According to a new Luxury Shopping Survey from Accenture, half of U.S. consumers are likely to make a small luxury purchase in the next six months, including 53% who are likely to purchase specialty food or drinks, 48% to purchase luxury clothing and 48% to purchase luxury personal care products.
Splurging on a small luxury is the number one reason consumers buy specialty food or drinks. High-low fashion is the top reason shoppers shop luxury apparel. 57% of those who intend to purchase luxury apparel will mix a few luxury items into a wardrobe of more affordable clothing.
Consumers prefer to shop in stores for specialty food and gourmet products primarily because they like to see all the choices in person. Online is preferred for finding the best deal
Reasons For Purchasing Specialty/Gourmet Food And Drink From A Physical Store | |
Reason | % of Respondents |
Like to see choices in person | 38% |
Want to test and touch | 28% |
Discover unique finds | 15 |
Stores fun, social activity | 7 |
Knowledgeable sales representative | 4 |
Source: Accenture, November 2012 |
Reasons For Purchasing Specialty/Gourmet Food And Drink From An Online Store | |
Reason | % of Respondents |
Can find best deal online | 30% |
Convenience of shopping anytime | 25 |
No store available locally | 10 |
Comparison of consumer reviews | 9 |
Deal directly with sales people | 2 |
Source: Accenture, November 2012 |
Tom Jacobson, managing director of the Accenture Pricing & Profit Optimization practice, says “... consumers want a taste of luxury in their everyday lives... but the emphasis is on small items... may think twice about a new handbag... but shop for a wallet as an alternative...”
Consumers who buy luxury personal care products (including hair and skincare products and makeup) tend to do so because they believe luxury products are better for their bodies or will improve their appearance. And, physical stores beat online shopping two-to-one for luxury personal care products
Motivation To Purchase Luxury Personal Care Products | |
Reason | % of Respondents |
Luxury products better for body | 39% |
Improve appearance | 34 |
Luxury products better quality | 27 |
Increase level of luxury in life | 19 |
Purchase luxury products for friend & family | 18 |
Want the best of everything | 18 |
Conveys accomplished and successful | 12 |
Source: Accenture, November 2012 |
In each of the three small-product categories polled, consumers indicated a strong preference for brick-and-mortar stores when shopping for luxury goods:
The study also found that showrooming, or viewing a product in a store and then going online to make the purchase, plays an important role in luxury purchases. In the past six months, one in five consumers visited a store to experience a luxury product in person and then purchased the product online.
Why Buy It Online (% of Those Who Went From Store to Online to Purchase)
By providing special deals and bargains through group membership, shopping sites have invited more luxury purchases. Among the 23% of consumers who have bought luxury goods and services from an online group that offers exclusive discounts to members, 58% say these sites have increased their luxury spending.
The survey identified a number of differences between Millennials and Baby Boomers when it comes to luxury shopping. 35% of Millennials indicated their likelihood to purchase luxury goods is up over the past year, 46% of Baby Boomers indicated their likelihood to purchase luxury goods has decreased in the past year.
Among consumers who said they are not likely to purchase luxury goods, the majority of Millennials said they cannot afford the prices, while the majority of Baby Boomers say luxury is not important to them or not worth the cost.
The survey found quality is ranked the most important factor by 75% of consumers when buying luxury, followed by price at 69%. Only 25% ranked brand name as most important.
Jacobson concludes that “... luxury brands cannot rest of on strength of their names alone... (they) must ensure that the quality and features of their products exceed the expectations set by their price tags... “
The overall sample was targeted to reflect census distribution of the adult US population. The overall margin of error is +/- 2.2%, says the report.
For more details from Accenture, and access to the complete file and charts, please visit here.