Who and What Drives the “Luxury” Trade in North America?

The current market scenario in North America may be of concern to many, especially those who run the ‘luxury trade’. However, they may like to know that every one in three American ‘consumers’ seems to have made one purchase in last six months which fits the “luxury” label as per a survey conducted by Empathica. The next obvious question is how do you define ‘luxury’?

Luxury can be a need for some, ‘a way of life’ and for some it may be an aspiration. The perception of luxury’ varies with the income group and gender. However the cost of luxury as per the survey is more gender skewed than one would possibly imagine. The survey reveals that women are much easier to please than men. For most women, luxury begins at $100 and ends at $ 500. However, if you are a lady wanting to gift a ‘luxury’ product to a man, please note that men do not consider anything luxurious if it is under $1000. However, if like most people you are buying for yourself, you don’t buy on impulse and purchase only after careful consideration, the survey reveals.

Merchants who have pinned their hopes on online selling should be aware of the fact that ‘online purchasing of luxury goods’ is not yet the dominant trend. It would also help to know that although Americans are more forthcoming for an online purchase, a vast majority of the Canadians (70%) believe in in-store, touch and feel shopping.

‘Pastures on the other side are greener’ fits the bill when it comes to describing ‘perception of wealth’ by consumers. Those who are perceived as ‘wealthy’ have to earn at least a 100,000 USD per annum by those who earn 50,000 USD to 60,000 USD. If you ask the one’s earning 100,000 USD if they are wealthy, very few will agree. As for majority, the milestone of wealth then begins at 250,000 USD. Obviously the milestone of wealth keeps shifting.

Empathica is a customer experience management company based in Canada and US, the survey is a part of their Consumer Insight Panel.

Source: PRWeb