Some thought-provoking research has just been published by the Luxury Institute over in the US regarding how affluent (income over $150,000) and ultra-affluent consumers (income over $200,000 and net worth greater than $5m) in the US use their mobiles while shopping.
In terms of what mobiles they’re using , the adoption of smartphones is accelerating. Nielson estimates that 25% of the US mobile phone audience were smartphone users in Q2 2010, up from 23% in the previous quarter and 16% in the same quarter in 2009. Despite this increased penetration, smartphone users are still more likely to come from the wealthier demographics.
In terms of what they used a mobile for when shopping, the Luxury Institute research showed that affluent consumers didn’t differ much from the rest of the population. Calling someone about a planned purchase topped the list. Looking up product information on the go was also a common activity, with a view to comparing prices, finding out about products, looking for deals and checking shop information. However, ultra-affluents were less interested in some of these activities, like price comparison, which is unsurprising.
Where the affluent and ultra-affluent consumers surveyed differed from the rest of the population was in the likelihood of them using their mobile for purchasing goods and services and what they were prepared to purchase using their mobile.
Affluent and ultra-affluent mobile users were found to be more likely to make purchases from their mobile devices. 20% of affluents said they did so at least rarely, and for ultra-affluents this figure rose to 27%, with 17% stating they used their mobile to make purchases frequently.
Although the most popular purchase categories for affluents were similar to the overall US population – with cinema and event tickets and technology and personal electronics at the top of the list – for ultra-affluents the findings were different. This audience were more likely to use their phones to buy fashion items such as designer bags, shoes, jewellery as well as automotive products than the population as a whole.
The survey also found that affluents were less likely to worry about security, with the primary barrier to increased m commerce adoption being that most felt no need to purchase via mobile.
We should treat these figures with a hint of caution as they apply to the US not the UK, but trends have a habit of transporting themselves across ‘The Pond’ and the UK is Europe’s fastest growing market for smartphones.
So what do these results tell us? Well, that premium and luxury brands, and particularly those in the fashion accessories sector, should be looking at how they can enhance the shopping experience of their customers via mobile. At the very least, this would involve a m commerce enabled site allowing customers to easily research and purchase goods via their mobile. But retailers should also think about how that site can enhance the experience of shoppers who are in-store too – giving them easy access to product information and product lines and colours that aren’t available in store for example.
Luxury brands are often bringing up the rear when it comes to embracing new technology. This research suggests that with regard to m commerce at least, they should be firmly in the vanguard.
