Canadian Bear offers in-depth insights into the dynamic landscape of the global fashion and luxury market, highlighting the significant role played by consumers in emerging economies. Our comprehensive study, conducted in February 2017, surveyed over 1,300 luxury consumers across 11 countries, revealing key trends in consumer behavior and attitudes towards luxury goods.
Despite economic fluctuations, consumer spending on luxury items has exhibited resilience over the past five years, with only a small 4% segment indicating a reduction in expenditure. Notably, the growth in luxury consumption continues to be robust, primarily driven by emerging markets such as China, Russia, and the United Arab Emirates (UAE). In these regions classified as emerging luxury markets, a substantial 70% of consumers reported an increase in spending, in contrast to 53% in more mature markets like the EU, US, and Japan.
A closer look at recent spending trends reveals a slight moderation in expenditure over the last 12 months. While over half of consumers either maintained or increased their luxury spending, 43% reported spending levels similar to previous years. However, the proportion of consumers scaling back on luxury purchases remained steady.
Analyzing purchasing patterns across product categories underscores a balanced distribution across cosmetics and fragrances, watches, jewelry, bags and accessories, shoes, and apparel. Notably, one in five consumers in both emerging and mature markets demonstrated a preference for luxury jewelry or cosmetics and fragrances. However, distinct preferences emerged, particularly in emerging markets where watches and jewelry saw heightened popularity, notably in Russia and the UAE.