Publicly available knowledge on the luxury market is typically global in nature, or focuses only on the big markets in Asia like China. However, Southeast Asia holds opportunity. This deck has been prepared specifically to provide some insight to mid-range luxury brands looking to enter the Southeast Asian markets. PLEASE CREDIT AUTHOR AND BBDO SINGAPORE IF YOU WISH TO REUSE THE INFORMATION IN THIS DECK. Thanks!

1. S.E.A. LUXURY MARKET
TREND REVIEW
22 July 2013
Tan Wee Hoon
Planning Director
BBDO Singapore
weehoon.tan@bbdo.com.sg

2. MARKET SIZE OVERVIEW
Source: Bain & Company
• Singapore remains major
regional hub (8th largest luxury
destination worldwide), including
spending from Chinese tourists
• Thailand (Bangkok), Malaysia
(Kuala Lumpur) relevant for
domestic spending
• High potential amongst growing
pool of HNWI in Vietnam (Hanoi,
HCMC) and especially Indonesia
(Jakarta) – fastest growth of
HNWI worldwide, set to triple
to nearly 100,000 by 2015
(Source: CLSA, Julius Baer Bank)

3. 1. NICHE LUXE
ABOUT:
Niche luxury brands are growing in markets like Singapore and
Malaysia, as luxury consumers in these markets mature and a
more discerning segment – influenced by their brand
discoveries online/on their travels – emerges.
WHY:
Mainstream luxury brands lose appeal amongst these
discerning consumers who are not driven by brands as
badges. They seek to “be in the know” with brands that
carefully maintain their “best kept secret” appearances, while
being no less luxurious.

4. 1. NICHE LUXE
Judith Leiber, the brand most
famous for its Swarovski-
encrusted cupcake clutch in
the show Sex And The City,
opens store in Kuala Lumpur in
Jan 2013
Jo Malone, niche perfume brand
from London (now owned by
Estee Lauder) famous for pairing
unusual ingredients and creating
versatile fragrances that can be
mixed and blended to create
unique scents, opens standalone
boutique in Singapore late 2013
EXAMPLES:
Carrie K, Singapore’s
home-grown artisan
jewelry brand founded by
an ex-advertising
executive, has multiple
distribution channels that
has helped to grow the
business both locally and
regionally – boutique,
brick-and-mortar stockists,
online retailers

5. 1. NICHE LUXE
LEARNINGS:
1. Entering new markets positioned as a lesser-known
“niche” brand (even if more well-known in other markets)
can actually help grow a brand through discerning luxury
customers looking for alternatives from the mainstream.
2. Be clear what is that special something your brand offers,
and if you have a claim to fame, flaunt it!
3. Creating word-of-mouth through influencers, and
establishing online presence both in terms of
communication and distribution is crucial.

6. ABOUT:
Even as SEA markets see more flagship stores of big brands
opening in luxury-dedicated malls, discerning luxury
consumers are looking to a growing number of multi-label
retailers for their curation of the fresh and unique – from
fashion to beauty to furniture and other lifestyle goods.
Whether they are local independents or global chains, these
luxury curators are a great asset to niche brands.
WHY:
To keep their customers’ appetite for non-mainstream luxury
satiated, multi-label retailers are constantly on the look-out for
new brands to feature. Independents in particular are usually
discerning luxury consumers themselves, with an
entrepreneurial vision to support brands with a difference
(local, eco, etc.).
2. CURATED LUXURY

7. 2. CURATED LUXURY
EXAMPLES:
Galeries Lafayette
recently opened in
Jakarta, supporting
a range of niche
brands that
are exclusively
available at
their stores
Sephora – a must-stop
for beauty consumers
looking to discover new
brands – opened in
Singapore and Malaysia
and is set to expand to
the rest of SEA
Strangelets is a
quirky independent
shop in Singapore
with an eclectic
mix of lifestyle
offerings
Beauty box
providers like
Singapore’s Vanity
Trove provides a
new form of luxury
curation
Owned by local
designer Farah Khan,
M Store in Kuala
Lumpur is a multi-label
boutique supporting
local and niche
designer brands
The Selected
Shop in Bangkok
is a new concept
store curating the
best in emerging
Thai talent and
limited edition
international
lifestyle products

8. LEARNINGS:
1. Riding on the brand of a well-regarded luxury curator is a
good way to enter a new market, offering a “taster” to
luxury consumers and allowing the brand to “test-market”
before investing in further distribution infrastructure.
2. Understanding the vision and philosophy of the curator
brand and what your own brand brings to the table is key
to getting onto the curator’s list.
3. Increasingly, curator stores offer products crossing
categories (e.g., Strangelets offers items from jewelry to
clothing to homeware and popsicle!), but with a common
thread in either philosophy or design aesthetics – evaluate
where your brand stands, beyond its product category.
2. CURATED LUXURY

9. 3. LUXURY FOR LESS
ABOUT:
Southeast Asia has always faced counterfeits and grey markets
for luxury goods. Now, there are even more ways for consumers
to shop for their favourite luxury brands – niche or mainstream
– at a discount. As avid luxury consumers turn their passion
into online business ideas, they are allowing others to enjoy
luxury for less by renting, buying pre-loved items or enjoying
exclusive online membership discounts.
WHY:
Growth of well-educated, internet-savvy middle-class has
increased proportion of Gen Y and Z with appetite for luxury.
This generation’s demand for uniqueness (niche brands),
24/7 availability (online shopping), coupled with lower
spending power has created a big opportunity for online luxury
entrepreneurs.

