Showing the variation in the decision process within different international markets
Luxury brands are on an upwards trajectory, with a recent McKinsey report showing that online sales are expected to double in the next 5 years – from the 6% to 12% in 2020, before tripling in 2025 to 18%. It's easy to see that the world of digital is currently, and will continue to impact the luxury goods market.
McKinsey discussed the impact of Digital on the Luxury goods market and unearthed some interesting data about how the buying process differs between different countries. When intending to make a luxury purchase, we automatically default to thinking about pre-selected brands, of which 75% of the purchases will come from. Once deciding upon the brands, customers will have multiple touchpoints, or interactions, with brands before making the final decision to purchase.
On average, a luxury shopper will be influenced by 9 touchpoints, with a brand before they finally purchase. Geographic location impacts the number of touchpoints we have throughout the decision journey and ideally, each of these touchpoints will be with your brand. However, this isn't always the case.
In all instances, there were more online touchpoints than offline, with the UK audience making the fewest number of interactions before purchase, 6 in total (2 offline and 4 online). In comparison to more than double that of the Chinese market, who on average had around 13 touchpoints (6 offline and 7 online).
The difference between the various decision journey can come down to
"differing levels of luxury maturity, ecosystems and shopping habits that have developed over time."