WUNDERMAN THOMPSON Living in The Lap of Luxury Online

LIVING IN THE LAP OF
LUXURY
ONLINE
What really drives luxury consumers’
purchase behaviour?
How important is online?
And how has the pandemic

changed the luxury shopper?
Contents
4 HEADLINES
6 INTRODUCTION
10 CHAPTER 1 The state of the luxury nation

11 Luxury spending is on the decline overall
12 Diminished social lives to blame for decline
12 Luxury purchasing is increasing online
13 This change to online shopping is set to be permanent
13 Say hello to the online “Big Spenders”
14 The luxury industry is ripe for online revolution
14 Online saved luxury in 2020
15 Key takeouts, Things to consider
16 CHAPTER 2 The luxury customer journey

17 In the UK and US, inspiration is found online
18 In China, physical retail is still king for inspiration
19 In the UK and US, search is omni-channel
20 In China, in-store search is number one
21 For purchases, stores are vital, but so too is digital
22 Key takeouts, Things to consider, Expert Insight
23 CHAPTER 3 Catering for the new luxury consumer

24 Luxury retailers and brands must offer the benefits of in-store shopping online
25 What do luxury online retailers need to improve?
26 What would make luxury consumers switch from one retailer to another?
LIVING IN THE LAP OF LUXURY ONLINE WUNDERMAN THOMPSON 2

Contents
28 CHAPTER 4 The “best” luxury sites

29 The most visited luxury sites
30 Whose online experience is the best?
31 Expert Insight
32 CHAPTER 5 The role of marketplaces

33 In the UK and US, Amazon’s role is prominent
33 How could Amazon improve its luxury offering?
34 In China, Tmall’s role is vital
34 What could Tmall improve when it comes to luxury?
36 CHAPTER 6 Sustainability and the environment

37 How important is sustainability in luxury?
38 What is said and what is done are often not the same
40 CHAPTER 7 New channels and technologies

41 Social commerce and livestream commerce
41 Voice
41 Virtual realities
42 Online tools
42 Contactless
44 CONCLUDING THOUGHTS AND THE BIG “SO WHAT?”

Headlines
Online saved luxury in COVID-19 hit overall spend Big ticket online commerce
2020 on luxury items is here
78% 55% $244k

of UK and US consumers of UK and US luxury the average that a high-
said that they would not shoppers are spending end luxury shopper would
have been able to indulge less on luxury items as a be happy to spend online
their love of luxury without consequence of the on a luxury product.
online shopping. COVID-19 outbreak.
67% 53% $18.8k

of Chinese customers felt of luxury consumers in the average that a mid-
the same. China said the same. level luxury shopper would
be happy to spend online
on a luxury product.
7% $933
the average increase in the average that an entry-
luxury spending online level luxury shopper would
across the UK, US and be happy to spend online
China. on a luxury product.
44%
of UK and US consumers
and 46% of Chinese
consumers say that they
would spend more online in
the future when it came to
purchasing luxury goods.

Headlines
Stores are still vital across In the West, Amazon is In China, Tmall’s role
the customer journey becoming more important across luxury is huge
55% 30% 35%

of Chinese luxury of Western consumers get of luxury shoppers get
shoppers search for luxury their inspiration for their their inspiration from
products in luxury brand luxury purchases from Tmall.
stores (the number one Amazon.
search channel in China).
43% 39% 41%

of UK and US shoppers of luxury consumers search for luxury items on
search for products in search for luxury items to Tmall.
luxury brand stores (the buy on Amazon.
number one search
channel in the UK and US).
67% 40% 44%

of luxury shoppers in of luxury consumers in the of luxury shoppers buy
China buy their products UK and US shop via luxury items on Tmall.
in luxury brand stores. Amazon (the second most
used channel).
47% 2nd 49%

of UK and US luxury Amazon was the 2nd of luxury shoppers think
shoppers buy their ranked luxury site that the experience on
products in luxury brand according to US luxury Tmall Luxury Pavillion is
stores. shoppers. “excellent”.
However…
23%
of UK and US consumers
said they would never buy
luxury items from Amazon.
Introduction
The luxury market, including the luxury consumer, is like no other, with its own distinct, rarefied set of rules. At least
that’s what we’re led to believe. But following a year of such seismic change across so many aspects of life, does this
statement still ring true? That’s what we set out to uncover.
We wanted to examine what luxury brands and retailers should be doing to ensure that they are ready for the luxury
consumer of the future. To get to this point, it’s important to understand what motivates the luxury consumer,
where they shop, and what they want from their experiences…
Only from this position of insight can a strong, future-proofed strategy for the future be formulated. But first, let’s
introduce out surveyed audience.
Who did we ask?

With an aim to present valuable new insights and recommendations to inspire a future-proofed strategy for both
luxury brands and retailers, we embarked upon research across three key luxury markets – the UK, US and China,
interviewing 3,000+ luxury consumers.
To make the findings easier to digest, in the presentation of many of the results, we grouped together the Western
markets (UK and US) and separated the results for China.
It is worth noting that there is a broad range of shoppers who consume and can afford luxury items. So, we ensured
that our research covered entry-level luxury shoppers, to mid-level, to high spenders. Where relevant, we have
highlighted these differences.
Spent on luxury items p.a. (excluding cars)

Market
High Medium Low
Between $13,736.54 Between $1,373.65

UK > $68,682.70
and $68,681.33 and $13,735.17
Between $10,000 Between $1,000

US > $70,000
and $69,999 and $9,999
Between $13,736.54 Between $1,373.65

China > $68,682.70
and $68,681.33 and $13,735.17
*Exchange rate calculated on 29th January 2021

Presenting our findings
Without further ado, we present our findings.
We hope you find them interesting and insightful.
More importantly, we hope that this report inspires
you to build and deliver on a strategic plan for success
in the luxury market…
If there’s anything Wunderman Thompson Commerce
can do to help, you can find our contact details at the
end of this report.
Luxury clients we have already worked with include:
Selfridges, Calvin Klein, Chanel, Cartier, Estée Lauder,
Fendi, L’Oréal, La Mer, Oscar de la Renta, Tom Ford, Ted
Baker, Tiffany & Co., De Beers, Rolex, Harvey Nichols,
Riedel, Villeroy & Boch, Ebel, Treasury Wine Estates,
Rosewood Hotels & Resorts, BMW and Audi UK.
Methodology
The research was commissioned by Wunderman
Thompson Commerce and conducted by Censuswide.
The research covered 3,070 online shoppers who have
bought a luxury item online at least once in the last
year in the UK, US and China. The research was in field
between 8th – 19th January 2021.
Censuswide abide by and employ members of the
Market Research Society which is based on the
ESOMAR principles.

