Demand for luxury gives rise to a new definition: the ‘Luxumer’

The research, titled “Unstoppable Luxumer: Understanding the Allure of Luxury”, sheds light on the growing attraction to luxury goods in Thailand, identifying key factors driving this trend and pinpointing crucial consumer segments in the high-end market.

It also explores attitudes, behaviours, motivations and factors influencing purchasing decisions in this consumer group, with the goal of assisting businesses and marketers in developing strategies to attract luxury consumers in the future.

According to the study, men are more inclined towards luxury consumption than women. The most frequent luxury purchases for men were technology gadgets, while women preferred luxurious food and beverage. 

The top three brands purchased by men were Apple (technology gadgets), Louis Vuitton (apparel and fashion), and Starbucks (foods and beverages), while women’s top three were Starbucks (food and beverages), Dior (cosmetics/perfume/skincare), and Dior (apparel and fashion).

One-third of respondents engaged in “luxury” behaviour, with 31% demonstrating strong luxury tendencies and 6% exhibiting extreme luxury attachment.

When segmented by generation, generation X exhibited the highest luxury consumption across all age groups, followed by Gen Z, Gen Y, and Baby Boomers, respectively. Gen Z, Gen Y, and Baby Boomers were most likely to purchase luxury food and beverages, while Generation X preferred luxury apparel and fashion items.

Furthermore, among all respondents, 54% reported earning no more than 50,000 baht per month, and 50% had savings of less than six months. Interestingly, many luxury consumers were willing to spend 10-30% of their monthly income on luxury goods. 

Thais yearn for luxurious products and lifestyles, indicating the potential for a new market trend from a new consumer segment identified as “luxumer”, derived from the words “luxury” and “consumer.” 

This type of consumer appreciates and values premium products or services, with a particular emphasis on luxury. 

Designer clothing and handbags, business class travel, five-star accommodation, and upscale food and beverage consumption are all examples of this. Marketers and businesses must pay close attention to this group because creating products or services that meet the preferences of luxumers represents a golden business opportunity.

Speaking at the “Unstoppable Luxumer: Understanding the Allure of Luxury” seminar, Asst Prof Dr Boonying Kongarchapatara, head of the Marketing Department at CMMU, said that Thais are increasingly drawn to luxurious, high-priced goods and premium services. 

He pointed out that the primary drivers for Thais’ attraction to luxury goods are the desire for social acceptance, status signalling, and standing out. 

“Despite economic challenges, people are still seeking ways to reward themselves and fulfil their desires,” he said.

Social media engagement and luxury brands
Analysis of Social Listening data, conducted in collaboration with CMMU and Wisesight (Thailand), revealed that from February to July 2024, consumer interest in luxury brands on social media was substantial, with luxury brand engagements reaching 56 million. Bangkok emerged as the top location, with 56.9% of all luxury-related social media interactions. 

When broken down by product category, TikTok had the highest engagement (3.2 million) for luxurious food and beverage content, suggesting that luxumers in this category prefer short video content over articles or photos.

However, the cosmetics and skincare category saw the highest engagement (3.5 million) on Instagram, indicating that image-based content resonates most with consumers in this category.

As “luxury consumption” has become a fascinating marketing trend, CMMU proposed the “LUXE” strategy to attract the affluent spender demographic, with the goal of establishing strong brand loyalty. 
This includes: 

• Lifestyle (L): Creating a luxurious image that represents a high-end lifestyle.
• Uniqueness (U): Creating distinctive, exclusive products that cannot be found anywhere else.
• Experience (X): Providing exceptional, premium experiences that leave an indelible impression.
• Endorsement (E): Using famous people or influencers to gain attention, credibility, and improve the brand’s image.

As Thailand’s luxury market expands, Boonying emphasises that businesses and marketers must pay close attention to emerging trends and consumer behaviours in order to capitalise on this golden opportunity.