MARKETING/DESIGN/CONSUMER TRENDS/INSPIRATIONS Cognac & Brandy News for Consumers & Industry Experts
Yearly Sales of Deluxe Experiences—from Art Auctions to Spas to Safaris—Are Growing 50 Percent Faster Than Sales of High-End Goods, Says New Report from The Boston Consulting Group.
The shift from owning a luxury to experiencing a luxury is accelerating—and many providers of high-end goods such as watches and handbags may soon miss out on a huge growth opportunity if they don’t get smart about their customers’ new inclinations.
That’s one of the key findings in Luxe Redux: Raising the Bar for Selling of Luxuries, the latest report on global luxury markets from The Boston Consulting Group (BCG.) The research behind the report shows that experiential luxury now makes up almost 55 percent of total luxury spending worldwide and, year on year, has grown 50 percent faster than sales of luxury goods. Even in brand-obsessed China, where personal luxury goods serve as a strong badge of status and success—with sales surging 22 percent annually—experiential luxury dominates, growing at 28 percent each year.
The business of luxury experiences is by no means limited to exclusive art, safaris, and spas. Some hospitals offer deluxe accommodations—with butlers, specialty chefs, and marble baths—while some airlines are starting to offer private suites, and some luxury high-rise apartment buildings are featuring movie-screening rooms and virtual-golf facilities.
Four trends are driving the move toward experiential luxury:
Leading providers of luxury goods are starting to catch on—albeit cautiously. Examples include:
But BCG argues that such efforts are too few and too hesitant. The shift toward experiential luxury will continue, and, providers of deluxe products must—at the very least—keep pace with this important consumer trend.
Cognac can be owned but it must be personally experienced to be truly understood and consequently fully appreciated. ‘Experience Cognac’ is a clever idea which purpose is to initiate this concept of experience. See http://www.experiencecognac.com
I think this report on luxury consumption from BCG highlights the current trend of living rather than being which also applies to cognac. Cognac is more than a drink but a lifestyle and I hope to see an increasing number of cognac bars eager to represent the diversity of cognacs.
Source: BCG Press Release: a copy of the report can be downloaded at www.bcgperspectives.com.