Frederic Jean-Marie Winckler, executive vice president and chief creative and brand officer of Melco Resorts & Entertainment, sat down with AGB Executive Editor Michael Penn at the end of last year to discuss both the recent trends within the Asian luxury market as well as what the future holds in store.
Winckler says that Asians have been playing a dominant role in the luxury market for some time, although for years this has been partially disguised by the fact that many of their purchases—indeed about two-thirds—were made overseas in Europe, Japan, and elsewhere.
This has now changed. With the onset of the coronavirus pandemic, the dominance of the Chinese luxury market has become obvious, both because most of their purchases have been confined to the domestic market due to the collapse of international travel, and because China has done a much better job handling Covid-19 than most other advanced nations, allowing the economy to grow again.
A characteristic of the Chinese luxury market, in particular, is the relative youth of many of the customers, and among these young people the taste for luxury goods has come early.
In this connection, the pandemic has forced the brand companies selling luxury goods to embrace the youthful digital world in a way that they wouldn’t have done, at least not so quickly, had the more traditional marketing options such as print magazines remained viable. Thus we have witnessed the rapid rise of livestreaming, which turned out to be a highly efficient means of reaching the luxury customers.
In Macau, Winckler sees recovery in the market being driven by premium mass, which encompasses many people with a considerable amount of disposal income, making them ideal targets for the expansion of luxury spending.
"Digitization has been thrown about a decade ahead into the future by the pandemic."
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