Press Releases | The Knowledge of Luxury

News Release: Japanese High Net-Worth Consumers Rate the “Best of the Best” Luxury Brands in Five Fashion Categories

Posted in Fashion, Handbags, Japan, LBSI, Press Releases, Shoes

(NEW YORK) June 2, 2010 - The objective and independent New York City-based Luxury Institute reported today the results of the “Best of the Best” luxury fashion brands in Japan based on the 2010 Luxury Brand Status Index (LBSI) survey. This survey identifies the top brands that deliver true luxury based solely on the unbiased ratings of wealthy Japanese consumers. The following five luxury categories were rated: Women’s Fashion, Women’s Shoes, Women’s Handbags, Men’s Fashion, and Men’s Shoes.

The LBSI asks high net-worth consumers to rate luxury brands by category across four equally weighted components: Consistently Superior Quality, Uniqueness and Exclusivity, Making the Customer Feel Special Across the Entire Experience and Being Consumed by People Who Are Admired and Respected.

The “Best of the Best” are: (LBSI score out of 10)

Women’s Fashion (Ready-to-wear)

o Hermes-7.28
o Chanel-7.27
o Giorgio Armani-6.80

Women’s Handbags

o Hermes-7.77
o Chanel-7.06
o Louis Vuitton-7.01

Women’s Shoes

o Christian Louboutin-7.39
o Hermes-7.20
o Ferragamo-7.18

Men’s Fashion (Ready-to-wear)

o Ermenegildo Zegna- 7.17
o Hermes-7.01
o Giorgio Armani-6.89

Men’s Shoes

o John Lobb-7.34
o Testoni-7.32
o Ferragamo-7.11

“Japan may be a challenging market for luxury, but it is still a huge market compared to most other geographies”, said Milton Pedraza, CEO of the Luxury Institute. “We see major efforts on the part of our luxury brand clients to differentiate themselves by dramatically out-behaving their competition rather than merely outperforming on products. Extraordinary customer experiences will be the drivers of luxury success in Japan’s large, but stagnant market”

The proprietary Luxury Brand Status Index (LBSI) survey is the only unbiased measure of the prestige of leading brands among wealthy Japanese. A national sample of 600 wealthy Japanese consumers, half male/half female, with a minimum household income of 15 million Yen (approximately $165k) was surveyed online. Males rated only the men’s categories and females rated only the women’s categories.

About the Luxury Institute

The Luxury Institute is the uniquely independent and impartial ratings, research and Luxury CRM consulting institution that is the trusted and respected voice of the high net-worth consumer. The Institute provides a portfolio of proprietary publications, research and consulting services that guide and educate high net-worth individuals and the companies that cater to them on leading edge trends, high net-worth consumer rankings and ratings of luxury brands, and best practices. The Luxury Institute also operates LuxuryBoard.com, the world’s first global, membership-based online community for luxury goods and services executives, professionals and entrepreneurs.

Contact:
The Luxury Institute, LLC
Martin Swanson
Vice President Business Development
(914) 909-6350
mswanson@luxuryinstitute.com

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News Release: Apple Steals Luxury Shine From Sony

Posted in Luxury Market, Press Releases, WealthSurvey
Tags: Apple, sony —

Wealthy consumers rate both brands across multiple metrics, including quality, customer experience and retail presence.

NEW YORK (May 11, 2010) - The objective and independent New York City-based Luxury Institute today released its latest WealthSurvey,” Apple vs. Sony: Brand Face-Off,” a study comparing and contrasting perceptions of the two brands by wealthy U.S. consumers with average household income of $247,000 and average net worth of $1.8 million.

Sony product ownership far outstrips Apple’s (80% vs. 51%) but Apple owners are more passionate than Sony owners. Using a 0-10 scale, they rate Apple 8.24 for being “truly unique and exclusive” compared to 6.70 for Sony by its owners. Apple also makes the customer “feel special” more than Sony (7.58 vs. 6.70).

Wealthy Sony owners are likely to describe Sony products as traditional, sensible and common. By contrast, wealthy Apple owners describe Apple as innovative and trendy.

