Consumers and Designer Brands: A Global Acnielsen Report

Consumers and
Designer Brands:
A Global ACNielsen Report
May 2006

According to a recent ACNielsen survey,
Ralph Lauren is currently the most popular
designer brand globally, but Gucci and
Giorgio Armani are the most aspired to,
if money were no object.
According to an ACNielsen global
online survey of 21,000 consumers in
42 countries, Ralph Lauren is the world’s
most popular designer brand, followed
by Gucci, Christian Dior and DKNY. Yet
when it comes to the most coveted brand
if money were no object, Italian fashion
powerhouses take the lead, with Giorgio
Armani the most aspired-to, followed by
Gucci.
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Base: all respondents
40%
36%
50% 49%
28% 30%
21% 20% 20%
ACNielsen’s global online survey was
conducted on the Internet in November
2005, asking 21,000 consumers in 42
markets across Europe, Asia Pacific,
UAE, North and Latin America about their
current and aspirational fashion brand
purchasing.
To what extent do you agree with the following statements:
I buy designer brands
1% 1% 1% 1% 0% 1%
24%
Agree Neutral Disagree Don’t know
Latin America Europe Asia-Pacific Other North America Global average
44%
35%
60%
26%
14%
49%
30%
21%
To what extent do you agree with the following statements:
Many people I know buy designer brands
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Base: all respondents
3%
10%
4% 8% 6% 5% 6%
19%
21%
24% 28% 27% 24%
67%
Agree Neutral Disagree Don’t know
29%
45%
27% 24% 28%
42% 41% 39%
Latin America Other Europe North America Asia-Pacific Global average
26%
44%

Attitudes towards luxury brands differ
worldwide As many as one fifth of Internet
users worldwide confess to buying the
world’s most famous designer brands,
although nearly half claim to know someone
else rich enough – or image-conscious
enough - to buy them too.
“Consumers unanimously agree that
designer brands are overpriced. However,
people are willing to pay extra for the
certain social status these brands project.
Designer products are not only for the
‘slaves of fashion’. Sixty percent of our
survey participants associate designer
brands with social status, while only 34
percent say they are only for the fashionconscious,”
says Tom Markert, Senior
Vice-President, Global Marketing for
ACNielsen.
In Europe, the cradle of fashion, wearing
designer brands is considered the norm
and not only for the fashion conscious.
Less than a third of Europeans, especially
in such countries as the Nordics,
Germany, Austria, Eastern Europe and the
Mediterranean countries of Greece, Italy
and Turkey, claim designer brands to be for
fashion followers only. At the other end of
the scale, however, the French, British and
Dutch internet users are among those least
likely to indulge themselves with designer
labels.
British and Spanish consumers top
European rankings in believing that
designer brands are overpriced. This is
largely due to the existence and success
of high-street brands originating from these
countries and local consumers getting
designer-style clothes and accessories
at a fraction of famous design brand
prices. Indeed, the high-street fashion
successes from Spain and Britain – Zara,
Mango, Topshop and Marks & Spencers
– are expanding rapidly throughout other
regions of the world, offering men and
women everywhere the option of looking
fashionable in current design trends without
burning a hole in their wallets.
In the developing markets of Latin America,
Asia, South Africa and the UAE, however,
designer brands stand for fashion and
superior quality. A half of respondents in
these countries think these brands are for
fashion followers, and up to 40 percent
believe they offer superior quality.
On the matter of quality, North Americans
are the world’s most sceptical when it
comes to designer brands, with only
18 percent believing they surpass their
non-designer counterparts on quality.
As many as 36 percent of Internet users
in North America – twice more than in
any other region - believe that imitation
designer brands are just as good as the
real ones.
Interestingly, the greatest percentage of
people who believe designer brands offer
significantly higher quality over their nondesigner
alternatives hail from Malaysia,
Taiwan, Hong Kong and Turkey – all
countries where many of these fashion
houses are likely to outsource their
production to and where imitation brands
are widely found!
Acceptance of imitation design brands in
Europe is highest in Norway, Switzerland
and Austria and least acceptable among
Greeks, Czechs and Italians who prefer the
buy ‘the real thing’ or nothing at all.
To what extent do you agree with the following statements:
Designer brands are usually overpriced for what they are
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Base: all respondents
3%
1% 1%
4% 2% 1% 3% 2%
4% 6%
10%
7%
6%
13%
15% 14%
15%
15%
87%
Agree Neutral Disagree Don’t know
82% 79% 79%
North America Latin America Other Asia-Pacific Europe Global average
To what extent do you agree with the following statements:
Imitation designer brands are just as good as the real ones
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Base: all respondents
21%
38%
42%
44%
32% 35%
75%
31% 31%
77%
5% 8% 6% 5% 6% 7%
36%
Agree Neutral Disagree Don’t know
49% 50% 44%
32%
19% 16% 15% 14% 17%
North America Europe Other Latin America Asia-Pacific Global average

