December 23, 2010
Swarovski saw a 1,167 percent increase in Web traffic on its ecommerce site during the holiday season, signaling the importance for luxury brands to sell their products online.
The luxury crystallized jewelry brand’s Web site traffic went from 142,000 visitors in October to 1.8 million in November. Designer Coach’s Web site saw a 47 percent increase in site traffic, reaching 1.8 million users in October.
“The changes we’ve observed in November reflect seasonal patterns due to the holiday season,” said Andrew Lipsman, senior director of industry analysis at comScore, Reston, VA. “That said, it is important for luxury brands to have a Web presence because many consumers do shop online during the holiday season.”
ComScore provides Internet audiences reports of media usage, visitor demographics and online buying power by using financial analysts, advertising agencies, publishers and marketers.
Based on data from the comScore Media Metrix service, Jewelry/Luxury Goods/Accessories sites represented the top growing retail subcategory for November.
The Jewelry/Luxury Goods/Accessories subcategory, along with Toys and Consumer Electronics, grew at least 25 percent versus October.
According to an analysis from Stockcall.com, luxury jewelry brands are positioned for a strong holiday season (see story).
Retail Mania
The comScore report found that more than 22 million Americans visited the retail subcategory during the month of November, a 36 percent increase.
Ecommerce retail Web site The Bradford Exchange ranked first in the category with 2.5 million visitors, up 82 percent.
Ecommerce presence
Luxury brands are using their ecommerce destinations to promote their brands. Using online discounts, free shipping and advertising can push affluent customers make purchases.
“In our research, we have found that a combination of both search and display is typically most effective for retailers,” Mr. Lipsman said.
Although in-store purchasing is still the dominant sales channel for luxury goods, buyers are taking advantage of purchasing goods through brands’ Web sites.
To get their message across, retailers must learn how to engage shoppers throughout the buying cycle. (see story)
Brands must communicate to affluents via consumer-friendly mediums, such as the Internet, digital display and mobile.
This communication must be strategic and engaging in order to capture the consumer’s attention.
“Display advertising helps establish brand awareness at the top of the marketing funnel, while search helps drive conversion at the bottom of the funnel.”
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