Luxury Institute News

April 24, 2012

Wealthy U.S. Consumers Favor and Feel More Connected to Luxury Brands Offering a Mobile App

(NEW YORK) April 24, 2012 – The independent and objective New York City-based Luxury Institute, in cooperation with award-winning mobile marketing agency Plastic Mobile, surveyed affluent U.S. consumers about the growing connection between luxury and the emerging mobile market. The results of their research have just been released in the study, “Mobile Apps And Commerce for Luxury Brands.”

“Luxury brands must acknowledge the impact of technology advancements in the mobile space and find a humanistic way to connect and engage with their consumers through mobile,” says Milton Pedraza, CEO of Luxury Institute.

Gucci, Louis Vuitton, Saks Fifth Avenue, and Gilt Groupe are the most frequently downloaded apps by wealthy consumers who have luxury brand applications on their mobile device. Most affluent smartphone owners who are downloading luxury apps are using them to find information on products, services or brands (56%).

Almost all wealthy consumers who have used luxury brand apps report that they have had a good experience with the mobile apps (93%). In addition, 71% report that they feel better connected to luxury brands after downloading and/or using their applications and 64% view luxury brands that offer a mobile application more favorably than brands that do not.

The survey respondents indicate there are a number of features they expect from luxury brand applications and highlight loyalty programs (46%) and early access to sales (45%) as the most important.  In addition, providing sales professionals with a mobile application that can specify details about products (53%), have the ability to check for sizes and availability at other stores (50%) and in-store product inventory (47%) would enrich the luxury shopping experience for affluent consumers.

Of the 63% of wealthy consumers who have made a purchase through their mobile device, just under 20% have bought a luxury product or service. While preference for the in-store experience (45%) is why wealthy smartphone users have not yet fully embraced luxury mobile commerce, the majority of luxury consumers who choose to shop via mobile report that there is no upper monetary limit to how much they would spend (72%). This indicates a tremendous emerging opportunity for luxury brands to connect with consumers through mobile.

“Mobile has been receiving a lot attention in the retail space lately. The study suggests the mobile strategy for luxury brands must be about enhancing the in-store customer experience and using the platform to help strengthen customer relationships,” says Melody Adhami, President and COO of Plastic Mobile.

About Luxury Institute (www.LuxuryInstitute.com)
The Luxury Institute is the objective and independent global voice of the high net-worth consumer. The Institute conducts extensive and actionable research with wealthy consumers about their behaviors and attitudes on customer experience best practices. In addition, we work closely with top-tier luxury brands to successfully transform their organizational cultures into more profitable customer-centric enterprises. Our Luxury CRM Culture consulting process leverages our fact-based research and enables luxury brands to dramatically Outbehave as well as Outperform their competition. The Luxury Institute also operates LuxuryBoard.com, a membership-based online research portal, and the Luxury CRM Association, a membership organization dedicated to building customer-centric luxury enterprises.

About Plastic Mobile
Plastic Mobile is an award-winning mobile marketing agency of thinkers, artists, creators and builders with one common aspiration: to create extraordinary user experiences. Plastic Mobile is at the heart of the evolution of interactive mobile technology, pushing the boundaries and setting the bar for the standard of quality.

Known for many quality, first-in-kind mobile initiatives, Plastic Mobile delivers exceptional client service and highly customized mobile solutions for all platforms. With a diverse, high-profile client list, including Air Miles, Axe and Royal Le Page, they are the proud recipients of myriad awards, including the 15th annual Webby shopping award, “the Oscars of the Internet.” www.plasticmobile.com

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