What do we mean by “luxury”?
Luxury was built on the concept of exclusivity and the associated aspiration and entitlement. As a result,
luxury consumers have been comfortable to pay a premium for this privilege.
This exclusivity and the very notion of “luxury” has become increasingly challenged, however, through online
selling, which has resulted in “deluxe” items and services becoming more and more accessible to the masses,
democratising what was once thought of as “high-end” and limited in availability. For this reason, we have
included the likes of Amazon in this research as a seller of luxury goods. For most luxury retailers and brands,
this democratisation presents a major consideration, of course.
Therefore, a more general and updated definition is warranted to contemporise what luxury means today.
For us, luxury products and services are those that are not necessary, but are desired and aspirational, and
provide their purchaser with joy, pleasure and comfort above and beyond what can normally and reasonably
be expected. Luxury items might include high-end fashion, technology, holidays, watches, cars as well as
special experiences.
It is also important to understand the purchase motives of today’s luxury consumers, courtesy of the findings
of our survey…
Why do luxury consumers buy luxury

products? Why do consumers
buy luxury products?
Let’s start by trying to understand what motivates
luxury consumers to buy luxury products. Looking at
the UK and the US, the number one reason is being UK and US
a fan of the brand itself (46%). This is good news for I am a fan of luxury brands 46%
those luxury brands who continue to invest in their
brand’s equity, and proof that while other sectors are
I enjoy the finer things in life 45%
increasingly talking about service-led brands, in luxury,
brand is still king.
They look better 43%
It also appears that it’s about enjoying the best that
the world can offer, with 45% of Western consumers
saying that they buy luxury because “they enjoy the They usually last longer 39%
finer things in life.”
The third most popular reason was that luxury items
“looked better” (43%) while the quality of luxury items China
drove the fourth most popular response “they usually
last longer” (39%) – a further shot in the arm for luxury I enjoy the finer things in life 62%
brands who seemingly can justify their higher price

points with better quality products. They look better 53%
The craftsmanship is better 53%
I like how they make me feel 52%
NB. As a consumer may have multiple motivations for buying luxury products,
they were allowed to select multiple answers – hence why the percentages do
not add up to 100%.

What are the key factors affecting
consumers’ opinions of luxury brands?
But what actually defines a brand’s or a retailer’s right
to be considered “luxury”, and what factors impact
consumers’ opinions of their luxury status?
In the UK and US, it is “exclusivity” that is still the most
cited reason for defining luxury (59%). The same is
true in China, albeit with an even higher percentage
(72%). This is, of course, a challenge to many brands
and retailers who are driven to achieve growth but who
must also balance scarcity. They must constantly ask
themselves at which level of ubiquity do they stop being
luxury, and become premium, or mass market.
But it also seems that the experience that the brand
or retailer can offer sets it apart, with 59% of luxury
consumers in the UK and US citing this reason, and 66%
in China. This means that luxury-focused businesses
should prioritise both product and experience in almost
equal measure. And, of course, the ability to deliver this
experience is made more complex with the emergence
of the online channel.
Legacy is also vital, as is innovation, and finally
sustainability.
What are the key factors affecting a

consumer’s opinion of luxury?
UK and US
The brand’s exclusivity 59%
The ‘experience’ associated with that brand 59%
How innovative the brand is (incl. its use of technology) 59%
Legacy/heritage of the brand 58%
Sustainability/provenance of products 58%
China
Exclusivity 72%
How innovative the brand is (incl. its use of technology) 70%
The ‘experience’ associated with that brand 66%
Sustainability/provenance of products 64%
Legacy/Heritage 61%
NB. As a consumer may have multiple motivations for buying luxury products,
they were allowed to select multiple answers – hence why the percentages do
not add up to 100%.

The state of
the luxury
nation
1
CHAPTER 1:
The state of the luxury nation
Let’s begin our research, and this report,

by taking a quick health check of the
luxury market, and finding out some of
the key macro-trends that we need to
be aware of.
53%
of Chinese luxury
consumers are
1. Luxury spending is on the decline purchasing fewer
overall luxury items today
As expected, and as illustrated by many companies’

financial reporting, luxury consumers have spent less
on luxury items throughout 2020. One of the biggest
factors has been the outbreak of COVID-19 and its
55%
impact on spend, ability to purchase, and availability.
Showing that this pandemic is indeed global, our
numbers for Western and Eastern shoppers are
strikingly similar, and all present a decline in overall of Western luxury
spend.
consumers are
In the UK and US, 55% of luxury shoppers are purchasing fewer
purchasing fewer luxury items as a consequence of the
COVID-19 outbreak, while 53% of Chinese consumers luxury items today
are also reducing their spend.
On the flipside, just 10% of UK and US, and 12% of
Chinese consumers said that their spending had
increased, with the rest seeing no change.
73%
And the big spenders are those who are cutting
back the most. 60% of high spenders have reduced
their luxury spending as a consequence of COVID-19,
compared to 55% for mid-level, and 49% for entry-level.
of UK and US
Whilst vaccinations and an end to the COVID-19
outbreak will arrest this slide, many luxury brands and consumers spent
retailers face enormous threats to their businesses less on luxury because
right now, and if they are to survive long-term, they they had fewer
must act now to prepare themselves for the future.
To start this journey, let’s look at the reasons
events to attend
consumers gave as to why their spending is in decline.

2. Diminished social lives to blame 3. Luxury purchasing is increasing online
for decline
With many stores either still closed or with restrictions
in place, the time for luxury online is now. One of the big
Clearly the pandemic impact on social lives is influencing questions that often arises when discussing luxury
luxury spending in the UK and US, with 73% of consumers is “are luxury consumers really prepared to take their
saying that they spent less because there were fewer purchasing online?” Our research tells us that they are.
events to attend, and 69% saying that it was because
they were seeing fewer people socially. In addition, the Pre-COVID-19, the percentage of luxury spending taking
lack of opportunities to gift was cited by 72%. place online (vs. in-store) was already higher than you
might have guessed, with the US leading the way, as
Not being able to shop in-store is having an impact too; indicated in the chart below.
73% of UK and US consumers claimed that the inability
to go into luxury stores was impacting how much they But what effect has the pandemic had? As might have
were spending. Clearly, the role of physical stores in the been suspected, in each country we’ve seen an increase
luxury shopper journey is still important. in the percentage of luxury spending online, with China
experiencing the highest migration to online:
In China, the number one reason cited for the decline in
spend was that luxury consumers are spending less on
luxury gifting items (cited by 75%). As for the UK and US,
the lack of events to attend is also driving the reduction
in spend (cited by 74%).
There would also appear to be concern over finances,
with 71% of Chinese consumers mentioning this reason,
while the inability to go in-store to purchase was chosen
by 71% of luxury Chinese shoppers.
Whilst some of the issues are out of the hands of luxury
retailers and brands, it’s clear that in order for them
to increase their sales, they should seek to encourage
consumers to engage in more social events where
luxury spending will augment the experience. For those
concerned about their finances, they should consider
innovative ways to make luxury more affordable, and
for those cutting back on spending due to the lack
of physical stores, they should focus on effectively
transitioning consumers online.
US UK CHINA AVERAGE
% of luxury
spend online
pre-COVID-19
56% 54% 48% 53%
% of luxury
spend
online now
60% 63% 57% 60%
% increase
+4% +9% +9% +7%

4. This change to online shopping is set 5. Say hello to the online “Big Spenders”
to be permanent
Not only is a higher percentage of luxury spending
heading online, but the time for “big ticket online
We asked consumers to consider a post-COVID-19 commerce” has arrived. We thought it would be
world and how it would affect their shopping behaviours. interesting to work out just how much luxury shoppers
Just 12% of consumers in the West and 13% in China were happy to spend online, so we asked what would
said that their shopping habits would not change in a be the total amount that they would be comfortable
post-COVID-19 world, while 44% of Western consumers spending on a luxury item.
and 46% of Chinese consumers claimed that they would
spend more online when it came to purchasing luxury To get the most useful insights, we broke down the
goods. results into the 3 key spending groups – high spenders,
medium spenders, and entry-level luxury shoppers.
46%
The results were eye-watering.
The highest spenders claim to be happy to spend a
gargantuan $244k on average, but even the average for
entry-level buyers of $933.11 could be seen as high, and
of Chinese luxury consumers more significantly, compelling and attractive for brands
said that they would spend more and retailers seeking to seduce this band of the market.
online in a post-COVID-19 world What does this tell us? It tells us that the concept of
“big ticket online commerce” is certainly here. While in
the past online consumers might have hesitated to
part with large sums of their money online, it would now
What does that mean? It means that while the appear that today’s luxury consumers are comfortable
COVID-19 pandemic may have been the catalyst for spending much greater amounts.
driving more luxury purchasing online, vanquishing the
virus will not mean a return to pre-COVID-19 ‘normality’
when it comes to luxury shopping.
UK US CHINA AVERAGE
High
spenders $249,568 $237,229 $238,772 $244 ,170
Medium
spenders $10,629 $12,969 $27,048 $18,838
Entry-level
spenders $655 $413 $1,211 $933
*Exchange rate calculated on 29th January 2021

