US consumers willing splurge on luxury, says study
16/11/2012
A poll of 2,000 found that 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 and then purchased the product online.
“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,” said Tom Jacobson, managing director of the Accenture Pricing and Profit Optimisation practice, suggesting, as an example, that those that sell handbags should offer wallets, too.
The survey found quality is ranked the most important factor by 75% of consumers when buying luxury, followed by price at 69%. Only a quarter ranked brand name as most important.
“Luxury brands cannot rest of on strength of their names alone,” said Mr Jacobson. “As consumers begin spending again, luxury brands must ensure that the quality and features of their products exceed the expectations set by their price tags, or they risk losing consumers to another luxury brand, or even to a non-luxury one.”
Share this story:
