SINGAPORE — The concept of luxury in Southeast Asia is intricately shaped by cultural heritage, societal values, historical legacies, and, most importantly, economic influences. As a region abundant in resources and characterized by nuanced consumption patterns, the demand for luxury is as dynamic as it is complex.
Vero, a communications consultancy in Southeast Asia, has released a new study that delves into the region’s evolving demands and aspirations of luxury consumers. The study examines the factors positioning Southeast Asia as a key luxury market, providing consumers and brands with an in-depth analysis of market evolution, shifting trends, strategies for enhanced brand-consumer engagement, and the increasingly vital role of influencers in shaping consumer perceptions.
The white paper, “The Emerging Codes of Luxury in Southeast Asia,” identifies four key luxury codes: Selfhood, Legacy, Betterment, and Playfulness. Derived from anthropological insights and expert engagement across Singapore, Thailand, Indonesia, Vietnam, and the Philippines, these codes reflect the diverse values and traits of the region’s new generation of luxury consumers.
Selfhood: Luxury as a journey into the self
Consumers are becoming more aware of who they are, and this comes with a growing desire to express their personal stories and distinctive goals. They fearlessly explore and experiment with products and experiences to find their unique voices and share them with the world.
Legacy: Luxury as a connection to the past, present, and future
Whether they are preserving traditional values and culture, connecting with like-minded individuals, or supporting social causes, Southeast Asian luxury consumers desire to make a mark of their own. They seek experiences that evoke both familiarity and enlightenment, viewing luxury not as a transient personal indulgence but as a testament to the enduring richness of Southeast Asia’s cultural heritage.
Betterment: Luxury as a commitment to personal growth
The pursuit of betterment is a timeless human endeavor, a continuous quest to live life to the fullest. The affluent population of Southeast Asia puts a distinct emphasis on function, quality, and the pragmatic integration of luxury into everyday life. This has led to more intentional spending, as people are keen to spend on higher-quality products designed for longevity and convenience over fleeting indulgences.
Playfulness: Luxury as a playground for self-indulgence
As Southeast Asian consumers become more affluent and have more leisure time, they embark on journeys that feed their souls and satisfy their insatiable appetites for enjoyment. Whether through culinary experiences or adventures to remote corners of the globe, luxury is an indulgent lifestyle choice, a deliberate embrace of the extraordinary, and a celebration of life’s most exquisite pleasures.
These emerging codes are ushering in growth in the luxury market, especially as luxury goods revenue in the region is set to reach US$16 billion. Consumers focus on products that offer more than just high face value, seeking meaningful experiences, sustainability, and cultural relevance in their purchases and the brands they endorse.
For luxury brands striving to elevate their position in the region and cater to consumers’ unique demands and preferences, embracing authenticity and innovating in product offerings is crucial. Correspondingly, the white paper also outlines strategies to help brands tap into the emerging trends: communicate with consumers, not at them; develop high-value collaborations with influencers; engage with cultural and creative communities; and create immersive and inspiring moments.
“Southeast Asia isn’t just a region for production anymore; it has grown to become an important consumer market, especially in luxury goods and services. This can be attributed to the population’s growing affluence and evolving appetite for sophistication. We also can’t deny the role influencers and content creators play in putting Southeast Asia in the global spotlight. They have facilitated a shift in lifestyles, inspiring their audiences to embrace luxury and aspirational living. It is therefore essential for brands to foster partnerships with lifestyle influencers and trendsetters who can effectively communicate the allure of luxury and shape consumer perceptions,” said Chinchote Sukonthotok, Vero Account Director in Thailand.
Selecting the right influencers can be challenging, but technology and innovative methodologies can help analyze and determine those who align best with a brand’s identity and mission. Vero’s proprietary influencer marketing stack, InFluent, features comprehensive processes and methodologies for managing influencer campaigns and measuring content effectiveness. Part of this stack is TrueVibe, a data-led influencer identification tool that helps brands identify and engage with influencers who can deliver optimal impact and results for their campaigns.
Engaging consumers with unforgettable experiences also fosters emotional engagement and brand affinity, added Prapasri Vasuhirun, Vice President of Vero Xperience. “Immersive events have a profound impact on brand-consumer relationships, as they offer unique opportunities to connect on shared stories and experiences, thereby cultivating deep and lasting loyalty. Having conceptualized and managed a number of events for luxury brands in Thailand, Vero Xperience has mastered the art of creating moments beyond the ordinary. Through thoughtfully designed events that showcase a brand’s essence and values, we can help brands build stronger connections with their consumers, inspiring them to become true ambassadors of luxury.”
The luxury market in Southeast Asia is poised for growth and innovation, and brands that can adapt to the changing consumer preferences and behaviors will have a competitive edge in the region.
