September 26, 2011
Luxury Consumers from Eight Asia/Pacific and Middle East Countries Polled; Shoppers in Singapore and India More Likely to Own Luxury Goods
Singapore, 26 September 2011 – Shoppers in Singapore, Japan and India are among the region’s top luxury consumers, according to the findings from the latest MasterCard survey on Consumer Purchasing Priorities – Luxury Shopping.
Probably encouraged by robust economic growth, consumers in Singapore and India have higher intention to own luxury goods than the other countries: more than half of those polled for the survey said they planned to spend more or the same in the next 12 months.
Singapore (57%), Japan (50%) and India (46%) lead other countries in terms of ownership of luxury goods; nearly half of the consumers there own at least one luxury item worth more than US$500. In contrast, consumers in Indonesia (8%), Malaysia (22%) and the Philippines (23%) own the least number of luxury items.
The latest survey was conducted from March to April 2011 and involved 6,022 consumers from 8 markets. Data collection was via internet surveys, personal, telephone and Computer Aided Telephone interviews, with the questionnaire translated to the local language wherever appropriate and necessary. The Index and its accompanying reports do not represent MasterCard financial performance.
On an average, close to 40% of those polled claimed to own luxury goods with Indians more inclined to own jewelry; Singaporeans prefer luxury watches, jewelry, and designer clothes & leather goods and Japanese favor designer clothes & leather goods and luxury watches.
“This survey shows that luxury shopping varies dramatically across emerging and developed markets. As with other recent surveys, it is the most buoyant and resilient economies that can afford to spend on luxury items and India and Singapore would certainly fall into that category,” said Porush Singh, senior vice president and group head, Product Development, Global Products & Solutions, Asia/Pacific, Middle East & Africa, MasterCard Worldwide. “Luxury shoppers remain loyal to their brands, even when the economic climate isn’t favorable.”
The earthquake-related tragedy in Japan in mid-March 2011 seems to have had a mixed impact on luxury buying sentiments. Less than 5% of the Japanese consumers surveyed plan to spend more on luxury goods in the next 12 months, but they still lead other nations in their overall spending power: averaging more than US$4,000 in the next 12 months, whereas consumers from Singapore, Lebanon and India intend to spend on average more than US$2,000. A greater number of Japanese consumers, about a quarter, plan to cut down on their luxury purchases.
Japanese and Singaporeans display the most affection toward ownership of designer items, with one in two respondents (57% and 50% respectively) currently owning a luxury item. About 3 in 4 of Japanese (76%) and Singaporean (74%) consumers usually use credit cards to pay for their luxury purchases.
Nearly one-third of all respondents intend to own any luxury goods valued above US$500 in the next 12 months. Singaporeans (51%) and Lebanese (30%) are more eager to own luxury goods than others, while Indonesians (8%) and Malaysians (20%) have the least yearning for luxury goods.
Other survey findings:
- Lebanese shoppers tend to be more impulsive - nearly half (48%) make purchase decisions on the spot. About half (49%) of Indian shoppers will contemplate their purchases for under a month, while a third (34%) tend to buy on impulse.
- Japanese, Indonesians and Singaporeans come through as more prudent – 40% of Japanese consumers undertake extensive research (two to six months) before purchasing, with 39% of Indonesians and 29% of Singaporeans doing the same.
- Consumers in Thailand, Philippines and Malaysia tend to be more cautious. Even among those who intend to purchase a majority of them plan to spend on lower price bracket - below US$1,000. Most will delay their luxury purchases till sales periods.
For the full report go to: www.masterintelligence.com
The MasterCard Worldwide Index suite in Asia/Pacific, Middle East and Africa includes the long-running MasterCard Worldwide Index of Consumer Confidence, as well as the MasterCard Worldwide Index of Women’s Advancement, Online Shopping, Index of Financial Literacy, and the Index of Global Destination Cities. In addition to the Indices, MasterCard’s research properties also include a range of consumer surveys including Ethical Spending and a series on Consumer Purchasing Priorities (covering Travel, Dining & Entertainment, Education, Money Management, Luxury and General Shopping).
MasterCard also regularly releases Insights reports providing analysis of business dynamics, financial policies and regulatory activities in the Asia/Pacific, Middle East and Africa region. Over 80 Insights reports have been produced since 2004.
MasterCard has also released a series of four books on Asian consumer insights, authored by Dr. Yuwa Hedrick-Wong, Global Economic Advisor for MasterCard Worldwide and published by John Wiley & Sons.
MasterCard (NYSE: MA), www.mastercard.com, is a technology company in the global payments industry. We operate the world’s fastest payments processing network, connecting consumers, financial institutions, merchants, governments and businesses in more than 210 countries and territories. MasterCard’s products and solutions make everyday commerce activities – such as shopping, traveling, running a business and managing finances – easier, more secure and more efficient for everyone. Follow us on Twitter @MasterCardNews, join the discussion on the Cashless Conversations Blog and subscribe for the latest news.