Luxury consumers’ optimism about the economy and personal finances is growing, but is not yet reflected in their consumer mood. This is what US online luxury goods retailer Saks found in its latest Saks Luxury Pulse survey from January. Interest in advertising campaigns has not yet improved, the study continued. The online retailer therefore only expects positive effects in the second half of the year and does not primarily blame a better economic situation for this, but also the effects of consumers getting used to it.
According to the study, 57 percent of respondents viewed the economy as calm, which corresponds to an increase of seven percentage points compared to the last survey in October 2023. Optimism increased by twelve percent to 48 percent compared to the last survey. The greatest increase in optimism was among respondents with incomes of $200,000 or more. The Millennial generation emerged as the most optimistic generation when it comes to their personal finances.
When shopping for luxury fashion, 24 percent of respondents said they would rather pay full price than wait until the product they want is reduced. This represents a decrease of two percentage points compared to the last survey. At the same time, 55 percent of those surveyed said that a tempting sale or promotion, followed by an increase in income (43 percent), could convince them to want to buy more again soon.
Personalization is an important customer loyalty tool
When shopping for luxury fashion online, 70 percent of luxury consumers said they value personalization and are likely to engage in activities that increase this value. What is particularly important to this group is personalized content and recommendations that offer them exclusive access to limited products, rewards and offers. To achieve the4s, 93 percent of luxury consumers were willing to engage in activities that further enhance their shopping experience through personalization, with the top three activities being creating an account, creating a wish list, and answering questions about their shopping preferences are.
“Our mission to understand the luxury consumer through the Saks Luxury Pulse is closely linked to our personalization strategy. Both are aligned with the common goal of delivering highly relevant, personalized recommendations and shopping experiences that resonate with our customers based on their preferences and sentiments. Recent survey results show our strategy is working and luxury consumers value their experiences,” said Emily Essner, chief marketing officer at Saks.
The Saks Luxury Pulse is a quarterly online survey of luxury consumers’ attitudes toward shopping, spending and fashion trends. It is based on responses from 3,211 US-based luxury consumers over the age of 18 and was conducted in January 2024.