Another Chanel clutch under your Christmas tree? Probably not

IT does not matter whether you’ve been naughty or nice; you are probably going to have to settle for a non-luxe present this festive season.

With the doom, gloom and unemployment COVID-19 has gifted us this year, Malaysians are shopping prudently for themselves and their loved ones.

Premium luxury outlets are not on the do-do list for most shoppers, instead their carts are going to be filled with online purchasers.

Referencing the luxury industry in Malaysia, Isentia’s associate insights director (Malaysia) Ho Paik San noted that consumer confidence has slowed down as the market endured the economic recession and declining outlook of job prospects.

“The demand for luxury brands in Malaysia has been dampened as countries continue to close their borders for tourism,” she pointed out.

Due to the drastic decline in foreign tourists, Ho said luxury retailers are moving to online shopping, and this mode of shopping will become another major distribution channel for luxury goods in the country.

Although Southeast Asia’s large population and its growing purchasing powers have been boosting the growth of luxury brands in the region, 2020 has been a reset year for the finer things in life.

Lack of travel, cautious spending, and a surge in online shopping has demanded agility from luxury brands.

Instead of countless shopping flyers in the mail, Isentia uncovered luxury-related discussions in mainstream and social media across major Southeast Asians countries – namely, Malaysia, Singapore, Vietnam, the Philippines, Indonesia, and Thailand.

Drawing from media analytics data obtained between October 1 and November 15, the leading integrated media intelligence and insights discovered buying patterns shifting with religious tensions in the region.

For example, the dissatisfaction towards French President Emmanuel Macron’s speech on fighting “Islamist separatism” angered Muslims worldwide and led to the dominance of mainstream media coverage on the boycotting of French luxury brands like Louis Vuitton, Dior, Yves Saint Laurent and Chanel in countries like Malaysia and Indonesia.

How did our neighbours fair?

Social media conversations for the top luxury brands in the Philippines was primarily driven by discussions on local and K-pop celebrity brand ambassadors.

Interestingly, Singaporean netizens mentioned a range of luxury brands as part of discussions on life decisions and rituals – what, when and where should luxury brands like Tiffany & Co, Gucci and Louis Vuitton be bought or gifted for dating, marriage proposals and work purposes.

While coverage from digital journalism and social media conversation in Vietnam alluded to the growing demand for well-made and meaningful luxury items. Vietnamese consumers are beginning to reject fast fashion and seek the image of success/status by owning luxury.

Although 2021 is not poised to see skyrocketing purchases of luxury items, safe to say, consumer spending for luxury items remains resilient in this side of Asia. – Dec 22, 2020

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