What’s in a designer name? According
to the ACNielsen survey, US designer
Ralph Lauren is the most frequently bought
luxury brand worldwide from the list of 18
brands surveyed. Ralph Lauren products
are bought by 15 percent of Internet users,
followed by Dior (13%), Giorgio Armani,
Gucci (12%) and YSL (11%).
In Asia Pacific, Louis Vuitton (LV) also
made the top five ranking, with at least one
in ten claiming to have bought the French
brand’s products. In fact, nine of the top
10 markets with most people buying LV
products hailed from Asia Pacific, with
Hong Kong (23%) and Japan (17%) the
top two markets globally purchasing Louis
Vuitton.
Besides LV, Asia comprised most of the top
10 markets for current product ownership
of brands like Prada (6), Celine (7) and
Ferragamo (8).
It’s worth noting that Philippines ranked
number one in the world top ten list with
most people claiming to buy Ralph
Lauren (34%) and Celine (18%) products,
while Koreans top the list for Ferragamo’s
products (12%).
Currently in Europe, it’s a close run thing
between Ralph Lauren, Giorgio Armani and
Christian Dior for the top three most bought
brands today.
The story is a bit different in the Pacific
where local fashion designers in Australia
and New Zealand are prospering. High
import taxes for design brand products
combined with the differences of seasons
in the southern hemisphere and relaxed,
outdoor lifestyle of Aussies and Kiwis make
their local designers more wearable and
affordable. It is hard to find consumers in
Australia and New Zealand who stand out
for a particular international brand.
And if money were no object? However,
one in three consumers from the online
world said they would purchase Giorgio
Armani or Gucci if money were no object.
“It is a remarkable testament to the power
and universal appeal of these two luxury
brands. Giorgio Armani and Gucci fashion
houses clearly understand that strong
brands make for profitable businesses.
They are not merely selling fashion, they are
selling an image – something consumers
are willing to pay a premium for”, said
Markert.
“Regardless of where they live, when
consumers in Italy, China or UAE purchase
a Gucci bag or a Giorgio Armani suit they
are prepared to pay a premium because
they are buying the image the brand
represents. In Armani’s case, consumers
know they are getting quality, sophistication
and style – timeless values with global
appeal. For Gucci, it’s the combination
of heritage, together with its sexy, modern
appeal.”
Next on the list of the most desired brands
in the wardrobes of the world’s fashion
followers were Versace (27%), Christian
Dior (25%) and Chanel (23%).
To what extent do you agree with the following statements:
Designer brands are of significantly higher quality than standard brands
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
2% 2% 4% 5% 3% 4%
27% 27% 26%
32%
39%
Agree Neutral Disagree Donʼt know
35% 35%
35% 34%
39% 45%
Latin America Asia-Pacific Other Europe North America Global average
Base: all respondents
To what extent do you agree with the following statements:
Only fashion conscious people consider buying designer brands
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Base: all respondents
34%
22%
27% 27% 30% 26%
26% 28% 27% 31%
42% 41% 40%
34%
18%
2% 3% 2% 3% 4% 3%
45%
Agree Neutral Disagree Don’t know
42%
28%
26%
33%
34%
28%
Latin America Other Asia-Pacific North America Europe Global average
35%
28%
34%