10. 3. LUXURY FOR LESS
Singapore-based Clout
Shoppe, like competitor
Reebonz, holds pop-up
sales for members with
heavy discounts on
branded goods and
second-by-second count-
down to the end of each
sale. They ship to other
markets in Asia. They also
offer installment payment
plans and pre-loved items
EXAMPLES:
Jakarta-based Banananina uses
Facebook to announce availability
of new items along with the prices,
offering an option for consumers to
buy online or offline. Malaysia-based
ImpianWanita does the same for
cosmetics and fragrances, offering
a wide range of niche brands not
available in the stores
BBM Group buying: Savvy luxury
consumers in Indonesia turn their travels
to the US/Europe into buying trips for
friends, taking advantage of the cheaper
prices overseas, and mobile social
networking at home
Bangkok-based
Siam Borrow Bag offers a
rent-instead-of-buy option
for fashionistas

11. 3. LUXURY FOR LESS
LEARNINGS:
1. Luxury-for-less players can be either a threat or
opportunity for luxury brands – they are not going away,
and will instead grow, so brands need to find ways of
working with them.
2. Niche brands can help consumers discover them through
co-marketing with these players, but in order not to erode
brand equity, choose the partners carefully, and focus on
offering experiential, service or other added value to
differentiate non-discount brick-and-mortar channels

12. 4. MASSTIGE
ABOUT:
This is the opposite of “luxury for less”. Brands are giving a
luxe twist to everyday products and charging higher than
normal prices, albeit still affordable by “luxury” standards.
WHY:
With growing affluence, SEA consumers are trading up in
their consumption of everyday goods and developing an
appetite for little luxuries they can afford.

13. When French patisserie
Laduree opened in
Singapore, 650 customers
were served on opening
day, breaking world record.
And the famous macaroons
don’t come cheap – they
each ranged from SGD3.60
for a regular macaroon, to
SGD7.60 for the ones luxed
up with gold leaf.
EXAMPLES:
4. MASSTIGE
Who knew hairbands could
be so luxurious? Malaysian
designer brand Sereni &
Shentel offers customers
the chance to design their
own hairband online, to the
tune of an eyebrow-raising
RM129 (for a hairband!) –
but it’s affordable chic in
comparison to traditional
luxury brand/items.
In Singapore, Kerbside
Gourmet has given
takeaway street food a
gourmet twist, and even
added a social cause to it –
to solve hunger due to
poverty – with its policy of
“buy one, give one”. For
every meal it sells, it gives
away a meal to the
underprivileged.

14. LEARNINGS:
1. Giving regular products a “luxe-up” can up their novelty
factor and attract impulse buys from emerging luxury
consumers keen to own a little piece of “luxury”.
2. This strategy could also be used to increase sales during
festive periods or special occasions, when consumers are
looking for gift ideas that would impress their recipients.
4. MASSTIGE

15. 5. BEYOND BLING
ABOUT:
While the glamour of high-end branded goods continues to
drive developing luxury markets, a new approach to luxury is
emerging in the more developed markets. Brands that spell
eco-chic, socially-responsible luxury or experienced-based luxe
are building affinity with the more well-heeled consumers.
WHY:
As luxury consumers mature, the “feel-good” factor no longer
comes from mere acquisition of the product, but from
unforgettable memories of experiences, or from knowing
their luxury spending is also doing good.

16. Malaysia’s Tiny Tapir
offers eco-friendly
products for babies (like
the above reusable diaper
priced at RM95) and
moms, as well as home
care items, travel friendly
products like reusable
bottles, and tools for the
gardening enthusiast.
Started by expats, they
initially produced
environmentally safe
alternatives for
baby clothing
EXAMPLES:
5. BEYOND BLING
Johnny Walker’s John Walker &
Sons Voyager is a great example of
experience marketing. The luxury
yacht will set sail from Shanghai in
Sept and sail through to iconic
events in Asia, where the most
progressive individuals in the
region will be invited aboard to
experience the pinnacle in luxury
craftsmanship and to celebrate the
launch of its new triple malt
One of Indonesia’s biggest travel
agencies has created the for-invitees-
only luxury e-commerce venture
Bobobobo, which offers unique, luxury
experience packages for travel
and city jaunts, as well as a small
selection of luxury items
Bisou Bon Bon and Bisou Rose in
Malaysia is a store that believes in giving
back –owner Shelby Kho sells bath
materials and soaps made from natural
ingredients, while ensuring a portion of
the profits is donated to charity

17. LEARNINGS:
1. Discerning luxury consumers don’t just buy into the
“what” of a brand, but the “why” of a brand – the values
you stand for.
2. Be clear about your brand purpose is, and communicate
it through everything you do. Johnny Walker, for
example, which is a visionary brand that believes in
“changing the game”, chose a highly experiential way
to engage with game-changers amongst their
customers and prospects.
4. BEYOND BLING