Understanding and remarketing to luxury audiences
New research from Vogue Business and Amazon Ads reveals a better understanding of how advertisers can remarket to luxury audiences
Luxury isn’t just reserved for the ultra-wealthy—it’s for everyone. New research from Vogue Business, in collaboration with Amazon Ads, explores who these luxury aficionados are, and dives into why consumers buy luxury goods. The research, which surveyed more than 1,000 luxury consumers in the U.S., helps brands and advertisers identify the needs of different types of consumers. This includes how much shoppers spend, how many luxury items they buy, and how often they’re buying luxury items. Additionally, the research provides unique insights into the advertising content luxury shoppers prioritize—not only when shopping, but during everyday activities, like bingeing their favorite TV shows.
To help luxury advertisers understand what motivates luxury shoppers to buy, we’ve compiled 10 takeaways from our latest white paper, Understanding and reaching luxury audiences.
Terms to know
Luxury shoppers
Shoppers who spent $1,000 or more on apparel, footwear, accessories, and small leather goods produced from luxury brands, or purchased more than one luxury item priced over $500 in the past 12 months
High-volume luxury shoppers
Shoppers who have purchased at least five luxury fashion items priced over $500 or more in the past year
Low-volume luxury shoppers
Shoppers who have purchased fewer than five luxury fashion items priced over $500 or more in the past year
$150K+ HHI
Shoppers with a household income of $150,000 or more
$50K–$149,999 HHI
Shoppers with a household income between $50,000 and $149,999
10 takeaways from the report
- HHI groups earning $50,000–$149,999 made up the majority of luxury consumers (59%) and high-volume purchasers (58%). This suggests that a much broader group of consumers, beyond the typical “affluent” demographic, is purchasing multiple luxury items (on average every 2.4 months). Regardless of income, luxury purchases can be a treat for anyone.
- Among luxury shoppers surveyed, the Amazon retail store is more popular than social media platforms (e.g., Instagram, Facebook, TikTok) as a source of inspiration, recommendations, and reviews for luxury purchases.
- 67% of luxury shoppers engage with the Amazon retail store multiple times a week or more. This provides opportunities to advertise where luxury shoppers are already frequently browsing.
- 76% of high-volume luxury shoppers shop online at least once a week. This suggests that those who purchase luxury frequently are thinking about their next buy on a weekly basis.
- 81% of high-volume luxury shoppers watch content through streaming services at least once a week. Brands may be able to bolster and increase visibility for their products by remarketing shoppers through entertainment-based channels.
- 31% of luxury shoppers surveyed engage with Twitch. When slicing total respondents by high volume vs. low volume, 56% of high-volume luxury shoppers frequently use Twitch (at least once a week).
- When it comes to luxury shopping, people like to treat themselves. About 46% of all surveyed luxury shoppers most often look for luxury fashion and accessories products when they want to reward or treat themselves.
- Rewarding and “treating yourself” are especially powerful motivators among shoppers who purchase fewer luxury products: 50% of low-volume shoppers agree that they most often look for luxury fashion and accessories to reward themselves, compared to just over a third (37%) of high-volume shoppers. Brands can use self-gifting messages to inspire action among these shoppers.
- This self-gifting trend is particularly true of $150K+ HHI shoppers, where over half (51%) cite “to reward/treat myself” as a reason for shopping.
- 42% of all surveyed luxury shoppers said that they shop when they find something unique that they love. To highlight uniqueness, advertisers can emphasize exclusivity, personalization, or limited editions in their branded messaging to resonate among audiences in marketing efforts.
- For the $50K–$149,999 HHI group, sales and discounts are the third most popular reason to shop for luxury products, cited by 33% of survey respondents. Advertisers have an opportunity to engage with these income groups by offering special promotions, and emphasizing savings or value in brand messaging.
- 40% of $150K+ HHI shoppers start planning for holidays early (two to three months before). This provides advertisers with plenty of lead time to plan engagement and align calls-to-action with the pace of consumers’ decision journeys. For example, a brand could customize a branded message or experience for $150K+ HHI shoppers with relevant messaging that says, “Reward yourself by shopping early-bird specials. You deserve it.”