Luxury is going mainstream: Almost three-quarters of U.S. consumers say they make a luxury goods or apparel purchase each year, with one-third of those spending at least $1000, according to new research from LoopMe, a technology company that uses artificial intelligence (AI) to improve brand advertising performance,
For these high-end shoppers, an in-store experience is preferred, with 57% opting to buy luxury goods from a physical shop. Despite big online players like Amazon making inroads into the luxury market, 30% of consumers will still buy directly from the retailer’s store, with 27% choosing a department store or secondary retailer.
The price (50%) and quality (47%) of luxury items are prioritized as key factors when making a luxury purchase, across all budget levels. In addition, LoopMe found that timing matters when consumers make a luxury purchase:
- 54% will buy luxury goods for a special occasion or as a reward for personal achievement
- 30% will buy in a sale
- 16% will buy regularly as part of their lifestyle
- 13% will buy for the holiday season
- 11% will buy when they discover a new collection.
“In recent years there have been social media trends and hashtags encouraging users to ‘treat yourself’ or spend on ‘little luxuries,’ and for most U.S. consumers it appears that investing in luxury goods is now a part of their annual shopping habits,” said LoopMe Chief Revenue Officer Lisa Coffey. “With price and quality having major sway in decisions about these purchases, and with spending not only restricted to major sales events, brands should maintain an ‘always-on’ presence to continually build appeal, and acquire new customers.”
LoopMe based its conclusions on a recent survey of 5377 U.S. consumers to gauge consumer behavior and preferences around luxury goods and apparel. Click here for more from the company’s research.
