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Brand Perceptions: Luxury Watch & Jewelry.

Brand Perceptions: Luxury Watch & Jewelry. · analysis , WSJ. Insights ... Audemars Piguet David Yurman Hamilton Monblanc Rolex ... How important is each of the following characteristics

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Page 1: Brand Perceptions: Luxury Watch & Jewelry. · analysis , WSJ. Insights ... Audemars Piguet David Yurman Hamilton Monblanc Rolex ... How important is each of the following characteristics

Brand Perceptions: Luxury Watch & Jewelry.

Page 2: Brand Perceptions: Luxury Watch & Jewelry. · analysis , WSJ. Insights ... Audemars Piguet David Yurman Hamilton Monblanc Rolex ... How important is each of the following characteristics

Renown for its world-class research and analysis, WSJ. Insights provides benchmark primary research studies, from longitudinal Corporate and Brand Perceptions studies to Wealth Management and Small Business Reports. WSJ. Insights provides its marketing partners with the essential knowledge they need to make smart decisions.

WSJ. Insights

Page 3: Brand Perceptions: Luxury Watch & Jewelry. · analysis , WSJ. Insights ... Audemars Piguet David Yurman Hamilton Monblanc Rolex ... How important is each of the following characteristics

Key Trends in Luxury Market.

Page 4: Brand Perceptions: Luxury Watch & Jewelry. · analysis , WSJ. Insights ... Audemars Piguet David Yurman Hamilton Monblanc Rolex ... How important is each of the following characteristics

3

Global Luxury Market Moderate Growth & Stable YOY.

-8

-6

-4

-2

0

2

4

6

8

10

12

14

2008 9 10 11 12 13 14 15 16 17 2018 0

50

100

150

200

250

300

350

400

450

Global Luxury Sales (US $ billions) and Growth 2008-2018

US $ Billion YOY % Growth

Page 5: Brand Perceptions: Luxury Watch & Jewelry. · analysis , WSJ. Insights ... Audemars Piguet David Yurman Hamilton Monblanc Rolex ... How important is each of the following characteristics

Fine Watch & Jewelry Lead Global Growth Opportunity.

Source: Euromonitor International

Category 2014

US $ Million YOY Growth vs.

2013

2018 US $ Million Projections

CAGR 2013-2018

Designer Apparel 136,785 2.9% 154,299 3.0%

Fine Jewelry/Watch 65,042 4.5% 78,693 4.8%

Fine Wines/Spirits 30,600 3.7% 35,931 4.0%

Super Premium Beauty 28,959 3.4% 33,377 3.6%

4

Page 6: Brand Perceptions: Luxury Watch & Jewelry. · analysis , WSJ. Insights ... Audemars Piguet David Yurman Hamilton Monblanc Rolex ... How important is each of the following characteristics

5

U.S. Millionaire Households: 11.53MM

•  11x more millionaires than China [estimated at 1MM]

U.S. luxury market €62.5 Bn in 2013, 3.5x larger than next largest market, Japan

U.S. Continues as Largest Luxury Market.

Source: Federal Reserve Bulletin, Hurun Research Institute , Bain/Altagamma 2013 Luxury Worldwide Market Study

Page 7: Brand Perceptions: Luxury Watch & Jewelry. · analysis , WSJ. Insights ... Audemars Piguet David Yurman Hamilton Monblanc Rolex ... How important is each of the following characteristics

6

More than nine in 10 (94%) are optimistic about their financial future

89% believe they are in a better position to withstand market volatility than others

85% say their wealth is secure for the long term

U. S. Affluents Today: Optimistic & Confident.

6 Source: WSJ Insights 2014 Mutual Funds & ETF Study Base: Total Respondents 1,048

Page 8: Brand Perceptions: Luxury Watch & Jewelry. · analysis , WSJ. Insights ... Audemars Piguet David Yurman Hamilton Monblanc Rolex ... How important is each of the following characteristics

The Rise of the Millennial Consumer. Generation shift is rapidly approaching; Prime earning years age 35+

Source: U.S. Census, Population division Projections of the population by selected age groups for the United States 2015-2060

80,000

90,000

100,000

110,000

2015 2020 2025 2030 2035 2040 2045 2050 2055 2060

Age 25-44 Age 45-64

7

Page 9: Brand Perceptions: Luxury Watch & Jewelry. · analysis , WSJ. Insights ... Audemars Piguet David Yurman Hamilton Monblanc Rolex ... How important is each of the following characteristics

Proprietary Study: Methodology & Respondent Demographics.