In the retail environment, Apple enjoys another edge over Sony. Wealthy consumers are far more likely to agree that Apple stores are better organized and maintained (8.46 vs. 7.41) and more appealing (8.41 vs. 7.43) than Sony stores. Perceptions of the quality of employee help and the overall store atmosphere favor Apple, too.

“Although Apple did not set out to be a luxury brand, it exhibits most of the qualities that luxury brands should strive for in the 21st century,” says Milton Pedraza, Luxury Institute CEO. “Apple delivers fabulous product design, unbeatable functionality, and a powerful in-store experience to consumers of all ages that many luxury brands lack. And when it comes to the ‘cool factor’ and a guru CEO, Apple is untouchable. Luxury brands could do worse than borrow a page or two from Apple’s playbook.”

About the Luxury Institute

The Luxury Institute is the uniquely independent and impartial ratings, research and Luxury CRM consulting institution that is the trusted and respected voice of the high net-worth consumer. Its publications, research and consulting services guide and educate high net-worth individuals and companies catering to them on leading edge trends, high net-worth consumer rankings and ratings of luxury brands, and best practices. The Luxury Institute also operates LuxuryBoard.com, the world’s first global, membership-based online community for luxury goods and services executives, professionals and entrepreneurs.

Contact:
The Luxury Institute, LLC
Martin Swanson, Vice President (914) 909-6350
mswanson@luxuryinstitute.com

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News Release: Wealthy U.S. Consumers Rate the Most Prestigious Ultra-Luxury Automobiles: Rolls-Royce, Bentley and Maybach

Posted in Automobiles, LBSI, Luxury Market, Press Releases
Tags: Bentley, Maybach, Rolls-Royce —

(NEW YORK) May 4, 2010 - The objective and independent New York City-based Luxury Institute reported today the top-rated ultra-luxury automobiles in the 2010 Luxury Brand Status Index (LBSI) survey. This survey identifies the brands that deliver true luxury based solely on the unbiased ratings of wealthy U.S. consumers.

Rolls-Royce is the top rated ultra-luxury automobile brand according to wealthy consumers. Rolls-Royce scores above the benchmark average for all four components of the 2010 LBSI, as well as for both outcome metrics. Bentley and Maybach tie for second place for the 2010 LBSI, both achieving a score of 8.05.

The LBSI asks high net-worth consumers to rate luxury brands by category across four equally weighted components: Consistently Superior Quality, Uniqueness and Exclusivity, Making the Customer Feel Special Across the Entire Experience, and Being Consumed by People Who Are Admired and Respected.

The “Best of the Best” are (LBSI score out of 10):

Ultra-Luxury Autos
o Rolls-Royce-8.33
o Bentley-8.05
o Maybach-8.05

“The ultra-luxury auto category is coming back after a tough 2009,” said Milton Pedraza, CEO of the Luxury Institute. “We expect to see these product-centric companies focus more on the overall customer experience this year as they try to generate traffic, new sales and increase customer retention and recovery rates.”

The proprietary Luxury Brand Status Index (LBSI) survey is the only unbiased measure of the prestige of leading brands among wealthy Americans. A national sample of 505 ultra-wealthy American consumers, with weighted average household income of $845,000 and average investable assets of $16.6 million, was surveyed online.

About the Luxury Institute (www.LuxuryInstitute.com)

The Luxury Institute is the uniquely independent and impartial ratings, research and Luxury CRM consulting institution that is the trusted and respected voice of the high net-worth consumer. The Institute provides a portfolio of proprietary publications, research and consulting services that guide and educate high net-worth individuals and the companies that cater to them on leading edge trends, high net-worth consumer rankings and ratings of luxury brands, and best practices. The Luxury Institute also operates LuxuryBoard.com, the world’s first global, membership-based online community for luxury goods and services executives, professionals and entrepreneurs.

