To receive the Vogue Business newsletter, sign up here.
As brands ready themselves for holiday trading amid challenging shifts in the economy, new research from Vogue Business, in partnership with Amazon Ads, explores the motives that could continue to drive shopper behaviour during key gifting occasions over the coming year. The research, which surveyed over 1,000 luxury consumers in the US who spend a minimum of $1,000 per year on designer fashion, helps brands and advertisers identify the needs of consumers across different spend, volume and frequency thresholds when shopping for luxury goods. Additionally, the research provides unique insights into the content luxury shoppers prioritise — not only when shopping but during everyday activities such as streaming TV shows.
The research seeks to understand the overlap between luxury consumers in the US and frequent users of Amazon services. With a comprehensive digital network including the Amazon store, Prime Video, Twitch and more, Amazon touchpoints reach 97 per cent of luxury consumers in the US. Moreover, 67 per cent of luxury consumers in the US visit the Amazon store multiple times per week or more, making it one of the primary channels for discovering and shopping for luxury fashion. The data reveals a much bigger opportunity for reaching consumers with the right branded content through these channels, which can help support luxury consumers’ discovery and consideration paths, even if they are not directly shopping for luxury goods via Amazon.com. With such high penetration in the US market, the research shows that Amazon can help advertisers engage high-spending and high-volume luxury shoppers, even if brands do not have a storefront on the Amazon store.
Three types of content, in particular, resonated with the consumers participating in the research. Firstly, messaging around novelty proves attractive to shoppers on the hunt for new products, exclusive designs and limited editions. These shoppers also value sustainability and innovation around materials. Secondly, storytelling around heritage appeals to shoppers who prioritise values, with this group also exhibiting a stronger interest in co-branded collaborations. Finally, celebrity content involving influencers and ambassadors helps to inspire lifestyle-oriented consumers.
Thinking ahead to future festive occasions, the research revealed that 40 per cent of consumers with a $150K+ household income start planning their gift purchases for the holiday season 2-3 months in advance, providing advertisers with a relatively long lead time to reach shoppers.
This research breaks down the segments, motives, content needs and holiday purchasing habits of luxury consumers while also identifying the overlap with users of Amazon touchpoints. This research provides essential insights for brands and marketers planning their advertising strategies for the coming year. The findings are summarised in a new whitepaper now available exclusively to Vogue Business readers — ‘Beyond the limit: Understanding audiences and how to reach them in the luxury market’.
Comments, questions or feedback? Email us at feedback@voguebusiness.com.