The industries that UK and US consumers
would be most and least likely to buy from online
Most likely Least likely
82% Technology
26% Cars
82% Fashion
24% Art and Design
81% Luxury holidays / Travel

22% Home interiors
80% Luxury experiences

21% Jewellery
79% Luxury watches

21% Luxury food and alcohol
6. The luxury industry is ripe for online

revolution
While we would advise all luxury retailers and brands
to assess their offerings in terms of their fit for online
channels, consumers are undeniably more inclined to
buy more luxury products online from some industries
than others. The above table details which ones they
are most likely, and least likely, to buy from.
Of course, the fact that consumers are less likely to buy
from some industries does not mean that they should
wave the white flag. Rather, it signals there are more
challenges to overcome to convince luxury consumers
to purchase online. And there has never been a better
time to do that than now… when in many cases,
consumers are being forced online, whether they like it
or not.
7. Online saved luxury in 2020

Finally, while our findings suggest that online will
increasingly be a factor in the luxury market, it’s clear
that its effect is already being felt. Asked whether
indulging their love of luxury shopping in 2020 had
only been possible due to online shopping, consumers
answered with a resounding “yes” – in the UK and US
78% agreed as did 67% in China. So thank you online –
you saved the day for many a luxury shopper
in 2020.

CHAPTER 1:
Key takeouts
1. L
uxury has been hit hard by COVID-19 and overall
spend is down.
2. Consumers’ reasons to buy luxury items have
reduced.
3. The percentage of spend online is increasing.
4. The shift to online is set to be permanent; it’s not
a COVID-19-related blip.
5. Big ticket online commerce has arrived.
Things to consider
• Success in luxury demands a strong
omni-channel presence (physical and online).
• Make sure that your online presence is strong

and persuasive – with more consumers heading
online, it’s vital the experience is right.
• Create reasons for luxury consumers to

buy luxury items – what digital events and
engagements can be created in this new
normal?
• Get ready for big ticket commerce – which

products can you sell to cater for luxury
consumers who are prepared to spend big
online?

customer
2
The luxury
journey
CHAPTER 2:
The luxury customer journey
Having established a clear view of some

of the macro-trends in the luxury The top 6 sources of inspiration for
market, we now take a look at the luxury consumers in the UK and US
purchase journey for luxury shoppers. By browsing online 30%
While purchase journeys are increasingly
complex, for ease, we have looked into On Amazon 30%
the three key stages of the purchase
process – inspiration, search and Social media platforms (Instagram etc.) 28%
transaction.
Magazines 27%
1. In the UK and US, inspiration is found Social media influencers 26%
online
On brand websites and apps 25%
The influence of digital channels is growing. When it
comes to inspiration in the luxury industry in the UK NB. As a consumer may have multiple motivations for buying luxury products,
and US, it’s all about online. Out of the top six sources they were allowed to select multiple answers – hence why the percentages do
of inspiration, only one – magazines – is analogue. not add up to 100%.
30%
of UK and US consumers get
Social media also has its role to play – with social media
platforms (28%) and social media influencers (26%)
sitting in positions three and five. Given these results,
and given that so many of their consumers are on
social media sites getting inspiration, it’s vital that
their inspiration for their luxury luxury businesses think about, and sharpen, their social
purchases from Amazon commerce strategies.
Finally, 25% of consumers go direct to brands’ sites and
apps for inspiration. Clearly, brands need to work hard to
The number one source of inspiration is browsing ensure that they are seen as sources of inspiration to
online. However, it’s the second most popular source even more consumers.
of information that is perhaps the most surprising
– Amazon – with 30% of luxury buyers getting their What about the spread across the different spending
inspiration on the Amazon marketplace. In our Future ranges?
Shopper report in 2020, which surveyed online One might have expected that the appearance of
consumers across all sectors, we noted how the number Amazon was being driven by the entry-level consumers.
one source of inspiration was Amazon. We hadn’t However, our data shows that both the medium
expected Amazon to figure so heavily for inspiration in and high level luxury spenders identified Amazon as
luxury shopping though. their number one source for inspiration (31% for high
spenders and 35% for medium). Surprisingly, for entry-
level luxury shoppers, Amazon did not feature in the top
5, citing ‘browsing online’ as their number one source of
inspiration.

2. In China, physical retail is still king for And once again, rounding up the top 6 are branded
websites and apps, with 34% of luxury consumers
inspiration getting their inspiration there.
Perhaps the largest difference between luxury What about across the spending ranges?
consumers in China, and those based in the UK and
Inspiration channels seemed to be highly consistent
US, is that inspiration is still much more of a physical
in China across the spending groups. For both the
endeavour – with in-store (41%) being the number one
high-level, and mid-level spenders, in-store came top,
place for inspiration. Even fashion shows make the top 5
while for low-level spenders, the number one place was
list (37%), albeit one would presume that these would be
occupied by social media platforms (42%).
viewed predominantly online rather than in-person.
Yet for high and medium spenders, social media
As with their Western counterparts, the roles of social
platforms remained important (39% and 42%),
media platforms (cited by 40%) and the marketplaces –
occupying second place; while for entry-level luxury,
in this case Tmall (35%) – feature heavily.
in-store came next (41%).
The top 5 sources of inspiration for luxury consumers in China
50%
40% 41% 40%

37%
35% 34%
30%
20%
10%
In-store Social media platforms Fashion shows On Tmall On brand

(WeChat and e.g. London websites
Weibo etc.) Fashion Week etc. and apps
NB. As a consumer may use multiple sources and channels to search for their luxury items, they were allowed to select multiple answers – hence why the percentages
do not add up to 100%.

3. In the UK and US, search is
omni-channel
Once the inspiration stage is complete, the next journey
stage relates to the search for products to buy.
In the UK and US, whilst inspiration may have been
significantly online-based, when it comes to searching
for products, the number one place to do this was in
luxury brand stores (43%). Searching in department
stores was also cited by 32% of consumers too.
39%
of UK and US luxury consumers
search for luxury items on Amazon
As with inspiration, Amazon also features prominently

when it comes to search – in fact it’s the second most
popular place to seek out luxury products (39%) and is
closely followed by branded websites and apps (38%),
then online retailers like Net-A-Porter (34%).
Social platforms also play a role, with 31% of luxury
shoppers searching there.
Where do UK and US luxury buyers search?
50%
40%
43%
39% 38%
34%
30% 32% 31%
20%
10%
Luxury brand Amazon Branded websites Online retailers Department Social media
stores – in-store and apps (eg. Net-A-Porter) stores platforms
eg. Selfridges, (Instagram etc.)
Harrods, Harvey
Nichols – in-store

