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World Luxury Index Russia - Top 50 Most-Searched For Luxury Brands in Russia

This is a ranking and analysis of the most-searched for luxury brands in the Russian market. It is the second installment of the World Luxury Index, an international ranking and analysis of the most searched-for brands within the luxury industry. Covering over 400 brands within six key segments (fashion, beauty, jewelry, cars, watches, and hospitality) in ten key luxury markets, the WorldLuxuryIndex provides insights on the unbiased search inputs coming from global luxury consumers in the world’s top search engines (Google, Bing, Baidu, Yandex). The result is a one-of-a-kind benchmark of the luxury brands capturing the attention of luxury-minded consumers around the world

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Photo Source: fotopedia.com

                              Strategic Partner:   Data Partner:
 24 May 2012
A new luxury benchmark is born.
Created as a way to provide luxury brands with a
standardized way of measuring brand interest at
 an international level, Digital Luxury Group, in
    partnership with Luxury Society, unveils:


        The World Luxury Index.
An international ranking and analysis of the most
 searched-for brands within the luxury industry.



                                                    2
Russia takes the Stage.
                                               The market for luxury goods in
                                              Russia increased by 12 percent in
                                                           2011.
                                                             ~ Bain & Company study, 2012




                                             With so much attention on Russia s
                                             luxury industry the time is right for
                                             a standardized benchmark.

                                             Introducing:
                                             The World Luxury Index Russia
Photo source: pictureorphoto.blogspot.com/
                                                                                            3
The World Luxury Index Russia.
                    .
Covering:




   400+ brands                      150 million+ searches*
   6 Key
Segments           Cars     Fashion Beauty Hospitality Jewelry Watches

   Unbiased insights from the top
   search engine** in Russia:
                                             * From January December 2011
                                            ** ~60% market share in Russia   4
.




    Photo source:: heycrazy.wordpress 5
Top 50 Most-Searched For Luxury Brands in Russia.
        1        BMW                   26        Burberry
        2        Audi                  27        Moncler
        3        Volvo                 28        Maserati
        4        Mercedes-Benz         29        Tiffany & Co.
        5        Lexus                 30        Kenzo
        6        Land Rover            31        Armani
        7        Chanel                32        Ferrari
        8        Infiniti              33        Sheraton
        9        Porsche               34        McLaren
        10       Louis Vuitton         35        Rolex
        11       Bugatti               36        Lincoln
        12       Swarovski             37        Renaissance
        13       Hilton                38        Aston Martin
        14       Dior                  39        Prada
        15       Hermès                40        Yves Saint Laurent
        16       Cadillac              41        Bulgari
        17       Rado                  42        Max Mara
        18       Lancôme               43        Estée Lauder
        19       Jaguar                44        Shiseido
        20       Bentley               45        Kempinski
        21       Acura                 46        Cartier
        22       Omega                 47        Tivoli
        23       Guerlain              48        Le Meridien
        24       Gucci                 49        Dolce & Gabbana
        25       Lamborghini           50        Clinique
             www.dlgr.com/russiarank        Yandex data: January-December 2011
                                             © Digital Luxury Group              6

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World Luxury Index Russia - Top 50 Most-Searched For Luxury Brands in Russia