Page 10: Brand Perceptions: Luxury Watch & Jewelry. · analysis , WSJ. Insights ... Audemars Piguet David Yurman Hamilton Monblanc Rolex ... How important is each of the following characteristics

9

Objective: To discover current consumer behaviors, attitudes and brand preferences for fine jewelry and watches among key prospects

WSJ. Insights fielded a study to the WSJ Opinion Leaders, an online insight community from October – November 2014

2,279 respondents completed the survey

Queried respondents about:

•  Brand familiarity and perception of 46 luxury jewelry/watch brands •  Attributes of luxury brands •  Ownership and purchase channels •  Important characteristics of a fine watch •  Purchase triggers

Note: Fine Jewelry defined as 18K+ gold and/or platinum with or without precious stones, a fine watch is defined as a watch that costs $500 or more

WSJ. Insights Brand Perceptions Proprietary Study. Methodology

Page 11: Brand Perceptions: Luxury Watch & Jewelry. · analysis , WSJ. Insights ... Audemars Piguet David Yurman Hamilton Monblanc Rolex ... How important is each of the following characteristics

Male/Female: 84/16

Average Age: 57

Median HHI: $268,289

Respondent Demographics.

Under $100K 20%

$100-$200K 35%

$200- 300K 20%

$300K+ 25%

Household Income

10

Page 12: Brand Perceptions: Luxury Watch & Jewelry. · analysis , WSJ. Insights ... Audemars Piguet David Yurman Hamilton Monblanc Rolex ... How important is each of the following characteristics

Measured Brands.

Audemars Piguet David Yurman Hamilton Monblanc Rolex

Baume & Mercier DeBeers Harry Winston Movado Seiko

Breguet DeGrisogono Hermes Omega Shinola

Breitling Dior Hublot Panerai Tag Heuer

Burberry Ebel IWC Patek Philippe Tiffany & Co.

Bulgari Fendi Jaeger-LeCoultre Piaget Tourneau

Cartier Girard Perregaux Longines Prada Vacheron Constantin

Chanel Graff Louis Vuitton Ralph Lauren Van Cleef & Arpels

Citizen H. Stern Mikimoto Raymond Weil Zenith

Chopard

11

Page 13: Brand Perceptions: Luxury Watch & Jewelry. · analysis , WSJ. Insights ... Audemars Piguet David Yurman Hamilton Monblanc Rolex ... How important is each of the following characteristics

Perception of quality and value generally strong, but many brands need deeper engagement and communication to grow familiarity.

Luxury consumers expect exclusivity, attention and personalization.

Brand name is the strongest signifier of ‘luxury’ and remains the key driver for consideration.

Topline.

12

Page 14: Brand Perceptions: Luxury Watch & Jewelry. · analysis , WSJ. Insights ... Audemars Piguet David Yurman Hamilton Monblanc Rolex ... How important is each of the following characteristics

Watch & Jewelry Purchases.

Page 15: Brand Perceptions: Luxury Watch & Jewelry. · analysis , WSJ. Insights ... Audemars Piguet David Yurman Hamilton Monblanc Rolex ... How important is each of the following characteristics

14

Watch Collectors & Enthusiasts.

Average spent on most expensive fine watch

Average number of watches owned [30% own 3+ watches]

Purchased fine watch in past 3 years [21% as gift for someone else]

$5,392

43%

2.5

Page 16: Brand Perceptions: Luxury Watch & Jewelry. · analysis , WSJ. Insights ... Audemars Piguet David Yurman Hamilton Monblanc Rolex ... How important is each of the following characteristics

78% agree “I don’t feel fully dressed unless I’m wearing a watch”

Their Fine Watch is Essential.

15

Page 17: Brand Perceptions: Luxury Watch & Jewelry. · analysis , WSJ. Insights ... Audemars Piguet David Yurman Hamilton Monblanc Rolex ... How important is each of the following characteristics

Brand is Critical When Selecting a Fine Watch.

27%

59%

65%

70%

74%

77%

79%

87%

Multiple Complications

Hand Construction

Quality Jewels

Precious Metals

Unique Look

Swiss Movement

Traditional Styling

Brand Name

16

% Consider Important In Fine Watch Purchase (Very/Somewhat Important)

Page 18: Brand Perceptions: Luxury Watch & Jewelry. · analysis , WSJ. Insights ... Audemars Piguet David Yurman Hamilton Monblanc Rolex ... How important is each of the following characteristics

Complications Watch Aficionados Desire. Practicality wins the day

17

10%

16%

16%

22%

45%

47%

52%

83%

87%

93%

Sonneries

Tachometer

Depth Meter

Moon Phases

Multiple Time Zones

Chronograph

Perpetual Calendar

Auto Wind

Day/Date Display

Waterproof

% Most Interesting in Fine Watch Purchase

Page 19: Brand Perceptions: Luxury Watch & Jewelry. · analysis , WSJ. Insights ... Audemars Piguet David Yurman Hamilton Monblanc Rolex ... How important is each of the following characteristics

18

‘Smart Watches’/Wearables Not a Factor–Yet.