4. In China, in-store search is number one
As with the UK and US, in China, the number one channel
for search is occupied by luxury brand stores – albeit
that the percentage of Chinese consumers who
identified this channel for search is much higher (55%),
once again highlighting the importance of in-store in
China.
55%
of Chinese luxury consumers
search for products in
luxury brand stores
Branded websites and apps were next with 42%, while

marketplaces also had their role to play; Tmall came in
third (40%), with JD.com behind in fifth (37%).
Mirroring the importance of social media platforms in
the UK and US, 38% of Chinese luxury consumers also
use this channel for search.
Where do Chinese luxury buyers search?
70%
60%
55%
50%
40% 42% 41%

38% 37%
30% 31%
20%
10%
Luxury brand Branded websites On Tmall Social media On JD.com Online retailers
stores – in-store and apps platforms (eg. Net-A-Porter)
(WeChat and
Weibo etc,)

5. For purchases, stores are vital, but so
too is digital Where do luxury shoppers buy?
It should be of no surprise to anyone how hard the UK and US

luxury market has been impacted by COVID-19. Indeed,
despite lockdowns and closures, the store still plays a 10% 20% 30% 40% 50% 60% 70%
very important role for luxury shoppers, with 47% of UK Luxury
and US consumers buying in luxury brand stores, and brand stores 47%
– in-store
a notably larger 67% in China. This makes it the leading
channel for luxury purchases.
Amazon 40%
But what’s clear is that luxury consumers are also
turning to digital channels to fulfil their luxury desires. Branded
Incredibly, in the West, the second most popular channel
websites 34%
and apps
among our surveyed audience for buying luxury items
was Amazon (taking 40% of the vote). Whilst in China, Online
retailers (eg. 32%
the second most popular channel was Tmall (44%) Net-A-Porter)
and the fourth was JD.com (38%). So, while it’s true Department
to say that physical stores are vitally important for stores
31%
eg. Selfridges,
luxury, it would appear that the marketplaces are now Harrods
making successful inroads – and we can expect this
penetration to continue.
China
40%
of luxury shoppers in the UK
Luxury
brand stores
– in-store
10% 20% 30% 40% 50% 60%
67%
70%
and US buy their luxury Tmall 44%

items on Amazon
Branded
websites 39%
and apps
Online, the brand still remains critical, with branded

websites and apps being the third most used channel JD.com 38%
for luxury purchasing across the UK and US (34%), and
in China too (39%). Online
retailers (eg. 32%
Net-A-Porter)
44% NB. As a consumer may use multiple sources and channels to purchase their
luxury items, they were allowed to select multiple answers – hence why the
percentages do not add up to 100%.
of luxury shoppers in China buy

their luxury items via Tmall So what can we learn from this?
Clearly a balanced channel strategy, and having the
right experience across physical and digital channels,
Emphasising the role of physical stores, in fifth place must be a strategic priority for luxury businesses.
for the UK and US, and for China too, came department And these experiences must be consistent in both
stores. owned and retailer operated luxury stores, as well as in
marketplaces and owned online stores. Our experience
in supporting luxury clients also tells us that a strong
end-to-end CX, coupled with ownership and smart
use of the customer data presents a powerful brew,
promoting both frequency of purchase and loyalty.
In this respect, a D2C offering certainly helps...

CHAPTER 2:
Key takeouts
1. L
uxury consumers use a variety of different
channels, both physical and digital, across the EXPERT INSIGHT:
3 phases of inspiration, search and purchase.
Therefore, a strong omni-channel strategy is D2C and its role in the customer
required for success. journey
2. The physical store remains a vital component
“When we look at the customer journey, and
within this process, even more so in China.
consider the role of brands’ own sites and apps,
3. Digital channels are vitally important too – with we can see that having a direct to consumer
a strong presence required on branded sites, (D2C) offering is vital in the luxury industry.
social media, and on marketplaces.
“And if we look at the numbers, we can clearly
4. In the UK and US, Amazon’s role is noticeably see where brands need to concentrate their
growing. efforts. Our data tells us that 25% of luxury
consumers in the UK and US come to branded
5. In China, Tmall and JD.com are vital channels for
sites and apps for inspiration. When it comes
consumers.
to search, this figure rises to 38%, and when it
comes to transaction, there is a dip to 34%.
“Branded sites and apps therefore face two
challenges...
“The first is to encourage consumers to come
Things to consider directly to them for inspiration. To do this,
they should think about their editorial and
aspirational content, as well as related services
• Do you have a balanced commerce strategy? – think virtual shopping events, concierge
services and catwalk streaming for instance.
• How can you transition your consumers
seamlessly from one channel to another? “The second is to address any attrition that
Does their experience remain uninterrupted they have from the search phase to the
and their data consistent? purchase phase. The worst crime for a branded
site is to get the consumer to make a purchase
• What is your marketplace strategy? Is your
content optimised? Who is trading it?
decision, only to let them leave to complete
the purchase elsewhere. Branded sites
• Do you have a social commerce strategy? How
will you harness the luxury consumers on social
must therefore create reasons to transact,
improve their delivery propositions and seek
platforms to ensure that they transact with you? to ‘compress’ the purchase experience (make
the checkout as fast and easy as possible).
• Own the CX and data. What is the experience on
your brand site? How can you introduce more
Underpinning all of this is, of course, ownership
and clever use of customer data.”
inspiration? How can you address issues of
attrition to maximise conversion and purchase Chioma Anokuru, Client Consultant
frequency?

3
Catering
for the
new luxury
consumer
CHAPTER 3:
Catering for the new luxury consumer
With more shoppers happy to part with large sums of money online, and the
percentage of online spend on this rise, it’s vital that luxury retailers and brands
do all they can to ensure that consumers transact with them.
1. Luxury retailers and brands must offer we see that there are also limitations when it comes to
the information provided about sizing (22%).
the benefits of in-store shopping online
This was an issue that Chinese consumers also
One of the first and most obvious questions to ask identified (28%), while additionally highlighting that
is “what’s stopping luxury consumers spending more content presented was not sufficient to give them
online?” With this information, we can start to identify confidence that they were making the right decision
what needs to be improved. (27%).
For UK and US consumers, clearly there are limited online
alternatives to some of the benefits of going in-store.
Feeling the product (26%), trying it on (24%), getting the What’s stopping UK and US consumers
right size, and the limitations of online size guides (22%),
the immediacy of the purchase (22%), and the lack of
from shopping more online?
the personal touch (20%) all feature in the top 5 reasons
I want to touch and feel the product 26%
that luxury consumers don’t spend more online.
26%
I want to try the product for size, fit… does it suit me? 24%
The information regarding size, specification etc. is

insufficient to help me make a purchase with confidence 22%
of luxury shoppers in the UK

and US said that not being able I want it immediately 22%
to “feel” the product stopped
them from spending more online It lacks the personal touch 20%
34%
of luxury shoppers in China
What’s stopping Chinese consumers
from shopping more online?
wanted to try the product on – the
I want to try the product for size, fit… does it suit me? 34%
number one reason that stopped
them from spending more online
It lacks the personal touch 33%
This is echoed in the results for Chinese consumers, I want to touch and feel the product 31%
who also highlighted issues of replicating the benefits
of in-store shopping; 34% wanted to try the product The information regarding size, specification etc. is
on, 33% missed the personal touch and 31% wanted to insufficient to help me make a purchase with confidence 28%
touch and feel the products.
The content (imagery, video) is insufficient to help me make
For those retailers and brands looking to improve their a purchase decision with confidence 27%
online experience, not much can be done about some of
these reasons. However, in the UK and US, in the top 5

