The top 10% of US household earners make up around half of all consumer spending, and their shift to online shopping is changing the face of luxury retail.
For instance, luxury brands are overspending on ads in print. The seven biggest US luxury brands threw $133M into holiday ad spending last year, with 57% of that going into magazine ads, Business Insider reports.
Luxury is changing in subtler ways also. Just like the average customer, luxury shoppers prefer the convenience and low prices of online retailers like Amazon as opposed to brand sites—making luxury less brand- and status-oriented.
These luxury shoppers—those earning over $120k/year—are expected to increase their spending 6.6% in 2016, hitting $406B, as opposed to the average US consumer, whose spending dropped 1% between 2014 and 2015. [BI]
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