Contact:
The Luxury Institute, LLC
Martin Swanson
Vice President
(914) 909-6350
mswanson@luxuryinstitute.com

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News Release: Wealthy U.S. Consumers Rate the Most Prestigious Luxury Watch Brands-Blancpain, Vacheron Constantin, Breguet

Posted in LBSI, Luxury Market, Press Releases, Watches

(NEW YORK) April 27, 2010 - The objective and independent New York City-based Luxury Institute reported today the top-rated luxury watch brands in the 2010 Luxury Brand Status Index (LBSI) survey. This survey identifies the brands that deliver true luxury based solely on the unbiased ratings of wealthy U.S. consumers.

High net-worth consumers rated Blancpain the “Best of the Best” among 33 luxury watch brands. Despite being a relatively unknown brand, Blancpain clearly stands out as the most luxurious brand of the 33 in this study, with the highest ratings for all four component measures of the LBSI and both outcome metrics.

The LBSI asks high net-worth consumers to rate luxury brands by category across four equally weighted components: Consistently Superior Quality, Uniqueness and Exclusivity, Making the Customer Feel Special Across the Entire Experience, and Being Consumed by People Who Are Admired and Respected.

The “Best of the Best” are (LBSI score out of 10):

Luxury Watches

o Blancpain-8.74
o Vacheron Constantin-8.15
o Breguet-8.09

“The luxury watches category is one of the oldest and most prestigious,” said Milton Pedraza, CEO of the Luxury Institute. “And yet the industry is stuck in time in terms of its distribution and customer relationship building innovations. We predict that more luxury watch brands will build their own direct distribution channels via retail and online as they realize that the future belongs to those watch brands that have direct and deep relationships with their end consumers.”

The proprietary Luxury Brand Status Index (LBSI) survey is the only unbiased measure of the prestige of leading brands among wealthy Americans. A national sample of 505 ultra-wealthy American consumers, with weighted average household income of $845,000 and average investable assets of $16.6 million, was surveyed online.

About the Luxury Institute (www.LuxuryInstitute.com)

The Luxury Institute is the uniquely independent and impartial ratings, research and Luxury CRM consulting institution that is the trusted and respected voice of the high net-worth consumer. The Institute provides a portfolio of proprietary publications, research and consulting services that guide and educate high net-worth individuals and the companies that cater to them on leading edge trends, high net-worth consumer rankings and ratings of luxury brands, and best practices. The Luxury Institute also operates LuxuryBoard.com, the world’s first global, membership-based online community for luxury goods and services executives, professionals and entrepreneurs.

For Further Information, Please Contact:
The Luxury Institute, LLC
Martin Swanson, Vice President, (914) 909-6350, mswanson@luxuryinstitute.com

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News Release: Wealthy U.S. Consumers Rate the Most Prestigious Luxury Jewelry Brands

Posted in Jewelry, LBSI, Press Releases

(NEW YORK) April 21, 2010 - The objective and independent New York City-based Luxury Institute reported today the top-rated luxury jewelry brands in the 2010 Luxury Brand Status Index (LBSI) survey. This survey identifies the brands that deliver true luxury based solely on the unbiased ratings of wealthy U.S. consumers.

High net-worth consumers rated Graff the “Best of the Best” among 21 luxury jewelry brands, securing top ranks for three out of four components of the LBSI. Asprey and Buccellati were ranked second and third, respectively. Buccellati has been consistently rated in the top three in previous years and is rated the most unique and exclusive.

The LBSI asks high net-worth consumers to rate luxury brands by category across four equally weighted components: Consistently Superior Quality, Uniqueness and Exclusivity, Making the Customer Feel Special Across the Entire Experience, and Being Consumed by People Who Are Admired and Respected.

The “Best of the Best” are (LBSI score out of 10):

Luxury Jewelry
o Graff-8.28
o Asprey-8.16
o Buccellati-8.14

“As the luxury jewelry industry makes its comeback, wealthy consumers are looking for truly differentiated value,” said Milton Pedraza, CEO of the Luxury Institute. “While quality and uniqueness are critical dimensions in jewelry, in today’s world the relationship with the client is the major differentiator. Clienteling has become the priority in luxury jewelry. Top brands are now investing in clienteling best practices training as part of creating true Luxury CRM cultures.”

The proprietary Luxury Brand Status Index (LBSI) survey is the only unbiased measure of the prestige of leading brands among wealthy Americans. A national sample of 505 ultra-wealthy American consumers, with weighted average household income of $845,000 and average investable assets of $16.6 million, was surveyed online.