2. What do luxury online retailers need to
improve? What would luxury consumers change
Now that we’ve looked at what might stop luxury about online luxury shopping?
consumers spending online, let’s hear what they believe
needs to be improved.
What’s clear from our results is that there is UK and US
nervousness with online luxury shoppers regarding the
prevalence of fake products. In the UK and US (44%), as Reduce the availability of fake brand items online 43.8%
well as in China (60%), reducing the availability of fake

brand items was identified as the improvement that
Better deals 41.8%
most luxury consumers would want to make.
60%
Faster delivery 41.8%
Free returns 41.7%
of Chinese luxury consumers say

that the number one area for The ability to negotiate on the price 41.3%
improvement for online luxury
shopping would be to reduce the
availability of fake brand items China
Reduce the availability of fake brand items online 60%
When we look further down the list, it would also appear

that UK and US consumers are price-sensitive – with Connecting the physical/store experience with online 52%
42% wanting better deals and 41% wanting the ability
to negotiate deals. We see elements relating to service
Better loyalty programmes 51%
too – with faster delivery and free returns identified
by 42% of consumers respectively as areas requiring
Better ratings and reviews to enable
improvement. me to make a better decision 50%
When it comes to luxury consumers in China, the link
between online and offline stands out loud and clear Ensure a seamless, consistent experience
across any device that I am on 50%
as an area for enhancement, with 52% of consumers
identifying that the connection between the physical
store and online experience needs improving. In addition, NB. As a consumer may identify multiple areas for improvement, they were
50% identified a seamless, consistent experience allowed to select multiple answers – hence why the percentages do not add up
to 100%.
across any device as an area for improvement.

3. What would make luxury consumers
switch from one retailer to another? What would make luxury consumers
switch from one retailer to another?
Now let’s evaluate what would drive consumers who
were shopping online from one retailer to another.
In the UK and US, we again see price sensitivity as a UK and US
decision-driver, with 37% of luxury shoppers identifying
A better price 37%
it as a reason to switch. We also see elements related to
service; a better customer service was identified by 33%
and faster delivery by 28%. A better customer service 33%
While it might seem obvious, product availability was

identified too with 32%, with 30% saying that they would Product availability 32%
switch based on a good advertisement. The quality of
the website, mobile site or app was also important (29%). A good advertisement 30%
In China, as in the UK and US, luxury shoppers told

us that better customer service would make them A better website, mobile site or app 29%
switch, albeit with a higher percentage (42%). A good
advertisement (34%) and a better price (32%) were also Faster delivery of the item I want 28%
cited.
Yet there were differences too, with Chinese consumers
mentioning that better imagery to assess products
China
would encourage them to change retailers, as well as
the sustainability and the provenance of products A better customer service 41.8%
(36%).
And again, delivery was identified, this time via “more Better imagery allowing me to assess the products 36.3%
convenient delivery options” (32%).
What do these results tell us? They illustrate that the Sustainability/provenance of products 36.1%
luxury consumer is demanding. They want it all. The
right price, great customer service, fast and convenient A good advertisement 33.6%
delivery, great advertising… Luxury brands or retailers
are therefore faced with consumers of the highest
A better price 32.5%
expectations who are prepared to look elsewhere if their
demands are not met.
More convenient delivery options 31.8%
NB. As a consumer may identify multiple reasons for switching, they were
allowed to select multiple answers – hence why the percentages do not
add up to 100%.

CHAPTER 3:
Key takeouts
1. C
onsumers miss elements of physical shopping EXPERT INSIGHT:
when buying online – touching the product,
getting the right fit, the lack of personal touch. Getting the customer experience
right for brands and retailers online
2. Great content, and information about sizing and
specification would encourage consumers to
“Time and time again, we see ‘Does it fit?’ as a
spend more online.
key barrier to a customer purchasing online,
3. The prevalence and perception of fake products from buying a sofa to an item of clothing;
is an area that online luxury brands and retailers and that a poor returns experience can lose
need to tackle more effectively. a customer forever. This is exacerbated in
the luxury sector with products at a higher
4. L
uxury consumers will switch online brands and
price point as our research has shown. There
retailers for better price, better service and
are often many opportunities to improve the
better content.
customer experience in these areas – from
quick content and CX wins, to a fundamental
change in offer, functionality or presentation.
“In an age, when gaining new customers can
be difficult and costly, and consumer loyalty
to brands is waning, focus and investment in
Things to consider these areas is key.”
Rachel Smith, Director of Customer Experience
• What aspects of the luxury shopping experience
that consumers enjoy in-store can be re-created
online?
• Online luxury retailers and brands must work

hard to find innovative ways to get sizing right
and provide an excellent returns service.
• Content is key – what can luxury retailers

and brands do to provide content that gives
consumers confidence that they are making the
right decisions?
• What can be done to reduce fear that

consumers will be receiving fake luxury products
when they buy online?

The “best”
luxury sites
4
CHAPTER 4:
The “best” luxury sites
We wanted to get a view of which retailer 1. The most visited luxury sites
and brand sites luxury consumers
A number of brands came up across the 3 countries.
visited the most. Of those that they had Apple for instance turned up in both the UK and US
visited in the last 12 months, we asked results, as did Amazon and Calvin Klein, with Gucci
them to rate their online experience. appearing in all 3 countries’ top 5 most visited sites, and
Louis Vuitton in the UK and China.
Top 5 most visited luxury sites across the UK, US and China…
UK US CHINA
Apple 38% Amazon 57% Chanel 49%
Gucci 36% Apple 51% Gucci 43%
Amazon 36% Gucci 38% Louis Vuitton 40%
Calvin Klein 33% Rolex 35% Hermes 38%
Louis Vuitton 32% Calvin Klein 31% Cartier 38%
NB. As a consumer may visit multiple brands and retailer sites, they were allowed to select multiple answers – hence why the percentages do not add up to 100%.

2. Whose online experience is the best?
A high volume of traffic does not necessarily translate to a great online experience. So, we wanted to understand the
online experience of the luxury brands and retailers that consumers had visited in the last year.
Top 20 most highly rated luxury sites across the UK, US and China
UK US China
1 Apple Apple Chanel
2 Rolex Amazon Gucci
3 Gucci Rolex Hermes
4 Chanel Calvin Klein Tiffany
5 Pandora Gucci Tmall Luxury Pavilion
6 Louis Vuitton Armani Exchange Apple
7 Balenciaga Louis Vuitton Pandora
8 Brunellocucinelli.com Tiffany Burberry
9 Tommy Hilfiger Maison Hennessy Online Marketplaces
10 Burberry Bose Mont Blanc
11 Bose Bang & Olufsen Rolex
12 Cartier Neiman Marcus Coach
13 Tiffany Pandora Balenciaga
14 Hugo Boss Cartier Cartier
15 Harrods Bloomingdale’s Mr Porter
16 Amazon Burberry Louis Vuitton
17 Ralph Lauren Balenciaga Net-A-Porter
18 Browns Fashion Chanel FarFetch
19 The Outnet.co.uk Coach Selfridges
China Duty Free

20 Calvin Klein Tommy Hilfiger Ecommerce Retailers
i.e. China Duty Free (CDF)

CHAPTER 4:
EXPERT INSIGHT:
What makes an excellent online
experience?
“With the increasing democratisation of
luxury, the market has broadened, and
includes an influx of younger, more online-
savvy consumers. Many of their expectations
have been reinforced by the slick UX they get
with online marketplaces, where the end-to-
end experience is fast and frictionless. This
presents a challenge and expectation that
luxury brands and retailers need to address –
it’s not going to go away as more consumers
move online.
“Our findings show there’s still room for
improvement even on these top sites. We
know from our Future Shopper surveys that
consumers want brands to be more innovative,
and this is a good area to focus. Luxury brands
and retailers have always seen themselves as
leaders – but it’s a perception they do need to
back up consistently with action to retain their
allure.”
Shalina Ganatra, Client Consultant

