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Innovative Strategies for Emerging Markets

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Global Luxury Trends Innovative Strategies for Emerging Markets

J Hoffmann; I Coste-Maniere. Walmart Tell us if something is incorrect. Book Format: Choose an option. Add to Cart. Exhibit 2 shows that in just seven years, they are expected to outspend all luxury consumers globally. The trend towards distinctive luxury items and a more bespoke, customised experience is heating up markets in the Middle East and Asia, where leading brands focus on acquisition hot spots. This is due in part to attracting foreign luxury consumers from the United States, Asia and Europe, in search of a wealth of luxury items and experiences.

Investment in transport and infrastructure, hotels, offices and residential units have provided strong foundations for further growth in the luxury sector in the region. These airlines are bringing in high numbers of tourists to join local populations of oil-rich luxury consumers in the Middle East. Together with Vivo City in Singapore, these malls form the upper echelons of tourism-driven luxury shopping.

Cosmopolitan markets drive diversity.

Industry Research: Luxury Goods

IWC has created huge assets with the stories it is promoting and supporting around the world. The Middle East is almost a microcosm of the global luxury market. Multinational subsidiaries, conglomerates and single brands compete in markets distinguished by a constant transfusion of global consumers, representing every segment in the luxury market.

Wealthy consumers dominate luxury consumption. The majority of luxury goods companies are already in China and making further investments. With exposure to more brands at home and on the Internet, Chinese consumers are increasingly savvy, knowledgeable about brands and differences in pricing — typically higher in mainland China than in Hong Kong. As more consumers develop an affinity for luxury, the focus is shifting to wellness and in-store experiences as well as products.

While internationally well-known brands are highly valued, the focus is increasingly on products designed for the Chinese market, incorporating Chinese designs and imagery. From a talent perspective, China is a very hot, competitive market, typically led from large corporations headquartered in Shanghai with satellite offices in Beijing or Guangzhou. A few years of hands-on experience, in situ, in China is important for China-based roles.

With new brands constantly entering the market, increased competition means companies require senior-level executives to have an extensive track record in handling issues relating to all areas — including talent acquisition, piracy and product positioning — gained from a previous, comparable China-based position. Marketing roles at luxury and retail companies have evolved, so there is a greater need to hire marketing talent with more of a classic brand management background.

There is much debate on this topic. However, for general management roles in the region, care must be taken and the need for luxury segment background depends on the brand. Luxury retail in India is distinguished by a twin focus on short-term luxury products, notably jewellery, and long-term investment in luxury assets, particularly cars.

The Global Luxury Consumer - True Luxury Global Consumer Insight

In keeping with other emerging and fast growth markets, consumers in India are increasingly attracted to luxury experiences and services, with hotels, travel, tourism and bespoke concierge services particularly buoyant. The longer-term shape of luxury retail in India is hard to predict, due to challenges all industries face, such as insufficient infrastructure and more specifically, the lack of an appropriate retail environment.

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For now, a lack of infrastructure is shaping the industry. This reflects a natural affinity for luxury in India. Indian and Chinese consumers share a desire for products made in emerging markets, driven by a thirst for cultural influences in design. Lifestyle brands are signing up with designers, and hiring relationship managers who speak local languages and can customise their offerings for festivities such as weddings and other events.

For luxury brands, the realisation of double-digit growth potential depends on a combination of factors. It is this threesome that creates competitive advantage, hence business and sustainable success. Strategic investment is driving demand for senior, experienced leaders in luxury retail from HR, finance and managing directors to brand, operations and supply chain directors.

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How can luxury maisons attract these leading lights? Hiring in fast growth markets: the Middle East. Global mobility can be a challenge, primarily due to family commitments. It is a great opportunity for executives to make a difference. If you have the right ideas, right team, right project and you can drive through initiatives in a fast-paced environment, you can really grow the business.

The tax-free environment is a major attraction, together with housing, transport and increasingly, education allowances — which are all important given the rising cost of living. Another challenge for organisations investing in executive talent is that the best candidates are often not looking to move. These candidates are not accessible through recruitment agencies, which engage only with candidates who are between roles or unhappy in their current organisation. Senior candidates need an executive search consultant who engages with them as a peer.