When you are in the market to buy where do your usually shop, check all that apply.

63%

25%

12%

51%

27%

22%

39%

35%

26%

Not that Interested/Not At All Interested

Somewhat Interested

Very Interested/Already Own

Interested in new ‘Smart’ Watches

Age 18-34 Age 35-54 Age 55+

Page 20: Brand Perceptions: Luxury Watch & Jewelry. · analysis , WSJ. Insights ... Audemars Piguet David Yurman Hamilton Monblanc Rolex ... How important is each of the following characteristics

Over half of [jewelry/watch] brands now provide a path to purchase online through e-commerce or e-concierge services or both.

L2 Digital IQ Index; 2014 Watches & Jewelry

Investing in a Fine Watch via an Online Only Retailer. Now close to one quarter, significantly more for men than women

17%

23%

Female Male

Usually Shop at Online Only Retailer for Fine Watch

19

” “

Page 21: Brand Perceptions: Luxury Watch & Jewelry. · analysis , WSJ. Insights ... Audemars Piguet David Yurman Hamilton Monblanc Rolex ... How important is each of the following characteristics

20

Fine Jewelry Connoisseurs.

Average spent on most expensive piece of fine jewelry

Purchased a piece of fine jewelry past 3 years [53% purchased a gift for someone else]

$21,466 68%

Page 22: Brand Perceptions: Luxury Watch & Jewelry. · analysis , WSJ. Insights ... Audemars Piguet David Yurman Hamilton Monblanc Rolex ... How important is each of the following characteristics

Purchase Fine Watch & Jewelry Across a Number of Retail Destinations.

6%

15%

20%

22%

22%

41%

42%

49%

Auction House

Jewelry Retail Chain

Duty Free Shop

Designer Boutique

Online Only Retailer

Specialy Department Store

Independent Retailer

Specialty Watch Retailer

Fine Watch

7%

12%

19%

22%

24%

40%

43%

53%

Auction House

Duty Free

Online Only Retailer

Jewelry Retail Chain

Designer Boutique

Specialty Department Store

Specialty Jewelry Retailer

Independent Retailer

Fine Jewelry

21

Page 23: Brand Perceptions: Luxury Watch & Jewelry. · analysis , WSJ. Insights ... Audemars Piguet David Yurman Hamilton Monblanc Rolex ... How important is each of the following characteristics

Purchase Triggers Are Year ‘Round for Both Self & Gifts.

FOR SELF % purchased fine

watch/fine jewelry

Souvenir While Traveling 18%

Birthday 10%

Wedding 7%

Promotion at Work 7%

Winter Holidays 7%

Wedding Anniversary 6%

Graduation 3%

Mother’s Day/ Father’s Day

1%

Birth of Child 1%

GIFT % purchased fine

watch/fine jewelry

Birthday 59%

Wedding Anniversary 57%

Winter Holidays 50%

Valentine’s Day 32%

Souvenir While Traveling 27%

Graduation 25%

Mother’s Day/ Father’s Day

25%

Birth of Child 14%

22 Q: For which occasion(s) have you ever made a fine watch or fine jewelry purchase?

Page 24: Brand Perceptions: Luxury Watch & Jewelry. · analysis , WSJ. Insights ... Audemars Piguet David Yurman Hamilton Monblanc Rolex ... How important is each of the following characteristics

What is Luxury?

Page 25: Brand Perceptions: Luxury Watch & Jewelry. · analysis , WSJ. Insights ... Audemars Piguet David Yurman Hamilton Monblanc Rolex ... How important is each of the following characteristics

Luxury is Exclusivity. Important in determining a “luxury/designer” brand

Q: How important is each of the following characteristics in determining if a brand is a Luxury/Designer brand? Q: do you have a relationship with a salesperson from whom you primarily buy fine jewelry/fine watches?

Agree exclusivity is important

Agree ability to customize is important

24

61%

56%

Page 26: Brand Perceptions: Luxury Watch & Jewelry. · analysis , WSJ. Insights ... Audemars Piguet David Yurman Hamilton Monblanc Rolex ... How important is each of the following characteristics

Luxury is a Relationship.

