link.png Future of luxury dictated by the UK's evolving luxury consumer← Back


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Professional service firm Deloitte has published a report entitled 'The luxury opportunity: The evolving UK luxury consumer'. The report, which aims to give a deeper insight into buyers of luxury goods, covers a number of issues particularly highlighting the crucial role of digital.
 
In total, circa 1,300 participants took part in the survey, with an average annual household income of 224, 300 euros.
Looking at the different driving forces behind luxury purchases, Deloitte found that impulse-buying was main reason that led participants to buy luxury goods. Amongst those aged under 35, this is followed by purchases dictated by trend, a factor that is less relevant to older generations.
 
The report draws attention to the increasing importance of digital channels. Whilst most European consumers (57%) still hear about new brands through magazines, the balance is shifting: 45% now discover new brands online.
Digital has also been instrumental in terms of sales with the advent of e-commerce, particularly amongst the younger customers: figures indicate that 58% of millenial luxury consumers buy luxury goods through online channels.  Brands therefore need to embrace omni-channel methods to sell their products.
 
Furthermore social media has become an unavoidable tool for brands to engage with customers. In the UK, 58% of consumers use social media to find out about latest trends, and this figure is as high as 69% amongst women. Furthermore, social media is used by 42% of UK consumers to research gifts.
Tying with this figure, Deloitte highlights the importance of seizing the opportunities provided by gifting and suggests that UK brands should aim to tap into more seasonal events than just Christmas.
 
Through this Deloitte emphasises the importance for brands to know and understand their customer base, in order to maximise on different opportunities to engage with customers, promote the brand and boost sales.