What recession? More Singaporeans planning to splurge on luxury purchases

Guess how many plan to spend $1,000 or more on a luxury purchase over the next few months?

According to findings from the latest MasterCard survey on Consumer Purchasing Priorities – Luxury Shopping, shoppers in Singapore are looking to maintain or increase spend on luxury items in the coming months,

Survey results show that 68% of Singaporeans who currently own a luxury item valued at US$1,000 or more, plan to spend the same or more, on luxury items in the coming months.

While this number indicates that Singapore is trending a keen preference for luxury items, the other results reflect that they are also exhibiting prudence in their decision-making process and the choice of luxury item acquired.

More than one in four (26%) of Singaporeans polled tend to research extensively about a luxury item and will make the purchase within two to six months of first deciding on the item. Meanwhile, 45% of respondents tend to mull over whether to purchase a luxury item, but buy it within a month or so of first deciding on the item.

Conversely, only 17% of respondents say that they tend to buy on impulse, on the spot, while 12% tend to decide on the item on the spot but wait for a sale before buying it.

Categories of luxury items worth more than US$1,000 that Singaporeans covet in the coming months are watches (30%), jewellery (24%) and quality/designer clothes & leather goods (22%).

In contrast, Singaporeans appear to be less keen on purchasing these particular luxury items at a lower value – a smaller margin of Singaporean respondents are keen on watches (9%) and jewellery (19%) worth US$500 or less.

In favouring higher value watches and jewellery over lower-priced items of the same categories, it seems that Singaporeans appreciate goods with higher intrinsic worth and understand that the value of these goods increase with time.

“The strength of the luxury market in Singapore reflects the country’s growing affluent population, as well as the growing array of international luxury brands in our local retail landscape,” said Julienne Loh, vice president and country manager, Singapore, MasterCard Worldwide. “The survey results show that Singaporeans are savvy luxury shoppers, who try to strike a balance between seeking the highest quality luxury goods and getting the most value out of their purchases.”

Other highlights from the survey:

· Singaporeans mostly purchase luxury items for themselves to celebrate special occasions like birthdays, anniversaries and promotions (54%) or for no special reason at all (48%).

· Self-reward (29%), brand reputation of luxury product (24%) and feeling special in owning a luxury item (19%) are the three main motivations behind the purchase of luxury items for Singaporeans.

· Advertising on media outlets (47%) overrides recommendation from friends and relatives (43%), brand catalogues (38%), online shopping sites (33%) and online blogs/forums/reviews (31%) as the source of information that consumers rely on before making a purchase. Celebrity endorsements (16%) are the least effective in impacting Singaporeans’ decisions to purchase luxury items.

· Credit card (79%) is the top payment method for Singaporeans for the purchases of luxury items.

The latest survey was conducted from March to April 2011 and involved 191 Singaporean consumers who currently own at least one luxury item that is at least US$1,000 and above in value. Data collection was via internet surveys, personal, telephone and Computer Aided Telephone interviews, with the questionnaire translated to the local language wherever appropriate and necessary. The Index and its accompanying reports do not represent MasterCard financial performance. 

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Tags: MasterCard survey on Consumer Purchasing Priorities, luxury shopping in Singapore, luxurious Singaporeans