Singapore has long been associated with luxury, and the market for high end goods continues to thrive. According to Mordor Intelligence, the market is projected to register a CAGR of 4.64% between 2022 and 2027.
Much of this is down to the success of the digital channels that were set up to fill the gap left by physical store sales during the pandemic. While much slower than other retail sectors to adopt eCommerce, luxury has quickly caught up and brands in Singapore have deployed the very latest digital techniques including hyper-personalisation and responsive content to delight their wealthy customers.
Luxury sales surge
But it seems that Singapore is not the only part of Asia to be attracting the luxury dollar. With the arrival of our new Chief Sales Officer and MD for Hong Kong, John Trotter, our eyes are being opened to just how buoyant the luxury goods sector is in Hong Kong. A Euromonitor report found that the city state achieved the highest per capita spending on luxury goods worldwide in 2023. Competitive pricing drove growth in items like fine jewellery and high-end watches which saw sales surges of up to 30.5 percent.
This is quite a turnaround for Hong Kong which is enjoying the return of visitors from the mainland, and its resident high-net worth individuals – the highest concentration in the world relative to its population. A survey carried out by YouGov in 2023 showed that close to seven in ten consumers in Hong Kong intended to purchase luxury products in the next 12 months, a larger proportion compared to Singapore where one in six were thinking of purchasing luxury bags, wallets or cases in the year ahead.
The rise of the judicious shopper
Consumers, however, are discerning in both Singapore and Hong Kong and do not treat these expensive purchases lightly. Another YouGov survey, this time conducted with Amazon Singapore found that there is growing emphasis and value placed on product quality and authenticity in the country. While 70% of online shoppers said cost remains a key consideration for online purchases, 80% were willing to pay more to ensure these attributes.
When deciding between different products at similar price points, YouGov reports that 62% of Hong Kong’s luxury shoppers say they consider differences in warranty periods, and 50% evaluated differences in product origin.
Insurance to suit changing needs
That being the case, it makes sense that luxury buyers will also be looking to protect the value of the items they buy, and why insurance that allows single items to be covered, such as the policy offered by KoverNow, is so popular.
Luxury watches are a case in point, with our policy holders provided with complete protection to match their watch’s current market value, covering repair and replacement costs. Every month during their policy, a revaluation is conducted to ensure the cover aligns with market fluctuations.
And if our customers only want to protect their luxury items when they are travelling, the KoverNow policy allows them to switch it on when they leave, and off when they return.
With offices in both Singapore and Hong Kong – the crown jewels locations for luxury shopping – we are well positioned to ensure consumers are fully protected at home, and away.
