Luxury Institute News

April 24, 2012

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

Posted in Customer Experience,Luxury Brands,Mobile,Mobile Commerce,Press Releases,Wealthy Consumer
Tags: Gilt Groupe, Gucci, Louis Vuitton, Milton Pedraza, mobile applications, Mobile Commerce, Plastic Mobile, Saks, Wealthy Consumers —

(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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March 23, 2012

Wealthy U.S. Smartphone Users Reveal Details on Shopping, Spending and Use of Mobile Apps; Facebook, Angry Birds and Words With Friends Top List of Favorite Apps

Posted in Mobile,Mobile Commerce,Press Releases,Wealthy Consumer
Tags: Apps, iPhone, Melody Adhami, Milton Pedraza, Plastic Mobile, smartphones —

(NEW YORK) Mar 22, 2012 — For the newly released WealthSurvey, “Mobile Apps And Commerce Among Wealthy U.S. Consumers,” the independent and objective New York City-based Luxury Institute, in conjunction with mobile agency Plastic Mobile, interviewed U.S. consumers earning at least $150,000 per year about their smartphones and how they use them for shopping and entertainment.

Apple is the dominant smartphone brand for high-income users. Of the 62% of wealthy Americans who own a smartphone, 45% have an iPhone, 35% use an Android-based device, and 25% own a BlackBerry.

More than 80% of wealthy smartphone users have downloaded mobile apps to their phone, and the most popular categories of downloaded apps are weather (63%), news (51%), travel (42%), business/finance (39%) and sports (34%). Wealthy users have downloaded an average of 15 mobile apps and use half of them frequently. Almost half (48%) of affluent consumers use five or fewer apps on a regular basis.

Facebook is the app used most frequently by wealthy smartphone users, followed by weather apps, maps, Google and the Safari browser. Facebook is also the app that wealthy smartphone users say is their favorite. Nearly as popular are the games Angry Birds and Words With Friends.

Top reasons for not downloading apps are lack of interest (49%) and a desire to keep phone functionality simple (32%). Not wanting to pay is a reason cited for not downloading apps by 20% of wealthy smartphone users, but 59% have paid for applications and 55% of those who have downloaded free apps have upgraded to pay versions. Two in five wealthy users are willing to pay for apps priced between $0.99 and $1.99, while 23% are okay with paying between $2 and $4.99 for a mobile app. Only 18% would pay more than $5.

With regard to commerce, 67% of wealthy smartphone users shop on their devices and 63% regularly buy goods or services. Half of shoppers make purchases at least monthly, with almost 80% spending more than $100 on mobile phone transactions in the past year, and 25% spending in excess of $1,000. Event tickets (39%), gift cards (29%), and food and electronics (both 27%) are the top purchase categories.

The chief reason for not shopping on mobile phones is preference for the in-store experience, cited by 51% of users who do not use their device for commerce. Another 29% say that privacy issues keep them from making purchases on their phones.

“The study showed an incredible opportunity for mobile in luxury,” says Melody Adhami, president and COO of Plastic Mobile. “Not only are affluent Americans using mobile, but they are really taking advantage of its benefits, with more than 80% of consumers downloading apps.”

“Smart luxury firms recognize the potential of their mobile presence to boost sales and get closer to their customers,” says Milton Pedraza, CEO of the Luxury Institute. “Customers clearly view smartphones as part of the new shopping experience.”

Respondents reported an average net worth of $2.8 million.

For details from this WealthSurvey and others, visit LuxuryInstitute.com.

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