New research from consulting firm Accenture revealed that luxury shopping is likely to make a modest comeback next year, with 50 percent of Americans intending to make a small luxury purchase within the next six months.
The study of more than 2,000 American consumers found that the number one reason shoppers purchase specialty food or beverages is to splurge on a small luxury. High-low fashion is the number one reason shoppers decide to shop for luxury apparel, and 57 percent of consumers who intend to purchase luxury apparel will buy a few luxury items to complement a more affordable wardrobe.cheap bounce houses for sale
“As consumers show an increasing willingness to splurge on luxury, retailers and brands can build loyalty by offering a strategic selection of smaller-ticket luxury items to complement their more significant products,” Tom Jacobson, the managing director of Accenture’s pricing and profit optimization division, said. “Consumers want a taste of luxury in their everyday lives and are willing to spend a little extra for the experience, but the emphasis is on small items. They may think twice about purchasing a new handbag but shop for a wallet as an alternative.”
When shopping for luxury goods, 36 percent of consumers indicated a preference for a physical store, while 19 percent indicated a preference for online shopping. Thirty-eight percent of shoppers said that the number one reason for in-store shopping is to see all the products in person. Thirty percent of shoppers said that they prefer online retailers to get the best price, and 25 percent of consumers said noted the convenience of online shopping in their preferences.
In regards to personal care products, including makeup, skin care and hair care, physical stores surpassed online shopping. Only 22 percent of consumers indicated a preference for online-only retailers for personal care products.
The study also found that access to special bargains via group membership shopping sites has elicited more luxury purchases. Of the 23 percent of shoppers who have purchased luxury goods and services from online retailers that offer exclusive member discounts, 58 percent said that such sites have led to an increase in their luxury shopping.
“The new consumer is online savvy and always on the hunt for a discount, which is pushing brands to get very smart about leveraging the growing number of channels consumers use to make luxury purchases,” Jacobson said. “Traditional retailers, online stores and even designers need to have a very compelling answer to the question: ‘What is the advantage of buying from me?’ Without that answer, online price comparison engines, barcode scanners and shopping apps will win consumers over.”
The survey also revealed that younger generations are more likely than Baby Boomers to make a luxury purchase over the next year.