Mar 12, 3025
UK Luxury Boom
UK’s Luxury Market On Rise Thanks to Arab, Russian and Chinese Shoppers
Insights
Recent
1
UK’s Luxury Market On Rise Thanks to Arab, Russian and Chinese Shoppers
The luxury market is growing year on year. The number of luxury consumers is at an all time high of 380 million, which, according to Boston Consulting Group will reach 440 million by 2020. With this in mind it comes as no surprise that the UK’s luxury market is worth £6.6 billion and is expected to double within the next 3 years. UK’s luxury market attracts consumers from all over the world, in particular, China, Russia and the UAE. Statistics from Visit Britain in 2014 show that overall in 2013 international visitors spent £21.0 billion in the UK. This included 196,000 visitors from China who spent a total of £492 million on luxury shopping and £527 million being spent by families from the Middle East. Arab shoppers spend approximately 4.5 million a day in UK, but they are biggest spenders worldwide.
This data shows how vital it is for luxury retailers to fully embrace digital marketing so their brands will reach these consumers, prompting them to travel thousands of miles to buy their products.
2
Luxury Shoppers Begin Online but Still Choose the In-Store Experience
Before making their purchases, today’s luxury shoppers are more informed and digitally engaged than ever. A 2013 study by Global Blue revealed that 90% of Chinese luxury buyers plan their purchases before even leaving their country. Similarly, travelers from Brazil and Russia lead the way in pre-purchase research, followed closely by those from the US, Germany, England, France, and Italy—where over two-thirds of consumers research online. Japanese luxury buyers are not far behind, with half engaging in online exploration before buying, according to a study by Google and IPSOS.
With smartphones and tablets always at hand, researching online is just the beginning. Consumers delve deep—watching product videos, browsing social media, reading reviews, blogs, and forums—to validate their choices. However, despite this intense digital journey, the majority of luxury purchases (81–93%) still occur in-store, with only 7–19% made online.
Why the disconnect? The desire to touch, feel, and physically experience the product, coupled with concerns over authenticity, keeps luxury buyers coming back to brick-and-mortar stores. In the luxury world, trust and tactile experience still reign supreme.
3
Though the majority of sale transactions are carried out in-store, shoppers are heavily reliant on digital devices to help them decide on what to buy, with an average luxury shopper owning 3.1 connected devices. Therefore, luxury retailers had to rethink their methods of engaging and enticing customers.
With the constant need to attract more consumers from all over the world, it is essential for luxury retailers to promote their brands using a variety of digital campaigns. Though the majority of sales do occur in the shop itself, these digital campaigns will lead to better brand awareness, which will generally prompt users into research of the brand and subsequently increase sales.
Mar 12, 3025
UK Luxury Boom
UK’s Luxury Market On Rise Thanks to Arab, Russian and Chinese Shoppers
Insights
Recent
1
UK’s Luxury Market On Rise Thanks to Arab, Russian and Chinese Shoppers
The luxury market is growing year on year. The number of luxury consumers is at an all time high of 380 million, which, according to Boston Consulting Group will reach 440 million by 2020. With this in mind it comes as no surprise that the UK’s luxury market is worth £6.6 billion and is expected to double within the next 3 years. UK’s luxury market attracts consumers from all over the world, in particular, China, Russia and the UAE. Statistics from Visit Britain in 2014 show that overall in 2013 international visitors spent £21.0 billion in the UK. This included 196,000 visitors from China who spent a total of £492 million on luxury shopping and £527 million being spent by families from the Middle East. Arab shoppers spend approximately 4.5 million a day in UK, but they are biggest spenders worldwide.
This data shows how vital it is for luxury retailers to fully embrace digital marketing so their brands will reach these consumers, prompting them to travel thousands of miles to buy their products.
