Luxury Brands Are Recession Proof, According To Consumers
Wunderkind surveyed 500 consumers to provide exclusive insights into how the current macroeconomic uncertainty will impact luxury shopping.
Wunderkind, the leading cross-channel performance marketing solution, released results from a consumer survey today that focused on luxury shopping and how it might be affected by the current economic climate.
At a topline, the majority of consumers (70.2%) are confident about their personal economic outlook for 2023, with 67.4% of respondents saying that they are shopping “somewhat more” or “much more” online compared to last year. When you hone in on “luxury-specific” purchases, 89% of consumers are expected to maintain or increase in the year ahead.
The luxury categories most frequently purchased online are clothing, skincare & makeup, and shoes, with 24.9% of consumers citing “personal expression” in day-to-day wear as the biggest driver. When it comes to actually purchasing, consumers prefer going directly to the brand’s website. This enables brands to identify visitors, collect data, and tailor personalized digital experiences across owned channels, which is important to 86.2% of consumers.
Before purchasing, 50.4% of consumers research a brand or product three to five times, and 89.8% of consumers state that personalized and consistent digital engagement is influential in helping drive these decisions, specifically on social media and email. And once consumers make that first purchase from a luxury brand, they report being very loyal and likely to spend more, especially if the brand has loyalty and VIP offerings.
“Luxury brands have traditionally invested in brand marketing to continue to create memorable experiences for their customers,” says Amandine Servain, VP of Marketing at Wunderkind. “As consumers increasingly shop online, the time has come for luxury brands to use this opportunity to identify their web visitors and optimize the digital journey with performance marketing solutions that will drive revenue through acquisition or loyalty, while maintaining brand consistency.”
For more information about Wunderkind’s report on the luxury category, check out the downloadable link here.
