insights into nielsen mainland traveler luxury syndicated study 2014
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Insights into Nielsen Mainland Traveler Luxury syndicated study 2014TRANSCRIPT
NIELSEN SYNDICATED SURVEY UNDERSTANDING CHINESE TRAVELERS BUYING
LUXURY OVERSEAS
First insights Luxury Division - Nielsen Hong Kong
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OBJECTIVES COVERED IN THE RESEARCH
Title in here
Last Luxury Purchase
Experience and Future Preference
Title in here
Luxury Shopping Habits and Awareness
Title in here
Luxury Purchase Abroad
Preparation
Luxury brand awareness and favorite brands
Perception of “Luxury”
Travel patterns
In-store service perception
Channels evaluation
Online Luxury Shopping
Future Planning
Source of information
Social Media Usage
NIELSEN helps you better
understand the Chinese
travelers’ luxury perception,
their purchase plan preparation
and key source of information,
observe their travel patterns
and analyze their latest luxury
shopping experience before
highlighting future perspectives
for Luxury brands overseas.
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Consumer Confidence Index
(Q2 2014)
89
95
101
104
108 109
104
100
108
105 104
108
110
105 106
108 108
110 110 111 111 111
75
85
95
105
115
Q1 0
9
Q2 0
9
Q3 0
9
Q4 0
9
Q1 1
0
Q2 1
0
Q3 1
0
Q4 1
0
Q1 1
1
Q2 1
1
Q3 1
1
Q4 1
1
Q1 1
2
Q2 1
2
Q3 1
2
Q4 1
2
Q1 1
3
Q2 1
3
Q3 1
3
Q4 1
3
Q1 1
4
Q2 1
4
GLOBAL AVERAGE CHINA
Source: Nielsen Consumer Confidence Survey
China Outbound Traveler (unit: Million person times)
20
29 31 34
41 46 47
57
67
83
94
100
20032004200520062007200820092010201120122013
(Ex)
2014
(Ex)
+
+
Source: China National Tourism Administration (CNTA), UNWTO
WITH CONTINUOUS HEALTHY LEVEL OF CONFIDENCE AND A GROWING
NUMBER OF TOURISTS, MAINLAND CHINESE TRAVELERS STILL REPRESENT A GREAT POTENTIAL IN 2014…
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2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014(Ex)
Total Visitor Arrivals Total Visitor Arrivals From Mainland China
40.7M +16.7%
Q1~Q2: 26.1M +15.5%
54.2M +11.7%
Q1~Q2: 33.9M +12.3%
Source: Hong Kong Tourism Board 2014
Number of visitors arrivals to Hong Kong
(Million)
Number of Mainland visitors/ Total visitors
(%)
71% 76%
83%
2012 2013 2014 (EX)
HONG KONG NUMBER OF VISITORS IS CONTINUOUSLY GROWING,
WITH MOSTLY TOURISTS FROM MAINLAND CHINA.
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Total spending from Mainland Tourist
(HKD Billion)
Value of retail sales by types of outlet
(HKD Billion)
147
178
2011 2012 2013 (Exp)
Source: 2013 total spending in HK, Census and stat dept
293
73
49
37
29
28
288
60
47
40
29
30
Total Retail Sales
Jewlery/Valuable Gifts
Consumer Durables
Clothing/Footwear
Department Stores
Supermarkets2013 Jan-Jul
2014 Jan-Jul
-1.5%
-17.5%
+7.7%
+5.9%
THEIR TOTAL SPENDING IN HONG KONG IS STILL INCREASING HOWEVER RETAIL SALES ARE IN DECLINE, TRADUCING A CHANGE IN SHOPPING BEHAVIOR : WHAT IMPACT FOR LUXURY BRANDS? WHERE DO THE CHINESE GO FOR LUXURY SHOPPING?
-3.8%
Source: Source: Aug 2014-Value of retail sales by type of retail outlet, Census and stat dept.
