Japan: luxury goods back in style
According to a recent study carried out by management consultant McKinsey, Japan’s $20 billion appears to be recovering.
Its Japan Luxury Consumer Survey showed that consumers in their twenties are buying more high-end brands. Although their spending on luxury isn't as high as other age groups, the study showed that this age group is more willing to pay full-price and is more likely to view owning luxury goods as "something special".
Although men are a minority in the luxury shopping category in Japan, they have remained loyal to their favourite designer brands.
The study asked 20 Japan-based luxury brands about their sales outlook for 2012. Every respondent said 2012 would be better than 2011.
Luxury executives reported that for their best customers, in-store experience and overall customer relationship are almost as important as product performance. And around 90% said online marketing and promotion was "somewhat" or "very" important.
Customisation has also proved popular, with customers increasingly looking for exclusivity. Louis Vuitton recently launched a service in Japan that allows customers to select their own leather and help to design the unique luxury items they buy. According to the study, this type of service has been extremely popular for very high-end products, although it adds cost for the manufacturer.
