[DECODING] PUT A RING ON IT… BUT ONLY IF IT’S ETHICAL

In this Decoding #4, the IFOP IQ team analyses the emergence of ethical and responsible wedding jewellery in the French and American markets, by questioning both the initiatives of players in the jewellery sector and consumers’ expectations.

 

 

Yes, choosing an ethical engagement ring makes sense to me. Giving the person you love a ‘blood diamond’ is horrible really when you think about it! Arthur, France

 

An increasingly pronounced interest in ethical and responsible jewellery is emerging among consumers. As far as wedding jewellery is concerned, two materials are found at the centre of their concerns: gold and diamonds.  Synonymous with great value, associated with power, abundance and eternity, gold and diamonds form the object of all quests and desires, through the ages and in many places around the world. It’s no wonder they have become the preferred materials used in contemporary wedding jewellery. However, among this extraordinary imagery where wealth rubs shoulders with romance, we find images of devasted natural environments, deforestation, dangerous underground mines, human exploitation, and sometimes armed and bloody conflicts posted over the past few years.

 

Does this awareness, which goes hand in hand with this imagery of destruction, constitute a decisive turning point? A rite of passage and a pivotal moment in married life, a prelude to building a family, engagement and marriage still remain a key stage in life, shrouded in romance. In France as in the United States, consumers have high expectations of these jewels, symbols of love and commitment. For some, the exploitation of gold and diamond resources is no longer compatible with the values associated with contemporary marriage. 

 

What if tomorrow’s consumers demand wedding jewellery that’s produced ethically?
What are the solutions and alternatives?

 

 

[This article and the dossier are based on a meta-analysis of several qualitative studies conducted by IFOP IQ with CSP+, in France in the United States, in 2021 and 2022.]

 

 

These 5 insights can be explored in the file available (in french) for download.

 

 

 

 

« Commitment and emotion – a cocktail that will make luxury even more desirable than it is today » – The visions and utopia of the luxury sector

 

The Ifop Group, a partner of the Paris Luxury Summit, the leading event in the world of luxury, presented an exclusive study on December 13, 2022.

 

The theme of this year’s event, « Luxopia: utopia, concretely« , offers a journey through all the possibilities, with the speakers coming from different horizons to shed light on this notion. What role the luxury sector will play in the future ? With the geopolitical context and societal aspirations being questioned, what is the path to follow ?

 

The study conducted by the Ifop Luxe and Sociovision teams in France, the USA and China this year focused on the theme « The visions and utopia of luxury according to its clientele », was presented by Stéphane Truchi, CEO of the Ifop Group.

 

« Commitment* and emotion – a cocktail that will make luxury even more desirable than it is today » – Stéphane Truchi, in an interview with CB News.

*(360° commitment: environment, climate, supply chain, production, CSR…)

 

 

Find the replay of the event (in French) : via this YouTube link

 

 

The complete report is available to download :   The luxury utopias of tomorrow, Ifop Group x Paris Luxury Summit _ 2022

 

[DECODING] THE WINE & SPIRITS PACKAGING REVOLUTION IN THE AGE OF ENVIRONMENTAL AWARENESS

 

In this third issue of [DECODING], we examine the solutions envisioned by both consumers and wine and spirits brands to rethink packaging in this age of environmental awareness. 

 

“Regarding food, yes I will be careful with what I buy. But when I want to have a drink with my friends, I’m thinking about us having a good time together. I want to relax and enjoy myself. These environmental issues just don’t cross my mind.” United States

 

Concern for the environment has infiltrated the daily lives of individuals in upper socio-professional categories in France, the United States and even China. Increasingly aware of the ecological impact of what they consume on a daily basis, they are looking for alternatives in food, beauty, hygiene and household products, not to mention fashion. Means of transport and tourism activities are not immune to this questioning either.

 

Yet one product category falls further off the eco-friendly radar: wines and spirits. Consumers are less well informed about the ecological damage caused by this industry, which enjoys an almost sacred aura. Even among the most responsible consumers, the ecological aspect is far from being the most important element considered at the time of purchase.

 

Upon gaining awareness, three major concerns emerge: the use of pesticides, the carbon footprint of transporting bottles, and packaging.

