What Asia’s lifestyle and luxury consumers want in 2024

The Bluebell Group's "Asia Lifestyle Consumer Profile 2024" report, unveiled on March 11, offers a comprehensive analysis of the shifting landscape of lifestyle consumption across Asia's most dynamic consumer markets.

Drawing from a survey of 1,750 premium lifestyle aficionados across Mainland China, Japan, South Korea, Hong Kong, Taiwan, and the emerging markets of Southeast Asia, including Singapore and Malaysia, the report probes into the evolving notions of luxury amidst global disruptions and economic variability.

The focal point of this year's insights is the notion of value within the luxury sector. It investigates how Asian consumers weigh factors such as brand prestige, product quality, and investment potential when making purchases. Additionally, it examines attitudes towards uniform pricing and customer service.

The study unveils a strong sense of consumer optimism across Asia in the post-pandemic era.

In China, consumer optimism has consistently been buoyant over the past four years, with a remarkable 97% of participants expressing a positive outlook towards the future. Southeast Asia has witnessed a notable surge in optimism – with 93% feeling optimistic, marking a 17% increase since 2021. Japan has also experienced a considerable uplift in consumer sentiment since 2021.

Luxury value redefined

In Asia, the luxury paradigm is evolving towards a marked focus on craftsmanship, reputation, and resale value. The majority of consumers are now "prioritizing craftsmanship above brand or design."

More than 70% of survey participants across various markets equate luxury with quality, especially in China (94%) and Taiwan (93%). While brand reputation continues to be of paramount importance, there is a growing emphasis on resale value, with Southeast Asia at the forefront with 85%. This indicates a shift towards more thoughtful consumption and "a trend towards a deeper evaluation of acquiring fewer products," as detailed in the report.

The importance assigned to quality in China, Taiwan, Hong Kong, Southeast Asia, South Korea and Japan. Photo: Bluebell Group

Localization and premium Asian brands

There is a growing preference for domestic luxury, with China (85%) and Southeast Asia (83%) leading in terms of Asian premium brand demand, indicating a shift towards consumers recognizing the quality and accessibility of regional luxury.

They are trailed by Taiwan (68%), Hong Kong (65%) and South Korea (62%), while Japanese consumers show a comparatively weaker preference at only 51%. The intricacies of this dynamic become evident when dissecting regional responses.

This shift in consumer preferences towards homegrown premium options also indicates a growing cultural pride in the continent and that Asian brands are becoming viable competitors to their Western counterparts, especially when it comes to the premium sector. Homegrown labels can often be more agile and adaptive to their home markets, culturally, stylistically and economically.

Support for local brands in China, Southeast Asia, Taiwan, Hong Kong, South Korea and Japan. Photo: Bluebell Group

High expectations

Asian consumers anticipate that brands will provide unique benefits and exceptional service, with these expectations differing across various markets. However, what do they anticipate from brands in order to sustain customer loyalty?

Fortunately, many of these sophisticated Asian consumers are open to accepting increased prices, which have been prevalent in the luxury sector as detailed in numerous Jing Daily articles. Nonetheless, this general readiness to accept higher prices comes with certain conditions.

The exchange is predicated on an unwavering demand for unmatched quality and craftsmanship – standards that brands must consistently fulfill. A study reveals that a substantial majority in China and Southeast Asia (88% and 78%, respectively) show a strong tolerance for price increases. This is in sharp contrast to their counterparts in South Korea and Japan, where only 62% and 49%, respectively, share this sentiment.

The study further highlights the digital divide among consumers who are drawn to brands' official websites for authenticity and those who prefer multi-brand platforms for their variety and convenience, presenting a significant challenge for luxury brands.

Maintaining consistent pricing across various shopping channels is crucial, meeting the expectations of an increasingly tech-savvy consumer base.

A majority of consumers in China (59%), South Korea (61%), and Taiwan (54%) favor official brand websites and direct brand interaction, possibly seeking authenticity. On the other hand, in Japan, Hong Kong, and Southeast Asia, a considerable number of luxury shoppers are inclined towards the selection and adaptability provided by multi-brand platforms, emphasizing their preference for diversity, competitive prices, and convenience.

Preferred online shopping channel by market (China, Taiwan, Hong Kong, Southeast Asia, South Korea, Japan). Photo: Bluebell Group

The landscape of luxury consumption in Asia is undergoing a transformative shift, as discerning consumers pivot towards a paradigm that prizes quality and craftsmanship over mere brand prestige. This nuanced evolution in purchasing behavior is particularly pronounced among the markets of China and Taiwan, where luxury is synonymous with unparalleled quality, rather than the cachet of a label.

In an intriguing turn towards regional pride, there's a burgeoning inclination for domestic premium brands across China and Southeast Asia. This trend underscores a growing confidence in local offerings, celebrating their agility and cultural resonance.

Amidst escalating prices, Asian luxury consumers uphold a firm expectation: that the value proposition of quality and service must commensurately rise. This presents a delicate balancing act for brands, as they navigate the intricate dance of maintaining exemplary standards without alienating price-sensitive segments, notably within South Korea and Japan.

To remain at the vanguard of Asia's dynamic luxury market, brands must exhibit strategic acumen and foresight. With consumers' tastes becoming increasingly refined, any lapse in delivering an experience or quality that resonates could have far-reaching repercussions. It is imperative for brands to not only meet but anticipate the evolving desires of this sophisticated consumer base, ensuring loyalty through strategic engagement and impeccable delivery.