brand perceptions: luxury watch & jewelry. · analysis , wsj. insights ... audemars piguet...
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Brand Perceptions: Luxury Watch & Jewelry.
Renown for its world-class research and analysis, WSJ. Insights provides benchmark primary research studies, from longitudinal Corporate and Brand Perceptions studies to Wealth Management and Small Business Reports. WSJ. Insights provides its marketing partners with the essential knowledge they need to make smart decisions.
WSJ. Insights
Key Trends in Luxury Market.
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Global Luxury Market Moderate Growth & Stable YOY.
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-4
-2
0
2
4
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10
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14
2008 9 10 11 12 13 14 15 16 17 2018 0
50
100
150
200
250
300
350
400
450
Global Luxury Sales (US $ billions) and Growth 2008-2018
US $ Billion YOY % Growth
Fine Watch & Jewelry Lead Global Growth Opportunity.
Source: Euromonitor International
Category 2014
US $ Million YOY Growth vs.
2013
2018 US $ Million Projections
CAGR 2013-2018
Designer Apparel 136,785 2.9% 154,299 3.0%
Fine Jewelry/Watch 65,042 4.5% 78,693 4.8%
Fine Wines/Spirits 30,600 3.7% 35,931 4.0%
Super Premium Beauty 28,959 3.4% 33,377 3.6%
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U.S. Millionaire Households: 11.53MM
• 11x more millionaires than China [estimated at 1MM]
U.S. luxury market €62.5 Bn in 2013, 3.5x larger than next largest market, Japan
U.S. Continues as Largest Luxury Market.
Source: Federal Reserve Bulletin, Hurun Research Institute , Bain/Altagamma 2013 Luxury Worldwide Market Study
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More than nine in 10 (94%) are optimistic about their financial future
89% believe they are in a better position to withstand market volatility than others
85% say their wealth is secure for the long term
U. S. Affluents Today: Optimistic & Confident.
6 Source: WSJ Insights 2014 Mutual Funds & ETF Study Base: Total Respondents 1,048
The Rise of the Millennial Consumer. Generation shift is rapidly approaching; Prime earning years age 35+
Source: U.S. Census, Population division Projections of the population by selected age groups for the United States 2015-2060
80,000
90,000
100,000
110,000
2015 2020 2025 2030 2035 2040 2045 2050 2055 2060
Age 25-44 Age 45-64
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Proprietary Study: Methodology & Respondent Demographics.
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Objective: To discover current consumer behaviors, attitudes and brand preferences for fine jewelry and watches among key prospects
WSJ. Insights fielded a study to the WSJ Opinion Leaders, an online insight community from October – November 2014
2,279 respondents completed the survey
Queried respondents about:
• Brand familiarity and perception of 46 luxury jewelry/watch brands • Attributes of luxury brands • Ownership and purchase channels • Important characteristics of a fine watch • Purchase triggers
Note: Fine Jewelry defined as 18K+ gold and/or platinum with or without precious stones, a fine watch is defined as a watch that costs $500 or more
WSJ. Insights Brand Perceptions Proprietary Study. Methodology
Male/Female: 84/16
Average Age: 57
Median HHI: $268,289
Respondent Demographics.
Under $100K 20%
$100-$200K 35%
$200- 300K 20%
$300K+ 25%
Household Income
10
Measured Brands.
Audemars Piguet David Yurman Hamilton Monblanc Rolex
Baume & Mercier DeBeers Harry Winston Movado Seiko
Breguet DeGrisogono Hermes Omega Shinola
Breitling Dior Hublot Panerai Tag Heuer
Burberry Ebel IWC Patek Philippe Tiffany & Co.
Bulgari Fendi Jaeger-LeCoultre Piaget Tourneau
Cartier Girard Perregaux Longines Prada Vacheron Constantin
Chanel Graff Louis Vuitton Ralph Lauren Van Cleef & Arpels
Citizen H. Stern Mikimoto Raymond Weil Zenith
Chopard
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Perception of quality and value generally strong, but many brands need deeper engagement and communication to grow familiarity.
Luxury consumers expect exclusivity, attention and personalization.
Brand name is the strongest signifier of ‘luxury’ and remains the key driver for consideration.
Topline.
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Watch & Jewelry Purchases.
14
Watch Collectors & Enthusiasts.
Average spent on most expensive fine watch
Average number of watches owned [30% own 3+ watches]
Purchased fine watch in past 3 years [21% as gift for someone else]
$5,392
43%
2.5
78% agree “I don’t feel fully dressed unless I’m wearing a watch”
Their Fine Watch is Essential.
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Brand is Critical When Selecting a Fine Watch.
27%
59%
65%
70%
74%
77%
79%
87%
Multiple Complications
Hand Construction
Quality Jewels
Precious Metals
Unique Look
Swiss Movement
Traditional Styling
Brand Name
16
% Consider Important In Fine Watch Purchase (Very/Somewhat Important)
Complications Watch Aficionados Desire. Practicality wins the day
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10%
16%
16%
22%
45%
47%
52%
83%
87%
93%
Sonneries
Tachometer
Depth Meter
Moon Phases
Multiple Time Zones
Chronograph
Perpetual Calendar
Auto Wind
Day/Date Display
Waterproof
% Most Interesting in Fine Watch Purchase
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‘Smart Watches’/Wearables Not a Factor–Yet.
When you are in the market to buy where do your usually shop, check all that apply.