 

What are the eco-friendly packaging options for wines and spirits in France, the United States and China?

 

We offer you an overview of the innovations imagined by brands and their perception by consumers in our Decoding report for the month of September.

 

[Article and reports based on a meta-analysis of several qualitative studies conducted by IFOP IQ in France, China and the United States with individuals in upper socio-professional categories, between 2021 and 2022]

 

 

 

These 5 insights can be explored in the file available (in french) for download.

 

 

 

 

 

[EXCLUSIVE REPORT FROM USA] Actionable insights about 2021 luxury shopping behaviors

The 2021 Affluent Consumer Insight Study was conducted to understand how shopping and media consumption have evolved since Covid. Our newly opened Ifop North America shares with you some key insights :

  • Which e-commerce platforms are winning by product category?
  • Which social media platforms, beyond Youtube, Facebook and Instagram should be on your radar today as you plan your communication strategy?

The playing field is moving quickly and this recently conducted study will help you navigate these mini evolutions and shed light on where to pivot or evolve if necessary.

 

While most of the trends are not new, Covid has certainly accelerated and intensified them. The good news is that affluent women are optimistic to return to stores in the second half of 2021 and most have NOT delayed luxury shopping.  Pre-covid there was a trend to spending more on experiences than luxury products but as experiences are nearly impossible these days, luxury purchases (especially jewelry) have not decreased as much as anticipated. Not surprisingly, social media and streaming increased during Covid but it’s important to take note of channels that are no longer just for teens- that’s Snapchat and Tiktok! These are two channels that you should be investigating as part of your communication strategy if you haven’t already.  Since online shopping fills most needs these days, luxury brands will need to re-think their brick & mortar retail concepts as expectations evolve and differentiation will be key.

 

Learn more > Ifop further reinforces its international presence by opening Ifop Inc in New York

[PRESS RELEASE] Appointment of Laure Friscourt as deputy CEO of the Ifop group

Laure Friscourt is appointed Deputy CEO of Ifop with the task of bolstering the Group’s development in the Beauty, Healthcare and Wellbeing sectors while supporting growth in Asia.

 

Stéphane Truchi, Chairman of Ifop’s Executive Board, announced the appointment of Laure Friscourt as Deputy CEO of Ifop: “Laure’s unwavering competence, her team spirit and international experience acquired in our Ifop Asia subsidiary are valuable assets for this new stage in her career. I am sure that Laure’s appointment will be highly beneficial for the Group and that we will thus be in an even stronger position to support our clients’ development”.

 

Laure Friscourt has held various positions within the Group; she managed the Ifop Asia subsidiary, then set up and managed Beauty Department. As Deputy CEO, her task today is to bolster Ifop’s development in the Beauty, Healthcare and Wellbeing sectors while supporting growth in Asia.

 

About Ifop:

 

For 80 years, Ifop has been the industry benchmark for opinion polls and market research. Our approach is based on a combination of sector-based expertise, business know-how, forecasting and international vision. Our activity is structured around these areas of expertise with 7 specialist divisions for major sector-specific markets (Opinion, Beauty & Wellbeing, Consumer & Retail, Healthcare, Luxury, Media & Digital, Services), 5 entities dedicated to business know-how (Quali Marketing, Data Management, Client Experience & Large Scope Studies, Omnibus, Panels) and an inspiration management unit, InCapsule by Ifop. In 2018, Ifop acquired Sociovision, a company renowned for its expertise in the field of sociological studies.

 

An agile company fostering close relationships with its clients, Ifop operates in some fifty countries from offices in Paris, Shanghai and Hong Kong.

Luxury in the digital age: the challenge of balancing « slow time » and « fast time »

At Luxe Pack Shanghai 2017 held in April, Ifop CEO Stephane Truchi and Luxurynsight CEO Jonathan Siboni shared their views on how luxury brands should adapt to the digital era in a conference entitled “The Digital Transformation of Luxury”.  

While 50% of Chinese domestic luxury consumption will be generated online by 2020, it is of the utmost importance that luxury brands remain abreast of digital innovations and place them at the very heart of their development strategies.

