Designer brands a Pinoy passion

MANILA, Philippines - That Filipinos are brand conscious has long been a given. Chanel’s interlocking Cs, the horsebit-like H of Hermes or Louis Vuitton’s easily identifiable LV are logos many would love to sport. When it comes to designer brands, Filipinos nowadays hold Calvin Klein, Gucci and Vuitton in high regard. This was one of the findings in the Nielsen Global Luxury Brands study conducted last November. The Philippines, however, isn’t the most brand conscious nation in the Asia Pacific. That distinction is held by Hong Kong (38%), followed by India (35%). These brands Filipinos love. The top ten designer brands Filipinos buy are Calvin Klein (40%) followed by Ralph Lauren (38%), Diesel (30%), DKNY (23%) and Celine (20%). The next five are Gucci (16%), Giorgio Armani (12%), Louis Vuitton (11%), Christian Dior (10%) and Chanel (9%). Anthony T. Huang, Jr., executive vice-president of Stores Specialists, Inc., is responsible for bringing into the country half of the top ten brands: Calvin Klein, Ralph Lauren, Diesel, DKNY and Gucci. Asked how they decide which brands to target, woo and reel in, he told BusinessWorld that they "first consider the brand’s DNA and whether it will jibe with what Filipinos like." "Aside from ’casual classics,’ Filipinos go for fashionable trends nowadays," Mr. Huang said. He added that some consumers have gone on to develop more sophisticated tastes. "They are aware of what’s new and want to be on trend like every one else," he said. When it comes to accessories like bags and small leather goods, Louis Vuitton is the brand most Filipinos would prefer to buy if money were no object. According to the findings, the appeal of Louis Vuitton was strongest in Asia, with the world’s top 10 markets that aspire to the French brand hailing from the region, led by the Philippines (42%), Hong Kong, and Singapore (both 40%). Benedicto L. Cid, Jr., managing director of The Nielsen Company Philippines, said the brand’s "interesting designs and new product ranges meet the diverse appetites of many Asians." After Louis Vuitton, the other brands Filipinos aspired to own were Gucci (39%), Calvin Klein and Ralph Lauren (both 34%), Giorgio Armani (27%), and Prada (26%). Incidentally, brands with really high-ticket items such as Bottega Veneta and Hermes hardly registered with the respondents. Only 5% and 4%, respectively, of those surveyed longed to own items from the two luxury brands. "Asia is considered by many international brands as a major sales region," said Nielsen’s Mr. Cid. "With the improving personal financial status of Asian consumers and the opening up of various developing markets, there is a huge room for growth in the luxury sector," he said. According to the survey, consumers in Asia Pacific "approved" the potential of a crossover product between a designer fashion brand and a new technology gadget. Fifty percent of those surveyed said they would buy a mobile phone that was co-branded with a luxury brand — like LG and Prada, Giorgio Armani and Samsung, and Dolce & Gabbana with Motorola. In Asia, Filipinos seem the most receptive to the idea with most going for a designer-branded phone (74%), flat screen TV (47%), or MP3 player (43%). Mr. Cid noted the "huge market potential" for these "extensions." "Crossover between brands and products is certainly an opportunity. It is clear that consumers from Asia, along with those in other fast developing markets, are driving demand for these products," he said. The Nielsen Online Consumer Confidence and Opinion Survey polled 26,312 Internet users in 48 markets from Europe, Asia Pacific, North America and the Middle East. In the Philippines, 501 interviews were conducted.