Chanel remains favoured as the most relevant brand to APAC luxury consumers, according to the 2024 edition of the annual Brand Relevance Report released by RTG Consulting Group, a research and management consulting firm with offices in Singapore, Shanghai and Paris.
RTG Group looked to six key Asian cities: Singapore, Shanghai, Hong Kong Kuala Lumpur, Bangkok and Jakarta, surveying 1,868 consumers aged between 18 to 50 on their awareness and appetite for luxury fashion brands.
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Chanel, Gucci top ‘most relevant’ brands by city
Chanel topped the list of most relevant luxury brands in Singapore, Hong Kong, and Kuala Lumpur, while Gucci was on top in Shanghai and Bangkok.
In Jakarta, Dior was no. 1, followed by Louis Vuitton at no. 2 and Gucci at no. 3.
The findings should reassure Gucci owner Kering, which recently issued an advisory ahead of the release of its first quarter 2024 revenue on April 23, projecting a decline in consolidated revenue for the first quarter of the year. The decline in performance is chiefly attributed to a significant drop in sales at Gucci, particularly in the Asia-Pacific region, with comparable revenues expected to be down nearly 20 percent year on year.
Comparing the “highly relevant” category across genders, Louis Vuitton and Prada enjoy higher rankings among males than females, according to RTG’s survey.
Conversely, Armani and Burberry resonate more strongly with female respondents than male respondents surveyed in the report. These differences, according to RTG, could be attributed to various factors such as a brand’s product mix, targeted marketing strategies, or distinct communication methods employed to engage with specific gender demographics.
The Chanel effect
Attracting female consumers in particular, Chanel has established allure through strategic tactics such as elevating handbag prices and implementing purchase quotas.
In September 2023 the French luxury house increased its prices across six APAC markets (mainland China, Taiwan, Thailand, Malaysia, Australia, and Japan), looking to make up for a slowdown in demand for luxury goods worldwide. A company spokesperson said at the time that Chanel had raised its prices to harmonise with fluctuations in exchange rates. Prices rose between 6 percent and 8 percent.
But the Chanel effect may have as much, if not more, to do with a continued push for its most iconic products, rather than offering a speedy rotation of new pieces.
A freshly released campaign by Chanel, featuring actor and Chanel ambassador Penelope Cruz alongside Brad Pitt, stars the 11.12 handbag, Karl Lagerfeld’s reinterpretation of Coco Chanel’s original 2.55 handbag, first released in the 1980s.
Luxury’s new customers
Two-thirds of consumers surveyed in the report expressed their intention to increase their spending in the next 12 months, particularly in Southeast Asian cities, where approximately 70 percent of respondents said they are eager to allocate more of their budgets toward luxury items.
In contrast, nearly two-fifths of shoppers plan to tighten their purse strings in Shanghai. Meanwhile in Bangkok and Jakarta, more than 70 percent demonstrate a strong inclination to amplify their luxury spending in the upcoming year.
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“China has long been a focal point for the luxury industry, but Southeast Asia is emerging as a significant luxury hub, driven by multiple factors,” says Angelito Perez Tan Jr., co-founder and CEO of RTG Asia, pointing to the growing Chinese diaspora across the region, as well as Chinese tourism spend in Southeast Asia.
“Countries like Singapore, Malaysia, Thailand, and Indonesia are witnessing a rise in luxury consumption as incomes increase and lifestyles evolve, prompting the expansion of luxury retail and hospitality offerings in urban centres. This convergence of factors underscores Southeast Asia’s growing importance in the global luxury market, complementing China’s traditional dominance,” Tan continues.
See below for the top 10 most relevant luxury brands in APAC, according to RTG’s report.
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Chanel
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Gucci
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Dior
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Louis Vuitton
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Hermès
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Armani
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Prada
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Givenchy
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Burberry
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Balenciaga