and sophisticated luxury consumers in the world. They also purchase the most
expensive products such as limited edition accessories and off-the-catwalk
creations. Russian luxury consumers have a preference for products made
with special materials such as pure gold and diamond encrusted hardware
finishing in leather goods. They have been described as daring in their
portrayal of their fashion tastes, with tendencies of being obsessed with
luxury. Russian consumers are likely to replace Japanese consumers in luxury
expenditure.
Several luxury brands are already present in Russian cities notably
Moscow and St. Petersburg and more brands and luxury departmental stores
including Britain’s Harvey Nichols are planning expansion into Russia. The
country is also nurturing home talent and held its first Russian Fashion
Awards in 2005.The future luxury fashion consumer
There is no doubt that the luxury consumer will continue to be highly sophis-
ticated, stylish and informed. The current luxury consumer can comfortably
navigate around the luxury terrain and expertly position luxury and mass-
market brands in a hierarchical order according to their values and offerings.
This clear frame of reference has not been witnessed in the luxury consumer
landscape until now.
In the future, consumers’ awareness of their self-worth will continue to
increase, and they will know exactly what they want and where to find it.
They will no longer look to luxury brands to define themselves but will them-
selves determine the scope of luxury brands that will fit into their self-image
and lifestyles. They will recognize their ownership of the power to determine
their choice of luxury brands, and will also become savvier through an
increased global and open outlook.
In addition, new technologies will continue to influence luxury consumers,
and in addition, new avenues of shopping such as the Internet, mobile phones
and possibly the iPod will play a key role in the way consumers view luxury
shopping. This will make them even more demanding of instant gratification
and innovative offerings, and expecting to be marvelled by every product and
service of a luxury brand.
Another important factor that will drive the future behaviour of the luxury
consumer is the increasing influence of the temporary-ownership culture.
Consumers will become more disposable in their attitude to general consumer
goods and this will also transfer to luxury goods, albeit on a lower scale.
Since luxury goods cost as much as 600 per cent more than the same goods
in other categories, luxury consumers will not dispose of luxury goods but
will rather exchange or resell them. They will also increasingly subscribe to
services that loan luxury products for a fee.76
luxury fashion branding