The new luxury map in Asia

Conscious consumption associated with a perceived investment value. In 2024, premium fashion is still seen as a potential safe haven for Far East consumers. This is especially true in Southeast Asia, with Singapore and Malaysia leading the way. Here, the average individual spending intention is set to be the highest in the region, estimated at 16,100 dollars (approximately 14,945 euros at yesterday’s exchange rate), representing a 388% increase over the last four years.

However, the latest Bluebell survey indicates that consumer sentiment in Asia remains generally high. In China, the average spending on clothing, accessories, jewelry, and watches is projected to be around 13,700 dollars (approximately 12,752 euros), while in Hong Kong, spending could reach up to 12,700 dollars (around 11,821 euros). South Korea and Japan, on the other hand, have seen spending intentions decline over the past four years by 69% and 34% respectively, with current estimates at 8,300 dollars (7,753 euros) for South Korea and 7,400 dollars (6,912 euros) for Japan. Taiwan’s average spending continues to grow significantly (+14%), with its residents planning to spend about 7,200 dollars (6,725 euros) on fashion purchases this year.

When examining market trends across the region, in addition to the considerable changes in spending intentions in various countries over the last four years, it is interesting to note that most regions show a preference for watches and jewelry. In contrast, Japan and South Korea, where spending is on the decline, tend to focus more on clothing. «Following our latest consumer survey, we have observed three key trends among Asian customers. The first is conscious consumption associated with a perceived investment value», Ashley Micklewright, president and ceo of Bluebell, explained to MFF. He emphasized that brand reputation and product quality remain the most critical factors when purchasing luxury items.

«At the same time, there is a growing trend toward conscious consumption, which indicates a shift toward buying fewer items but focusing on those with perceived resale value», the Manager notes. «The second trend is the constant consumer expectation for high-quality service».

Bluebell’s survey results underscore the importance of adapting service levels to meet the diverse needs and preferences of consumers in the region, both in-store and through other channels. Many consumers are willing to share personal information if they believe they are receiving excellent service from sales staff and are rewarded for it.

«The third trend concerns pricing», Micklewright warns. «To maintain brand image, it is necessary to ensure price consistency across different purchasing channels. Asian consumers are digitally savvy and frequently compare prices across platforms. Any inconsistency can deter them and harm a brand’s reputation».

Looking ahead, a trend to watch in the Far East is the rise of premium Asian brands. In a context where consumers increasingly value brand authenticity, more than 60% of consumers across all markets say that lesser-known brands that offer great style and quality are becoming synonymous with luxury. Though these niche brands lack a well-established reputation, they are appreciated for their uniqueness, especially in Southeast Asia and China. Hong Kong stands out for its increase in purchases across all categories compared to last year, indicating a growing interest in niche brands.

«Asian consumers are increasingly recognizing the quality and accessibility of premium Asian brands, showing a growing preference for high-quality local products», Micklewright concludes, mentioning Shang Xia, Bosideng, Gentle Monster, Icicle, Tamburins, and Liuli as examples. Regarding sustainability, Bluebell’s analysis finds that while a brand’s environmental commitment is not always a top priority for consumers, there is a general expectation that luxury brands adhere to ethical standards and commit to responsible practices throughout their supply chain. The purchase of second-hand luxury goods is also generally considered acceptable, but mostly for «lightly used» or «rare» items. Southeast Asia has the highest acceptance rate for this at 72%, while other markets are below 60%. (All rights reserved)