Today's consumers want more than Rolex, Vuitton, BMW

June 15, 2010

This is the first in a two-part series about changing consumer demands on the basis of surveys by Trendwatching.com. ― ED.

By Cathy Rose A. Garcia
Staff Reporter

There was a time when all you needed was a Louis Vuitton bag, a Rolex watch or a BMW car to show off your wealth and success. But these days more people are getting their ``status fix'' in different ways.

In its recent report titled ``Statusphere,'' independent trend agency Trendwatching.com said consumers are showing their status by buying more expensive and rare items, establishing more online connections, becoming more green and aiming for more unique experiences.

Traditionally, consumption has been a key indicator of success, which is why companies have continued to provide consumers with goods, services and experiences to flaunt their wealth and success.

``Mature consumer societies are changing, and so is the `statusphere' an increasing number of consumers are no longer obsessed with owning or experiencing the most or the most expensive. Our definition of `statusphere': As consumers are starting to recognize and respect fellow consumers who stray off the beaten consuming-more-than-thou-path, 'new' status can be about acquired skills, about eco-credentials, about generosity, about connectivity,'' Trendwatching.com said.

Bigger & better

After the economic recession, consumers are opening their wallets for luxury goods once again, but they're becoming picky about the brands they choose.

``When individuality is the new religion, owning or experiencing something no one else has is the ultimate status fix,'' Trendwatching.com said.

Louis Vuitton's popularity in the general public might still be strong. In Korea, Louis Vuitton posted 360 billion won ($355 million) in sales in 2009, 30 percent higher than the previous year.

However, fashion-savvy, upscale shoppers are now going for cult fashion brands that have not yet been discovered by the general public. At the Galleria department store in Apgujeong, little-known designer brands like Nancy Gonzales and Stefano Ricci are selling well among the Gangnam crowd.

Luxury vehicles are also doing extraordinarily well in Asia. In China, sales of Mercedes-Benz and Rolls Royce cars have soared in the first quarter of the year.

Similarly, BMW Korea has experienced strong demand for its 5 series such as the 523i or 528i. More than 3,000 people lined up to buy the 523i but BMW Korea could only supply 200 cars last month.

Interestingly, an increasing number of people are trading luxury goods for unique experiences, which are more affordable and are not as commonly known.

``As experiences and non-consumption-related expenditures take over from physical (and more visible) status symbols, consumers will increasingly have to tell each other stories to achieve a status dividend from their purchases. Expect a shift from brands telling a story, to brands helping consumers tell their own status-yielding stories to other consumers,'' Trendwatching.com said.

There are still a handful of objects of mass desire, such as Apple's iPad, which are being customized to suit an individual's needs and tastes.

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