After several years of penny-pinching, consumers are once again indicating their intentions to purchase a luxury item or two. But only certain demographic groups are making these purchases. Marketers who promote the products most in demand to the consumers who are willing to buy have the most to gain.
The new Accenture study on the luxury product market shows that about ½ of consumers will buy specialty foods or beverages, luxury apparel, or luxury personal care products in the first 6 months of 2013. Broadly speaking, consumers mostly likely to buy these products belong to online groups that offer discounts and they are also younger, members of the Millennial group.
In the 3 categories studied by Accenture, consumers say they prefer purchasing luxury products in physical stores. In all cases, they like to see the choices available and want to test and touch the products. But the deals available online and the convenience of shopping from home are important to shoppers as well, especially in the personal care and food and drink categories. For apparel products, the convenience of home shopping (28%) ranks higher than seeing all choices in person (25%).
The luxury product market is also subject to showrooming trends with 20% of consumers saying they have purchased a product online after checking it out in the store. The top reasons for doing so were searching for best price (61%) and waiting for best price online (40%).
Regardless of where consumers purchase luxury products, the top factors for selection are:
- Quality 75%
- Price 69%
However, 45% of Millennials say the in-store experience is important, as is the brand (54%). Exclusivity is also important to 18% of Millennials. Baby Boomers rank these factors lower.
Luxury marketers must keep the age of their target audience in mind, as well as the type of product they are selling, when they design promotions. But the good news from the study is that more shoppers are willing to splurge now and then.[Source: Luxury Shopping Survey. Accenture.com. Nov. 2012. Web. 27 Nov. 2012]