Luxury Brands - a Phenomenon in Asia

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Luxury Brands – The Rising Phenomenon in Asia Contrary to the traditional beliefs that Asians are conservative and skeptical towards materialism, according to Radha Chadha, author of The Cult of the Luxury Brand, Asia is currently facing a “luxeplosion” where millions of men and women aged 1830, are flocking to purchase luxury products from labels such as Burberry, Rolex, Louis Vuitton etc. This phenomenon that started off in Japan, is rapidly spreading to the rest of Asia, including South Korea, Taiwan, Singapore, and China. (Ravindran, 2007) Furthermore, sales of such branded goods carry on even in bleak economic conditions. This brings us to question why are millions of Asians, not all of them…show more content…
In fact, a study by ExactTarget found that 65% of online Americans have purchased a product or service as a result of receiving direct mail, rather than through marketing messages on Facebook (20%) and mobile marketing messaging (16%). (Epsilon Targeting, 2010) Thus there is likelihood that this may also be representative of the consumer behaviour in Asia. One significant characteristic of the Millennial is the intricate adaptation of technology and social media into their daily lives. This generation is as comfortable shopping online as well as physically, and can be easily connected and converted into loyal patrons through social networking if done so wisely. A report by Four Seasons Hotels and Resorts revealed that 78% of affluent consumers are active on social networks and 65% of affluent consumers say brands without a presence on social media are out of touch with consumers. (Four Seasons Hotels & Resorts, 2012) Hence, it is crucial that companies ensure that their social networking accounts such as Facebook are actively engaging and interacting with the consumers and target markets. (Chauhan, 2013) Apart from utilizing social media sites, luxury brands should also leverage on social video platform, such as having branded YouTube pages featuring interactive videos that promote and engage in selling the brand. Brands can also link the video to their commercial site where consumers can head
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