The role of
marketplaces
5
CHAPTER 5:
The role of marketplaces
1. In the UK and US, Amazon’s role is

prominent The top 5 improvements that UK
and US luxury shoppers would
One of the most striking elements of our findings in
this research is the role of Amazon. It doesn’t take a
make to Amazon to encourage them
genius to work out that Amazon has firmly set its sights to buy more luxury items on it
on achieving dominance across industries, and luxury
is no exception. But it is the amount of influence that
it already wields that should make luxury brands and Improve the look and feel of the online store 38%
retailers sit up and take note.
Create a differentiation between ‘normal’
In this research, already we have discovered that:
and ‘luxury’ purchasing experiences 36%
• 30% of UK and US luxury consumers get their online

inspiration from Amazon. Extend the range of luxury brands available online 35%
• 39% of UK and US luxury consumers do their online

searching on Amazon. Improve the packaging that the products are delivered in 34%
• 40% of UK and US luxury consumers buy luxury

products on Amazon. Make the delivery experience more luxurious
(eg. white glove delivery) 32%
• Amazon is the 1st most visited “luxury site” in the US
and the 3rd most visited in the UK
• Amazon was ranked the 2nd best “luxury” online

experience in the US, with 70% of US consumers
saying it was excellent. With some tweaking of content, the ability to
differentiate luxury from general purchasing, and more
But how else might it continue to exert influence? luxurious upgrades to delivery, it does indeed appear
that Amazon could make even more impact in online
luxury shopping.
2. How could Amazon improve its luxury It’s worth noting that multi-category sites and brand
offering? support have frequently been cited as areas of
weakness of the online mega-platform. But it would
Sensing its growing prominence in luxury shopping, be unwise to rely on these as perennial shortcomings.
we wanted to know what luxury consumers would For one, Amazon is assuredly persistent in its attempts
improve about Amazon’s offering. Clearly there is room to make its mark in high-end fashion and luxury.
for improvement, as just 4% of luxury consumers said
September 2020 saw the launch of its Luxury Stores
they were happy with Amazon’s current luxury offering,
experience – an attempt at differentiation for its more
and 23% said they would never buy luxury items from
discerning customers – with Oscar de la Renta being its
Amazon. So, what would they change?
brand partner to open a shop-in-shop. It’s a new way
for brands to show their items to high-end customers
36%
on Amazon’s mobile app; and whilst critics have given
it a lukewarm reception, claiming it needs the likes of
luxury leaders such as Gucci, Dior and Prada to be taken
seriously, Amazon has the resources, the might and
will to eventually succeed. In an ominous statement, it
of UK and US luxury consumers claims “We’re just at the beginning of what we expect to
said Amazon could improve by accomplish”. Brands and retailers have been warned.
differentiating between ‘normal’ and
‘luxury’ purchasing experiences

3. In China, Tmall’s role is vital 4. What could Tmall improve when it
comes to luxury?
As with Amazon in the West, in China, Tmall is
omnipotent throughout the luxury purchase process of When comparing Tmall’s luxury capabilities against
Chinese luxury consumers: Amazon’s, it would appear that Chinese consumers’
perceptions of it as a luxury retailer are higher, with 8%
• 35% of luxury shoppers get their inspiration from
Tmall
saying that they are happy to purchase luxury items
there now (compared to just 4% for Amazon in the UK
• 41% search for luxury items on Tmall and US). A smaller percentage of consumers than their
Western counterparts (19%) say they would never shop
• 44% of luxury shoppers buy luxury items on Tmall there for luxury products.
• And 49% of luxury shoppers think that the experience

on Tmall Luxury Pavillion is “excellent”
The feedback is the same though, with more visual
differentiation required for luxury products, improved
delivery and packaging, and extended ranges of luxury
goods available.
46%
of Chinese luxury shoppers
say that extending the range
of luxury brands available on
Tmall would be an improvement
The top 5 improvements that

Chinese luxury shoppers would
make to Tmall to encourage
them to buy more luxury items
Extend the range of luxury brands available online 46%
Create a differentiation between ‘normal’

and ‘luxury’ purchasing experiences 41%
Make the delivery experience more luxurious

(eg. white glove delivery) 40%
Improve the packaging that the products are delivered in 37%
Improve the look and feel of the online store 37%

CHAPTER 5:
Key takeouts
1. A
mazon and Tmall are without a doubt the
EXPERT INSIGHT:
leading players in the luxury online market. Why Tmall and marketplaces are key
2. A very high percentage of consumers use them to luxury brands online
for inspiration, search and purchase.
3. There would appear to be huge scope for “With many brand sites currently struggling
improvement and growth in their luxury online to gain the attention of Chinese consumers in
offering, meaning that this influence will grow, as terms of site visits, Tmall is winning. It serves
they work to address their weaknesses. as more than just a sales channel but also as
a marketing and new consumer acquisition
platform.
“Many luxury brands have since leveraged Tmall
as their core digital hub; housing campaigns,
owned social content and influencer marketing,
backed by Alibaba data to deliver precision
Things to consider prospecting and targeting.”
James Bay, Managing Partner, Commerce,
• If you want to reach customers both in the West
and the East, are you selling on both
Wunderman Thompson China
these marketplaces?
• Are you optimising the content and experience

for luxury shoppers in a way that appeals
powerfully to them?
• IsTmall?
your business set up to trade on Amazon and
• How can you take the learnings from Amazon

and Tmall onto your brand sites?

Sustainability
and the
environment
6
CHAPTER 6:
Sustainability and the environment
1. How important is sustainability in So, what about across spending groups? In the UK and
US, it would appear that sustainability is slightly more
luxury? important to the high-end spenders – with 94% saying
it was important, versus 90% of medium spenders, and
Earlier on in this report, we found that 58% of UK and
85% of entry-level spenders. This trend was the same,
US luxury consumers felt that sustainability and the
albeit less pronounced, in China with 97% of high-end,
provenance of products was a key factor in defining
96% of mid-level and 94% of entry-level consumers
whether a retailer or brand could be considered luxury or
claiming sustainability to be important.
not. The message was clear – luxury and sustainability
go hand in hand. And this is a trend that is on the rise. In the UK and US,
67% of luxury consumers said that their online shopping
The question is, how important is sustainability when
behaviours had become more environmentally friendly
actually making a purchase decision? Because if it is,
over the last 5 years, while this percentage was an even
then it’s vital that luxury brands and retailers take this
higher 77% in China.
on board, supported with action, not only to build their
brand, but also to drive sales. With an increasing groundswell of support at both
a societal and governmental level, the matter of
The simple and resounding answer is that sustainability
sustainability and environmental practice in 2021 and
is important in the purchase decision.
beyond should unequivocally be on the retail agenda.
In the US, 95.76% of consumers said it was important;
the percentage in China was almost identical at 95.64%,
while luxury consumers in the UK registered a slightly
lower score (83.75%) for its importance.
96%
of both US and Chinese consumers
say that sustainability is important
in their purchase decisions

2. What is said and what is done are often not the same
We wanted to test the assertion that sustainability was important against a number of other factors. In each
category in the UK and US, sustainability was revealed as more important.
In the UK and US, is sustainability

More important Less important
more or less important than:
Free and easy returns 57% 31%

The availability of the exact
product you want 56% 30%
Speed of delivery 56% 31%
The price of the item 55% 30%
The exact brand you want 55% 30%
The luxury experience 54% 32%
This was the same outcome for luxury consumers in China, albeit the differences seem to indicate that for its
consumers, sustainability is even more important than for their Western counterparts.
In China, is sustainability
More important Less important
more or less important than:
The exact brand you want 67% 20%
Speed of delivery 63% 22%
Free and easy returns 63% 23%
The luxury experience 62% 24%
The price of the item 61% 24%

The availability of the exact
product you want 61% 23%
Far be it from us to question the preferences and actions of our respondents, but we would advise luxury retailers
and brands to apply a certain scrutiny to the above claims. When all things are equal, sustainability is undoubtedly
important, but the sustainability message resonates most when the brand, the experience, and the service are
strong too.

