July 8, 2011
Ultra-affluent U.S. consumers choose Amazon.com as their preferred online shopping destination because it is easy to navigate and does not use Flash, according to a luxury tracking study from Unity Marketing.
The study highlighted the fact that luxury consumers are bargain-hunters when it comes to online shopping. Amazon provides service and quality products that are less of a hassle than some branded ecommerce sites.
“Affluent consumers are wealthy for a reason,” said Pam Danziger, president of Stephens, PA-based Unity Marketing. “They know how to find a bargain and have a highly-developed sense of value.”
The Unity Marketing Luxury 2011 report tracks the wealthiest 2 percent of U.S. citizens.
Shopping habit
Wealthy shoppers search for bargains online, according to the study.
The most-visited online destinations by affluent consumers are Amazon.com at 45 percent, followed by 14 percent at eBay.com, 10 percent at Groupon.com and 8 percent at Craigslist.com.
Consumers were also shopping at flash-sale sites such as Shopittome.com, Gilt.com, Hautelook.com, BeyondtheRack.com, MyHabit.com and Buy.com.
“The popularity of Flash-sale sites is calling attention to the fact that the prices may be too high,” Ms. Danziger said. “The wealthiest consumers appreciate finding good stuff for less money.”
Amazon is likely the lead because it is easy-to-navigate and takes customer service to a different level.
Amazon.com
Customer experience is a huge part of the luxury industry, and many consumers find that perks such as free shipping, quick service, easy-to-manage sites and service numbers are an online retailer’s version of customer service.
Amazon-owned Zappos.com emphasizes that taking care of customers will build relationships and brand advocates in addition to increased number of transactions (see story).
Furthermore, Amazon’s luxury flash-sale site MyHabit.com incorporates videos that engage the consumer and do not take away from the experience, per Ms. Danziger.
MyHabit
MyHabit.com sells luxury brands such as Dolce & Gabbana, Calvin Klein and Donna Morgan.
Too flashy
Most branded ecommerce sites were not surveyed, but Ms. Danziger said that it is possible that affluent consumers prefer shopping on bargain sites.
“A lot of luxury sites use Flash, which is sleek and sexy but it interferes with the usability,” she said. “A lot of consumers have said that Flash bugs them.”
For instance, Hugo Boss' Web site uses Flash. This could interfere with site capabilities, but it also does not enable Apple consumers to view the site on their iPhones, iPod touches or iPads (see story).
Therefore, some consumers may be more willing to shop on more convenient sites such as Amazon or eBay, per Ms. Danziger.
Are online destinations targeting wealthy individuals?
“Absolutely, because they are the ones spending all of the money,” Ms. Danziger said. “Affluent consumers are responsible for 40 percent of spending this quarter.
“It doesn’t matter if it is the Dollar Tree and Walmart or Louis Vuitton and Tiffany & Co. – they all want the wealthy spenders,” she said.
The thing that matters most to luxury consumers is time.
If a luxury branded ecommerce site is taking a while to load or is unresponsive and another site has the same products, then consumers are more likely to bring their money to the quicker site.
“For wealthy consumers, time is the ultimate luxury,” Ms. Danziger said. “Anything that helps you get in and out faster and makes it more convenient for the shopper is appreciated.
“It’s not like they are looking for price comparisons, because they have money to spend, but sites like Amazon take customer service to the next level,” she said.
Final Take
Rachel Lamb, associate reporter on Luxury Daily, New York
Share your thoughts. Click here
