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The Luxury Challenge

Identification of target audience. Understanding psychological and

cultural profile Understanding GCC sophistication

and preferences Understand spending

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Market Global & regional Brand Crme de la Crme Product Editorial, Distribution &

Competition

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Background

US is middle of the biggest financial crises European economies are slowing down Middle East & BRIC nations are the

growth drivers of the world Oil prices have doubled over 6 months Oil is a finite resource & governments are

shifting dependency on oil & energysegment.

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Middle East Millionaire Fact file

300,000 or over 3% of millionaires population are from Middle East

Together they are worth $1.4 trillion

Middle East HNWI population grew by 11.4% in 2007

Their wealth grew by 11.9%

By 2011 ME HNWI wealth would grow by 9.5% yearly to $2.2 trillion

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Middle East Millionaire Spending

Art

18%

Collectable

11%

Jewelry

18%

Sports

Investment

6%

Misc

14%

Luxury

33%

! include boats, jet, automobiles etc

!! include coins, wines, antiques etc

include sports team, sailing, horse racing etc

# include travel, club membership, apparel etc

!

#

*

!!

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Dissecting GCCs Affluent

Consumer Behavior

71% men and 77% women shop as pastime higher than the US or European average

127 hour or over 5 days are spent in malls annually

Average credit card billing of GCC affluent is higher than their US counterparts.

Luxury consumer in GCC starts from 20 yrs than the rest of the world average of 40

yrs.

Luxury fashion & leather goods (45%), watches 43%, accessories & footwear (32%)are high on things to buy in next 12 months

Toyota, Mercedes, Nissan, BMW and Chevrolet are the most respected brands amongthe GCC elite

On average they spend 10 nights in luxury hotel annually with Sheraton, Marriott,Meriden, Hilton, Holiday Inn, Inter Continental and Hyatt Regency as the most favoredhotel brands

Market is seeing democratization of luxury brands

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Oman

By 2012, Oman would attract one milliontourists.

$17 billion infrastructure investment in

the next 5 years Omans GDP grew by 15.5% and 12.9%

in 2006 and 2007 Average 19% growth in retail in last 3

years 46 new brands added to MCC in 2008

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The Luxury Truth

Luxury Branding is about attitude,attitude of expression and ownership.

Luxury Brands aims at being formal,well executed, trustworthy and longterm.

Advertising is not branding.

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Luxury brands carefully choosedestinations.end consumer including

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The Luxury Challenge

Build Brand Message

Brand Usage

MessagePerception

Develop BrandTrust

BrandPersonality

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Mission

Deliver a Smile

Create Value

Be influenced and influence luxury

Create Need and address need better

Deliver better ambience both within and outside

Deliver the tangible with a better touch and feel

Deliver the idea better based on research,appraisal & market preposition

Logic

+

Em

otion

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v/s

More Local Content

Advertiser get reachBetter Targeted

Aspirational yetPerceivable

Audited Advertisers are sure

Privilege Card Brand Usage

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