  • 1. Photo Source: fotopedia.com Strategic Partner: Data Partner: 24 May 2012
  • 2. A new luxury benchmark is born. Created as a way to provide luxury brands with a standardized way of measuring brand interest at an international level, Digital Luxury Group, in partnership with Luxury Society, unveils: The World Luxury Index. An international ranking and analysis of the most searched-for brands within the luxury industry. 2
  • 3. Russia takes the Stage. The market for luxury goods in Russia increased by 12 percent in 2011. ~ Bain & Company study, 2012 With so much attention on Russia s luxury industry the time is right for a standardized benchmark. Introducing: The World Luxury Index Russia Photo source: pictureorphoto.blogspot.com/ 3
  • 4. The World Luxury Index Russia. . Covering: 400+ brands 150 million+ searches* 6 Key Segments Cars Fashion Beauty Hospitality Jewelry Watches Unbiased insights from the top search engine** in Russia: * From January December 2011 ** ~60% market share in Russia 4
  • 5. . Photo source:: heycrazy.wordpress 5
  • 6. Top 50 Most-Searched For Luxury Brands in Russia. 1 BMW 26 Burberry 2 Audi 27 Moncler 3 Volvo 28 Maserati 4 Mercedes-Benz 29 Tiffany & Co. 5 Lexus 30 Kenzo 6 Land Rover 31 Armani 7 Chanel 32 Ferrari 8 Infiniti 33 Sheraton 9 Porsche 34 McLaren 10 Louis Vuitton 35 Rolex 11 Bugatti 36 Lincoln 12 Swarovski 37 Renaissance 13 Hilton 38 Aston Martin 14 Dior 39 Prada 15 Hermès 40 Yves Saint Laurent 16 Cadillac 41 Bulgari 17 Rado 42 Max Mara 18 Lancôme 43 Estée Lauder 19 Jaguar 44 Shiseido 20 Bentley 45 Kempinski 21 Acura 46 Cartier 22 Omega 47 Tivoli 23 Guerlain 48 Le Meridien 24 Gucci 49 Dolce & Gabbana 25 Lamborghini 50 Clinique www.dlgr.com/russiarank Yandex data: January-December 2011 © Digital Luxury Group 6
  • 7. By Luxury. Segment. CARS FASHION BEAUTY HOSPITALITY WATCHES JEWELRY #1 #2 #3 7
  • 8. Automobile searches lead. . BREAKDOWN BY SEGMENT CARS FASHION BEAUTY HOSPITALITY WATCHES JEWELRY 73.64% 8.09% 7.81% 3.71% 3.40% 3.35% § Cars make up an impressive 73.64% of total searches for luxury brands in Russia § Of all the luxury segments, automobiles are the most often researched online in advance of purchase § Russia is expected to become Europe s largest car market by 20141 8
  • 9. Europe Leads in Luxury. Branding to Russians. TOP COUNTRIES OF ORIGIN FOR BRANDS IN THE TOP 50 RANKING France 11 Italy 9 USA 8 UK 6 Japan 5 Germany 5 Switzerland 3 Portugal 1 Austria 1 Sweden 1 Of the top 50 most-searched luxury brands in Russia, 37 originate from a European country. 9
  • 11. Russia searches breakdown per region. . 11
  • 12. . © Digital Luxury Group, SA 2012 Photo source::skyscrapercity.com 12
  • 13. INSIGHT #1: Luxury Cars Rule the Road . . § Cars are the leading segment with 73.64% of the total searches for luxury brands § In 2011, Russians purchased around 2.5 million cars, Photo Source: russiablog.org propelling the car market to the second-largest in Europe¹ § Furthermore, the Russian government has invested $6.3 billion in foreign car manufacturers³ Photo Source: en.rian.ru 13
  • 14. INSIGHT #1: BMW Leads. . § BMW is the most-searched for luxury brand in Russia, representing 18.8% of searches for ALL brands in the ranking § BMW plans to build its own factory in Russia with Photo Source: bmwcoop.com expectation that it may soon overtake Germany as Europe's largest car market1 § In Russia, BMW is largely regarded as an automobile for working businessmen2 © Digital Luxury Group, SA 2012 Photo Source:englishrussia.com 14
  • 15. INSIGHT #1: BMW Model Preferences. . 69.85% of BMW-related searches in Russia are for specific car models, with larger models being at the top of the list. TOP BMW MODELS BMW 5 Series 5 series 39.83% 6 series 19.10% 3 series 17.73% BMW 6 Series 1 series 9.99% 7 series 8.15% M series 2.10% Z4 1.88% BMW 3 Series X series 1.22% Photo sources: blondebell.com, kimballstock.com, bmwofmtlaurel.com 15
  • 16. . © Digital Luxury Group, SA 2012 16 Photo source::tangentmag.com
  • 17. . INSIGHT #2: Beauty Brands Make an Impact. Chanel, Lancôme, and Guerlain are the top 3 most-searched brands in the beauty segment. 20.34% 11.19% 9.73% of beauty of beauty of beauty searches searches searches © Digital Luxury Group, SA 2012 Photo Sources: Chanel, Lancôme, Guerlain 17
  • 18. INSIGHT #2: Guerlain in Russia. . § Ranked #3 in the beauty category in Russia, far above its ranking in China (#10) and the US (#17) § In 2011, Guerlain became an official sponsor of the Bolshoi theatre, supporting premiers Photo Source: fragrancebelleslettres.blogspot.com and financially aiding the renovation of the main stage § To celebrate the project, Guerlain created a limited edition perfume called Le Bolshoi that was launched exclusively in Russia © Digital Luxury Group, SA 2012 Photo Source: luxlux.net 18
  • 19. . © Digital Luxury Group, SA 2012 Photo source::maldivesjobcorp.com 19
