September 17, 2015
Harrods celebrated the holiday season in 2012
NEW YORK – Luxury consumers have significantly different preferences from mainstream America and will conduct holiday shopping in a different manner, according to the founder of the Shullman Research Center at the Luxury Retail Summit: Holiday Focus 2015 on Sept 16.
Retailers can capitalize on these preferences by specifically targeting their marketing efforts to appeal to luxury consumers. Understanding when consumers spend, what they buy and where they make purchases will allow retailers to have a successful holiday season this year.
“Luxury shoppers have a different timetable than the rest of America,” said Bob Shullman, founder and chief executive officer of the Shullman Research Center, New York. “Many consumers have already begun shopping.
“Some of the things that they buy are expensive, and some need to be ordered in advance.”
The Luxury Retail Summit Holiday Focus 2015 was organized by Luxury Daily.
Home for the holidays
The holiday season is comprised of five major holidays, beginning with Diwali on Nov. 10 and continuing with Hanukkah, Christmas and Kwanzaa until drawing to a close on Jan. 1 with New Years. During this time, consumers will make more purchases as they buy presents for friends, family members and themselves.
Saks Fifth Avenue embraced the holiday spirit with a tree made of boxes
The question of whether or not this year’s season will be successful for luxury retailers has yet to be determined. There is hopeful optimism among industry insiders.
“It really looks like it’s going to be a good year,” Mr. Shullman said.
Bergdorf Goodman's traditional star hangs above Fifth Avenue
Out of the 239 million adults in the United States, 208 million plan on shopping for the holidays this year. This is an increase from the 196 million who reported their plans in 2014.
Of these 208 million shoppers, 52 million can be considered “luxury shoppers” as they intend on purchasing luxury items. These 52 million luxury shoppers have unique preferences for how, when and where they make their purchases.
Cartier tailored its Web site for the holiday season
For example, luxury shoppers reported beginning their shopping sooner than other consumers. Many luxury shoppers have already begun shopping or intend to do so before Thanksgiving, while other consumers will shop at the end of November and during the first two weeks of December.
Luxury shoppers do share some preferences with the larger demographic of all shoppers. The most popular holiday purchase for both groups was gift cards, followed by personal electronics.
Bulgari decorated its flagship store with a signature snake
When it comes to spending, the average consumer in the U.S. expects to spend the same amount this year that they spent in 2014. On the other hand, 18 million luxury consumers expected to spend more than they had the year before.
Tis the season
It is important for luxury brands to connect with consumers during the holiday season.
In the days leading up to the 2014 holidays, brands reached out to consumers to share their best wishes for their most loyal consumers.
Brands split their efforts between social media and email, sharing animated cards and videos. While consumers may not have been expecting a brand to send them holiday greetings, it is a thoughtful gesture that showed appreciation (see story).
The current trend of using digital and social platforms to connect with consumers is especially relevant this year.
A report by the Shullman Research Center found that consumers across demographic categories, but especially the ultra-affluent, would be shopping at online-only retailers during the 2014 holiday season.
Although consumers also spent time in department stores and other retail locations, the prevalence of online-only retail preference speaks to a growing demand for convenience. As consumers weigh their purchasing options, the outcome often comes out in favor of online shopping (see story).
It is important that retailers not forget to include online advertising when they prepare for the holiday season.
"Online is part of the shopping experience today," Mr. Shullman said. "A lot of consumers today do the initial part of their shopping journey online."
Final Take
Kay Sorin, freelancer for Luxury Daily, New York
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