Luxury purchases could boost retailers’ bottom line
The recent economic recession hit both businesses and consumers hard, as owners and individuals were forced to cut back on various expenses. However, now that conditions are steadily improving, confidence is coming back and shoppers are splurging on luxury purchases.
According to the recently released Harris Poll EquiTrend Brand Equity Index, luxury retailers are faring significantly well despite ongoing economic recovery. Businesses in nearly every luxury category, including automobile, clothing, airlines, hotels and gourmet foods, saw boosts in revenues over the past year, signaling higher consumer optimism as individuals spend more on expensive items and services.
"This may show that after a number of years spent tightening their belts, consumers are looking to the quality and value they feel these brands provide," said Aron Galonsky, Harris Interactive senior vice president of brand and communication consulting, of the study's results.
However, these luxury shoppers are less than eager to share their personal information such as address, phone number and other details when purchasing online, reports Internet Retailer. Research from the Luxury Institute found that more than half of these individuals give retailers their information only because it is necessary to do so to complete transactions. Therefore, merchants may want to provide incentives for these customers to share their details for better marketing and promotions.