2
Luxury Shoppers Begin Online but Still Choose the In-Store Experience
Before making their purchases, today’s luxury shoppers are more informed and digitally engaged than ever. A 2013 study by Global Blue revealed that 90% of Chinese luxury buyers plan their purchases before even leaving their country. Similarly, travelers from Brazil and Russia lead the way in pre-purchase research, followed closely by those from the US, Germany, England, France, and Italy—where over two-thirds of consumers research online. Japanese luxury buyers are not far behind, with half engaging in online exploration before buying, according to a study by Google and IPSOS.
With smartphones and tablets always at hand, researching online is just the beginning. Consumers delve deep—watching product videos, browsing social media, reading reviews, blogs, and forums—to validate their choices. However, despite this intense digital journey, the majority of luxury purchases (81–93%) still occur in-store, with only 7–19% made online.
Why the disconnect? The desire to touch, feel, and physically experience the product, coupled with concerns over authenticity, keeps luxury buyers coming back to brick-and-mortar stores. In the luxury world, trust and tactile experience still reign supreme.
3
Though the majority of sale transactions are carried out in-store, shoppers are heavily reliant on digital devices to help them decide on what to buy, with an average luxury shopper owning 3.1 connected devices. Therefore, luxury retailers had to rethink their methods of engaging and enticing customers.
With the constant need to attract more consumers from all over the world, it is essential for luxury retailers to promote their brands using a variety of digital campaigns. Though the majority of sales do occur in the shop itself, these digital campaigns will lead to better brand awareness, which will generally prompt users into research of the brand and subsequently increase sales.
Mar 12, 3025
UK Luxury Boom
UK’s Luxury Market On Rise Thanks to Arab, Russian and Chinese Shoppers
Insights
Recent
1
UK’s Luxury Market On Rise Thanks to Arab, Russian and Chinese Shoppers
The luxury market is growing year on year. The number of luxury consumers is at an all time high of 380 million, which, according to Boston Consulting Group will reach 440 million by 2020. With this in mind it comes as no surprise that the UK’s luxury market is worth £6.6 billion and is expected to double within the next 3 years. UK’s luxury market attracts consumers from all over the world, in particular, China, Russia and the UAE. Statistics from Visit Britain in 2014 show that overall in 2013 international visitors spent £21.0 billion in the UK. This included 196,000 visitors from China who spent a total of £492 million on luxury shopping and £527 million being spent by families from the Middle East. Arab shoppers spend approximately 4.5 million a day in UK, but they are biggest spenders worldwide.
This data shows how vital it is for luxury retailers to fully embrace digital marketing so their brands will reach these consumers, prompting them to travel thousands of miles to buy their products.
2
Luxury Shoppers Begin Online but Still Choose the In-Store Experience
Before making their purchases, today’s luxury shoppers are more informed and digitally engaged than ever. A 2013 study by Global Blue revealed that 90% of Chinese luxury buyers plan their purchases before even leaving their country. Similarly, travelers from Brazil and Russia lead the way in pre-purchase research, followed closely by those from the US, Germany, England, France, and Italy—where over two-thirds of consumers research online. Japanese luxury buyers are not far behind, with half engaging in online exploration before buying, according to a study by Google and IPSOS.
With smartphones and tablets always at hand, researching online is just the beginning. Consumers delve deep—watching product videos, browsing social media, reading reviews, blogs, and forums—to validate their choices. However, despite this intense digital journey, the majority of luxury purchases (81–93%) still occur in-store, with only 7–19% made online.
Why the disconnect? The desire to touch, feel, and physically experience the product, coupled with concerns over authenticity, keeps luxury buyers coming back to brick-and-mortar stores. In the luxury world, trust and tactile experience still reign supreme.
3
Though the majority of sale transactions are carried out in-store, shoppers are heavily reliant on digital devices to help them decide on what to buy, with an average luxury shopper owning 3.1 connected devices. Therefore, luxury retailers had to rethink their methods of engaging and enticing customers.
With the constant need to attract more consumers from all over the world, it is essential for luxury retailers to promote their brands using a variety of digital campaigns. Though the majority of sales do occur in the shop itself, these digital campaigns will lead to better brand awareness, which will generally prompt users into research of the brand and subsequently increase sales.