Friday, March 29, 2024

The internet technology changes the way we decide what to buy

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The internet changes the way we decide what to buy, especially in the case of expensive branded products. How far? Analyzing three different markets in nine countries, we found that these wealthy consumers were among those who were more familiar with the digital environment. Almost all buyers are online, use multiple devices to stay connected and most search online before buying at the store.

Three gold markets. The internet has changed the way people make purchasing decisions, even in the most exclusive circles. In a study, Google found that the fashion, jewelry and luxury watches sector was no exception. We compare luxury buyers in nine countries and we find the emergence of three different types of markets.

“New markets” of China, Brazil and Russia are made up of the best-selling buyers, the most dependent on digital on the purchasing path. This is important because they are also the most frequent luxury buyers.

The “advanced market” of the United States, Germany, Britain, France and Italy consulted a number of sources that corresponded to half the amount consulted by new markets, but the Internet still played an important role: more than two-thirds of online searches before buying.

Finally, we have a Japanese market. This market consult with the fewest sources to look for your luxury purchases. But don’t be wrong about that. The internet remains a valuable channel for reaching out and influencing Japanese luxury buyers: half of them search online before buying.

This study consisted of people who had carried out at least two purchases of luxury goods in the past two years. It focuses on 5 to 8% of the richest consumers, the average value of the last luxury purchase is $ 2,500. To understand the best way to engage these wealthy buyers, we need to find out how digital influences the way they buy.

Sophisticated Shopping

To learn more about these sophisticated buyers, we’ve reviewed your media consumption and device usage. In all three markets, virtually all (98 to 99%) use the Internet on a daily basis. Even more used than magazines, the Internet is the only medium that can reach virtually every luxury shopper in every market. The Internet can even reach the market of luxury watches such as rolex cellini or Panerai Radiomir.

The Internet is the only medium that can reach virtually every luxury shopper in every market.

In new and developed markets, luxury buyers use, on average, more than three connected devices. In the Japanese market, they use more than two connected devices. On average, luxury buyers have a smartphone broadcasting rate twice as big as the general population and a fourfold tablet broadcasting rate. It is clear that these luxury lovers connect to the Web using various devices.

Rich resource analysis

While luxury buyers are tech savvy, this fact may go unnoticed by analyzing luxury shopping data for the first time. Depending on the market, 81 to 93% of the most recent luxury purchases were made offline at a store, and 7 to 19% of purchases were made online. However, this does not mean that purchasing decisions are made at the point of purchase.

We found that over 90% of luxury buyers search for products before they buy. Many of them use the Internet for this. In the new markets, 92% of luxury buyers use the Internet to research information before buying. The online survey is also used by 69% of buyers in developed markets and by 49% in the Japanese market. Search engines are the online resources most used by all luxury buyers in new markets (84% use research), developed markets (58%) and Japanese markets (41%).

The true power of digital lies in its ability to fully engage the consumer in their brand experience. Up to 70% of luxury buyers look for information on a website or app on the way to purchase, which gives brands a great opportunity to engage them by providing inspiration online.

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