back to the list send to a friend print


- 4 Jun 2010
- by
- by

Japan's High Net -Worth Consumers Reveal who’s Ticking their Luxury Boxes


Which brands are retaining their appeal in the increasingly thorny Japanese market?
The ‘Luxury Brand Status Index’ (LBSI) survey offers some answers.

Arguably there are many ways to measure the value of a brand, but the independent, New York City-based Luxury Institute has a unique approach- go straight to the horse’s mouth and ask for the unbiased ratings of wealthy Japanese consumers.

For the latest LBSI survey, 600 elite participants (half male, half female, but all with a minimum household income of $165k) rated brands in five product areas: Ready-to-Wear Women’s Fashion, Women’s handbags, Women’s shoes, Ready-to-Wear Men’s Fashion and Men’s shoes. Four key criteria were addressed: Consistently Superior Quality; Uniqueness and Exclusivity; Customer Service and Being Consumed by People Who Are Admired and Respected. And the top performing brands were given the superlative accolade- the ‘Best of the Best’.

So, according to the LBSI survey which brands have managed to sustain their desirability in the Japanese market?

Unsurprisingly it’s the big names that dominate the leader board. In line with their recent encouraging sales results, Hermes emerged in the top three in every section, bar Men’s Shoes. Chanel, Giorgio Armani and Ferragamo were also dominant. Although they were trumped by footwear specialists Christian Louboutin, John Lobb and Testoni in both Women and Men’s Shoes. It seems that in certain cases connoisseurship and specialisation win over bigger scale and more diversified branding clout.

Alluding to the cloud which has been hanging over the Japanese luxury market in recent times, Milton Pedraza , CEO of the Luxury Institute explained why such rankings are important indicators by reminding market observers that“Japan may be a challenging market for luxury, but it is still a huge market compared to most other geographies.”

His advice for staying ahead in the somewhat “stagnant” Japanese luxury game?
Think beyond the quality of product and instead offer “extraordinary customer experiences”.

It seems that while innovations in customer experience are undoubtedly key to romancing the Japanese consumer, a strong heritage and a distinctive brand DNA are still the most attractive qualities.

Luxury Institute News Release, June 2010