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  1. #1
    What's the word? Rhia7's Avatar
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    Smile Luxury Shoppers like shopping online
    Here's an interesting article about purchasing patterns online by "Luxury shoppers" in spite of the credit crunch. Key points are:
    • Online shopping is expected to grow
    • " Online Luxury Shoppers make up 12% of online consumers."
    • The Internet is used as a research tool
    • There can be many influences/sources
    • More than one site will play a role in the shopping decision
    • "Shop websites" are favored followed by auction sites and consumer review sites
    • Relevance in Search engines is important
    • Read the rest of the article


    New Report Reveals Resilience Of Online Luxury Shopper In The UK

    While this report focuses on customers in the UK, the principles could be applied to customers from the US.
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  2. #2
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    Hmmm.. Wonder why luxury chains like Nordstrom are impacted the hardest in this economy

  3. #3
    Outsourced Program Manager John Jupp's Avatar
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    I have a question about luxury shopping.

    Now this time of year there's no problem shifting luxury food and gift hampers and upmarket clothing. However what about products like designer handbags?

    At one time they were popular. What about now? Has the market for $1,000 handbags died a death or are they still THE must have accessory?
    Flambi Media Limited - USA/UK/EU Affiliate Management Expertise

  4. #4
    Outsourced Program Manager Stephanie Harris's Avatar
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    I think a lot of the luxury merchants are suffering this time of year. And I don't think it has to be just high-end brands to be considered luxury. It could also be a luxury goods purchase - something that you don't necessarily "need" or that might be a very optional, almost excessive purchase. Like big gift baskets, electronics, Roombas, etc. Things that seem like if you are scared of spending right now, that the customer wouldn't necessarily miss not having that product in their life.

    Those guys, as well as the Nordstrom's of the world, I think get hit hard.
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  5. #5
    Member niche's Avatar
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    Don't know if this is good news or bad for online marketers

    The point "The Internet is used as a research tool" sounds like they are just browsing online to me
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  6. #6
    Affiliate Manager FDC's Avatar
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    Good points. Yes, the US economy will certainly see a downturn in luxury online shopping. The state of the market and consumer confidence are very different between the two countries right now.

  7. #7
    What's the word? Rhia7's Avatar
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    Quote Originally Posted by FDC
    Good points. Yes, the US economy will certainly see a downturn in luxury online shopping. The state of the market and consumer confidence are very different between the two countries right now.
    The UK is facing the burst of a housing bubble and they are having an economic downturn, here's something from guardian.co.uk:
    What the economists say

    UK economy not expected to recover until 2011

    Sounds sort of similar
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  8. #8
    Affiliate Manager FDC's Avatar
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    Great, thanks for the info! Interesting how the American media only shows how bad things are here.

  9. #9
    Outsourced Program Manager John Jupp's Avatar
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    As the Tories attacked the Chancellor's plans to pour billions into public works in a Keynesian attempt to prime the pump during a downturn, the Office of National Statistics (ONS) announced ballooning government debt that economists said would leave his hands tied.

    http://www.timesonline.co.uk/tol/new...cle4977280.ece

    The ONS said that Public Sector Net Borrowing (PSNB) reached 37.59 billion from April to September, the first half of the financial year. That was more than the whole of last year and the highest half-year total ever recorded.

    ----------------

    A tale of two retailers in the same sector. One refuses to cut prices wanting to go up market. The other does up to 70% off to run to XMas with plans for an even bigger Post XMas Sale.

    The first retailer has seen a downturn in sales and poorer conversions from the affiliate sector but overall is doing well from the non affiliate channels.

    The second retailer has always had strong non affiliate channels but has seen an increase in turnover from the affiliate channel of a minimum of 14% month on month.
    Flambi Media Limited - USA/UK/EU Affiliate Management Expertise

  10. #10
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    I don't know if there is a right/wrong answer..

    Staying up-market may have a place - less sales, but bigger profit margins, and upscale store image ... although from an affiliate standpoint, it's harder to promote this type of merchant.

    Although if I was a retailer, I'm not sure I would want to throw everything on sale either. Once that happens, your customers might not want to pay full price again, even on new merchandise..

  11. #11
    What's the word? Rhia7's Avatar
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    In order to keep up with news in the UK & around the world, I suggest that everyone read this free news portal (it's my favorite):

    http://www.newsnow.co.uk/h/
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  12. #12
    Outsourced Program Manager John Jupp's Avatar
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    Quote Originally Posted by teezone
    I don't know if there is a right/wrong answer..

    Staying up-market may have a place - less sales, but bigger profit margins, and upscale store image ... although from an affiliate standpoint, it's harder to promote this type of merchant.

    Although if I was a retailer, I'm not sure I would want to throw everything on sale either. Once that happens, your customers might not want to pay full price again, even on new merchandise..
    It is a difficult issue and one of Branding if anything. The second retailer wants to be the Matalan (a cheap clothing supplier) of the internet retail clothing market. The other wants to be the next ASOS (in terms of Brand).

    The cheaper retailer will be compelled to be lower priced and whilst this makes it easier for affiliates to promote, it places them in a fixed bracket.

    The higher priced retailer will have to CLOSE their affiliate program as market conditions do not justify running an affiliate program right now as their goods are not selling via the affiliate channel.
    Flambi Media Limited - USA/UK/EU Affiliate Management Expertise

  13. #13
    What's the word? Rhia7's Avatar
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    Here's a recent Wall Street Journal article:

    U.K. Entering Recession, Central-Bank Head Says

    Will the bright points from the original article cited about luxury shoppers shopping online remain constant through current economic volatility?
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  14. #14
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    It is a complete myth that spending is not affected in an economic downturn, in fact it is the most severely affected.

    In the UK, the situation is that luxury spending by their own nationals have been subdued for months already. For example, sales of luxury cars have collapsed. But the shortfall was made up by rich buyers from emerging countries: i.e .Russsia, Eastern Europe, India, China and the gulf states. Right until this August, they were still doing quite well. But now since commodidy prices have tanked, they are even much more affected than those Western countires. Therefore the outlook is now extremely bad indeed.
    Q

  15. #15
    ABW Ambassador simcat's Avatar
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    I expect to be buying more things in store this year rather than online.
    I live in a part of town with lots of stores nearby. The 'going out of business sale' signs are starting to show up, already starting to pick up some things...

  16. #16
    What's the word? Rhia7's Avatar
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    Simcat, it depends on what you are shopping for, right?

    Pdaden, do you think the economic situation affects the psychology of shopping for the average consumer?
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  17. #17
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    Of course it will, anybody with stocks, mutual funds or property would see a large decline in value. Moroever, there is also a threat of layoffs hanging over many people.

    All indications are that spending on luxury items such as cars and yatchts have completely collapsed in my city.

  18. #18
    Affiliate Manager FDC's Avatar
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    Ya, also, an interesting thing I heard this morning referring to a lot of Wall Street job losses. They had said that for every broker who loses their job will result in three auxiliary jobs lost.

    The reasoning is that with the amount of money they spend it will trickle down. Like the guy working at the Ferrari dealership for example.

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