Today Vis-à-vis Luxury

In December 2013, we published an Insights brief that focused on Amazon. Now, soon after Amazon’s 20th anniversary, this brief presents updated findings from our 2014 survey regarding consumers who reported they made one or more purchases from Amazon during the past 12 months and demonstrates Amazon’s current penetration into the luxury and affluent marketplaces.

Insights Overview:

Amazon has recently been noted prominently in the news. Whether upscale marketers and retailers are aware of Amazon’s current positioning in the luxury and affluent marketplaces or not, they need to start thinking about how they are going to compete in the future, as Amazon continues to penetrate these marketplaces, offering upscale consumers more shopping-related benefits such as Amazon Prime, Sunday deliveries, liberal return and refund policies, etc. Here’s why…

  • The majority of American adults report they shopped at Amazon in the past 12 months, and Amazon now holds the number one store position. Americans with money — and lots of money — are also now shopping at Amazon.
  • Considering how much Amazon’s customer base overlaps with the other retailers in the top 20, those other retailers really need to start thinking about how they will compete with Amazon, which is making a concerted effort to target their upscale consumers with virtually all types of products and services.
  • The majority of Amazon’s customers shop at Amazon at least once a month and, as household income increases, so does the probability of their doing so.
  • About one third of Amazon’s customers report they are enrolled in the Amazon Prime service. Notably, the Prime enrollment soars at the $500,000+ income level.
  • When asked to compare Amazon with other stores, customers overwhelmingly rated Amazon better than the others .Among the benefits Amazon provides, according to its customers, are customer service, its very large selection of products, competitive pricing, and convenience of shopping online from their home or office.
  • Not surprisingly, a good number of Amazon’s customers would not consider buying certain types of products or services from Amazon — in particular, large and bulky items (appliances, furniture, tires, etc.) and perishables. Until Amazon figures out how to convince customers to buy these goods, luxury brands in these specific markets should feel reasonably secure.
  • Finally, 26 million Amazon customers (about a fifth of it customers in total — rising to more than half in the $250,000+ and $500,000+ household-income segments) reported they bought one or more luxuries in the past 12 months from any retailer in the United States. With there being about 45 million total adults who reported they bought one or more luxury products or services in the past 12 months, it follows that Amazon already has relationships with the majority of all luxury buyers.

To purchase a copy of this Insights brief, including all the details and exhibits, for $249.00, please click below.

Luxury Daily Webinar — Is Now the Time for Luxury Brands to Sell on Amazon?

Luxury Daily Webinar — Is Now the Time for Luxury Brands to Sell on Amazon?