Luxury brands enjoy app boost

26 April 2012

NEW YORK: Luxury goods firms that have launched mobile apps are benefiting from higher engagement among US shoppers, according to a new study.

The Luxury Insitute, a consultancy, conducted a survey of high net worth US consumers, with results indicating a "growing connection" between luxury brands and the mobile marketplace.

In all, 93% of poll respondents that had previously used apps released by luxury brands said they had enjoyed a "good experience" with the services, while 71% said they now feel "better connected" to the companies as a result of the apps.

Moreover, almost two thirds (64%) said they view luxury firms who offer a mobile app of some kind more positively than those who do not.

A clear majority (63%) of respondents had also made a purchase via their mobile phone, with around 20% having bought a luxury product of some kind.

Moreover, almost three in four respondents (72%) said they would not impose an upper limit on the amount they would spend in an individual mobile transaction. "This [finding] indicates a tremendous emerging opportunity for luxury brands to connect with consumers through mobile," the Luxury Institute report added.

Designer clothing brands and suppliers proved particularly popular among respondents, with Gucci, Louis Vuitton, Saks Fifth Avenue and Gilt Groupe the four most-popular apps.

Milton Pedraza, CEO of Luxury Institute, said: "Luxury brands must acknowledge the impact of technology advancements in the mobile space and find a humanistic way to connect and engage with their consumers through mobile."

The Luxury Institute poll was conducted with Plastic Mobile, a mobile market research firm.

Data sourced from Luxury Institute; additional content by Warc staff