Japanese luxury goods consumers value brand more than product – report
10/04/2013
That is one of the findings of a McKinsey report on the world’s third largest luxury market, after China and the US. The majority of luxury brands have a big presence in the country: Burberry has more than 190 stores, Coach has 150, and Gucci and Salvatore Ferragamo each have 80. “Japanese consumers remain some of the most discerning, loyal and important luxury customers in the world,” said the report.
The consultancy focuses on four key findings: Japanese customers have become more discerning and are looking for products that will hold their value; the perception a customer has while interacting with a brand is becoming more important than the product; companies need to diversify their retail formats; and brands need to have an exceptional online presence and prioritise digital marketing strategies.
The report found while most luxury companies have a Japanese website, many do not offer the chance to buy product online or delivery times are slow. “Consumers are living online, and they want to be able to meet their favourite brands there,” it said.
An executive working for a luxury brand in the country commented: “We have noticed that a lot of customers are far more prepared and sales staff need a higher level of understanding of the products to keep up with the customers. Facebook sometimes has more information than a basic sales training course. In addition, pricing has become very transparent, meaning that the sales rep really has to be able to add value to the sale to make the sales wear well.”
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