luxury and upscale women's media brands

Luxury and upscale women’s media brands

A STUDYBY LAGARDERE ADVERTISINGWITH IPSOS

LUXURY ANDUPSCALE WOMEN’S

MEDIA BRANDS

By Lagardere Global Advertising with Ipsos

- November 2012-

Luxury and upscale women’s media brands 2

METHODOLOGY

Objective To understand the influence and complementarity of the print and digital versions of upscale women’s media brands in the luxury world

HowA varied methodology which partners a quantitative online survey with a qualitative questionnaire over the phone

Where7 countries : France, Germany, Spain, Italy, UK, US and China

+

WhoWomen who have purchased luxury goods in the past 12 months (At least 3 luxury fashion items or luxury accessories, or at least 1 piece of jewellery, or 1 watch). Only high end designers brands were suggested when selecting participants.


Is luxury now a global phenomenon?

Luxury: what role should the digital play?

The purpose and influence of upscale

women’s media brands throughout the luxury

worldPrint and digital: competitors or allies?

5

CONTENTS


Is luxury now

a global

phenomenon

?

PART1


LUXURY: THE SYMBOL OF ELEGANCE AND QUALITY ACROSS ALL COUNTRIES

Base: All respondents

E3. From the list that follows, please choose the values that you most often associate with luxury-13 values submitted

ELEGANCE AND QUALITYTop 2 characteristics associated with

luxury across all countries

PLEASURE SEDUCTION

“Luxury increases your social status; it makes others think that you are cool” Chen Yong, 32 yrs, China “Elegance, beauty, exclusivity, looking for something really unique and original" Maria, 47 yrs, IT

“Finest products, nice materials, pretty to look at, soft to touch, made by top designers, the best of the

best”. Amy, 30 yrs, US

N°3

+

less than 35 years oldSUCCESS / SELF CONFIDENCE / SEDUCTION

Luxury is never associated with TRADITION or INNOVATION


FRANCE AND ITALY REMAIN THE INTERNATIONAL SYMBOLS OF LUXURY

USEUROPE CHINA

E4. And which countries do you think best represent the essence and values of luxury? Base: All respondents

+

60%

52%

52%

55%

45%

43%

79%

63%

55%


CHANEL AND LOUIS VUITTON: EXPRESSIONS OF LUXURY WORLDWIDE


+E5. If you had to name your three favorite luxury brands, what would they be?

USEUROPE CHINA


HO. Do you think it is important to keep up with the latest trends in luxury goods? Base: All respondents

Keeping up with the latest trends is important:

54% 45% 89%

LUXURY: THE MUST-FOLLOW TREND ESPECIALLY AMONGST CHINESE WOMEN

Higher TOP50% of incomes*, Heavy Buyers**

Sources : *The baseline for the top 50% of incomes will change according to the country. **Who have purchased at least 3 categories of products, 3 times in the past year.

+

+


KEY POINTS - PART 1

Luxury: a global market. Chinese perceptions of luxury are becoming increasingly westernised

France and Italy, and their famous luxury brands, symbolize luxury across the globe

Luxury is associated with elegance and quality everywhere, but it can be still mingled with displays of

social standing in China


PART2

Luxury: what role should the digital

play?


PHYSICAL WORLD: THE FAVOURED MODE OF CONTACT WITH LUXURY BRANDS

H15 what other do you use to keep up with new developments in luxury? Base: All respondents

1. Shops2. Catalogues3. Articles and reports

1. Friends2. Shops3. Catalogues

1.Websites2. Women’s websites 3. Shops

Shops: + Higher TOP 50% of incomes

Friends: + > 45Yo

“I’ll go to the store and get the feel. I love feeling things, and from there I’ll make my decisions.” Constance, 40 yrs,

US


Base: All RespondentsH15 What other sources do you use to keep up with new developments in luxury?

48

40

35

35

33

28

26

26

24

19

15

13

12

47

35

29

28

57

22

16

16

21

9

12

22

13

52

47

45

61

44

49

35

17

55

46

38

33

34

Luxury shops

Luxury brand catalogues

Articles and reports on luxury brands

Luxury brands' websites

Your friends, family members, co-workers, etc.

