Luxury Institute News

February 5, 2014

Wealthy Shoppers Tell Brands How They Want Technology Integrated Into The Shopping Experience

(NEW YORK) February 5, 2014 – The New York-based Luxury Institute asked consumers 21 years of age and older from U.S. households with minimum annual income of $250,000 about their views on incorporating technology in the shopping experience.

Nearly half (47%) of wealthy consumers say that a sales professional providing live chat or video assistance online would help them understand more product details, and 58% appreciate the convenience of instant answers.  Only 15% of shoppers say that they have tried chat or video and refuse to do it again.

Wealthy shoppers do not mind companies collecting personal data and using it for customized marketing, but they do show strong distaste for clandestine data gathering via mobile phones, facial recognition software and GPS tracking; 69% say information collected in this manner is a privacy violation.  Just 24% approve of retailers using facial recognition software to identify them and observe shopping habits.

Using technology in-stores to accelerate checkout is popular, but many affluent shoppers shy away from self-checkout.  Almost three-fourths (73%) say that they appreciate the time savings of checking out via mobile devices instead of standing in line at cash registers.  Although 45% say that self-checkout is more efficient, 44% prefer transactions with help from staff.

Technology has little to do with what wealthy shoppers desire most: free shipping and returns, cited by 92% of respondents.

“Habits of today’s wealthy consumer have increased the desire to browse, reserve and purchase using a mix of channels,” says Luxury Institute CEO Milton Pedraza. “Technology allows brands to leverage customer data and shopping habits, however salespeople still play a vital role into creating unique and engaging experiences.”

October 16, 2013

Have to Ask What the App Costs? It’s Not for You

By Claire Cain Miller
New York Times
October 15, 2013

The superrich have always had magazines, hotels and retailers catering to the special needs of their stratosphere. So it’s no surprise that the digital world has caught up.

Though luxury brands and services were initially reluctant to go online, a new corner of the Web and mobile app marketplaces has emerged, dedicated to making life easier for wealthy consumers. “They’re playing off the affluent desire to be treated differently, expect a very high level of service and have something edited and vetted and pay for that,” said Andrew M. Sacks, president of the Affluence Collaborative, a research firm studying affluent consumer behavior, and AgencySacks, a branding agency.

Luxury advertisers then follow closely behind. “If you’re successful in bringing several thousand affluent customers to a site, you’re then prime to offer brands and advertising to that audience,” Sacks added.

Click the link to read the entire article: http://www.nytimes.com/2013/10/16/your-money/have-to-ask-what-the-app-costs-its-not-for-you.html?_r=0

July 11, 2013

Nordstrom Tops Digital Department Store Study

By Rachel Strugatz
WWD
July 10, 2013

NEW YORK — Nordstrom is leading the way for department stores in the digital space.

The Seattle-based retailer took the top spot in a study by New York University…

Click the link to read the entire article which features a quote from Milton Pedraza, CEO of Luxury Institute (subscription required): http://www.wwd.com/retail-news/trends-analysis/nordstrom-tops-department-store-study-7047672?module=hp-retail