For those interested in the luxury jewelry market in the U.S., they better be prepared to go after them while they are on the run meeting people on their social media platforms through their mobile devices.
Two recent studies have reinforced the notion that luxury consumers have really taken to the newest uses of digital media.
* 91% of today’s online adults use social media regularly;
* Revenue per email averages two times higher for ‘Friends and Family’ campaigns;
* 28% of smartphone owners watch video on their phone in a typical month; and
In addition, according to the survey, they are 74 percent more likely to send emails, 50 percent more likely to access online entertainment and 41 percent more likely to perform online searches.
Another survey by the Luxury Institute, a high-net-worth consumer market research firm, reports that 63 percent of wealthy consumers who have made a purchase through their mobile device and just fewer than 20 percent have bought a luxury product or service.
While preference for the in-store experience (45 percent) is why wealthy smartphone users have not yet fully embraced luxury mobile commerce, the majority of luxury consumers who choose to shop via mobile said that there is no upper monetary limit to how much they would spend (72 percent). This compares with another report by the Consumer Electronics Association stating that 90 percent of Americans—216 million people—will use their mobile devices to spend an average of $575 each this year.
Gucci, Louis Vuitton, Saks Fifth Avenue and Gilt Groupe are the most frequently downloaded apps by wealthy consumers who have luxury brand applications on their mobile device. Most affluent smartphone owners who are downloading luxury apps are using them to find information on products, services or brands (56 percent).
Almost all wealthy consumers who have used luxury brand apps report that they have had a good experience with the mobile apps (93 percent), according to the survey. In addition, 71 percent report that they feel better connected to luxury brands after downloading and/or using their applications and 64 percent view luxury brands that offer a mobile application more favorably than brands that do not.
For those going after this market the survey reveals that luxury consumers expect luxury brand applications to highlight loyalty programs (46 percent) and provide early access to sales (45 percent).
“Luxury brands must acknowledge the impact of technology advancements in the mobile space and find a humanistic way to connect and engage with their consumers through mobile,” says Milton Pedraza, Luxury Institute CEO.
The Power of the Social Network
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