About the Luxury Institute (www.LuxuryInstitute.com)
The Luxury Institute is the uniquely independent and impartial ratings, research and Luxury CRM consulting institution that is the trusted and respected voice of the high net-worth consumer. The Institute provides a portfolio of proprietary publications, research and consulting services that guide and educate high net-worth individuals and the companies that cater to them on leading edge trends, high net-worth consumer rankings and ratings of luxury brands, and best practices. The Luxury Institute also operates LuxuryBoard.com, the world’s first global, membership-based online community for luxury goods and services executives, professionals and entrepreneurs.

For Further Information, Please Contact:
The Luxury Institute, LLC
Martin Swanson, Vice President, (914) 909-6350, mswanson@luxuryinstitute.com

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News Release: Luxury Institute Survey: U.S. High Net-Worth Consumers Rank the “Best of the Best” Luxury Brands in Four Fashion Categories

Posted in Fashion, LBSI, Press Releases, Shoes

(NEW YORK) March 23, 2010 - The objective and independent New York City-based Luxury Institute reported today the results of the “Best of the Best” luxury brands in the U.S. based on the 2010 Luxury Brand Status Index (LBSI) survey. This survey identifies the top brands that deliver true luxury based solely on the unbiased ratings of wealthy U.S. consumers. The following four luxury categories were rated: Women’s Fashion (37 brands), Women’s Shoes (38 brands), Men’s Fashion (32 brands), and Men’s Shoes (20 brands).

The LBSI asks high net-worth consumers to rate luxury brands by category across four equally weighted components: Consistently Superior Quality, Uniqueness and Exclusivity, Making the Customer Feel Special Across the Entire Experience and Being Consumed by People Who Are Admired and Respected.

Which luxury providers deliver the best combination of quality, exclusivity, customer experience and peer prestige in the U.S.?

The “Best of the Best” are: (LBSI score out of 10)

Women’s Fashion

o Roberto Cavalli-7.89
o Hermes-7.81
o Balenciaga-7.80

Women’s Shoes

o Christian Louboutin-8.54
o Manolo Blahnik-8.18
o Zac Posen-8.15

Men’s Fashion

o Ermenegildo Zegna- 7.50
o Brioni-7.44
o John Varvatos-7.29

Men’s Shoes

o Ferragamo- 7.69
o Hermes-7.46
o Louis Vuitton-7.30

“Each year we try to increase the number of brands that are rated by the wealthy and this has brought about some interesting surprises,” said Milton Pedraza, CEO of the Luxury Institute. “Brands that might not be expected to be top-rated by the fashion experts have made the top three. While unexpected, we see consumers as the ultimate experts on brand prestige and this year they are voting on the entire perceived price/value equation of the brand as well as prestige.”

The proprietary Luxury Brand Status Index (LBSI) survey is the only unbiased measure of the prestige of leading brands among wealthy Americans. A national sample of 1265 wealthy U.S. consumers, half male/half female, with an average household income of $287,000 and average net worth of $3.8 million was surveyed online. Males rated only the men’s categories and females rated only the women’s categories.

About the Luxury Institute (www.LuxuryInstitute.com)
The Luxury Institute is the uniquely independent and impartial ratings, research and Luxury CRM consulting institution that is the trusted and respected voice of the high net-worth consumer. The Institute provides a portfolio of proprietary publications, research and consulting services that guide and educate high net-worth individuals and the companies that cater to them on leading edge trends, high net-worth consumer rankings and ratings of luxury brands, and best practices. The Luxury Institute also operates LuxuryBoard.com, the world’s first global, membership-based online community for luxury goods and services executives, professionals and entrepreneurs.

