Luxury Shopping in 2022
While the pandemic may have halted some areas of life, many consumers have returned to treating themselves to the finer things. Even as most Americans continue to work remotely, some still purchase luxury products, such as jewelry and watches, despite these products not being a necessity. Who is still buying these products, and what motivates them to shop for luxury? How have their shopping habits changed due to the pandemic? In Provoke Insights’ fourth wave of in-house research, we set out to track consumer mindsets, purchasing trends, and brand loyalty in several industries, including jewelry/watches.
Who is Buying Jewelry/Watches?
Although luxury shoppers are more optimistic about the future than non-luxury shoppers, they still harbor some concerns. Interestingly, they tend to worry more about their health and jobs because of COVID.
Cost does not seem to be a large concern for these luxury shoppers. Many are purchasing other big-ticket items like electronics, skincare products, and subscription services. These shoppers are also environmentally conscious, as more than half (55%) are willing to pay more for sustainably sourced products.
Supporting local shops is also important to this group, as half (49%) prefer to purchase from small businesses.
Luxury Shopping Shifts to the Web
Despite rating the in-person shopping experience very positively, luxury shoppers are moving toward online purchases. Compared to those who didn’t make luxury purchases, jewelry/watch purchasers are more satisfied with the cleanliness of stores, customer service, and product availability. Although they are significantly happier with product availability in person, they still tend to head online to purchase these luxury items.
These kinds of purchases were once made predominantly in-store, but things are changing. Over half of luxury buys (53%) are now made online using e-commerce sites and brand websites. Jewelry and watch brands must account for this technological shift when targeting their average consumer.
Customer Loyalty to Luxury Brands
Brand loyalty is quite mixed in the fine jewelry/watch industry. Less than half (44%) of these luxury consumers are loyal to a specific brand; however, half (49%) are open to purchasing many different brands in this category.
While consumers are most loyal to autos, there is room for luxury brands to become more top of mind. Consumers are three times more loyal to other retail categories like electronics and skincare.
Provoke Insights conducted a 15-minute survey in the spring of 2022 among 1,500 Americans between the ages of 21 and 65. A random stratified sample methodology was used to ensure a high degree of representation of the U.S. population (household income, age, gender, geography, ethnicity, and children in the household). Statistical differences between subgroups were tested at a 95% confidence level. The margin of error is +/-2.5%.