How Affluent Shoppers Buy Luxury Goods Ipsos MediaCT The Media, Content and Technology Research Specialists A Global View What we wanted to know How do shoppers use digital to research and buy luxury products? And how can brands best reach them? What we found Affluent luxury buyers are When making purchase decisions, Across markets, some buy online extremely tech savvy they use the internet more than but most will go to a store any other medium 100% 75% 72% use a smartphone, tablet, conduct research online of shoppers in new markets laptop or desktop before purchasing research online and offline, then go to a store 2x 68% 65% smartphone penetration use a search engine say they want to touch and feel than for general population in their research a product before purchase Three Luxury markets emerged based on buying habits and media habits New Markets Mature Markets Japanese Market Fast-growing luxury markets, where Historically established and Men skewing older who purchase trendiness and newness are key. traditional luxury markets where less frequently and are driven by Luxury purchasers are younger and buyers skew older and purchase luxury being a symbol of sophistication they are frequent buyers semi-frequently and a way to boost self-esteem 56% 50% 64% men female buyers male buyers 50% women Average age of buyers: Average age of buyers: Average age of buyers: 37 46 49 Average number Average number Average number of luxury items of luxury items of luxury items purchased in last purchased in last purchased in last two years: two years: two years: 22.7 12.9 5.7 In New Markets, luxury purchasers are more frequent shoppers, while in Japan they are more selective New Markets Mature Markets Japanese Market At least one purchase 100% 93% 99% 85% 98% 69% in the last two years Five or more purchases 85% 34% 70% 16% 48% 9% in the past two years Average number of 22.4 7.2 13.2 4.6 5.6 2.8 purchases in the past two years And more precisely, which of the following brands did you purchase (even if just once) in the past 2 years? Base: Luxury goods buyers (New Markets n=1225; Mature Markets n=2028; Japanese Market n=494) On average, they spent $2,500 on their last luxury purchase $2,600 $2,288 $2,720 New Markets Mature Markets Japanese Market How much did you spend for this purchase? Base: Luxury goods buyers (New Markets n=1225; Mature Markets n=2028; Japanese Market n=494 Most luxury purchases happen offline, but eCommerce is still a significant sales channel, especially in New and Mature Markets Where do luxury shoppers purchase? 78% In-store in my own country In-store abroad/while travelling 72% 61% Online 20% 18% 15% 14% 13% 7% New Markets Mature Markets Japanese Market Where did you actually purchase your [BRAND & CATEGORY]? Base: Luxury goods buyers (New Markets n=1225; Mature Markets n=2028; Japanese Market n=494) Almost all luxury buyers do research before purchasing and the internet is an important source for them, particularly in New Markets Offline vs. Online: where do luxury buyers search? Average number At least one source of touchpoints New Markets 98% 8.1 Researched Almost all luxury Online or Mature Markets 93% 4.3 buyers search for Offline information prior Japanese Market 92% 2.6 to purchase New Markets 92% 4.3 Half of the Researched Mature Markets 69% 2.1 information sources Online are checked online Japanese Market 49% 1.1 Below you’ll find several ways for people to inform themselves about a luxury product. Which sources of information, if any, did you use to help you out with your decision when you last purchased [BRAND & CATEGORY]? Base: Luxury goods buyers (New Markets n=1225; Mature Markets n=2028; Japanese Market n=494) Wealthy luxury shoppers multi-task on digital devices How do luxury purchasers search for information? (Online) 41% Use search engines 58% 84% 27% Look for information 43% from a website/app 70% 7% Look on social network 19% or watch online video 62% Read online articles or 10% professional reviews 29% or newsletters 59% 12% Read online consumer 23% reviews or blog & forums 57% 6% Notice/click on 16% online advertising 49% Look at price or product 15% 17% comparison website/app 35% New Markets 12% Search online to find 23% Japanese Market a store address 35% Mature Markets Below you’ll find several ways for people to inform themselves about a luxury product. Which sources of information, if any, did you use to help you out with your decision when you last purchased [BRAND & CATEGORY]? Base: Luxury goods buyers (New Markets n=1225; Mature Markets n=2028; Japanese Market n=494) First-hand experience was the most popular way to research the product offline How do luxury purchasers search for information? (Offline) 72% Talk to someone or see/try 72% the product in store/event 82% 29% Read/hear the information 44% in media 73% 7% See someone wearing 19% the product 45% 13% See an advertisement in a 24% newspaper or magazine 41% See an ad on an 5% outdoor billboard, in a 16% cinema or SMS 37% 14% Talk to friends/family/ 23% colleagues 36% 5% See advertvertisements 9% on television 30% 6% See, use or try out a friend/ family product 13% 23% New Markets 1% Hear an advertisement Japanese Market 4% on the radio 10% Mature Markets Below you’ll find several ways for people to inform themselves about a luxury product. Which sources of information, if any, did you use to help you out with your decision when you last purchased [BRAND & CATEGORY]? Base: Luxury goods buyers (New Markets n=1225; Mature Markets n=2028; Japanese Market n=494)