Although luxury brands are forever more accessible and time has speeded up subsequently to the development of digital technologies, Stephane Truchi places emphasis on how important it is for luxury brands to maintain their focus on the traditional values of luxury which include one to one relationships with clients, a physical point of sale, sensoriality and paying close attention to clients’ needs in particular through advice and direct contact.

In this way, the challenge facing brands today is to bring these two worlds together and create a balance between “slow time” and “fast time”, while preserving the essential dimensions of luxury such as mystery, rarity, excellence, expertise and occasionally keeping a distance from the digital universe by focusing on interaction, dialogue and ephemeral actions.

Finally, Stephane Truchi closed the conference by outlining three key strategies to ensure that luxury brands maintain their exclusivity in a digital world accessible to everyone:

  • Create an irresistible desire – brands need to expand their range of visual, written and video materials with remarkable content, thereby revealing unknown facets to clients, fostering intimacy with new generations (millennials), and opening new channels via influencers.
  • Deliver a unique experience via new technologies and initiatives to ascertain a seamless service, while creating an opportunity for interaction between the digital and the physical worlds and tapping into social interaction.
  • Foster a close relationship with clients based on the latest advances in technology such as chatbots, thus encouraging automatic interaction between clients and the brand, ensuring personalisation of support services and providing the opportunity for real-time interaction with a community.

Asia, the new experiential stage

From Mass retail to Experiential Retail

Cultural spaces within a mall, trying on clothing in a fashion show setting… French retailers have much to learn from their Japanese, Korean, Thai and Chinese counterparts in terms of client experience.

Click to read

Hot trend in China: Live-streaming apps turn Nobodies into Internet Celebrities and offer unique money-making opportunities.

 

A pretty woman casually dressed, eating noodles and talking about the makeup she is planning to buy. A handsome man gazing at the webcam in silence. A lady singing a cappella in her living room. What do they have in common? Hundreds of thousand followers.

The Live-Streaming craze is sweeping across China. Millions of regular people are now sharing bits of their lives with the world seeking for fame and expecting to gain cash.

Yizhibo, Xiandanjia, Douyu and Ingkee are some popular apps among the 80 apps for live streaming available in China, and the number is growing all the time.

Why these videos which seem meaningless have so much success?

These apps allow people to peek into the lives of strangers and interact with them to an unprecedented extent. The viewers can send pop-up messages to the streamer and “tip” them with virtual presents they buy from the apps. The streamers can then exchange their presents for cash.

On Ingkee, one yuan (0,10€) buys 10 “diamonds”. Tipping a beer will cost you 1 diamond, a Ferrari 1200 diamonds and a yacht 13140 diamonds.

Competition between streamers is fierce, a raking based on the number of followers and the number of “diamonds” is accessible. Some accounts have reached many millions of diamonds.

It is necessary for brands to conquer the Live-streaming world.

These Internet celebrities are highly influential leaders among the young generation and they receive money from brands for broadcasting their products.

The apps are already used for commercial purposes. Individuals and companies use them for selling makeup and skincare products.

Celebrities also broadcast to interact directly with fans.

L’Oréal has a live-streaming account and offers sessions of live show with the brand’s muses.

Ingkee, is only one year old but has been ranked No. 1 on Apple’s China app store multiple times. Ingkee says over 50 million users have downloaded its app. Douyu claims 120 million active monthly users.

Live-streaming apps are a great opportunity for brands to reach customers beyond geographical limitations and at low costs.

Article written by Thi My Nguyen, Market Research Manager at Ifop Asia.

The Evolution of Leisure In China

 

Today Chinese society is in a flux. Both the economic growth as well as the pace of growth of the past 35 odd years has had a massive impact on not just on the economic wellbeing of the Chinese people but also on the society in general. With the increasing affluence levels, higher disposable incomes, access to new product categories and increasing integration into the wider world, has meant not only have the people’s lives changed but also the way they relax, unwind and spend their leisure time.

Unlike in the past where the favorite pastime of most Chinese people was confined to what was acceptable within the social realm, now the same has evolved with the changes in the society. What is acceptable and not acceptable is now more a domain of the individual with the focus firmly on more balanced, engaging and diversified lifestyle.

Consequently we observe evolution of leisure options beyond traditional restaurants, stroll and activities in the neighborhood parks and KTVs to leisure travel, health & beauty, shopping and even online indulgences. This evolution signifies a move away from more basic motivations of safety, nutrition (health) and tradition to more mature-exploration, experience, authenticity, and value proposition.

The Chinese government too has had a hand in this evolution. The government has pushed to increase domestic consumption by providing more days off for Chinese people to spend on leisure activities. In 1995, the government introduced 5-working-day week, providing people with 2 days a week of leisure and rest. In 1997, the golden week and the national day were introduced as additional measures to boost domestic spends. Finally, the new labor law in 2008 was enacted to provide yearly 5 days of paid leave to make Chinese people to connect more with their families and in the process boost the economy.

Explore and Experience

Traditionally for Chinese people, food (a major leisure indulgence) used to be more about nutrition and health. With increasing affluence and consequently travel becoming more common, food is becoming more about experience, authenticity and exploration. Cheese and regional wine are riding high on this wave. 94% of Chinese consumers say they have tried French cheese and were likely to eat some again. Definitely, times are evolving.

While travel on the other hand was previously considered as a leisure activity with a focus on destinations (been there, seen that), it has now shifted more to qualitative and “out-of-time” experience where people want to live the present moment, enjoy  the experience, explore and exchange.

A study conducted by IFOP has shown that Chinese people save for difficult times, for their children’s education and… for travel. In first tier-cities (Shanghai, Beijing and Guangzhou) travel even emerges as the primary motivation for saving.

Travelling agencies noticed this shift and have tried to seize this new market by offering for instance journeys focused on particular themes such as gastronomy, relaxation (cruise), or sport (hiking) and in the process work on people’s motivation of experience and explore.

Other emerging trends

The younger travelers focus more on independence when it comes to travel and we also see solo or non-tour group travelers on the increase. They are no longer interested just in running from one scenic/tourist spot to other and endure endless bus rides in the process. They now want to experience and live the moment.

Travel aside, we observe rise of health and beauty based leisure avenues. There is a common Chinese belief that to be successful in life, one needs to look good (and of course healthy). This belief is leading to increasing focus on keeping fit and also quick fixing perceived bodily negatives. This aspect is also seen part of leisure and Chinese people are going all for benefiting from options that cater to these needs. While the elderly have the gym and dance in public parks, most young people are hooked to the gym.

People are also opting to go abroad to seek medical attention. It may be for more serious medical conditions or for cosmetic surgeries. This trend has given rise to new travel trends such as medical tourism (e.g. plastic surgery). Countries like Korea, Thailand are hot destinations for Chinese people to travel to get medical attention and also in the process enjoy visiting the country.

Kings of Shopping

Shopping is considered an integral part of leisure activities of Chinese people. To them it’s more than buying. It’s an experience and a social activity. Rise of malls is an example of this trend that caters to these requirements. Chinese people spend a lot of time living the experience of shopping. For instance, when they want to buy a premium beauty product, it all starts with talking to each other (social occasion). It’s followed by an online search for information (personal engagement and involvement) and actual buying of the product in physical stores in China or abroad (experience). It’s not surprising that online channels are now trying to replicate the physical store experience on the website to engage more consumers.

At the same time, shopping malls are becoming a lifestyle and provide a wide range of services to enhance the shopping experience: game rooms, restaurants, beauty salons, and cinemas are much more numerous than in our malls.

Even when it comes to travel, shopping in the world’s biggest cities remain the top motivation irrespective of age or gender. The voracious appetite for shopping can be seen in duty free stores in the world’s major airports as well as high streets.

Digital

Talking about online, the digital revolution especially the rise of social media and e-commerce has had deep impact on the way Chinese people conduct their lives and also their leisure habits. Nowadays, it’s very common for Chinese people to explore leisure ideas, discuss travel plans, look out for promotions for hotels, book tours, all using just their smart phones. Smart phones have made information accessible in a magical way and the Chinese people are using it like no other people elsewhere. As a consequence, possibilities are endless and spend time on wechat or weibo is now considered as leisure.

In conclusion, undertaking leisure activities is becoming more and more commonplace among Chinese people. We can fairly say that Chinese people have truly come off age when it comes to their leisure activities and are now looking to further their experience by spending on numerous avenues that offer them such indulgences.    

