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A recent study conducted by Vogue Business and Amazon Ads reveals that almost the same number of European luxury shoppers purchase directly from a brand in-store (45 per cent) as they do directly online (42 per cent). Meanwhile, around one-quarter of luxury consumers prefer to learn about a product online before shopping it in-store, and 18 per cent of those surveyed carry out their entire research-to-purchase affair online. The digital sector very much remains in proliferation mode.
While the in-store experience remains a crucial touchpoint for luxury shoppers (46 per cent purchase ready-to-wear in-store), the online market is growing rapidly due to the evolution of digital shopping experiences. Live-streaming services can bring the runway to living rooms in the form of digital fashion shows, destinations like Zalando and Amazon serve as sources of inspiration, and online luxury storefronts streamline the shopping experience.
Amazon’s Luxury Stores experience offers a gateway to high-end categories within the easily accessible Amazon shopping environment, where consumers can discover emerging and established designers. Within Luxury Stores each label has its own “store”, so that shoppers can view collections as a whole — just as you would in a curated showroom. For fine jewellery brands like Annoushka, this store-style space can reflect the unique values and ethos of designers to deepen connections with customers. “Fine jewellery is an emotional experience, so a lot of operating online is understanding how we can create that physical emotion beautifully, in a digital capacity,” says Annoushka Ducas, founder and creative director of namesake label Annoushka.
Live-streaming service Twitch continues to build momentum, particularly among the older half of Generation Z. This demographic often engages with live shows and streams before making luxury purchases. “A large section of this demographic is hard to reach because they’ve cut the cord on mainstream media, preferring live environments that are unscripted, authentic and interactive,” says Gemma Battenbough, head of Twitch brand partnerships studio for EMEA and APAC. With adult Gen Zs 141 per cent more likely than the average luxury shopper to be inspired by something they’ve watched on a streaming service, these spaces are vital for authentic connection.
Not only have shopping habits evolved, but the ways in which audiences engage with luxury brands have also changed. Culture is at the heart of consumer inspiration, more than ever, and in order for audiences to take note, brands must create true cultural cut-through. High-end car shoppers have a much higher propensity for advertising through marketplaces, streaming, podcasts and smart speakers than any other consumer category, so there is a multitude of opportunities for connection. Brands such as BMW are already incorporating technology like Alexa and Fire TV within their vehicles. “We know that there is a large crossover between those who consume content via streaming and BMW’s core audiences,” says Tom Nicolle, brand communications manager at BMW UK.
The evolution of the luxury market and advances in tech open the floor to brands creating meaningful experiences that build connections with shoppers — all while better understanding the luxury audience. To read the full report, download via the button below.
Vogue Business surveyed 2,739 luxury consumers across the UK, France, Italy, Spain and Germany. Consumers were aged 18 to 65-plus and had an even split of males and females. Respondents were luxury shoppers who spent a minimum spend of €1,000 on luxury products in the last 12 months, or €500 on a single item. Respondents were asked about their luxury shopping habits, shopping influences and engagement with content and culture
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