DATA POINTS: Japan's retains its appetite for luxury

Running against the predictions of many market observers, the study finds that attitudes to luxury purchases have changed little following last year’s earthquake. Less than 20 per cent of respondents showed diminished desire in shopping for luxury goods than before the disaster. Ten per cent of chief executives surveyed even said the event had a positive impact on company performance, and 70 per cent were optimistic about the short-term prospects for the luxury sector.

The market is still considerable, worth between US$10 billion and $20 billion per year depending on definition, although it is gradually shrinking. McKinsey notes that in some cases, big spending individuals are seeking out higher end brands, and on a more regular basis (21 per cent and eight per cent respectively).

Aside from investing in savings, those with disposable cash appear most inclined to spend on travel, followed by general luxury goods.

It is not surprising, then, that the Japanese are still avid luxury shoppers abroad, the most popular destinations being Hawaii, Europe and Korea respectively.

Luxury brands should also be aware of the importance of smartphones and tablets as purchase tools, particularly among younger consumers. Sixteen per cent of respondents in their 20s said they used these devices in their last purchase.