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INTRODUCING CHARACTERS
Title in here
Last Luxury Purchase
Experience and Future Preference
Title in here
Luxury Shopping Habits and Awareness
Title in here
Luxury Purchase Abroad
Preparation
Luxury brand awareness and favorite brands
Perception of “Luxury”
Travel patterns
In-store service perception
Channels evaluation
Online Luxury Shopping
Future Planning
Source of information
Social Media Usage
Mr. P – the Past
Mr. F – the Future
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THEY PLAN MORE TRIPS FOR THE COMING YEAR
Mr. P: Has travelled 3.07 times on average in the past 12 months
Mr. F:
is planning 3.28 trips on average for the next 12 months
Source: 2014 Nielsen Luxury Syndicated survey
Mr. P Last Trip Activities : Shopping (97%)
Sightseeing/visiting (84%) and Entertainment (72%)
For Mr. F : Shopping is still his
top activity +
more space for sightseeing (87%)
+ outdoor activities (31%
+10pts)
particularly 25-29 years old respondents or from
Beijing.
Mr. P is playing the past and Mr. F the future
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8 Source: 2014 Nielsen Luxury Syndicated survey
South Korea
BEYOND APAC, THERE IS AN APPETITE FOR MORE DISTANT DESTINATIONS, WITH FRANCE BECOMING THE 3RD PLACE THEY PLAN TO VISIT IN THE COMING YEAR
France
Japan
Where did they travel ? Where are they planning to go ?
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9 Source: 2014 Nielsen Luxury Syndicated survey
Hong Kong
Past 12 months visited (%)
56
32
19
22
15
20
20
South Korea
BEYOND APAC, THERE IS AN APPETITE FOR MORE DISTANT DESTINATIONS, WITH FRANCE BECOMING THE 3RD PLACE THEY PLAN TO VISIT IN THE COMING YEAR
France
Japan
Australia
Singapore
USA
Significant change
Visited and planned destinations Base: N= 1005 % Resp.
Future 12 months planning (%)
37
29
28
27
25
25
25
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IN THEIR MIND, LUXURY IS STILL ASSOCIATED TO QUALITY, AND ALSO FINENESS AND HERITAGE
Product with Fine Designs
Source: 2014 Nielsen Luxury Syndicated survey
What is Mr. P’s perception of Luxury ?
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IN THEIR MIND, LUXURY IS STILL ASSOCIATED TO QUALITY, AND ALSO FINENESS AND HERITAGE
Luxury Perception Base: Total N= 1005 % Respondents Higher Quality
Products
Product with Fine Designs
Long Established
Heritage
Source: 2014 Nielsen Luxury Syndicated survey
…A DEFINITION WHICH IS MOVING ACCORDING TO AGE, GENDER, SOCIAL LEVEL, REGIONS.
Particularly true among men travelers and 35-44 years old.
Mr. P’s Luxury
Perception
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THEY KNOW WHAT THEY WANT : ALMOST 4/10 CHINESE TRAVELERS KNEW EXACTLY WHICH ITEMS THEY WOULD BUY
Source: 2014 Nielsen Luxury Syndicated survey
Is Mr. P’s preparing his purchase overseas?
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THEY KNOW WHAT THEY WANT : ALMOST 4/10 CHINESE TRAVELERS KNEW EXACTLY WHICH ITEMS THEY WOULD BUY
38%
46%
5%
10% No specificPlan
PlannedBrands only
PlannedProductsonly
Plannedexactbrands andproducts
90%
Source: 2014 Nielsen Luxury Syndicated survey
AND … The more affluent group is more likely to buy the exact product they planned
Tier 1 cities respondents have more prepare their Purchase plan than Tier 2 cities
Travelers aged 30-34, are more likely to buy the exact product they planned
Planning Luxury Purchase Base: Total N= 1005 % Respondents
Mr. P’s purchase
Plan
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DIGITAL : MAIN SOURCE OF INFORMATION AT HOME
Source: 2014 Nielsen Luxury Syndicated survey
BUT …WHAT SOURCE DO THEY TRUST THE MOST ?
At home, what is influencing Mr. P’s purchase decision ?
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DIGITAL : MAIN SOURCE OF INFORMATION AT HOME
Source: 2014 Nielsen Luxury Syndicated survey
BUT …WHAT SOURCE DO THEY TRUST THE MOST ?
Purchase Plan Methods Base: Total N= 900 planners % Respondents
Advice from their friends, colleagues and families are considered as the most helpful, reliable and easiest
source of information to prepare their purchase.
