Buyers leaving “fast luxury” behind for fewer, better things.

“Luxury: Considered”, a global report launched today by De Beers Group, highlights a marked shift from conspicuous to discerning consumption in luxury as the global economic climate worsens and consumer fatigue with mass marketed luxury products escalates.

Authored by Ledbury Research on behalf of the De Beers Group, the report reveals that the global luxury industry, consumer behaviour experts and NGOs are witnessing new, more sophisticated purchase drivers in developed markets, which are:

• Increased scrutiny of product quality, authenticity and value for money
• A greater appreciation of artisanship and fine craftsmanship
• Renewed calls for exclusivity and deeper brand experiences
• A heightened awareness of social and environmental responsibility

The report argues that while the wealthy in emerging markets are still driven primarily by conspicuous consumption – i.e. status and prestige – they are increasingly being influenced by their Western counterparts and their purchasing patterns are transforming rapidly.

This has significant implications for the way luxury players do business in 2009 and beyond according to industry experts, namely:

• Discerning luxury consumers will create a market for more high-end, high-experience products presenting new business opportunities for brands
• As luxury players transform and new niche labels emerge capitalising on the opportunities, competition for luxury spend will intensify
• Product sourcing and supply chain standards will come under increased scrutiny as further demonstration of the luxury commitment to excellence
• Success will lie with the brands that can drive customer loyalty by responding to the demands of the new, discerning consumer

Stephen Lussier, Executive  Director of De Beers Group, said: "In uncertain times, we see signs that luxury consumers typically gravitate toward quality, toward fewer but better things that represent genuine value, and deliver on a promise that endures over a lifetime.

"This dynamic shift will have a lasting impact on the way luxury companies do business. This is particularly relevant to De Beers Group because we believe diamonds occupy a unique role in this new reality. 

"The value of diamonds endures - they are crafted with skills acquired over generations, are savoured over a lifetime and can be worn and enjoyed season after season.”
 
“Luxury: Considered”  is based on the expert insights of a bespoke panel of independent, senior executives from major global luxury brands, consumer trend watchers, NGOs and trade associations including Michael Kowalski, CEO of Tiffany & Co., Mohan Murjani, Chairman of the Murjani Group, Assheton Carter Ph.D., Vice President, Corporate Community Engagement, Pact Inc and Michael Rae, CEO of CRJP.

- Ends -

Notes to editors:

1. In total 21 interviews were conducted during Q3 2008, with conversations lasting up to one hour. The findings from these interviews have been supplemented by secondary research on the luxury sector from a range of respected third-party sources such as Barclays Bank, Merrill Lynch and Globescan, the public opinion and stakeholder research consultancy.

2. The panel of experts comprises:
a. Sylvie Benard, Environment Director, LVMH
b. Pamela Caillens, Corporate Responsibility Director, Cartier
c. Assheton Carter Ph.D., Vice President, Corporate Community Engagement, Pact Inc.
d. Gaetano Cavalieri, President, CIBJO
e. Radha Chadha, Author: The cult of the luxury brand
f. Francois Curiel, Chairman, Christie’s Europe
g. Domenico De Sole, Chairman, Tom Ford
h. Vanessa Friedman, Fashion Editor, Financial Times
i. Divia Harilela, Fashion Editor, South China Morning Post
j. Mark Henderson, Chairman Savile Row Bespoke Association & CEO Gieves &  Hawkes
k. Tamar Kasriel, Founder, Futureal
l. Michael Kowalski, CEO, Tiffany & Co.
m. Stephen Lussier, Executive Director, De Beers Group
n. Catherine MacDonald-Keir, Editor, Luxury Briefing
o. George Morgan-Grenville, Group Chief Marketing Officer, Abercrombie & Kent
p. Simonetta Morrison, Worldwide Merchandising and Marketing, Women’s Leather Goods, Salvatore Ferragamo
q. Mohan Murjani, Chairman, Murjani Group
r. Frankie Ng, Executive Vice President Consumer Testing Services, SGS
s. Michael Rae, CEO, Council for Responsible Jewellery (CRJP)
t. Frank Rejwan, COO, Quintessentially
u. Dana Thomas, Author: Deluxe - How luxury lost its lustre

About De Beers Group
De Beers, established in 1888, is the world’s leading diamond company with unrivalled expertise in the exploration, mining and marketing of diamonds.  De Beers, and its joint venture partners, operate in 25 countries across five continents employing around 20,000 people.  From its mining operations across Botswana, Namibia, South Africa, Tanzania and Canada, De Beers Group produces and markets approximately 40 percent of the world’s supply of rough diamonds. 

As part of the company’s operating philosophy, the people of De Beers Group are committed to living up to diamonds by making a lasting contribution to the communities in which they live and work. De Beers Group encourages sustainable working to ensure long-term positive development for Africa, and returns approximately US$4.7 billion to the continent every year.  For further information about De Beers Group visit www.debeersgroup.com.

About Ledbury Research

Ledbury Research is the leading research agency that specialises in helping brands who market and sell to affluent consumers around the world. Ledbury has developed a unique expertise in connecting with these hard-to-reach, yet crucially important and influential individuals, and counts amongst its clients many of the world's top luxury goods brands and wealth management firms.

Aside from consumer research assignments, Ledbury’s Industry Research team conducts extensive secondary and industry research projects, and produces High Net Worth – a unique monthly publication that provides a digest of data, trends, insights and opinions about the wealthy and the industries that serve them.

Ledbury has an unrivalled reputation within the luxury goods sector, where it is seen as a leading authority and go-to firm for facts, figures and analysis of trends. It works closely with the Corporate Citizenship Company, a research consultancy that provides the creative strategy, management consulting and two way communications to enable companies to be a social, economic and environmental force for good.