How Luxury Consumers Shop Online
By Linda Peters, Senior Adviser, Ariadne Capital
T
he digital age has changed the way that affluent customers shop. Online platforms have transformed the means of
access to luxury, as well as dictated consumers current shopping habits and purchasing decisions. As a result, luxury consumer behaviour continues to evolve, as technology changes the way people interact with brands.
What is more telling is how luxury consumers have integrated technology into their everyday lives, and how the type of device that they use can dictate their shopping habits. According to a study by Unity Marketing, 98 percent of affluent consumers are now shopping online, spending approximately five hours per week investigating brands, forming connections and making purchases. Further, 16% of all web traffic in the UK now comes from mobiles and tablets - more than any other European country. This raises two key questions:
• How is the luxury consumer experience being shaped by the type of device that is used for shopping?
• How are brands and retailers adapting to this new type of purchasing behaviour?
The influence of the tablet In terms of the first question, it is fair to say that when Apple launched the first iPad in April, 2010, a tablet revolution ensued and the way that consumers engaged with brands digitally changed forever. When looking at the luxury consumer in particular, the overriding opinion is that the iPad still remains somewhat of a status symbol, with a recent study by Chitika, a search-targeted advertising company, finding that most iPad users were typically of a wealthier demographic. Noting this, Chitika
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then looked at the type of traffic coming from these particular user’s devices. Interestingly enough, Chitika discovered that a high share of new iPad traffic correlated with users who had a high median income.
These findings raised an important point for luxury retailers. If they wanted to reach their target audience, their website needed to be designed to engage consumers in a unique way on a tablet. As a result, many major brands and e-tailers that have reevaluated their online offering and have invested in digital are now reaping increases in traffic, conversion and revenue. There is also evidence to suggest that affluent shoppers using a tablet, most likely an iPad, are more likely to buy than shoppers using alternative devices. For example, Adobe recently reported that one tablet generates as much traffic as four smartphones, along with 69% of tablet owners making a purchase on their device every month.
Comparing the online shopping experience: smartphone vs. tablet Aside from the popularity of tablets among affluent buyers, the proliferation of smartphones has enabled a variety of high-growth mobile shopping platforms in the last few years. Mobile apps catering for the digital shopping experience are now becoming common, allowing consumers to easily view items and product details and more importantly, seamlessly load their basket and complete a transaction, all from their smartphone. Many ecommerce platforms are arguably as functional on a phone as they are on a tablet, often providing mobile versions of their website or an app to allow for a streamlined experience no matter what device is being used.
However, when comparing the shopping experience on a smartphone to a tablet, there is evidence to suggest that smartphone apps cater
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