High-income consumers don’t let inflation, recession worries change buying habits| Consumer trends

Luxury shoppers are spending more on self-care and paying more attention to wellness products.

| by Judy Motl — Editor, RetailCustomerExperience.com and FoodTruckOperator.com

Inflation, the threat of recession and general anxiety about rising costs are not deterring luxury-loving consumers.

In essence, high-end consumers have not stopped spending on luxury lifestyles, and interest in luxury health and wellness is on the rise.

That’s the main finding of the latest Saks Luxury Pulse study, a recurring online survey of luxury consumers’ shopping attitudes, spending and fashion trends, conducted in May. The survey program began in March 2021 to gauge customer sentiment in light of the pandemic.

“When asked to describe their current mood as the pandemic continues, the most common emotion in every survey was ‘hope,'” said Gabby Eigesvives, senior vice president of marketing strategy, analytics and loyalty at Saks, in an interview with Retail Customer Experience.

The survey found that higher-income consumers continue to spend on luxuries, including fashion and leisure, as well as prioritizing health and wellness, with 76% of those making $200,000 and above planning to buy the same or even more luxury items in the next few months than in the last three months.

When asked where they would spend the extra $500, those with incomes of $200,000 and above plan to spend on vacations, travel, shoes, accessories and handbags.

“The core luxury customers have already decided they are interested in luxury shopping, and we believe they will continue to seek luxury at Saks despite the inflationary times, although we know the environment can change quickly.” said Aigesvyves. “At Saks, we always pay close attention to the evolving macro environment, and understanding the Saks Luxury Pulse strengthens our view of the luxury consumer.”

The survey also found that 85% plan to shop as much or more online in the next three months, and when it comes to splurging, 80% said it would most likely be for themselves. Forty-eight percent plan to make the same number of online and in-store purchases as they did in the past three months.

In the last three months, customers mainly shopped online for clothing (54%), beauty, skincare or skincare (46%) and footwear (49%),” Egesvives said.

When it comes to health and home products, about two in five, 41%, put wellness at the top of their list, with recreation, nutrition and self-care in particular, now more than before the pandemic. According to the survey, the top items were bedding and bath, home decor and candles.

“After the pandemic, consumer interest in wellness has increased. McKinsey’s 2021 survey of approximately 7,500 consumers in six countries found that consumers care deeply about wellness—and their interest is growing. While consumers are stuck in their homes with nowhere to go, many have turned to home workouts and found ways to heal themselves through self-care,” Eigesvives said.

https://www.retailcustomerexperience.com/articles/high-income-consumers-not-letting-inflation-recession-worries-change-shopping-habits/ High-income consumers don’t let inflation, recession worries change buying habits| Consumer trends

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