Article written by Manohar Balivada, Vice President, Ifop, Shanghai. Published in Connexions magazine N.77  

Have Chinese Women Started to Look Beyond Beauty Products?

 

 

In China, the importance of beauty can’t be overemphasized especially for women. The concept of beauty which is traditionally dictated by fair and pale skin (boiled egg complexion and tone) is now morphing into emphasis also on sharper and fuller facial and bodily features. The belief that skin care products can only do so much to make one look beautiful is taking roots with women looking for quick fixes such as micro or cosmetic surgeries to achieve perfection in their quest to look beautiful.

According to current market estimates, until 2013 only approximately 5 million Chinese women did one or the other form of cosmetic surgery.  By 2015 this figure rose to over 7 million and by 2018, it’s likely to touch 11 million. Although the figures are minuscule compared to the size of the population, but the growth is estimated to be stronger going forward despite government regulations and societal constraints.

To contextualize, it’s estimated that between 80 to 90% of Chinese women use skincare products and up to 40% use color cosmetics. Assuming the latter group is more into beauty, and as a consequence more likely to undertake cosmetic surgery, the full potential of this market becomes more obvious. A study by Chinese lifestyle magazine SELF and IFOP Asia estimates that approximately 15% of Chinese women are considering doing micro/cosmetic surgery in the future. Considering this figure of 15% who intend to undertake a surgery in the future, the size of the category skyrockets to nearly 40 million potential consumers in the next 5 to 10 years. (15% intenders among 40% color cosmetic users of the total Chinese women population).

In fact, in comparison to their counter parts in more mature neighboring markets, Chinese women undertake such surgeries on a greater scale than even their Japanese counterparts across all treatments/procedures. However the Chinese women get trumped by Korean women although in terms of interest and intent to undertake these treatments/procedures in the future, they in turn trump the latter.

This category predominantly attracts younger females although in recent years Chinese men too have started going under the knife. This is only likely to add to the huge potential of this category. The acceptance of more comprehensive and multiple surgeries are also on the increase. As of now, the popular surgeries are double eye lid  as well as nose job. In the next few years with wider acceptance of the practice, surgeries on other parts of the body too could be commonplace.

The macro reasons for this staggering growth among others, are the increased competition in the job market, the changing societal values, increasing disposable incomes, integration into the wider world and ever more emphasis on personal looks.

According to the SELF & IFOP Asia study, compared to last few years, micro/cosmetic surgeries have become more popular, acceptable and even admired. The study states that micro reasons are multi fold but mostly to do with the continuous propagation of the message in public media, increasing acceptance in the society, open mindedness to having a surgery & the ever increasing desire to look more beautiful and having more youthful skin, both of which are never fully satisfied in spite of increasing spends on beauty care products.

Women of different ages consider these surgeries for different reasons. Fresh graduates, who account for lion’s share of the surgeries undertaken in China, do it predominantly for enhancing their career prospects by building their self esteem (through appearance). A study done by JAMA facial plastic surgery also alludes to this and also suggests that such women also observe an increased level of self efficacy (confidence in ones abilities) compared to before.

The middle aged consumers (25-30 yrs) do it mostly for anti-aging and whitening purposes whilst those who are little older do it for not only anti-aging but also to remove wrinkles, freckles, pigments and bags under their eyes .

Another trend that is also catching up is undergoing cosmetic surgeries abroad. Chinese consumers are also seeking these types of surgeries more and more abroad for both costs as well as safety considerations. According to the Korean Healthcare development institute, in 2012 Chinese consumers accounted for 20% of foreign patients who went to Korea for any medical service and 36% of them sought cosmetic surgery with an average spending of US$1,600. This proportion is only likely to increase given the trends we observe in this market.

With the increasing acceptance and popularity of cosmetic surgery, this industry is only likely to explode in the coming few years with implications for both cosmetic surgeons as well as beauty brands. The need for ‘quick fix beauty’ is increasingly becoming commonplace and more importantly being accepted especially by the younger generations. Beauty brands would do well to think and act on this likely surge of the need for quick fixes. Depending on how they react, this trend would either be a boon or a bane for them.

 

Article written by Manohar Balivada, Vice President, Ifop, Shanghai