This holiday season, luxury shoppers are expected to keep the momentum going according to Saks. The high-end department store forecasts that 75% of shoppers with an appetite for luxury items – ranging from designer apparel to jewelry – will spend the same or even more compared to previous years. If accurate, it appears wealthy shoppers don’t plan to miss a beat on the gifts that make this season so special.
1. Luxe Shopping On the Rise Despite Global Economic Woes
It would seem that despite financial fear-mongering, the high-end, luxury shopping sector is thriving. Savvy marketers have found a way to make big bucks in a market that isn’t necessarily tied to the traditional economic model. Consumers clearly have a taste for this kind of exclusive spending, and a way to fulfill it.
What needs to be considered is how luxury retail is being sold. People seem more willing to put their money towards a high price tag when the product comes with some extra facets. Brands are focusing on personalization, experiences, and exclusive access to make these goods not only feel luxurious, but exclusive.
- Examples Of Ways Luxury Shopping Can Incorporate Experiences:
- A Citizens of Humanity pop-up with free cocktails and a photobooth
- An Apple event with crash course lessons on incorporating their products into daily life
- A Tesla showroom with delightful amenities and helpful knowledgeable staff
2. Saks Reports Surge in Luxury Purchases
A Record-High for Luxury Shopping
Retail behemoth Saks Fifth Avenue reported record sales worldwide as the retailer saw a surge in consumer spending on luxury goods. The luxury retail company took a big hit last year due to large-scale closures resulting from the pandemic. But as restrictions began to lift, consumers began dipping back into the market for lavish and extravagant items.
Saks reported double-digit growth in the following luxury categories:
- Designer apparel
- Fine jewelry
- Footwear
- Handbags
Analysts have speculated that the increase in spending could be attributed to customers stocking up on items before prices start to normalize. Additionally, Saks has also likely benefitted from affluent shoppers moving away from vacations and looking to ‘treat themselves’ with lux items instead.
3. Insight Into the Mind of 75% of Luxury Shoppers
It’s no secret that luxury shoppers are some of the most picky customers out there, so what kind of processes lead to the decisions these extravagance-seekers make? Unveiling the mindset of these big-ticket buyers can help any brand optimize and refine their offerings. Let’s break down what 75% of luxury shoppers consider crucial when making their decision.
- Unique Experiences: While luxury shoppers enjoy indulging in experiences, they tend to appreciate exclusive experiences that offer them the chance to feel special. Whether it’s a special event, one-of-a-kind products, or an exceptional customer service, they are in search of something that cannot be found in a standard store.
- Brand Legacy & Reputation: A company’s pedigree is a major indicator of its quality for luxury shoppers. Consumers typically look for long-standing brands that are closely associated with prestige and quality.
- Material Quality: To many luxury shoppers, appearance matters. High-end shoppers are often drawn towards products with superior craftsmanship and material quality that stands out.
- Exclusivity: Luxury shoppers tend to prefer products that are not shared with the world. Whether it’s the use of limited run materials or exclusive designer partnerships, luxury shoppers are in search of items exclusive to a company.
Luxury shoppers tend to be savvy customers with a penchant for the finer things in life. More often than not, understanding their desires is just the first step – delivering unique and exclusive experiences and products is key to keeping their loyalty.
4. Why Are High-End Retailers Thriving?
High-end retailers have always been a key part of the consumer market, but now, more than ever, their ability to meet consumer needs has driven them to thrive in the current and ever-changing landscape.
Access to Experiences – Many wealthy customers are looking for more than just material goods, they want an experience that represents the high-end status they seek. Luxury retailers are able to provide these experiences, whether it be artfully curated in-store experiences, personal styling, or exclusive parties and events.
Elevated Quality and Reputation - This is less about just the product, and more so about the retailer. High-end retailers have an aura of class, wealth, and sophistication that can not be replicated by the average retailer. Many shoppers look forward to the experience of shopping with elevated level of service and support. Additionally, the quality of materials and finishes in luxury goods is hard to match, and preferred by those who can afford it.
- Access to exclusive experiences
- Elevated quality in goods
- Exclusive, high-end service
- Associated prestige with the brand
These reasons are all core to why High-End Retailers are so successful right now. Their ability to provide customers with these experiences and products is unique and highly desirable. As long as these retailers focus on providing the experience and quality they are known for, their success will continue to grow.
Saks customers can rest assured that their luxe shopping experiences will remain as rewarding as ever, with the promise of the same or higher spending for the near future. So, treat yourself to something special… you deserve it!