Celebrities / IT girls

Street style, hotspots

Private sale sites

Women's general interest websites

Luxury brands' newsletters

Attending fashion shows

Social media sites

Blogs, newsgroups, forums

In %

Heavy buyers: all touchpoints

+

Chinese women multiply touchpoints to look for luxury trends

American women are more influenced by people around them

PHYSICAL WORLD: THE FAVOURED MODE OF CONTACT WITH LUXURY BRANDS


DIGITAL: A MUST

92%

93%

99%

“A luxury brand on the web is keeping up with the times”

A1. If a luxury brand has a web presence, would you say that the brand… Base: All respondents


DIGITAL: A MUST, ESPECIALLY IN CHINA

A1. If a luxury brand has a web presence, would you say that the brand…

Net Agree (%)

…keeping up with the times…improving its service…closer to you

93

99

89 94

75 95

9286

76

(n=2028) (n=828) (n=815)

In Europe and US : Closer to you: - 35 yrs

Improving its service: 35-44 yrs

“With the internet, you feel you are part of it– you feel in the know. You make

the effort to look. You feel the information has been sent to you specifically -

like an email”. Zhara, 34 yrs, FR

A luxury brand present on the web is…

+Base: All respondents


LUXURY BRAND’S WEBSITES: A KEY COMPONENT IN SALES

61%

61%

76%

People who use a website either to buy an item directly or to choose items they will buy

later in a shop:

A3. When you visit a luxury brand's website, it is generally to… Base: all respondents+


ALL RANGE OF LUXURY PRODUCTS ARE CONCERNED BY ONLINE PURCHASE

A4. Which of the following categories of luxury goods have you purchased online? Base: person who has already purchased the category of product in a shop or online.

Clothing

Shoes

AccessoriesHandbags

Jewellery, watches

48%

43%

50%

47%

41%

48%

46%

45%

48%

39%

57%

58%

64%

57%

49%

Net online purchase

+


60

68

55

SOME DISADVANTAGES TO BUYING LUXURY GOODS ONLINE


35

39

42

(n=2028)

(n=828)

(n=815)

A6. What keeps you personally from buying luxury goods on the internet?

Cannot try items on Risk of counterfeit items

+ > 45Yo

“I have a good overview of the products online. But it can’t replace a store where you are able to touch a product”. Corinne, 59 yrs, FR

“I don’t really like to buy my things online because I’m worried about fraud”. Liao, 31 yrs, China

China

US

Europe

70

42

47

Not as enjoyable as going to the shop

In %

+


KEY POINTS – PART 2

Physical world is the most engaging means of brand-customer contact

According to customers, a luxury brand without a website is drastically behind the times

Luxury brands’ websites are now a key element in the purchasing of luxury goods

Social networking is not yet as powerful a tool as the websites


PART3

The purpose and

influence of media

throughout the luxury

world


THE POWER OF UPSCALE WOMEN’S MAGAZINES

87%

85%

98%

Women of the target group who read at least one upscale women’s magazine :

(ELLE, Vogue, Marie Claire, Harper's Bazaar, InStyle)

H3. Please indicate how often you read each of the following upscale women’s magazines (ELLE, Vogue, Marie Claire, Harper’s Bazaar, InStyle). Responses: at least 5 to 6 times a year for the weeklies and/or 1 to 2 times a year for the monthly.

Higher TOP 50%

Heavy buyers

< 35 Yo

35-44 Yo+

+


”I NEED MY MAGAZINE IN ORDER TO DECIDE”

Higher TOP 50%

Heavy buyers

< 35 Yo

35-44 Yo

67%

59%

96%

Upscale women’s magazines have a strong influence on purchasers of luxury goods, especially in China


H6A. Would you say that reading the following upscale women's magazines influences your choices and your opinions on luxury goods? Could you list the top 2 of the most influent ones ? +Base: all respondents.

