Credit: Louis Vuitton Store image via Shutterstock
Shoppers young and old have returned to the luxury market. According to new research, spending on full-priced luxury goods has increased 31 percent in the last year among Generation Y shoppers. This comes as the number of seniors who used flash sale websites to purchase luxury goods increased 28 percent in the past year.
The research attributed the jump in Generation Y's spending to several factors. Chief among them was the fact that these millennials were among the first adopters of flash sales,which were able to offer luxury goods at a discount. This, in turn, whetted the appetite of other shoppers, who consequently purchased future luxury products at full price. Additionally, the entrance of many millennials into the job market and higher earnings contributed to this increase, according to American Express Business Insight. To get this information, American Express Business Insight collected information from transactions on the American Express payment network.
The American Express research, as reported by eMarketer, showed that flash sale sites for luxury items were not reserved for the young: The number of seniors making purchases on these websites grew nearly 30 percent last year. That was the largest one-year growth for any age group. Generation Y shoppers saw a 19 percent jump in their use of flash sale sites; for Generation X shoppers the increase was 12 percent growth, and for Baby Boomers 9 percent.
Separate research found that a majority of people continue to rely on a luxury retailer's website to interact with the retailer before making a purchase. This research by Empathica, a customer experience management company, found that even more people may visit the company website than visit the actual retail store (though a large portion do both). Sixty-seven percent of people visited company websites prior to making a luxury goods purchase, compared with 66 percent of people who visited physical retail locations.
Only 45 percent of people said they read reviews online,and 12 percent checked in on social media websites prior to making a purchase.
Reach BusinessNewsDaily staff writer David Mielach at Dmielach@techmedianetwork.com. Follow him on Twitter @D_M89.