It seems like Singaporeans are no longer kiasu (afraid to lose out) when it comes to luxury brands. They now prefer quality and aesthetics when deciding on a luxury purchase, instead of the prestige and status associated with the brands.
According to a survey conducted by Mediacorp and luxury market research firm Agility Research and Strategy, more than half (59 per cent) said they buy luxury brands because of their high quality while 51 per cent said aesthetics is the most important consideration when it comes to a luxury brand purchase.
The survey was conducted with 1,000 affluent individuals who are defined as Singaporeans and Permanent Residents with a monthly household income of at least SGD7,500 (USD5,273).
The survey also found that a most of the respondents said they buy based on what they like and not what others think. They felt that recognition is only meaningful when it comes from people within the same social circles.
However, there is still a small group of affluent Singaporeans who are still brand-conscious and use luxury brands as validations of their social standings. About 38 per cent of respondents felt that it is important for people to recognise the brand they are using while another 31 per cent would want people to know the luxury brands they are buying.
These groups of people are made up of mostly younger individuals with higher incomes who prefer instant gratification over long-term wealth accumulation.
In general, the affluent Singaporeans are moving away from conspicuous consumption and this is in line with the general trend across Asia. “There’s been a general shift among affluent consumers across Asia Pacific over the past two to three years, where we see people getting a little more interested in experiences, rather than just buying luxury goods,” Amrita Banta, managing director of Agility Research and Strategy told Channel News Asia.