+


THE DIGITAL VERSIONS OF UPSCALE WOMEN’S MAGAZINES


HIGH VOLUME TRAFFIC TO UPSCALE MAGAZINES’ WEBSITES

58%

48%

95%

< 35 Yo

Heavy buyers

+H9. Do you visit one of the following websites (Vogue, ELLE, Marie Claire, Harper’s Bazaar, InStyle) at least once a month?Base: All respondents

+

Women of the target group who use at least one upscale women’s magazine website :



BUT AN INFLUENCE LESS IMPORTANT THAN MAGAZINES

48%

36%

94%

Influence of digital versions of upscale women’s magazines in the purchasing choices of luxury goods buyers


H13. Would you say that the digital versions of each of the following upscale women’s magazines, websites or mobile apps, influence your choices and your opinions concerning luxury goods ? +Base: all respondents


Base: total respondants

ELLE AND VOGUE: INFLUENTIAL WORLDWIDE IN LUXURY

H6A. Would you say that reading the following upscale women's magazines or their digital versions influences your choices and your opinions concerning luxury goods? Could you list the top 2 of the most influential ones ?

The top 2 most influential upscale women’s brand worldwide (Magazine+digital version)

(*ELLE, Vogue, Marie Claire, Harper’s Bazaar, InStyle)


Upscale women’s magazines and their digital versions are both powerful in the world of luxury, even

more for heavy buyers

But magazines have a stronger influence on choices and opinions concerning luxury goods

Young women (-35 yrs) are even more sensible to the influence of upscale women’s magazines

Amongst these titles, the famous global brands, Elle and Vogue, still stand out from the crowd



Print and digital: competitors or

allies?

PART4


65% 56% 97%

Base: readers or/and users of upscale women’s media brands (ELLE, Vogue, Marie Claire, Harper’s Bazaar, InStyle).

LUXURY BUYERS: BI-MEDIA USERS

+

34% 44% 3%

0.9% 0.5% 0.3%

Exclusively print

Exclusively web

A mix of print & web

Women of the target group who read upscale women’s magazine or/and their websites :



24

22

28

26

27

35

34

26

H14. Which of the following statements best corresponds to you when reading an upscale women’s magazine? Base: All respondents

You enjoy keeping up with luxury goods trends

You like seeing different luxury adverts, they help you form an opinion about which trends to follow

You feel like you are part of the exclusive community of the brand

You can dip into the world of luxury whenever you feel like it

You make a note of luxury items that you will buy in the shop later

You make a note of luxury items that you will buy from the brand's online shop

You can compare and contrast luxury items

You can discover new luxury brand products

42

43

36

31

33

36

4951

444743373843

50

55

51

52

58

57

54

48

44

41

MAGAZINES: A SENSORY EXPERIENCE - DIGITAL: A PRACTICAL EXPERIENCE

%More when reading an upscale magazine or when using digital versions?:

STRENGHT OF MAGAZINES AND DIGITAL VERSIONS

+

18

16

21

18

19

25

25

19

27

30

28

29

32

33

34

32

Print Web Print Web Print Web


PRINT AND DIGITAL: AN EFFECTIVE GLOBAL STRATEGY

“In the magazines I have the latest trends but I don't have all the additional information about the items. This I can find online”. Jana, 32 yrs, GE

The advantage of the magazines is that you have the professionals’ advice, while on the internet you have lots of opinions but you have no way of knowing the credentials of the person that has written the

comment. Fanny, 30 yrs, FR

“The photos are bigger and prettier in magazines than on the internet… but the items are not as trendy, not always as up-to-date as on the websites”. Daniela, 39 yrs, GE

“When I see an advert in a magazine, I go on the website to find out more about the item and its prices. Online searching is bound to happen at some point.” Maria, 47 yrs, IT

We might see something in a magazine, and then we’ll go online to see the whole range. Magazine is first, online is second. Tracey, 46 yrs, UK


THE POWER OF ADVERTISING


ADVERTISING IN UPSCALE WOMEN’S MAGAZINES: THE MOST ATTRACTIVE

Get your attention

Make luxury items

look good

Help you discover luxury brands

Make you want to go shopping for luxury goods

Image Awareness Traffic

“There are magnificent ad campaigns with gorgeous visuals.... Advertising really does

make you dream… I prefer paper because with a single photo they manage to create

something truly fantastic.” Emilie, 31 yrs, France

P1. Let’s look more closely at luxury goods advertising. Please give us your opinion on each of the following sentences. More when seeing an advertising in an upscale magazine. Base: all respondents.