Q: How important is each of the following characteristics in determining if a brand is a Luxury/Designer brand? Q: do you have a relationship with a salesperson from whom you primarily buy fine jewelry/fine watches?

Have a relationship with a salesperson from whom primarily buy fine jewelry/watches. Among those who do: •  Most expensive fine watch: $8,431 •  Most expensive piece of jewelry $25,487

Attentive Salespeople important in determining luxury/designer brands [53% among women]

25

26%

43%

Page 27: Brand Perceptions: Luxury Watch & Jewelry. · analysis , WSJ. Insights ... Audemars Piguet David Yurman Hamilton Monblanc Rolex ... How important is each of the following characteristics

Luxury is Product, Service & Brand. ‘Celebrity’ endorsements are not important

How important is each of the following characteristics in determining if a brand is a Luxury/Designer brand? Q: do you have a relationship with a salesperson from whom you primarily buy fine jewelry/fine watches?

8%

13%

9%

17%

25%

43%

47%

71%

95%

6%

35%

35%

40%

39%

36%

38%

39%

23%

4%

Celebrity Spokesperson

High Price

Country of Origin

Luxuriousness of retail

Ability to Customize

Exclusivity

Attentive salespeople

Brand Heritage

Service

High Quality Product

0% 20% 40% 60% 80% 100% 120%

Importance in Determining a Luxury Brand

Very Important Somewhat Important

26

Page 28: Brand Perceptions: Luxury Watch & Jewelry. · analysis , WSJ. Insights ... Audemars Piguet David Yurman Hamilton Monblanc Rolex ... How important is each of the following characteristics

Brand Landscape.

Page 29: Brand Perceptions: Luxury Watch & Jewelry. · analysis , WSJ. Insights ... Audemars Piguet David Yurman Hamilton Monblanc Rolex ... How important is each of the following characteristics

28

Familiarity Varies widely by Brand. Established fashion brands and strong retail presence appear to raise familiarity

0%

25%

50%

75%

100%

Role

x Se

iko

Tiffa

ny &

Co.

Ra

lph

Laur

en

Om

ega

Cart

ier

Tag

Heue

r Ci

tizen

M

ontb

lanc

Bu

rber

ry

Loui

s Vu

itton

Ch

anel

Br

eitli

ng

Mov

ado

Long

ines

Pa

tek

Philip

pe

Dior

He

rmes

De

Beer

s Pr

ada

Bulg

ari

Ham

ilton

Pi

aget

Ha

rry

Win

ston

Ra

ymon

d W

eil

Tour

neau

Ba

ume

& M

ercie

r M

ikim

oto

Davi

d Yu

rman

Va

n Cl

eef &

Arp

els

Fend

i Ze

nith

Au

dem

ars

Pigu

et

Breg

uet

Vach

eron

Con

stan

tin

H.St

ern

Jaeg

er-L

eCou

ltre

Chop

ard

Hubl

ot

IWC

Ebel

Gi

rard

Per

rega

ux

Shin

ola

Pane

rai

Graf

f De

Gris

ogon

o

Very Familiar Somewhat Familiar

Average: 42%

Page 30: Brand Perceptions: Luxury Watch & Jewelry. · analysis , WSJ. Insights ... Audemars Piguet David Yurman Hamilton Monblanc Rolex ... How important is each of the following characteristics

Strong Perception of Value for Money/Quality. Across the Board

0%

50%

100%

Excellent Good

29

Average: 79%

Page 31: Brand Perceptions: Luxury Watch & Jewelry. · analysis , WSJ. Insights ... Audemars Piguet David Yurman Hamilton Monblanc Rolex ... How important is each of the following characteristics

Advertising.

Page 32: Brand Perceptions: Luxury Watch & Jewelry. · analysis , WSJ. Insights ... Audemars Piguet David Yurman Hamilton Monblanc Rolex ... How important is each of the following characteristics

31

High Degree of Trust & Engagement with WSJ.

Agree “Only the best fine jewelry & watch brands Advertise in The Wall Street Journal

Recall seeing jewelry/watch advertising in The Wall Street Journal

Were inspired to shop for fine watch or piece of fine jewelry directly as a result of an ad/article in The Wall Street Journal

69%

39% 8 in 10

Page 33: Brand Perceptions: Luxury Watch & Jewelry. · analysis , WSJ. Insights ... Audemars Piguet David Yurman Hamilton Monblanc Rolex ... How important is each of the following characteristics

Brand Perceptions: Luxury Watch & Jewelry.