CHAPTER 6:
Key takeouts
1. C
onsumers are more interested in sustainability
EXPERT INSIGHT:
than ever before. Don’t expect this to subside in Why applying a qualitative as well as
the near future.
quantitative lens on sustainability
2. S
ustainability matters in luxury purchase can present a clearer picture for
decision-making, although it is one of a number
of factors. brands and retailers
“Our Future Shopper research reinforces
that consumers claim they are increasingly
considering a company’s environmental and
ethical credentials as part of their purchasing
decision-making. So, it’s important for
Things to consider companies to be honest, authentic and clear
with their customers on how they apply
• Work to get your house in order – non-

sustainable and non-environmentally friendly
sustainable practices to their business.
“However, we have also found that what
practices will be found out, and will increasingly customers say and what customers do in
alienate more of your customers. relation to ethics, activism and sustainability
• Promote what you’re doing right – tell the story

of your morals, ethics and sustainability. Beware
can be very different, and I would advise luxury
retailers and brands to apply a certain scrutiny
to the findings presented, and combine
of virtue-signalling – do it credibly, and with
qualitative research with quantitative data
integrity.
to determine what is true for their brand, or
• While sustainability is a vital factor in decision-
making, what consumers do and what they say
site. When all things are equal, sustainability is
undoubtedly important, but the sustainability
can often be different. Sustainability at the message resonates most when the brand,
cost of all else could be a recipe for disaster. product quality, experience, and service are
But sustainability coupled with experience and strong too.”
service excellence could see you triumph.
Rachel Smith, Director of Customer Experience

New
channels and
technologies
7
CHAPTER 7:
New channels and technologies
With technology and retail constantly changing, we wanted to form a perspective

on how open luxury consumers were to new technologies. A widely held view of
luxury consumers exists that they are traditional, and resistant to change and the
new rules of engagement. It’s important to interrogate this viewpoint, in offering
guidance to brands and retailers in connecting with their customers.
In fact, the responses we received do not support 2. Voice

this stereotypical perception at all. As we detail below,
we discovered high levels of engagement among our When it comes to screenless interfaces (aka “Zero-UI”),
consumer bases in the 3 markets, when presented with interest in its first iteration – namely voice – is high.
the leading new technologies. Again, it is US consumers who expressed the most
And we saw a recurring trend when looking at the interest (87%), followed by the Chinese (86%), ahead of
data – namely that US and Chinese consumers were UK consumers (70%).
more interested in the new technologies and channels Previous research conducted by Wunderman
than their UK counterparts. But don’t take these lower Thompson Commerce into digital commerce leaders
percentages as signs of overall disinterest; all of the indicated that 69% of them already had voice strategies
percentages signal interest in all the technologies. in place. With interest so high, and with more and more
consumers integrating voice devices into their home,
it would appear that one of the key strategic pillars for
1. Social commerce and livestream luxury brands and retailers must be to deliver the ability
commerce to buy via voice.
As we’ve seen throughout the customer journey in

this research, social media platforms are playing an 3. Virtual realities
increasing role. The obvious and natural end-point
in this development is real social commerce. So, how When it came to the possibility of products being
interested are consumers? brought to life through augmented and virtual reality, it
was the Chinese luxury shopper that is most engaged,
In both the US and China, luxury consumers are highly
with a huge 93% expressing their interest. For American
interested – with 85.9% of US consumers expressing
luxury shoppers, 88% said that they were interested
interest, and 85% of Chinese consumers. UK consumers
in the possibility of products being brought to life via
are slightly less engaged, with 67% expressing interest
augmented and virtual reality, with a further 88%
and 33% declaring no interest in this new channel at all.
interested in virtual shopping in general.
86%
Again, it was the UK luxury shopper who was less
engaged, with 75% interested in bringing products to life
via augmented and virtual reality, and 75% interested in
virtual shopping in general.
of US luxury consumers are
interested in social commerce
93%
of Chinese luxury consumers
One element of social commerce is the rise of livestream are interested in products
commerce, and the ability to have direct conversation being brought to life through
with sales advisors via social media platforms. Again,
US and Chinese consumers’ interest is almost identical,
augmented and virtual reality
with 90% of US and 89% of Chinese consumers
confirming their interest. A slightly lesser 73% of UK
consumers expressed interest.

4. Online tools 5. Contactless
Many businesses are looking into how AI can help Finally, one of the key technologies that was starting
them make recommendations to their consumers. to be integrated into physical stores pre-COVID-19
Would this work in luxury? Our findings suggest was contactless, with the likes of Amazon Go. We
it would. Chinese consumers are particularly predict that the uptake of these technologies will
interested in this technology (90%), closely followed be accelerated by the hygiene concerns associated
by US consumers (89%), with UK consumers again with COVID.
trailing in third (73%).
Again, it is the Chinese luxury shoppers who are most
We earlier revealed the need of luxury consumers interested (91%), with US luxury shoppers next (88%),
for better information about sizing, and the ability and the UK consumers at 77%.
to touch and feel products. It would therefore make
sense that value-added services like “try before you
buy” would be welcomed. This is certainly the case for
Chinese consumers (93%) followed by US consumers
(88%) and UK consumers (77%).

CHAPTER 7:
Key takeouts
1. F
orget the stereotype – most luxury consumers
EXPERT INSIGHT:
are interested in the new technologies. Why testing new technologies is
2. T
echnologies can be integrated into both the not only vital, but may not be as
online and physical space. expensive as you might think
3. C
hinese and US consumers appear most
enthusiastic about new technologies; UK “One of the things we continue to see in all the
consumers are interested but to a lesser research we conduct is the importance of new
degree. technologies in solving customer problems.
Customers are hungry for anything that can
help make their lives more simple and enjoyable.
And this presents brands with a challenge;
technology is moving incredibly quickly and
requires brands to invest in some of these new
technologies.
“This investment does not have to be
Things to consider substantial, however. It can be as little as
doing a design sprint on a particular technology
• While interest in new technologies is high,

integrating these into the customer journey
which can be done in 5 days! Ultimately, we want
to try and make a strategic decision which
comes from a place of knowledge. That way, we
should be supported only where they add value
can move forward with workable innovation and
and make commercial sense.
a higher degree of confidence.”
• Do you have a voice strategy and a social
commerce strategy? If not, now is the time,
Naji El-Arifi, Head of Innovation
since both are becoming more prominent in
retail.
• Luxury online brands and retailers should look

at how AR, VR and AI can help them create tools
to address the issues that luxury shoppers
experience online.
• Do you offer “try before you buy” online? It’s a

solution that can alleviate many of the concerns
that luxury shoppers have online.
• With physical retailing still playing a key role in

the customer journey, how can contactless
methods of payment be integrated?

