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luxury etailRecession? What recession? Online customers are searching for luxury brands, spending more on them and buying them faster than they were a year ago.

These finding come from an 18 month study of Range Online Media's 424 luxury retail brand clients. The study looks at impressions, clicks, click through rate, CPC, cost, revenue, orders, conversion rates and average order value for the period ranging from November 2008 through April 2010.

luxury impressionsAffluent shoppers never stopped searching online for luxury products while the economy was tanking, but they're now more interested in luxury brands than they were a year ago. The brand studied showed an increase of 20 million search impressions year over year.

Moreover, their purchase path is shortening, with 88 percent of purchases    completed within three clicks so far this calendar year, a 17% increase in short term conversions over 2009. This faster path could indicate shoppers are less interested in bargain hunting and comparison shopping. Affluent customers are also searching and buying more on specific fashion designer names.

And finally, they're spending more. Eight percent more, to be precise, over last year - and average order size has increased $20.

While luxury brands have traditionally not been early adopters of technology, this seems to be changing, particularly with the advent of mobile apps. Tiffany's, Chanel, Ralph Lauren and Gucci are just a few of the luxury brands that have branched out to the iPhones so eagerly embraced by their customer base.

Rebecca Lieb

Published 16 June, 2010 by Rebecca Lieb

Rebecca Lieb oversees Econsultancy's North American operations.

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Comments (3)

Manfredi Sassoli de Bianchi

Manfredi Sassoli de Bianchi, VP Marketing at jobinasecond

Luxury brands will have to use digital platforms as part of their strategy if they want to offer a luxury shopping experience. I find it surprising that online hasn't been embraced earlier by these brands considering how well it lends itself to their customers' needs. I reckon there will be plenty of developments in this area coming soon.

over 6 years ago

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Grane Steinrud, Human Factos Specialist

Is luxury brand retail online a good thing?

In my context, the answer is clearly no. Why?

1) For luxury brand is the shopping experince, the service and emvironment, a part of the brand - how do you contain that online?

2) More space for copy cats and other fake heads - being online opens for more space fpr the parasites - hackers and so on, but also for more of the wrong customers to shop products. Brand value is also about who is wearing and caring your products - especially for luxury brands.

3) Online - our experience of the product is only visual - which means that the product is only competing on the looks (at a photo) and not on its quality or the real perception of the product.

4) In times likes these luxury brand should be for rich people, to show the differens between, who is someone and who is nobody - because now it is time for luxury brand to regain their position as being something luxury for ther upper class.

That is why I think that luxury brand shouldn't be online or at least know what they are doing, if they are.

over 6 years ago

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Anonymous

That's certainly an interesting opinion, even without the between the lines psychological insights it offers....I won't bore you with why luxury brands need to be online, cos I think we went over all this back in 1999.

over 6 years ago

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