60% have visited Social Media Platforms : Luxury
Brands' Social Media Pages or Users'
Recommendation on Independent Online
Platforms
50% have consulted Brands Official Websites
in the shopping list preparation stage
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BUYING LUXURY FOR THEMSELVES, AND LOOKING FOR QUALITY
They are very keen in trying different brands, particularly the 25-34 years old, and the more affluent travelers.
Accessories, High-end cosmetics & skin care are the most popular luxury categories they bought overseas
High intention to buy luxury for themselves, and this is particularly true amongst women
When it comes to their motivations to buy Luxury goods, Quality is one of their key drivers
Source: 2014 Nielsen Luxury Syndicated survey
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ACCESSORIES, A BIT MORE FASHION, LESS COSMETICS, JEWELRY OR WINE, IS WHAT WE WILL SEE IN THE NEXT LUXURY BASKETS
Source: 2014 Nielsen Luxury Syndicated survey
When shopping overseas for luxury, what Mr. P and Mr. F are buying ?
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71%
64%
64%
58%
36%
71%
62%
70%
63%
52%
Luxury Bags/ Shoes/ Accessories
Luxury Fashion clothes
High-end cosmetics and Skin Care
High end Jewelry/Watches
Fine wines, liquor & Spirits
Future 12 months Past 12 months
ACCESSORIES, A BIT MORE FASHION, LESS COSMETICS, JEWELRY OR WINE, IS WHAT WE WILL SEE IN THE NEXT LUXURY BASKETS
Source: 2014 Nielsen Luxury Syndicated survey
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Only top 14 most visited latest purchase destination are shown
THE FURTHER THEY HAVE BEEN THE MORE THEY HAVE SPENT
Latest destination and amount spent (RMB) Base: N= 1005 (Median)
3,000
4,000
4,500
4,900
5,000
5,000
6,000
6,000
6,800
7,784
8,800
9,000
10,000
14,000
TH
DE
AU
KR
HK
SG
JP
TW
MO
UK
US
FR
IT
CH
Source: 2014 Nielsen Luxury Syndicated survey
Mr. P’s average
spending (last item)
per destination
Top Category latest item bought per destination.
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OVER THE LAST YEAR, HONG KONG HAS BEEN THE TOP 1 DESTINATION
56%
Hong Kong as Travel Destination in Past 12 Months
TOP 1
Hong Kong as Luxury Destination in Past 12 Months
Source: 2014 Nielsen Luxury Syndicated survey
Luxury Bags/ Shoes/
Accessories
High-end Cosmetics and
Skincare
Top 2 Category bought in Hong Kong
N=1005 - % Resp.
Is the median amount spent on the last
purchased item in Hong Kong
RMB 5K
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FOR THE NEXT LUXURY SHOPPING TRIP, EUROPEAN COUNTRIES ARE CLIMBING IN THE PURCHASE DESTINATION RANKING
Hong Kong
France Watches & Jewelry
Source: 2014 Nielsen Luxury Syndicated survey
Past Future
Which destination for Which luxury category ?
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FOR THE NEXT LUXURY SHOPPING TRIP, EUROPEAN COUNTRIES ARE CLIMBING IN THE PURCHASE DESTINATION RANKING
Hong Kong
South Korea Accessories
Hong Kong
France Watches & Jewelry
Hong Kong
South Korea Cosmetics &
Skincare
Hong Kong
Singapore Fine Liquors and wine
Last Purchase Destination (1 item) Vs. Future Purchase Destination (MA) Base: Total N= 1005 TOP 2 Countries (% Resp)
Source: 2014 Nielsen Luxury Syndicated survey
South Korea
Hong Kong
Fashion
Past Future Past Future
Past Future
Past Future Past Future
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56% 41%
3%
Spend less
Spend the same
Spend more
ALMOST 6/10 CHINESE TRAVELERS WILL BE READY TO SPEND MORE ON LUXURY IN THE COMING YEAR
Source: 2014 Nielsen Luxury Syndicated survey
Spending projections N12M Base: N= 1005 % Resp.
