The luxury landscape in Asia has seen a significant transformation in recent years, with renowned luxury Maisons venturing into the food and beverage space as they look to entice consumers who are more “experience-driven”, said GlobalData, a leading data and analytics company.
The trend is now expanding into more Asian countries, given the region’s rising disposable incomes, increasing urbanisation, and a penchant for luxury brands among consumers. The key consumer base for this trend includes young shoppers who look for opportunities to interact with brands on a more personal level. For instance, luxury house Louis Vuitton recently opened a chocolate boutique in Singapore, its first outside France. LVMH’s perfume brand, Acqua Di Parma, unveiled its Yellow Café in Seoul, creating instances of unique discovery and delight for consumers.
“Asian consumers are becoming more “experience-driven”, and therefore brands need to also operate on the experiential level. LVMH is tapping into this consumer desire to escape predictable and mundane brand engagements in favour of more intimate experiences, with 27 percent of Asian millennials affirming that they find novel/unique to be an essential feature when making purchase decisions," said Parthasaradhi Reddy, Consumer Lead Analyst at GlobalData.
“Luxury houses are embracing the trend of experience economy to provide additional sensory aspects by diversifying their portfolio into atypical arenas such as food & beverages to create deeper bonds and build loyalty among consumers,” said Tim Hill, Key Account Director, GlobalData Singapore.
“Young Asians with high disposable incomes and a desire for unique experiences are driving this transformation of luxury in the region. In a recent GlobalData survey, 28 percent of Gen Y and 25 percent of Gen Z respondents claimed that new experiences associated with product purchases are essential to them, fuelling opportunities for luxury houses to cross over into other sectors and create exclusive experiences,” added Reddy.
“The experiential aspect has been gaining even more importance in the luxury market, as consumers value the immersive shopping experience in specialist boutiques and outlets, making room for brands to redefine luxury in the Asian market to drive sales. As the trend catches the fancy of more consumers, more luxury brands will venture into the foodservice business,” said Hill.
