SINGAPORE — WGSN, the global authority on trend forecasting with 25 years of expertise in predicting and tracking trends and cultural changes, has released a whitepaper titled “Rebuilding Loyalty,” supported by the renowned developer New World Development. The whitepaper calls out key consumer sentiments and analyses luxury consumer profiles that will reshape the future of engagement in Asia. It references various examples from K11 Group, a subsidiary of New World Development and a global cultural brand, providing valuable insights on how to connect with consumers through its unique cultural commerce model. This model seamlessly blends art, culture, and shopping, resulting in immersive environments and curated experiences.
K11 Group offers unparalleled art, culture, retail, leisure, and hospitality experiences. Recently, the renowned Louis Vuitton held its first-ever fashion show in Hong Kong, bringing the Men’s Pre-Fall 2024 Show to the iconic Avenue of Stars with the support of K11 MUSEA, which is an integral part of K11 Group’s mega development project, K11 Victoria Dockside. Additionally, K11 MUSEA is currently presenting “CHRISTMAS PALACE,” which will be transformed into a grand palace featuring iconic gilded Christmas trees and over 150 activities and offers, providing visitors with a unique festive experience.
At a 4.6% growth rate in 2023, as predicted by the IMF, the APAC region is poised for a slow but steady economic rebound. Affluent consumers in APAC have been shifting their luxury spending back home, and the region will account for 40% of the global luxury market by 2025.
“Despite overall economic optimism and consumption growth, APAC consumers will be more careful about how and where they spend as rising inflation and high-interest rates will continue to drive cost-of-living concerns. With eight in ten affluent shoppers still preferring to shop for luxury goods and services physically, the Asian luxury consumer will lean heavily into personal passions and novel in-person experiences, seeking hyper-relevant and seamless luxury experiences while leveraging hyper-local resources,” said Bethan Ryder, Editorial Director of WGSN.
Digitally native Gen Z and maturing Millennials will become key growth drivers in transforming the APAC luxury retail landscape, challenging the incumbents by engaging with smaller brands across realities. Luxury brands will need to keep up with this fast-evolving cohort, providing a high-touch and personalized luxury shopping experience while interacting with them in authentic and humanizing ways through innovative technology and retail.
Providing clear and actionable opportunities for global and local brands to become more resilient after the pandemic, the whitepaper also shares interesting views around rising consumer sentiments affecting purchasing decisions and consumption patterns. Luxury today is no longer solely defined by material ownership, now also encompassing lifestyle and values, and consumers are expecting brands to facilitate mindfulness and offer personalized and locally curated experiences, beyond just mere transactions.
As luxury consumer sentiments continue to evolve, their priorities or expectations have shifted. The four key luxury consumer profiles, personifications of tomorrow’s luxury behaviors in Asia, reflect a transformational shift in consumer sentiments:
- Mindful Luxurians – Affluent and reflective, Mindful Luxurians are looking for moments of pause through leisure, luxury, and well-being.
- Self-Rewarders – Optimistic yet cautious, Self-Rewarders are looking to brands for empathy and support in exchange for their loyalty.
- Multidimensional Escapist – Overwhelmed and tired of mundanity, these consumers seek moments of escapism through virtual and phygital worlds and purchases.
- Change Makers – Idealists at heart, Change Makers are looking for ethical and sustainable brands and retail experiences.
Developed using its proprietary methodology to identify the signals of change and evaluate, verify, and forecast trends, WGSN works with over 250 industry experts globally to map influencers, disruptors, and changemakers to deliver clear and specific action points. WGSN’s consumer sentiments are selected using WGSN’s unique STEPIC framework: examining changes in society, technology, the environment, politics, industry, and creativity to identify the macro forces that will drive the emotional sentiments in 2025.
The white paper can be downloaded at no cost here.
