Prepared for Regina C. | Delivered April 11, 2021
Luxury Consumer Behavior After The Pandemic
Forbes reports that prominent signs of wealth and success
are not as important
to luxury consumers as they were before the pandemic. These consumers are now more concerned about "
brands’ attitudes towards workers
, the environment, fair wages, local production, charitable giving, disadvantaged people and many other things".
According to Sarah
, the global head of luxury at Boston Consulting Group “Covid was the first time that a lot of people realized that their
individual actions have societal consequences.”
As a result, brands will
need to include sustainability
in their packaging, products and delivery systems.
A study by Walpole and Hearst found that, due to the pandemic, mass reach
is no longer appealing
to luxury consumers. They prefer intimate and personal connections. In fact, "
54% of consumers
are noticing influencers more."
The way in which luxury consumers prioritize luxury spending is also expected to change after the pandemic,
according to Statista.
The percentages of luxury consumers in different countries that will prioritize luxury spending after the pandemic are as follows:
Another observation in some parts of the world is luxury consumers indulging in '
revenge buying' to uplift themselves.
In China, for example, the Hermès’ Guangzhou flagship store generated
in sales post lock down, their
largest sales yet.
There is also an increasing
shift towards affordable luxury
due to the financial implications of the pandemic. Affordable luxury is whereby "
consumers look for the status
associated with luxury, without encountering the high price tag."
30% of luxury consumers
globally who delayed buying luxury items due to the pandemic plan to look for flexible payment options after the pandemic; this is
than before the pandemic.
There is a lot of information in the public domain regarding how the behavior of luxury consumers is changing due to the pandemic. However, there is limited data on quotes from academics. We have, therefore, expanded the scope of this to cover thought leaders in the industry as well, such as the heads of luxury at companies. We believe that expanding this scope and following the proposed next research steps below will provide valuable insights.
we will compile quotes from academics about how COVID has fueled a search for values, purpose among wealthy consumers
we will also compile recent news and media articles that talk about how spending has changed among wealthy consumers. we
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