- Nice to meet you.
- Nice to meet you.
For the benefit of our viewers, can you briefly introduce yourself?
- My name is Hye-Won, I'm from Korea,
I'm currently working for Swarovski consumer goods Asia-Pacific
as a regional marketing and communication director.
I have been in the luxury and premium luxury industry for about 15 years,
both in local market and headquarter levels.
- Okay. The lux market we know that it's a very big market, but how big is it?
-It really depends on the definition of luxury
because luxury includes not only tangible things but also intangible things.
So it's actually projected this tangible things around 230 billion euro market
but it's actually projected to grow by 2020 around 5 to 7%.
- Okay, and a lot of that growth as been here in Asia.
- Definetely.
- Okay so, when we talk about the target market,
who is the target market for many luxury brands such as maybe Chanel and Swarovski?
- So right now, the target market it really now are focusing on those female ones
because a lot of luxury industry has driven,
the growth has been coming from these fashion, shoes and accesories,
and in terms of geographical regions, Asia has been really the driver of the growth
in luxury market, particularly because of the increasing number of Chinese consumers
with a higher disposable income.
- So you mentioned geography, you mentioned gender,
do you also try to get maybe income levels or certain lifestyles here in Asia?
- Actually, a lot of luxury brands they do target consumers
based on different attributes.
But in Swarovski actually, we have identified 3 main consumer segments
based on various attributes like the attitude towards purchasing jewelry brands
and also the brand perception, etc.
So, all in all, these 3 different segments actually show different characteristics
including different age and different income.
But not particularly we are only focusing on the income range, but more
on the potential of those consumers and then the purchasing habit of jewelry.
- So, when you talk about potential you are talking about the aspirations of consumers?
- Right.
- You want them to want to buy maybe not only now but especially in the future.
- Exactly. Definetely. Because right now, in China, actually the population of China
is around 1.3 billion, right?
But actually the percentage of those who hold a passport,
do you know what is the percentage of those who hold a passport?
- I do not know, you tell me. -It's actually only 4 to 5%.
So people estimate those are the ones who can travel
and who can spend on luxury goods.
But can you imagine that population is growing by 10% and 20% year on year.
You cannot immagine the number of people who have this disposable income
to be able to buy luxury goods for the future.
So, we are not only targeting those consumers today,
but we are also targeting those consumers for the future.
- Okay, so the upside is very high.
Even though the growth is high, it can be even higher.
- Of course, yes.