Global luxury brands survey shows four in ten Canadians feel guilty if they treat themselves and define luxury as "everything over and above what I need"


20 January 2010

TORONTO — Global market intelligence firm Synovate today released data from a global study on luxury brands that showed three quarters of Canadians treat themselves to luxury every now and then, but two-fifths feel guilty about it.

Rob Myers, Managing Director of Synovate Canada, said compared to other major cities around the world, Canadians are considered least into brands.

"Canadians do buy luxury items but in general are more conservative and pragmatic in their purchases than some other nations. Quality is the most important attribute for Canadian shoppers and if the brand offers the quality we want, then we will buy it!"

"Of course the recession has created challenges for luxury retailers in Canada since most consumers are cutting down expenses and are either saving their money or looking for less costly product alternatives."

This Synovate survey takes a look at luxury dreams, extravagance, indulgence and the finer things in life. What do people feel when they buy luxury? How do they treat themselves? And what is their luxury brand shopping style? The company spoke with over 8,100 people across 11 very different markets, including 984 respondents in Canada.


A lingering look at luxury

But first, what is luxury? Do people define it as the feel of cashmere on your skin, the joy of time to spend as you wish, or the pleasure of showing your success in life?

The top three results on what luxury means to Canadians were:

  1. Luxury is everything over and above what I need – 47%
  2. Luxury appeals to my senses... it is beautiful fabric, delicious food and so on – 15%
  3. Luxury is time to do exactly what I want – 14%

It appears that luxury is something Canadians see above and beyond the fulfillment of their ongoing needs. They very much appreciate the material, craftsmanship, creativity, taste and delicacy of the luxury item once owned.


Guilt-edged indulgence

You could argue that the overarching purpose of luxury is to make you feel good but not for 40% of Canadian respondents.

Three quarters of Canadians treat themselves with luxury every now and then, but 40% of respondents in Canada feel guilty about it. So, why are consumers conflicted on purchasing luxury?

Myers said: "It's their belief and their desire of wanting it that's conflicting. Canadians believe that luxury is something you can spend on when you have extra cash or can afford something of better quality but also feel it's more acceptable to buy something 'needed' for the family than it is to indulge yourself in any way."


Logo love

For many, luxury just is. You should not show a logo. For others, it's all about the logo. Overall, 39% Canadians respondents prefer to buy non-logoed items, 34% would choose logoed items and 27% don't know.

Showing a classic divide in luxury attitudes, the markets that most prefer logoed items are all places where it is acceptable to flash purchases (and that's sometimes the point!), topped by India (79%), Hong Kong (68%) and the UAE (58%).


Is it for pleasure or treasure?

So what do people most enjoy about buying and owning luxury? Do they see dollar signs and brands, or simply feel fabulous, or both? The Synovate survey showed that the top three overall pleasures in buying and owning luxury for Canadians are:

  1. It makes me feel special to own it – 39% (compared to the US at 45%)
  2. The way it is made or feels – 31% (compared to the US at 32%)
  3. The reputation of the brand – 6% (compared to the US at 6%)

Myers said: "Luxury is a personal thing to Canadians. It is largely based on the way it makes us feel as individuals. However lets' not ignore the fact that we do live in a commercial society and part of the feel good factor is the status one may achieve by owning that little piece of luxury."


Shopping and spending style

Once you have decided to buy luxury, do you buy on the spot, or research extensively, or land somewhere in the middle? Synovate asked people in Canada their top shopping style and, chosen by 34% of all respondents, was, "I research every other alternative and then buy the item of best value to me."

Other prevalent shopping styles were:

"When a decision is made, there's no turning back," claims Myers. "The researching, walking away, and frequent visits just give you more time to think through the buying process and also to get agreement from family or friends that the item is a 'good buy'. The explosion of internet shopping and product research sites has also really leveled the playing field and made research for the consumer easy and effective."


Luxury with all the money in the world...

Pretending for a moment that money was no object, Synovate asked people what one luxury brand item would give them the most pleasure to purchase.

Obviously a 'big ticket' boosts the chance of someone choosing an item. With that in mind, half the Canadian population chose a car as their top choice, followed by others (9%), designer clothing and nothing, I would not purchase any of these items (8%).

Myers, who also heads up the Synovate Motoresearch in North America, said: "There are some who say the latest financial crises is the end of the automotive market as we know it. As you can see consumers still see a car as their number one luxury spend. Until consumer sentiment changes and other modes of transportation become real alternatives the car will remain the number one status luxury item in most markets."


...and luxury within your means

The survey also asked about 'little' luxuries that people are most likely to purchase, finding that food and beverage luxuries topped the list.

The top three overall choices for Canadians were:

  1. Food or beverage item - 26%
  2. None of these - 18%
  3. Sporting equipment or clothing - 16%

Myers explained that, "Food or beverage items can be shared with friends and family. Since Canadians are very family oriented and love to hang out with friends, this past time is more enjoyable and valuable then spending on an item that only you can enjoy. It seems that Canadians are very practical and aren't as materialistic as other nations when it comes to purchases."


Curiosities


Contact(s) for this press release


Henrietta Sung
Synovate Marketing Manager

Telephone: +1 647 837 5053
Mobile: +1 647 241 4025 Send an email

 



About the Synovate In:fact global study on luxury brands

This Synovate In:fact survey on luxury brands was conducted in October 2009 across 11 markets – Brazil, Canada, France, Hong Kong, India, Netherlands, Spain, Taiwan, the United Arab Emirates (UAE), the United Kingdom (UK) and the United States of America (US). It covered over 8,100 urban respondents.

For more information about this study, visit www.synovate.com/consumer-insights/.



About Synovate

Synovate generates insights to help clients drive competitive brand, product and customer experience strategies. Now part of Ipsos, with offices in over 80 countries, our approach combines best in class global research capabilities with personalised service, local knowledge and the flexibility to create teams and processes that meet clients' specific requirements. At Synovate, our clients sit at the top of our organisational chart, driving us to continually develop more innovative research solutions that predict actual business outcomes.

For more information on Synovate visit www.synovate.com.