NEW YORK, NY--(Marketwired - November 17, 2015) - The independent and objective New York-based Luxury Institute today announces the release of its third annual Luxury Multi-Channel Engagement Index. The index is based on ratings and rankings by U.S. consumers with minimum annual income of $150,000 of their online and in-store shopping experiences at six (6) luxury fashion retailers: Barneys New York, Bergdorf Goodman, Bloomingdale's, Neiman Marcus, Nordstrom, and Saks Fifth Avenue. In addition to providing rankings and ratings of their shopping experiences, respondents also revealed details of their purchase histories at websites and stores of the six (6) retailers under consideration.
High-income consumers evaluated each retailer's website along 15 criteria and stores along 16 attributes. Criteria common to both channels are: ease of finding desired products, degree to which the channel fits customer perceptions of a luxury retailer, selection of products, availability of personalization, customer service, refund/exchange policies, attractive product displays, exclusive and unique products, styles relevant to their lifestyle, availability of the right sizes, acceptable pricing, loyalty programs, assurance that the store/website will meet their needs, and whether they receive compliments on what they buy. For websites, customers also considered whether the retailer offers expedited shipping and helpful customer reviews, while stores were evaluated on the convenience of locations.
With regard to total spending on fashion, high-income consumers spend an average of $3,837 annually. Women outspend men by nearly a 2-to-1 margin, spending $5,085 on average over the past 12 months, compared to $2,545 for their male counterparts; 11% of women report spending more than $10,000.
Overall, 66% of spending on fashion by high-income consumers takes place in stores, while 34% is done online, but there are notable differences with regard to gender, age and income. Women spend a significantly higher percentage of their fashion dollars online than men (37% vs. 28%), and shoppers under the age of 45 spend a far greater share online than those 65 and older (43% vs. 15%). Among consumers earning between $200,000 and $300,000, 45% of fashion spending takes place online.
"The Luxury Multi-Channel Engagement Index allows high-end fashion retailers to see exactly how consumers perceive multiple aspects of their online and in-store sales channels," says Luxury Institute CEO Milton Pedraza. "Using this valuable feedback from high-income consumers, retailers are better able to create optimal shopping experiences that boost both top-line and bottom-line performance."
Respondents reported average household income of $289,000, and $2.9 million average net worth. The research provides objective insights from actual retail consumers.
About Milton Pedraza and Luxury Institute, LLC
Milton Pedraza is the CEO of the Luxury Institute. Over the past 12 years, Milton has established the Luxury Institute as the most trusted global luxury research provider, and the proven high performance luxury client relationships consulting firm. Known globally as the foremost resource for affluent and wealthy consumer insights and client experience best practices, the Luxury Institute has served over 1,000 global luxury goods and services brands across dozens of luxury goods and services categories.
Milton advises and coaches luxury CEOs and serves on the Boards of top-tier luxury and premium brands, and luxury startups. He is sought after worldwide for his practical, innovative and humanistic insights and recommendations on luxury and is the most quoted global luxury industry expert in leading media and publications.
Milton is also an authority on CRM Technology, Analytics and Big Data. Prior to founding the Luxury Institute, his successful career at Fortune 100 companies included executive roles at Altria, PepsiCo, Colgate, Citigroup and Wyndham Worldwide.
Milton was born in Colombia, raised in the United States, has lived in several countries, conducted business in over 100 countries, and speaks several languages.
For complete rankings and ratings with additional insights, visit www.LuxuryInstitute.com, or contact Luxury Institute CEO Milton Pedraza (mpedraza@luxuryinstitute.com).
Contact Information:
Katherine Sousa
ksousa@luxuryinstitute.com