Luxury brands are no longer confined to traditional boutiques and glossy magazines; they’re actively engaging with consumers across a multitude of channels. From personalized social media campaigns that create aspirational experiences, to exclusive online marketplaces that offer curated selections, to loyalty programs that reward valued customers – the luxury landscape is evolving rapidly.

To better understand these evolving consumer behaviours and sentiment, Rakuten Insight Global has conducted surveys using their proprietary panels to better understand luxury purchase behaviour and consumer sentiments. We interviewed consumers from our proprietary panels across Asia, focusing on China, Hong Kong, Singapore, South Korea, and Taiwan.

This report includes an analysis of consumers’ interest in luxury, key factors that influence their purchasing decisions, channels through which they discover new brands, and their preferences for loyalty programs.

Interest & Engagement

While a solid 36% of consumers surveyed are already regular or occasional purchasers of luxury goods, an even larger group (29%) expresses interest but rarely indulges. This presents a prime opportunity for brands to convert latent demand into actual sales.

In China, the enthusiasm for luxury is particularly strong, with a combined 59% actively buying. In contrast, while interest remains present in Hong Kong, Singapore, South Korea, and Taiwan, purchases are less frequent, suggesting a need for targeted conversion strategies.

Purchase Frequency

For many, luxury purchases remain infrequent, with over half (54%) rarely buying. However, a combined 37% make purchases quarterly or annually.

China stands out with a higher purchase frequency, where 44% buy monthly or quarterly. The other markets reveal a greater tendency for infrequent purchases, highlighting the need to incentivize more frequent transactions or focus on driving higher-value purchases.

Key Influencers

Product quality (61%) and compelling pricing or promotions (59%) are the top drivers behind luxury purchases. Brand reputation (43%) also plays a crucial role. This emphasizes the need to consistently deliver exceptional quality and value, while also cultivating a strong brand image.

In China, while brand reputation is important (53%), superior product quality is even more critical (64%). However, in Hong Kong, Singapore, South Korea, and Taiwan, price and promotions take centre stage (above 58%), underscoring the importance of offering competitive value.

Discovery Channels

Physical stores (49%) and social media (45%) lead the way in how consumers discover new luxury brands. Brand websites (39%) and word-of-mouth (25%) also play a significant role.

China shows a strong reliance on social media (62%) and online marketplaces (49%), while physical stores continue to dominate in Hong Kong, Singapore, South Korea, and Taiwan (around 45-53%).

This reinforces the need for an omnichannel strategy that seamlessly integrates online and offline experiences.

Online Trust & Value

An “authenticity guarantee” is overwhelmingly important for online luxury shoppers (83%), followed by free shipping/returns (43%) and appealing online offers (41%).

China and Taiwan place particular emphasis on authenticity (88%). While free shipping/returns are valued in Taiwan (54%), Hong Kong and Singapore place less emphasis on exclusive online offers or loyalty rewards.

Prioritizing these factors is crucial to build trust and encourage online purchases.

Building Loyalty

While a solid 51% of consumers are likely to repurchase from a luxury brand, a significant 32% remain neutral, suggesting moderate brand loyalty.

China boasts the highest repurchase likelihood (71%), while Hong Kong, Singapore, South Korea, and Taiwan show a more neutral stance. Singapore has a notable group (15%) who are unlikely to repurchase, indicating areas for improvement.

The Switching Point

Superior product quality (63%) and better pricing/promotions (60%) are the main reasons consumers switch luxury brands. Innovative designs (47%) also play a significant role.

In China, a desire for cutting-edge designs is particularly strong (62%). However, Hong Kong, Singapore, South Korea, and Taiwan place less emphasis on customer service as a reason to switch.

Loyalty Rewards

Personalized offers/discounts (63%) and loyalty points/rewards (56%) are the most preferred loyalty rewards.

However, China shows a stronger preference for exclusive access to new collections (51%), private events (34%), and complimentary services (51%). This suggests that loyalty programs should blend personalized value with exclusive experiences.

Conclusion

By understanding these key trends and nuances, brands can create targeted marketing campaigns that resonate with specific consumer segments. A focus on high-quality products, competitive pricing, and personalized experiences, delivered through a seamless omnichannel strategy, will be essential for success in the dynamic Asian luxury market. Leveraging these insights will enable brands to build stronger customer loyalty and drive sustainable growth.

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