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Spending trends
Consumers are shopping more on ecommerce sites, with 25.3
percent of sales coming from online. Brands are therefore
missing out by not offering an ecommerce platform.
fashion, wanting to have something to pass on to future
generations. Seventeen percent of high jewelry sales come
through online channels.
Overall, consumers are choosing to spend more on
experiences than on material objects, favoring travel
especially. Airline tickets were the number one spending
category this past December.
Women account for 70 percent of shopping and they are
looking for ease, since they are typically working, rather
than ladies who lunch. Ecommerce allows them to make
purchases around 10 p.m., after the day’s obligations have
been completed.
Ms. Quinlan said that it would be worth it for brands to further
ease the shopping experience, giving the example of a brand
putting a dress in a window and then featuring the dress as
the first thing the consumer sees upon loading the Web site.
Then if she has seen it in person when she did not have time
to shop, the consumer can easily make the purchase.
Millennials are particularly interested in experiences.
Online channels also give brands better control of their
pricing than bricks-and-mortar stores, which often have to
discount to compete with neighbors. The online shopper is
more interested in convenience and will purchase full price,
compared to the in-store consumer, who considers shopping
social.
Fiscal policy plays a key role in consumer spending, as do
other factors including weather and people’s finances. The
slowdown during the winter impacted only climates that were
experiencing bad weather, leaving the Pacific and Texas at
normal figures.
Brands do not have to discount, and should not.
“I think what’s important … is not price-sensitive,” Ms.
Quinlan said.
Ms. Quinlan suggests partnering with restaurants, charities
or clubs to reach this audience, selling goods in conjunction.
Waves of spending
Other unpredictable factors routinely disrupt shopping.
For instance, just as retailers began to push their holiday
marketing into full gear, the government shutdown forced
marketers to switch up their plans with efforts more tailored
towards bargain shoppers who were likely to research prices
via their mobile device.
The United States’ partial government shutdown Sept. 30
night as a result of Congress’ disagreement on how to fund
federal government groups left thousands of consumers
unemployed during one of the biggest consumer spend times
in the holidays. Marketers expected consumer spending to
drop during the holidays and bet on consumers showrooming
more in-store (see story).
Factors in the global economy can also affect countries on the
other side of the world. The slowing of Chinese consumption
is affecting the majority of global markets.
“I think it’s absolutely devastating,” Ms. Quinlan said. “It is
slowing the entire world economy with the exception of the
U.S.
Post-recession, U.S. consumers are shopping less in multibrand retailer stores, picking instead to shop with the brand
directly. This trend is not seen in other countries, where
people still frequent department stores.
Consumers are also investing more in jewelry and less in
“They have obviously changed through their policies how
they want consumers to spend.”
Sarah Jones is editorial assistant on Luxury Daily, New York. Reach her
at [email protected]