63%
25%
12%
51%
27%
22%
39%
35%
26%
Not that Interested/Not At All Interested
Somewhat Interested
Very Interested/Already Own
Interested in new ‘Smart’ Watches
Age 18-34 Age 35-54 Age 55+
Over half of [jewelry/watch] brands now provide a path to purchase online through e-commerce or e-concierge services or both.
L2 Digital IQ Index; 2014 Watches & Jewelry
Investing in a Fine Watch via an Online Only Retailer. Now close to one quarter, significantly more for men than women
17%
23%
Female Male
Usually Shop at Online Only Retailer for Fine Watch
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” “
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Fine Jewelry Connoisseurs.
Average spent on most expensive piece of fine jewelry
Purchased a piece of fine jewelry past 3 years [53% purchased a gift for someone else]
$21,466 68%
Purchase Fine Watch & Jewelry Across a Number of Retail Destinations.
6%
15%
20%
22%
22%
41%
42%
49%
Auction House
Jewelry Retail Chain
Duty Free Shop
Designer Boutique
Online Only Retailer
Specialy Department Store
Independent Retailer
Specialty Watch Retailer
Fine Watch
7%
12%
19%
22%
24%
40%
43%
53%
Auction House
Duty Free
Online Only Retailer
Jewelry Retail Chain
Designer Boutique
Specialty Department Store
Specialty Jewelry Retailer
Independent Retailer
Fine Jewelry
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Purchase Triggers Are Year ‘Round for Both Self & Gifts.
FOR SELF % purchased fine
watch/fine jewelry
Souvenir While Traveling 18%
Birthday 10%
Wedding 7%
Promotion at Work 7%
Winter Holidays 7%
Wedding Anniversary 6%
Graduation 3%
Mother’s Day/ Father’s Day
1%
Birth of Child 1%
GIFT % purchased fine
watch/fine jewelry
Birthday 59%
Wedding Anniversary 57%
Winter Holidays 50%
Valentine’s Day 32%
Souvenir While Traveling 27%
Graduation 25%
Mother’s Day/ Father’s Day
25%
Birth of Child 14%
22 Q: For which occasion(s) have you ever made a fine watch or fine jewelry purchase?
What is Luxury?
Luxury is Exclusivity. Important in determining a “luxury/designer” brand
Q: How important is each of the following characteristics in determining if a brand is a Luxury/Designer brand? Q: do you have a relationship with a salesperson from whom you primarily buy fine jewelry/fine watches?
Agree exclusivity is important
Agree ability to customize is important
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61%
56%
Luxury is a Relationship.
Q: How important is each of the following characteristics in determining if a brand is a Luxury/Designer brand? Q: do you have a relationship with a salesperson from whom you primarily buy fine jewelry/fine watches?
Have a relationship with a salesperson from whom primarily buy fine jewelry/watches. Among those who do: • Most expensive fine watch: $8,431 • Most expensive piece of jewelry $25,487
Attentive Salespeople important in determining luxury/designer brands [53% among women]
25
26%
43%
Luxury is Product, Service & Brand. ‘Celebrity’ endorsements are not important
How important is each of the following characteristics in determining if a brand is a Luxury/Designer brand? Q: do you have a relationship with a salesperson from whom you primarily buy fine jewelry/fine watches?
8%
13%
9%
17%
25%
43%
47%
71%
95%
6%
35%
35%
40%
39%
36%
38%
39%
23%
4%
Celebrity Spokesperson
High Price
Country of Origin
Luxuriousness of retail
Ability to Customize
Exclusivity
Attentive salespeople
Brand Heritage
Service
High Quality Product
0% 20% 40% 60% 80% 100% 120%
Importance in Determining a Luxury Brand
Very Important Somewhat Important
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Brand Landscape.
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Familiarity Varies widely by Brand. Established fashion brands and strong retail presence appear to raise familiarity
0%
25%
50%
75%
100%
Role
x Se
iko
Tiffa
ny &
Co.
Ra
lph
Laur
en
Om
ega
Cart
ier
Tag
Heue
r Ci
tizen
M
ontb
lanc
Bu
rber
ry
Loui
s Vu
itton
Ch
anel
Br
eitli
ng
Mov
ado
Long
ines
Pa
tek
Philip
pe
Dior
He
rmes
De
Beer
s Pr
ada
Bulg
ari
Ham
ilton
Pi
aget
Ha
rry
Win
ston
Ra
ymon
d W
eil
Tour
neau
Ba
ume
& M
ercie
r M
ikim
oto
Davi
d Yu
rman
Va
n Cl
eef &
Arp
els
Fend
i Ze
nith
Au
dem
ars
Pigu
et
Breg
uet
Vach
eron
Con
stan
tin
H.St
ern
Jaeg
er-L
eCou
ltre
Chop
ard
Hubl
ot
IWC
Ebel
Gi
rard
Per
rega
ux
Shin
ola
Pane
rai
Graf
f De
Gris
ogon
o
Very Familiar Somewhat Familiar
Average: 42%
Strong Perception of Value for Money/Quality. Across the Board
0%
50%
100%
Excellent Good
29
Average: 79%
Advertising.
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High Degree of Trust & Engagement with WSJ.
Agree “Only the best fine jewelry & watch brands Advertise in The Wall Street Journal
Recall seeing jewelry/watch advertising in The Wall Street Journal
Were inspired to shop for fine watch or piece of fine jewelry directly as a result of an ad/article in The Wall Street Journal
69%
39% 8 in 10
Brand Perceptions: Luxury Watch & Jewelry.