For Further Information, Please Contact:
The Luxury Institute, LLC
Martin Swanson
Vice President Business Development
(914) 909-6350
mswanson@luxuryinstitute.com

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News Release: Luxury Institute Launches the Luxury CRM Association: Luxury CRM Practitioners Network to Share Best Practices

Posted in Customer Service/CRM, LCRMA, Press Releases

NEW YORK (March 18, 2010) - The New York City-based Luxury Institute today announced the launch of the Luxury Customer Relationship Management Association (LCRMA), a network of Luxury CRM practitioners dedicated to building customer-centric luxury enterprises. The association’s key objective is to enhance the global education of the luxury industry on Luxury Customer Relationship Management (CRM) benchmarks and best practices through primary research, educational events, networking, and conferences.

LCRMA members’ benefits include:

Networking events focused on best practices, benchmarks, and vendor reviews
Luxury CRM webinars dedicated to luxury executive research, consumer research, and brand case studies
Affluent consumer and executive research coupled with industry insights issued twice yearly
Luxury CRM vendor assessment research to identify best-in-class resources to build and support your CRM strategy issued annually
Luxury Institute CRM workshops and additional surveys at special LCRMA rates

“We were approached by CRM executives at The Ritz-Carlton® with the request to create an independent and objective body, a safe haven, where Luxury CRM executives could network and share best practices,” says Milton Pedraza, CEO of the Luxury Institute. “We were honored by the request and saw a tremendous need for luxury brand peers to gather and learn best practices from the Institute’s research and from each other. Although we began recruiting members only in January, we now have top-tier members including The Ritz-Carlton, Jurlique, Team One, Bacardi, Buccellati, Moet Hennessy, The Capital Grille, Polo Ralph Lauren, and David Yurman.”

“The Ritz-Carlton is delighted to partner with the Luxury Institute in creating the Luxury Customer Relationship Management Association,” says Kevin Walsh, CRM senior director at The Ritz-Carlton and vice chairman of the association. “It will provide an opportunity to meet other marketing practitioners while building stronger relationships.”

As part of its member research benefits, LCRMA recently ran a survey with over 100 luxury executives globally using the Luxury Institute database and the database of top luxury and retail recruiting firm Martens & Heads. Following are some key takeaways:

Luxury brands recognize the true importance of CRM as it relates to short and long-term brand success: Nine out of ten Luxury CRM executives believe that having a customer-centric culture and values is linked to long-term growth and financial success.
Luxury brands are still implementing the basics of CRM: Only about two-thirds of Luxury CRM executives know their current customer retention rate. For these companies, the average rate is approximately 57%. Traditional RFM (recency, frequency, monetary value) is the type of data most commonly found in Luxury CRM systems and used in marketing campaigns for luxury brands.
Luxury brands are behind on the use of formal customer experience research: Reported data from front-line executives and staff are the most commonly used source of knowledge about the customer experience.
Most luxury brands have not yet recognized the role of the employee selection process in creating a truly customer-centric culture: Just 36% of CRM executives say that their luxury brand selects employees that are service-oriented based on formal testing.
Luxury brand employee key performance indicators (KPIs) are not aligned with achieving basic CRM goals: Only one quarter (27%) of Luxury CRM executives say that their organization has financial incentives that encourage front-line staff to collect customer data.
Online represents a significant growth opportunity in 2010 as it is the channel with the highest reported average customer growth rate
The multi-channel luxury consumer is on the rise, but not a strong focus for all CRM initiatives: Most Luxury CRM executives surveyed report that they have multi-channel customers but only 33% of these executives report that they have specific retention and reactivation strategies in place to grow multi-channel customers.

“Today it is essential for luxury brands to be customer-centric at every organizational level,” says Felicity Lewis, senior global manager of interactive and direct marketing and LCRMA vice-chairwoman. “Jurlique strongly believes in the social approach of the Luxury CRM Association. Delivering extraordinary customer experiences to drive sales is a must for every brand in 2010.”

About the Luxury Institute (www.LuxuryInstitute.com)
The Luxury Institute is the uniquely independent and impartial ratings, research, and Luxury CRM consulting institution that is the trusted and respected voice of the high net-worth consumer. The Institute provides a portfolio of proprietary publications, research and consulting services that guide and educate high net-worth individuals and the companies that cater to them on leading edge trends, high net-worth consumer rankings and ratings of luxury brands, and best practices. The Luxury Institute also operates LuxuryBoard.com, the world’s first global, membership-based online community for luxury goods and services executives, professionals and entrepreneurs.