Consumers in Asia Pacific certainly had
their own list of preferences were money
no object – leading consumers in all other
regions in their aspirations towards Louis
Vuitton (32%), with Hong Kong housing
the world’s most admirers of the brand
– justifying the recent opening of LV’s
flagship store in the city. Other brands
that top the list for Asia Pacific consumers
include Hermes, DKNY, Ferragamo and
Bottega Venetta.
Fashion consumers remain loyal to
homegrown designers Not surprisingly,
consumers in the world’s fashion capitals
– USA, Italy and France – remain loyal
first and foremost to their own country
designers.
North American consumers choose the top
US designer Ralph Lauren, who topped
the US online consumer’s choice for
current and most coveted fashion brand of
the future. However, European labels most
coveted for future purchase were Gucci
and Giorgio Armani.
Historic French design houses, Yves Saint
Laurent (despite now being owned by an
Italian fashion conglomerate), Chanel, Dior
and Hermes have the strongest following
in France at present, as well as for future
purchase. Meanwhile, fashion-conscious
Italians clearly out-rank Giorgio Armani,
Prada, Emporio Armani and Versace
among their most coveted fashion brands
today – as well as in the future.
Fast growing markets - tomorrow’s
fashion Meccas The future survival of
leading fashion houses depends on brand
longevity and it is no surprise that designer
fashion houses have been investing in their
future by building commercial and brand
presences in the fast growing markets of
Asia, UAE and Russia.
Making up the world’s most populated
nation, Chinese consumers who can
afford designer brands are currently
‘investing’ in Chanel (15%), LV (13%) and
Versace (12%) the most among other
brands. The potential for these brands is
far greater with as many as 38 percent of
future big spenders saying they would opt
for Versace and Chanel and a third for LV.
The effort of all the fashion shows held in
Shanghai these days is worth it!
Global results from the ACNielsen survey
reveal that Christian Dior – which has
also successfully re-positioned itself with
a more youthful image and is a favourite
Base: all respondents
among the international young ‘IT’ crowd
- has high commercial potential in UAE,
Russia, Latin America and India.
Versace too, has very strong growth
potential in the new emerging markets of
China, Russia and India – as well as the
USA, possibly because of its ‘I have arrived’
appeal combined with its ‘glamorous life’
celebrity image, particularly appealing to
the upcoming nouveau riche. However,
among more conservative consumers of
the affluent Gulf States of UAE, the coveted
brands which appeal to future consumers
are Giorgio Armani and Chanel.
Which of the following brands’ products would you prefer to
buy in the future if money was no object? (Global average)
GIORGIO ARMANI
GUCCI
VERSACE
CHRISTIAN DIOR
CHANEL
RALPH LAUREN
LOUIS VUITTON
YVES SAINT LAURENT
Base: all respondents
PRADA
EMPORIO ARMANI
DKNY
GIVENCHY
HERMES
FERRAGAMO
MAX MARA
FENDI
CELINE
BOTTEGA VENETA
None of these
Which of the following brands’ products do you buy? (Global average)
RALPH LAUREN
CHRISTIAN DIOR
GIORGIO ARMANI
GUCCI
YVES SAINT LAURENT
CHANEL
DKNY
EMPORIO ARMANI
VERSACE
GIVENCHY
LOUIS VUITTON
PRADA
MAX MARA
HERMES
FENDI
CELINE
FERRAGAMO
BOTTEGA VENETA 0%
None of these
2%
2%
2%
2%
2%
4%
6%
5%
5%
4%
3%
8%
7%
6%
8%
8%
11%
13%
12%
12%
11%
10%
10%
13%
16%
15%
15%
19%
21%
21%
23%
25%
27%
26%
31%
30%
58%

“Currently, UAE consumers are buying
Dior, Armani and Yves Saint Laurent. Of
these, only Giorgio Armani ranks highly for
future aspirational purchase. If Dior and
Yves Saint Laurent want to grow market
share and attract a future generation of
consumers in the UAE, they may want to
invest more now in building their brands,”
observed Markert.
Future big spenders in India would like to
fill their wardrobes with Gucci, G. Armani,
LV and Dior, while in China, the most
coveted aspirational brands are Chanel
and Versace, followed by LV and Giorgio.
Armani.
“Eleven percent of Indian’s online
consumers say they buy Armani now, but
38 percent would buy Armani if they could
afford it. And while nine percent of online
Indians currently buy Versace, 34 percent
aspire to buying Versace in the future”.
Latin America and Asia are the most
promising regions for designer
accessories According to the ACNielsen
survey, shoes, sunglasses, wallets,
handbags and belts are the most
‘sought after’ designer accessories, but
preferences for the type of accessory
and the brands differ strongly across the
world’s regions.
Shoes and belts are favoured by Latin
America, while South African’s go for
sunglasses, in Asia, home to the world’s
biggest ‘rainy day’ savers, it’s wallets.
In their shoes Outside Latin America,
luxury shoes are the most popular choice
in Belgium and the Netherlands, Turkey
and the UAE, Thailand and Philippines and
- perhaps not surprisingly – France.
“The right shoe maketh the outfit” certainly
rings true among Europeans. Many
Europeans believe that shoes are the
most important accessory of any outfit,
and a new pair of shoes is the easiest
way to change and update any look. It
is not surprising therefore that shoes are
the leading choice of accessory among
Europeans now, as well as for future
purchase. A pair of designer shoes is the
leading purchase for the Dutch, Belgian
and French consumers.
Another bright but challenging prospective
market is Russia, scoring number one by
the number of Internet users who would
aspire to buy designer shoes if money
was no object. 81 percent Russians said
they would buy luxury shoes if money were
no object, versus one third of Russian
respondents who currently buy them.
Russia is certainly a must-be place for
fashion houses, with its ever-growing
number of well-off people and their love of
new and fashionable clothes. According
to the ACNielsen study, 70 percent of
Russian Internet users claim to spend their
spare cash on new clothes. It is more than
in any other country surveyed and one a
half times more than the next nation most
spending on this item - Spaniards. Russia
is also notorious for charging among the
world’s highest prices for luxury brand
goods, largely due to the cost of retail
space in Moscow, one of the highest in the
world.
Among countries least inclined to buying
designer shoes are North America, the
Pacific, Nordics – Finland and Denmark --
Czech Republic, Austria and Japan.
Which of the following designer accessories do you buy? (Global average)
Shoes
Sunglasses
Wallet
Handbag
Belts
Stationery (palm pilot
holders etc)
Briefcase
Luggage
KeyChain
None of these
Base: All respondents
6%
7%
10%
14%
21%
21%
26%
32%
35%
49%

