Here’s How Young Luxury Product Shoppers Make Buying Decisions
"Millennial and Gen Z consumers are embracing luxury fashion. The average luxury consumer in these generations owns nine luxury fashion items across accessories, apparel, and footwear, according to A Millennial Approach to Luxury, a recent report from The NPD Group and Stylitics. But, they have a different style when it comes to the purchase journey. This younger luxury consumer favors the convenience and extensive browsing ability afforded to them by online shopping, but also appreciates the luxury in-store experience."
“'The value of a luxury product is not lost on millennials and Gen Z, just the opposite,' said Marshal Cohen, chief industry advisor, The NPD Group. 'The younger luxury consumer demands the quality and cache expected from luxury items, but they also expect the shopping variety that allows them to find something unique.'"
"Millennial and Gen Z luxury consumers identify highly coveted or prestigious brands, product quality, distinctiveness, and timeless style as their top personal criteria when making a luxury purchase decision. The endless brand, product, and shopping options available to today’s luxury shopper make it easier for them to get the item and overall experience they are seeking."
"They favor pure-play websites and department stores with multiple brand offerings. Options mean research and planning, nearly three quarters said their favorite luxury purchase was planned in advance and they knew where they wanted to purchase it."
This isn't very surprising since, within just the last month, 39.8% of Luxury Product Shoppers used a search engine to research a product they were considering, according to AudienceSCAN. Additionally, within the last six months, 26.3% of these consumers used a mobile device to view a retailer's website and 25.1% watched a video about a product they were considering on a mobile device and, within the last month, 37.7% looked up the phone number of a business online.
"More than half of millennial and Gen Z luxury consumers prefer to shop mostly or only online, but more than a third prefers in-store luxury shopping. In-store browsing influenced more shoppers in their latest luxury purchase than any other factor, including needs around a personal event or occasion."
“'The multi-platform shopping experience has become as important in the luxury market as it is for retail in general,' said Cohen. 'The luxury shopping experience is no longer an ultra-exclusive one, it’s now about experiencing the options and brands through mobile apps and inviting in-store environments.'”
Luxury Product Shoppers are very visually stimulated when it comes to advertisements. According to AudienceSCAN, they're 21% more likely than other shoppers to react to ads at movie theaters and 18% more likely to be driven to action by outdoor ads. Additionally, last year, they were influenced by TV commercials (56%), email ads (46.8%) and ads in both online and print magazines (46.3%).
AudienceSCAN data is available for your applications and dashboards through the SalesFuel API. Media companies and agencies can access AudienceSCAN data through the AudienceSCAN Reports in AdMall.