For Further Information, Please Contact:
The Luxury Institute, LLC
Martin Swanson
Business Development
(914) 909-6350
mswanson@luxuryinstitute.com

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News Release: Burberry, Louis Vuitton Lead Luxury Firms For In-Store Customer Experience

Posted in Customer Service/CRM, Press Releases, Retail, WealthSurvey
Tags: Brooklyn College, Burberry, Louis Vuitton, mystery shopper —

Luxury Institute Mystery Shoppers Rate Retailers on Merchandise, Ambiance, and Store Personnel

NEW YORK (March 11, 2010) - “In-Store Customer Experiences,” the latest WealthSurvey from the objective and independent Luxury Institute (www.LuxuryInstitute.com), analyzes 240 visits to luxury retail stores in Manhattan by 78 students in Prof. Veronica Manlow’s Fashion Marketing and Research Methods class at Brooklyn College.

The top three factors that shoppers consider before recommending a brand are merchandise, service and store atmosphere. Two standouts across several criteria are British fashion house Burberry and French luxury outfit Louis Vuitton, with 77% of shoppers saying they would recommend Burberry to family and close friends, and 74% saying the same about Louis Vuitton.

Polite, informed, articulate and appropriately dressed personnel lead to better experiences, as does the ability to put customers at ease while browsing the store. Mystery shoppers report that on 94% of Burberry visits the staff made them feel comfortable; Vuitton did the same 76% of the time.

Making customers feel special can also boost sales. “My salesperson made me feel important to the point that I ended up purchasing a pocketbook,” says one Louis Vuitton customer. Burberry and Vuitton top the rankings for making customers feel special, doing it on 52% and 42% of visits, respectively.

“Stores are the front lines of luxury retail and this is where luxury brands can do some of the greatest good or ill for their reputations,” says Milton Pedraza, CEO of the Luxury Institute. “Putting polite, informed and well-groomed sales personnel on the floor is just the start, but done well it can be a true differentiator.”

About the Luxury Institute (www.LuxuryInstitute.com)
The Luxury Institute is the uniquely independent and impartial ratings, research, and Luxury CRM consulting institution that is the trusted and respected voice of the high net-worth consumer. The Institute provides a portfolio of proprietary publications, research and consulting services that guide and educate high net-worth individuals and the companies that cater to them on leading edge trends, high net-worth consumer rankings and ratings of luxury brands, and best practices. The Luxury Institute also operates LuxuryBoard.com, the world’s first global, membership-based online community for luxury goods and services executives, professionals and entrepreneurs.

For Further Information, Please Contact:

The Luxury Institute, LLC
Martin Swanson
Vice President Business Development
(914) 909-6350
mswanson@luxuryinstitute.com

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News Release: High Net-Worth Consumers Rank “Best of the Best” Luxury Retailer Customer Experience

Posted in LCEI, Press Releases, Retail

NEW YORK, NY–(Marketwire - February 23, 2010) - Given the tumultuous economy and its effect on luxury retail, the objective and independent New York City-based Luxury Institute reported the top-rated luxury retailer brands in the recently updated 2010 Luxury Customer Experience Index (LCEI) survey. The LCEI identifies the top brands that deliver true luxury customer experiences based solely on the independently verified ratings of wealthy and ultra-wealthy consumers.

The LCEI asks high net-worth customers to rate luxury brands by category across three equally weighted and detailed rating components: Complete Satisfaction, Brand Personnel and Store Environment. The survey also measures Problems and Resolutions, Worthiness of a Significant Price Premium and Willingness to Recommend.

The “Best of the Best” Luxury Retailers are: (LCEI score out of 10)

--  Bergdorf Goodman - 8.23
--  Nordstrom - 8.15
--  Barneys - 7.91

“The economic recession and individual brand responses have generated quite a bit of movement in the rankings,” says Milton Pedraza, CEO of the Luxury Institute. “For example, Barney’s, which had not been highly ranked in previous periods, has risen significantly due to a multi-year focus on improving customer experience. We have seen a tremendous interest in luxury brands seeking to dramatically redesign their customer experience, with a focus on both Luxury Cultural CRM initiatives and Analytic CRM projects working together to deliver measurably improved customer experiences.”