Belts – it’s a wrap For a luxury brand
marketer betting on belts sales, Mexico,
UAE and Argentina would be the priority
countries to consider, with up to half of
Internet users there claiming to buy luxury
branded belts. France, Netherlands,
Turkey and some of the Asian countries
also present big opportunities.
Russians wouldn’t mind a designer belt
either, with 37 percent of respondents
aspiring to their purchase if money was no
object.
The Japanese, Austrians, Finns and
dwellers of the Pacific countries and
Eastern Europe seem to resist designer
belts, as well as shoes. Only 10 percent
on average in these countries say they buy
belts.
Sunglasses One doesn’t need to look too
far to see where the greatest opportunities
are to market designer sunglasses - it’s
sun-baked countries like the UAE, Greece,
South Africa and Turkey. Over a half of
respondents in these countries claim to
buy designer sunglasses.
Additionally, South Africa leads the world
with the number of Internet users aspiring
to buy sunglasses if money were no object
(69 percent). Latin American countries
along with South Korea, Philippines and
New Zealand would also be the target of
aggressive marketing campaigns. Nearly
60 percent of respondents there would
buy designer sunglasses if they had the
money to spare.
Reach for your designer wallets in Asia
Nine of the top 10 countries ranking by
the biggest number of consumers buying
designer wallets (45%) hail from Asia.
Interestingly, Asians also outscored all
other nations as the world’s biggest money
savers, according to an earlier ACNielsen
online survey which asked consumers
what they do with their spare cash after
covering essential living expenses.
In the Nordics, Eastern Europe, Germany,
Austria, the US and the UK, a designer wallet
does not seem to add a lot to its owner’s
social status, judging by the fact that, on
average, only 10 percent are buying luxury
wallets in these countries, and only twice
as many aspire to buy them.
Base: all respondents
Handbags, briefcases, stationery
Handbags, briefcases and stationery
items, like palm-pilot or mobile phone
holders, pens, etc., are the most popular
in Asian and Latin American countries.
Handbags also present a good
opportunity in Italy and Russia; stationery
- in Hungary, Switzerland and South Africa,
while briefcases are the most coveted in
Asia. When women cannot afford more
expensive items of design brand products,
a handbag is seen as the best investment
as it is an item that can be used daily for
almost all occasions.
Which of the following designer accessories would you prefer
to buy in the future if money was no object? (Global average)
Shoes
Sunglasses
Wallet
Handbag
Belts
Luggage
Stationery (palm pilot
holders etc)
Briefcase
KeyChain
None of these
8%
15%
21%
25%
24%
31%
37%
36%
48%
65%

Have designer luggage, will travel
Luggage was the most popular designer
accessory of choice in the UAE, where
a quarter of Internet users opt to travel in
designer style.
According to the ACNielsen survey, Asians
are among the biggest spenders on
holidays and travel worldwide and would be
the last of all nations to forsake their annual
vacation even when times get tough. This
may explain their need for enduring, high
quality luggage bags, and the fact that six
out of top ten countries buying designer
travel bags hailed from Asia.
Price may be one of the four marketing P’s
that fashion houses should pay attention to
when marketing luggage. The ACNielsen
survey has found that, whereas an
average of seven percent of Internet users
worldwide buy designer luggage now, a
quarter would buy them if money were no
object. In some countries, such as Brazil,
Ireland, Philippines and South Africa, the
differential between those buying now and
those aspiring to buy was as big as 30
percentage points.
The ACNielsen Global Online Survey,
the largest twice-yearly survey of its kind,
is aimed to gauge consumers’ current
confidence levels, spending habits/
intentions, current major concerns and
attitudes and opinions to a variety of issues.
The most recent wave of the survey took
place in November 2005 and polled over
23,500 consumers – regular Internet users
– in 42 markets in Europe, North and
Latin America, Asia-Pacific region, Africa
(Republic of South Africa) and the Middle
East (UAE).
About ACNielsen ACNielsen, a VNU
business, is the world’s leading marketing
information provider. Offering services in
more than 100 countries, the unit provides
measurement and analysis of marketplace
dynamics and consumer attitudes and
behavior. Clients rely on ACNielsen’s
market research, proprietary products,
analytical tools and professional service
to understand competitive performance,
to uncover new opportunities and to raise
the profitability of their marketing and sales
campaigns. To learn more, visit www.
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