Concluding thoughts and the big
“so what?”
We’ve established that COVID-19 hit consumer spend on luxury items last year,
whilst accelerating the move to online shopping, indeed, saving the day for the
overwhelming majority of luxury shoppers across the US, the UK and China.
This migration online is set to stick and flourish, and it is fundamental to the future fortunes of both brands and
retailers in this industry. Yet stores still have a uniquely vital role to play in the journeys of luxury consumers across
the three markets. At the same time, the growing prominence of the giant marketplaces including Amazon and Tmall
cannot be overstated. Our research also validated the benefits of a D2C play as part of a balanced channel strategy.
So, what is a luxury brand or luxury retailer to do?
In this final section, we take a closer look, with a series of recommendations, and how Wunderman Thompson
Commerce can help you.
The luxury shopper is changing, and is In China, Tmall and JD.com are key
embracing online components of a luxury brand’s
Do you know and own your consumer’s customer offering
journey? Do you know what parts of your experience Are you selling on these marketplaces? Is your
work well and which don’t? Do you have a 3-5 year content optimized? Do you need more information
plan for growth inspired by eCommerce? on how to enter these markets and sell and scale
• Talk to our Customer Experience team about

mapping your customer journeys, creating service
internationally? Do you need to develop and deliver
campaigns on these platforms?
blueprints, and delivering a strategic step-by-
step plan to deliver a best-in-class multichannel • Speak to our APAC marketplace experts.
strategy.
Social commerce will land soon, and
Consumers demand omni-channel explode
Consumers are moving across channels – physical Do you have a strategy for harnessing the volume of
and digital – and want to start, continue and finish consumers who are gaining inspiration and searching
their luxury purchasing wherever they please. Have on these platforms, and turning this interest into
you assessed your presence and efficacy across transaction?
these channels? Do you own and leverage the data?
• Talk to our Social Commerce team about delivering
• Conduct a “strategic assessment framework”
which audits each and every one of your channels,
you a plan.
and delivers recommendations for improvement to Luxury consumers won’t tolerate

optimise your brands for eCommerce.
online experiences that are below par
• interrogating
Speak with our Data specialists about
the data you have across these Is your brand in the top 20 sites identified by our
channels and using it to powerful effect. research as excellent? If not, do you have a plan to
make a step change in your customer experience?
In the UK and US, Amazon’s role in

luxury shopping is growing – from
• Speak to a CX consultant about the learnings from
other luxury brands, or a luxury audit of your site
and recommendations.
inspiration, to search, to purchase
Is your luxury brand’s presence on Amazon as strong
as it should be? Is your content maximising the Luxury consumers want to sign up
conversion that you get? How are you tracking the for innovation
success of your products? And what is your media How do you define innovation in your business?
strategy? How do you test and learn? What technologies should
• Speak to our Amazon experts about auditing,

improving and running your Amazon operations.
you be taking advantage of, and which should you be
ignoring?
• Speak to our Head of Innovation about cost-

effective ways to create proof of concepts.

About Wunderman Thompson Commerce
Wunderman Thompson Commerce is a global eCommerce consultancy that brings strategic
clarity, technical know-how and creative inspiration to help retailers, manufacturers, and
brands deliver winning commerce capabilities across all major digital commerce channels:
marketplaces (including Amazon), online retailers, D2C and social commerce.
Our end-to-end offer includes strategy, people and technology enablement, plus channel
execution. With over 1500 commerce experts, and key strategic partnerships with Adobe, SAP,
Salesforce, HCL, Shopify, BigCommerce and commercetools, we help global organisations
deliver capability, platforms and sales.
Wunderman Thompson Commerce is a WPP company. We are part of Wunderman Thompson,

a creative, data and technology agency built to inspire growth for its clients. Wunderman
Thompson brings together over 20,000 creatives, data scientists, strategists and
technologists in 90 markets.
Clients include AkzoNobel, De Beers, DFS, Estée Lauder, Sainsbury’s, Selfridges, Specialized,
Ted Baker, Tempur and Tiffany & Co.
wundermanthompsoncommerce.com
Get in touch
T: +44 (0)20 3858 0061
E: wtc.salesuk@wundermanthompson.com
©2021 Wunderman Thompson Commerce. All rights reserved. All company and product names, brands
and symbols mentioned herein are brand names and/or registered trademarks of their respective owners.

WUNDERMAN THOMPSON Living in The Lap of Luxury Online

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WUNDERMAN THOMPSON Living in The Lap of Luxury Online

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LIVING IN THE LAP OF

How important is online?

And how has the pandemic

10 CHAPTER 1 The state of the luxury nation

16 CHAPTER 2 The luxury customer journey

23 CHAPTER 3 Catering for the new luxury consumer

LIVING IN THE LAP OF LUXURY ONLINE WUNDERMAN THOMPSON 2

28 CHAPTER 4 The “best” luxury sites

32 CHAPTER 5 The role of marketplaces

36 CHAPTER 6 Sustainability and the environment

40 CHAPTER 7 New channels and technologies

44 CONCLUDING THOUGHTS AND THE BIG “SO WHAT?”

LIVING IN THE LAP OF LUXURY ONLINE WUNDERMAN THOMPSON 3

78% 55% $244k

67% 53% $18.8k

LIVING IN THE LAP OF LUXURY ONLINE WUNDERMAN THOMPSON 4

55% 30% 35%

43% 39% 41%

67% 40% 44%

47% 2nd 49%

Who did we ask?

Spent on luxury items p.a. (excluding cars)

Between $13,736.54 Between $1,373.65

Between $10,000 Between $1,000

Between $13,736.54 Between $1,373.65

*Exchange rate calculated on 29th January 2021

LIVING IN THE LAP OF LUXURY ONLINE WUNDERMAN THOMPSON 6

LIVING IN THE LAP OF LUXURY ONLINE WUNDERMAN THOMPSON 7

Why do luxury consumers buy luxury

brands who seemingly can justify their higher price

The craftsmanship is better 53%

I like how they make me feel 52%

LIVING IN THE LAP OF LUXURY ONLINE WUNDERMAN THOMPSON 8

What are the key factors affecting a

The ‘experience’ associated with that brand 59%

How innovative the brand is (incl. its use of technology) 59%

Legacy/heritage of the brand 58%

Sustainability/provenance of products 58%

How innovative the brand is (incl. its use of technology) 70%

The ‘experience’ associated with that brand 66%

Sustainability/provenance of products 64%

LIVING IN THE LAP OF LUXURY ONLINE WUNDERMAN THOMPSON 9

Let’s begin our research, and this report,

As expected, and as illustrated by many companies’

LIVING IN THE LAP OF LUXURY ONLINE WUNDERMAN THOMPSON 11

LIVING IN THE LAP OF LUXURY ONLINE WUNDERMAN THOMPSON 12

*Exchange rate calculated on 29th January 2021

LIVING IN THE LAP OF LUXURY ONLINE WUNDERMAN THOMPSON 13

Most likely Least likely

81% Luxury holidays / Travel

80% Luxury experiences

79% Luxury watches

6. The luxury industry is ripe for online

7. Online saved luxury in 2020

LIVING IN THE LAP OF LUXURY ONLINE WUNDERMAN THOMPSON 14

• Make sure that your online presence is strong

• Create reasons for luxury consumers to

• Get ready for big ticket commerce – which

LIVING IN THE LAP OF LUXURY ONLINE WUNDERMAN THOMPSON 15

Having established a clear view of some

1. In the UK and US, inspiration is found Social media influencers 26%

LIVING IN THE LAP OF LUXURY ONLINE WUNDERMAN THOMPSON 17

The top 5 sources of inspiration for luxury consumers in China