Thanks to prices, convenience and choice, Amazon has increased its popularity to unprecedented heights over the past two decades, and the report's data show that its popularity is well correlated with family incomes. The report shows that luxury brands will have to go all-in to provide goods that Amazon can not or will not provide.
"If you look at Amazon now, they sell a lot of mid-priced mass production on this site," said Bob Shhullman, founder and CEO of the ShullmanResearchCenter, New York. - When she ordered - and I saw how my daughter and wife did it - they usually order two sizes, one size is what they think, and one size is bigger or smaller, sometimes they order three sizes, and then one Or two sizes they send back. If you buy a dress for $ 4,000, maybe you want a dressmaker or a tailor to be there to make sure it's sitting well, but what I saw says that if Amazon takes on brands, people will buy them ".
"What does the Amazon really give you? Convenience, he says. - I do not like going to the shops. If I can buy something in an online store, get it in a day or two and send it back in a day or two, then how does it compare to going to a store where there are potentially incompetent personnel who do not want to serve you Where there may not be your size, which makes you even more upset when you have already arrived there. "
Can not join them - win
In the ShullmanResearchCenter report, the consumer base is divided into four groups for family income: "mass" consumers are 58% of adults who earn up to $ 75,000 per year; "Wealthy" who earn from $ 75,000 to $ 249,999, with earnings in the opinion of some marketers begin financial well-being; 3 percent of "very wealthy consumers," earning $ 250,000 to $ 499,999, while earnings in the opinion of many marketers begin financial prosperity; And 1 percent of the wealthiest, earning at least $ 500,000.
The results show that as revenue grows, the likelihood of buying in Amazon, the frequency of purchases made by customers in Amazon, and the percentage of consumers in the income category that are the main Amazon buyers, and who believe that Amazon is better than other stores (59 percent of consumers Mass market, but 83 percent of the 1% of the wealthiest).
There is a strong impression that luxury brands will have to find ways to avoid losing consumers and bringing them back, taking away from Amazon to counter the growing penetration of this online store into families and increasing attractiveness for wealthy buyers. Luxury brands do not want to allow Amazon to sell their products because of the discrepancy between the value of brands.
"One of the reasons that luxury brands do not want to give the Amazon store any control over their products is that, given that control, Amazon can start making discounts," said Mr. Schulman. "Because Amazon is very convenient, it expands the possibilities and provides fast delivery, and also gives the impression that they sell goods at a lower price."
"Luxury brands do not want this," he says. - If there is a program in place, then, most likely, something like the AmericanExpress program or the program used by credit cards when you earn points, and if you earn enough points, you can get a Louis Vuitton scarf or tie or something else ".
Nevertheless, the incentive program, although based on competition, may not appeal to loyal customers.
When it comes to specialists in the marketing of luxury goods, it is difficult to properly encourage a loyal customer, without harming the image of the brand.
Ultimately, wealthy people value incentive programs, but they do not want to feel like they are bribed by the luxury brands that they love. Affluent people understand that they pay for quality and the term "promotion" means something different for them than for other buyers.
Some brands, in particular those that sell large items such as furniture, electrical appliances and cars, are safer than others, and almost a third of Amazon's consumers said they do not consider buying such things from this retailer, and The percentage of those who do not consider buying certain products from Amazon also grows with the level of solvency. But most need to find ways to compete with the convenience that Amazon offers, allowing consumers to buy almost everything they need without leaving home.
One buyer mentioned in the study said that one of the advantages of making purchases in Amazon is that there are no sellers. But another expressed his dissatisfaction with the fact that "if you do not know exactly what you are looking for, you usually will not find it."
This suggests that one of the areas where luxury brands can improve performance in real stores is to attract knowledgeable sellers who will help buyers and make the buying process more enjoyable. Although only 38 percent of mass consumers want to have first-class service at the time of shopping, this number rises sharply to 51 percent for affluent buyers, and above 60 percent for very wealthy consumers and 1 percent for the wealthy.
Along with this, the report also shows that prices have much less value than quality, as the income of Amazon consumers grows. One possible way that luxury brands can consider is simply raising prices and introducing tailor services and customizing since Amazon customers can not see what they buy or try on before buying, which gives luxury brands an advantage.
Other data show that changing the focus of advertising strategies and campaigns can help to win over younger consumers of luxury goods and a new generation. Thirty-one percent of very wealthy Amazon consumers say that they usually buy the same brands that their parents bought, this is the largest number of any market compared to about 20 percent of each of the other three market segments. Attempts to instill loyalty to the brand can give dividends in the future.
To a large extent, those who are in the top two income segments are very likely influenced by "star" advertising. Attracting celebrities for advertising has become a common thing, attracting more of the more famous "stars" can convince consumers to open their wallets more often.
Last but not least, wealthier consumers shopping at Amazon tend to look for exclusive products, and the number of consumers earning over $ 250,000 and buying in Amazon is approaching 40 percent. A predisposition to exclusive goods, a reduction in concerns about prices and advertising with the participation of "stars" all combine to influence the growth of the opportunity to attract wealthy consumers with the help of more expensive goods of special and limited editions and exclusive goods advertised by celebrities.
http://www.luxurydaily.com/amazon-is-already-pilfering-the-luxury-market-report/
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