The proprietary Luxury Customer Experience Index (LCEI) survey is the only unbiased measure of true customer experiences of leading brands among wealthy and ultra-wealthy Americans. A national sample of 1,265 wealthy consumers was surveyed online in January 2010.

For Further Information, Please Contact:

The Luxury Institute, LLC
Martin Swanson
Business Development
(914) 909-6350
mswanson@luxuryinstitute.com

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News Release: Search Engines Deliver Wealthy Consumers

Posted in Internet/Web, Press Releases, WealthSurvey

Luxury Institute’s New WealthSurvey Reveals That Search Engines Are Frequent Starting Points For Online Shopping Across Luxury Categories, Especially In Travel, Entertainment, and Real Estate

NEW YORK (January 14, 2010) - The objective and independent New York City-based Luxury Institute (www.LuxuryInstitute.com) today released its latest WealthSurvey, “Search Engine Usage & Shopping Habits of the Wealthy,” a study detailing how wealthy Americans browse, research and purchase luxury goods and services.

More than three-fourths of wealthy consumers use search engines when shopping for luxury goods and services. They perform an average of 14 daily searches, and 89% report that they made an online purchase as a direct result of a search. The top reasons for performing searches when shopping are: finding the best price (78%), comparing different brands (77%), finding a specific luxury provider’s website (77%), finding out where to purchase a product (75%) and reading customer reviews (72%).

Travel is the single most popular luxury category for searches. Nearly two-thirds (64%) of wealthy consumers report searching for airline flights, hotels, resorts, or cruises in the past three months. Entertainment related searches are the second most popular with 51% of the wealthy going online to find information about movies, theater and live music. Local business listings (50%), electronics (47%), real estate (38%) and automotives (37%) also are popular search categories.

Men are more avid users of search engines than women in most categories, but women are twice as likely as men (48% vs. 24%) to have searched online for fashion apparel information in the past three months, and nearly three times as likely (46% vs. 16%) to use a search engine to find information about beauty, skincare, and grooming products and services. Designer shoes (24% vs. 15%) and designer handbags (24% vs. 12%) are two more categories where women dominate in searches. Of note, men are more likely than women (42% vs. 29%) to research and shop online for home appliances.

“Effective search engine optimization strategies are clearly becoming more important to luxury marketers,” says Milton Pedraza, CEO of the Luxury Institute. “Wealthy individuals are smart consumers, and this means that they will comparison shop, look for best prices, and closely evaluate the merits of a brand’s offerings.”

In some categories, like designer handbags, 75% of searches are for the manufacturer’s name, but the real art of search engine optimization comes when wealthy customers are searching by category, not by name, as is frequently the case in health and fitness (61%), home furnishings (52%) and financial services (42%).

The Luxury Institute surveyed a national sample of 427 wealthy American consumers with average weighted household income of $290,000 and average net worth of $2.9 million. Results of the online survey are weighted to match the profiles of the wealthiest 10% of Americans from the latest Survey of Consumer Finances from the Federal Reserve.

To purchase the complete Luxury Institute “Search Engine Usage & Shopping Habits of the Wealthy,” please visit the “WealthSurvey” section of the Luxury Institute’s online store. Members of LuxuryBoard.com have free access to these reports via the Resource Center.

About the Luxury Institute (www.LuxuryInstitute.com)

The Luxury Institute is the uniquely independent and impartial ratings and research institution that is the trusted and respected voice of the high net-worth consumer. The Institute provides a portfolio of proprietary publications, research and consulting services that guide and educate high net-worth individuals and the companies that cater to them on leading edge trends, high net-worth consumer rankings and ratings of luxury brands, and best practices. The Luxury Institute also operates LuxuryBoard.com, the world’s first global, membership-based online community for luxury goods and services executives, professionals and entrepreneurs.

For Further Information, Please Contact:

The Luxury Institute, LLC
Martin Swanson
Business Development
Phone: (914) 909-6350
E-mail: mswanson@luxuryinstitute.com

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