As they plan to increase their shopping budget and want to take advantage of the price differential overseas
Particularly true among West Tiers 2 & 3 Residents (64%)
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LOCAL MARKET CHANNELS REMAIN THEIR FAVORITE PLACE TO BUY LUXURY ITEMS OVERSEAS, SPECIFICALLY BRANDS STORES
26%
24%
22%
15%
6%
2%
2%
2%
Brand Stores
Duty Free AirportsStores
Duty Free DowntownStores
Department Stores
Specialized multi-brand stores
Online
Outlet
Inflight Duty free
26%
24%
19%
14%
6%
5%
4%
1%
Brand Stores
Duty Free DowntownStores
Duty Free AirportsStores
Department Stores
Specialized multi-brand stores
Outlet
Online
Inflight Duty free
CHANNEL OF LATEST LUXURY PURCHASE PREFERRED CHANNEL FOR LUXURY
PURCHASE
Base: Total N= 1005 % Respondents
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FUTURE CHANNELS
FOR THEIR NEXT LUXURY SHOPPING, BRAND STORES ABROAD AND DUTY FREE STORES AT THE AIRPORT WILL STILL BE THE MOST VISITED
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Online Luxury Purchase Experience
45%
55%
HIGH LUXURY E-COMMERCE AWARENESS AND 45% OF RESPONDENTS WHO ALREADY BOUGHT LUXURY ONLINE
Source: 2014 Nielsen Luxury Syndicated survey
N= 1005
Yes
Yes
Yes
No
No
No
Is Mr. P shopping online for luxury ?
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Online Luxury Purchase Experience
Luxury Websites Awareness
45%
55%
48%
52%
Online Luxury Shopping Acceptance
HIGH LUXURY E-COMMERCE AWARENESS AND 45% OF RESPONDENTS WHO ALREADY BOUGHT LUXURY ONLINE
77%
23% Fast shopping is a key
driver to online luxury
purchase
Risk of Counterfeits
is the key barrier
particularly highlighted by less affluent
respondents
Source: 2014 Nielsen Luxury Syndicated survey
Online Section % Resp.
N= 1005
N= 1005
N= 550
Yes
Yes
Yes
No
No
No
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MORE THAN 6/10 OF RESPONDENTS ARE PLANNING TO BUY LUXURY ONLINE IN THE NEXT 12 MONTHS
Source: 2014 Nielsen Luxury Syndicated survey
So, should we consider Online for Luxury ?
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Planning to Buy Luxury Products Online
in Next 12 Months?
MORE THAN 6/10 OF RESPONDENTS ARE PLANNING TO BUY LUXURY ONLINE IN THE NEXT 12 MONTHS
90%
10%
Yes
No
Have made/ will consider luxury purchase online
Do not consider luxury shopping online
71%
29%
Source: 2014 Nielsen Luxury Syndicated survey
N=1005 % Resp.
N=717 % Resp.
64% of all respondents
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MAJORITY OF RESPONDENTS WILL NOT CHANGE THEIR LUXURY SHOPPING HABITS
Source: 2014 Nielsen Luxury Syndicated survey
How is the Anti-corruption law impacting their luxury shopping ?
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MAJORITY OF RESPONDENTS WILL NOT CHANGE THEIR LUXURY SHOPPING HABITS
Source: 2014 Nielsen Luxury Syndicated survey
N=1005 % Resp.
Yes 84%
No 16%
Law Awareness
For more than 6/10 of them, it does not change their luxury shopping
habits!
…an answer which is fluctuating according to the different profiles (age, gender, social level, regions)
Particularly true among more affluent respondents.
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TO GO FURTHER WITH THE REPORT….
More details on brands, focus on each luxury category
Insights per demographic splits, regions
Further information on purchase destinations per category
Use of Digital : list of key websites and social media activities, luxury e-commerce opportunities
Understanding past and future Travel patterns
Evaluation of Luxury channels and service expectations overseas
Understanding Luxury shopping Key drivers
AGENCY CONTACTS: CHRISTOPHE GUILLOT
ASSOCIATE DIRECTOR, CONSUMER INSIGHTS [email protected]
(852) 2880 4628
MARIE DUPRE
MANAGER, CONSUMER INSIGHTS [email protected]
(852) 2856 4579
Thank You!