Luxury shoppers are highly coveted customers for brands and retailers. The top 10% of US household earners (those taking home $120,000 or more annually) account for approximately half of all consumer expenditures. This demographic's growing preference for online shopping is changing the face of luxury retail, and it has significant implications for how brands target luxury consumers.
A new report from BI Intelligence, profiles the luxury shopper and takes a close look at the spending habits and preferences of high-income earners — including how and where they shop. Some key takeaways:
Discretionary spending among the wealthy is growing faster than for the average US consumer.
Wealthy consumers are expected to spend the most next year on fashion, travel, and dining.
Luxury shopping is less brand- and status-oriented than it once was.
Jane Hali & Associates View
The aftermath of the terrorist attacks in Paris and Brussels weighed heavily on the sector’s first quarter results as tourist flows to Europe dropped. The luxury market must attract the millennial audience for growth.
The athleisure trend transformed not only consumers’ wardrobes, but also their entire lifestyle. Wellness is one key to the luxury spend inclusive of premium athletic and activewear.
Personalization includes monograming- wearing your own label- not someone else’s.
Luxury brands still seem to be over-allocating ad spend to print. Social media is the way to go.
Offering an experiential store experience will increase traffic.
Source: How luxury shoppers are changing the face of retail, Business Insider. Cooper Smith, 05/17/16