Dive Brief:
- This holiday season, 79% of luxury shoppers believe their disposable income will improve or remain the same compared to last year, according to insights from Accenture, a global professional services company.
- Luxury shoppers surveyed said they plan to spend $729 over the course of the holidays, per Accenture. A spokesperson for the firm added in an email that 40% of luxury shoppers surveyed “are increasingly looking for deals” and doing price comparisons, so retailers and brands may need to cater to deal-seeking consumers this holiday season.
- About a quarter of luxury shoppers surveyed (24%) said they are using coupons to “shop strategically and save money,” while 32% said they would be buying in advance to get better prices, per Accenture.
Dive Insight:
Accenture surveyed 1,500 U.S. consumers and pulled its luxury spending insights from its 18th Annual Holiday Shopping Survey released at the end of October.
The findings come as the personal luxury goods market is poised to endure its first slowdown since the Great Recession, excluding the Covid-19 pandemic.
Despite 2024 earnings downturns that have been plaguing luxury conglomerates including LVMH, Kering and Richemont, some luxury customers have indicated they’re looking forward to shopping both for themselves and others during the holidays.
Jill Standish, global lead for Accenture’s Retail industry group, said that over the next few weeks, successful luxury companies will be those able to harness their brand power and use it as a magnet to entice customers to shop with them rather than their competitors.
“With four in 10 luxury shoppers looking for deals & comparing prices, retailers and brands will need to pay even closer attention to customer data, ensuring promotions, marketing campaigns and advice are tailored to individual customers with much greater precision,” Standish said in emailed comments.
She added that while it’s encouraging that the customers who responded to Accenture’s survey said they’re planning to spend more this holiday season, there’s room for caution.
“...[W]ith this optimistic outlook comes a reminder that price and value remains front-of-mind for many,” Standish said. “Then there’s the challenge of where and how consumers experience a brand. Everything from the adverts and digital marketing they receive, to the online and in-store experiences, to the customer service they encounter along the way. These are all factors that can make or break the season.”
