I would also add to this that digital channels have made it possible for 'less' affluent consumers to consume the finer things in life. The Internet has made 'luxury brands' much more accessible & affordable. Take luxury fashion brands as an example...Aussie consumers can log on to bloomingdales.com or neimanmarcus.com & buy 'Vera Wang' clothing for the same price as they pay for Charlie Brown clothing in-store.
Research shows that growing number of affluent Generation Ys are turning online for shopping pursuits.
Traditional media is slowly losing its power with the young affluent consumers, with a strong percentage of them turning to websites, apps and mobile sites to satisfy their taste for the finer things in life.
The Luxury Institute, a New York-based research company that looks into the behaviours and habits of wealthy consumers and offers consultation services to luxury brands recently found that 70% of wealthy individuals aged 35 and above own smartphones while majority of these high-spending consumes prefer watching online videos than reading a printed magazine or newspaper.
Close to a quarter also own an Apple iPad and spend an average of 100 minutes a week watching digital videos and 227 minutes consuming digitally recorded content.
The institute’s research also points to wealthy Generation Y consumers being highly favourable to creating their own content in the form of blogs and video posts, along with an active presence on Facebook and Twitter.
“This is clearly a tipping point, with the rising generation of wealthy consumers consuming media in vastly different ways than anyone did just a decade ago. Luxury firms face a challenge to adapt accordingly but also a tremendous opportunity to engage younger customers,” says Milton Pedrazza, CEO of The Luxury Institute.
Phoebe Montague from the Lady Melbourne blog feels that Australian brands are doing their part to jump onto this new communication platform.
“I believe Australian retail brands do understand that their consumers are going online not only for research, but also for a complete 360degrees shopping experiences. Some brands do it better than others, but generally, I think our local brands are definitely addressing this trend well by connecting with consumers online.”