Imported Luxury Brands Market in Japan: Key Research Findings 2018
Yano Research Institute (the President, Takashi Mizukoshi) has conducted a survey on the domestic market of imported luxury brands and has found out the present status, the trends of the brands, and the future outlook.
The domestic imported luxury brands market size (major 15 items) in 2017, based on the retail amounts, rose by 3.4% from the previous year to attain 2,299,900 million yen, turning for the better once again from a scale down in 2016. This is regarded to be affected not only by recovery of inbound tourism demand, but also by the consumption of luxury brands by the domestic customers, comprised mostly of wealthy population, having kept the same level as the previous year.
In addition, 2017 was the year when environmental factors existed, i.e., risen stock prices and increased inbound tourism, and also when the strategies by luxury brands for attracting the millennials, the next-generation acceptors of luxury brands, have expanded at once. While the market has been invigorated, the brands have shown novelty aspects in their new promotions, which favorably influenced not only the new customers (millennials) but also the conventional customers (both the wealthy and some of middle-income population).
* The millennials, though there are different theories, are defined in this research as the generation of people born in the period between 1980s and 1990s, and left schools and went out into the world around the year 2000. As of 2018, they are between in their early twenties and in their latter half of their thirties.
The common challenge for every luxury brand is to acquire the demand of the millennials who are considered as their next-generation acceptors. The recently-talked-about strategy to acquire the millennials is different from the rejuvenation strategy conducted by every brand over and over, in that Creation (products) and Communication (utilizing SNS or SNS-conscious) have been drastically innovated.
The millennials tend not to repeat buying things or to buy vastly expensive products like the conventional buyers of luxury brands do. However, those brands favored first by the millennials tend to be accepted widely by the conventional customers later on, though it may take time until acceptance. In short, how to be liked by the millennials is considered to be a great importance in developing a brand marketing strategy that works now and also for the future.
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