  • 20. . INSIGHT #3: Luxury Travel in the Tropics. Apart from Moscow, which leads as the destination most associated to luxury hotel searches, exotic tropical destinations mark a large percentage of hotel research being done by Russians: Other 11.37% Paris 1.98% Maldives 7.73% Moscow 38.21% Dubai 13.38% Phuket 27.33% © Digital Luxury Group, SA 2012 20
  • 21. INSIGHT #3: Holidays in Thailand. . Phuket § Interestingly, the island of Phuket in Thailand is the most searched for destination within the hotel brands featured in the top 50 ranking Photo Source: phukettourguides.com § Of the luxury hotels with presences in Phuket, Le Le Meridien Phuket Meridien captures over 48% of the searches being done by Russians for luxury hospitality in Phuket. © Digital Luxury Group, SA 2012 Photo Source: .prlog.org 21
  • 22. . © Digital Luxury Group, SA 2012 Photo source: stylehive.com 22
  • 23. . INSIGHT #4: Bling Beckons. § It s a common belief that to do well in the Russian jewelry and watch market, a brand needs to offer bling to meet the flashy tastes of Russian clientele. § Beyond being a stereotype, data shows that there is a large interest for flashy materials and brands that focus on shine Photo source:: rolex.com © Digital Luxury Group, SA 2012 23
  • 24. INSIGHT #4: Bling Watches. . In the WorldWatchReport , a study focused solely on the luxury watch market globally, it was found that watch-related searches in Russia were more often associated with flashy materials like gold and diamonds than in other markets: Other 6.4% Silver 8.1% Gold 39.5% Ceramic 15.9% Omega Constellation Luxury Edition Diamonds 30.1% Data Source: WorldWatchReport 2012, Yandex and Google © Digital Luxury Group, SA 2012 24
  • 25. INSIGHT #4: Crystals Shine. . § Swarovski (#12 overall) tops the list as the most-searched jewelry brand in Russia Photo Source: . oneinchpunch.net § More than 50% of all the searches for high-end jewelry in Russia are for Swarovski § Swarovski is well-positioned as a brand that fits the Russian taste for bling, yet remains an accessible luxury, with an attainable price point © Digital Luxury Group, SA 2012 Photo Source: 25 bridalphantasy.com
  • 26. . © Digital Luxury Group, SA 2012 Photo Source: Flickr, gmoorenator 26
  • 27. . INSIGHT #5: Russians Continue to Search in Cyrillic International luxury brands traditionally use their trademarked Latin character names when marketing in Russia, however, 35% of luxury-related online searches are made in Cyrillic characters. Cyrillic character searches 35.68% Latin character searches 64.32% Photo Source: Christian Dior 27
  • 28. ABOUT. The World Luxury Index is an international ranking and analysis of the most searched-for brands within the luxury industry. Covering over 400 brands within six key segments (fashion, beauty, jewelry, cars, watches, and hospitality) in ten key luxury markets, the World Luxury Index provides insights on the unbiased search inputs coming from global luxury consumers in the world s top search engines (Google, Bing, Baidu, Yandex). The result is a one-of-a-kind benchmark of the luxury brands capturing the attention of luxury-minded consumers around the world. Digital Luxury Group has a history in luxury industry market intelligence. Since 2004, the WorldWatchReport has provided the luxury watch industry with unmatched insights and garnered attention from the world s leading publications: 28
  • 29. ABOUT. . With offices in New York, Geneva, Shanghai, and Dubai, Digital Luxury Group (DLG) is the first international company dedicated exclusively to the design and implementation of digital communication strategies for www.digital-luxury.com luxury brands. Yandex is Russia's largest search engine and a leading Russian internet and technology company. Its mission is to answer any questions web users may have. The company provides easy access to the wealth of local, national and international information through its search and a portal with dozens of free online services. Yandex generates about 60% of all search www.yandex.ru traffic in Russia, while its websites attract a monthly audience of more than 79.4 million users from all over the world (comScore, March 2012). Luxury Society is the world's most influential online community of top luxury executives. Based in Paris, with www.luxurysociety.com members in more than 150 countries, Luxury Society informs and connects CEOs, managers, journalists, consultants, designers and analysts from across the luxury industry. 29
  • 30. CONTACT. . GENEVA NEW YORK SHANGHAI DUBAI 7 Avenue Krieg 590 Madison Ave Room 810, B Block Suite 1509, Shatha Tower, 1208 Geneva New York, NY 10022 Zijin Plaza Dubai Media City No. 701 Gudun Road PO Box 50954 Hangzhou Dubai T: +41 22 702 07 60 T: +1 212-521-4310 T: +86 571 8883 9161 T: +971 4 454 8464 E: geneva@digital- E: newyork@digital- E: shanghai@digital- E: dubai@digital-luxury.com luxury.com luxury.com luxury.com www.digital-luxury.com 30