase, engage in and reflect upon their travel experiences.
The Luxury Traveller Technology Survey3, commissioned by Four Seasons, coupled with leading luxury market research and brand insight, sets out to uncover how consumers want technology to blend seamlessly into their experience, and how those preferences have changed in recent years.
TODAY'S GLOBAL LUXURY MARKET
The world is truly global, and the luxury sector reflects this as brands cross geographic...