Adverts in upscale women’s magazines…

Top 1

Top 2

+


Help you stay informed about luxury brand’s news

P1. Let's look more closely at luxury goods advertising. Please give us your opinion on each of the following sentences.Base: All respondents

(n=2028)

(n=828)

(n=815)

12

17

2

44

40

48

16

11

29

28

32

22

Neither

Both

Adverts on upscale women's magazine websites and apps

Adverts in upscale women's magazines

ON AND OFF-LINE ADVERTISING: AN EFFECTIVE GLOBAL STRATEGY

THE ADDITION OF DIGITAL ADVERTISING IMPROVES THE RESULT


THE GLOBAL BRAND


77% 70% 95%

% women of the target reading the magazine or using a digital version of

the ELLE

A POWERFUL MEDIA BRAND

E1. Now, let's talk about the "ELLE" brand in general, the magazine, the website and the mobile phone/tablet app. Are you a reader of the magazine and/or a user of the digital version ?

+


In %Net Agree

…inspires confidence

…is a reference point in the luxury world

…inspires you to dream

You feel attached to

74 94

79 93

67 89

58 87

77

72

64

63

…inspires you and gives you ideas 74 9071

(n=2028) (n=828) (n=815)

+ > 35 Yo

+ Heavy Buyers

+ 35-44 Yo

THE 360° ELLE BRAND: A WORLD-WIDE REFERENCE POINT

E1. Now, let's talk about the "ELLE" brand in general, the magazine, the website and the mobile phone/tablet app. Would you say that…. Base: All respondents.

…helps you make decisions about luxury goods 7

494

71


“ELLE has the newest products, and mixes high-street brands with designer”. Frances, 42 yrs, UK

“It gives good advice and there is information about

many products. I tend to trust the products that they

recommend and if I like it, I go and buy it…

perfumes for example”. Roberta, 29 yrs, IT

“ELLE, a very modern magazine, with up-to-

date ads. They are professional, they bring out

more trendy clothing styles, jewellery styles”.

Stephanie, 39 yrs, US

THE 360° ELLE BRAND: A WORLD-WIDE REFERENCE POINT

“About ELLE, I like the luxury brand ads and fashion

articles. They have nice people on the cover to

represent luxury brands. There are famous people that

already endorse brands”. Melissa, 27 yrs, US


THE 360° BRAND: A WORLD-WIDE REFERENCE POINT

“I often go on ELLE website, I can find additional

information, detailed info about the products, other

reportages about fashion, travel beauty which are not

necessarily in the magazine. It is very clearly laid-

out, the photos are very nice, luxurious, I like it

very much.” Stefanie, 52 yrs, GE

“ELLE website goes hand in hand with the

magazine. I liked the subtitles and the dropdown

menus. I find it complements the magazine because

they show what goes on behind the scene at photo

shoots…”. Melissa, 27 yrs, US

“ELLE website has more photos, and videos. It couldn’t

replace the magazine, it adds to it. It’s a

continuation”. Margaret, 40 yrs, US



Buyers of luxury goods are “bi-media”, they use a mixture of upscale women magazines and digital

versions

The classic beauty of advertising in women’s magazines is a very successful way to get the

attention of luxury clientèle…

…But the addition of digital advertising enhances the

result of the campaign

The ELLE 360° brand is still a reference point for luxury clientèle world-wide

Without a doubt, print and digital form a very effective combination


A STUDYBY LAGARDERE ADVERTISINGWITH IPSOS

THANK YOU FOR YOUR ATTENTION

By Lagardere Global Advertising with Ipsos

- October 2012-

luxury and upscale women's media brands

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