Consumer Behavior

Luxury shoppers want delayed pay with no cost, interest

Photo by istock.com

February 9, 2022

A hefty number of U.S. luxury shoppers, 84%, would find it useful to pay for high-end items without incurring interest or any extra cost and 78% view a brand's commitment to innovation as critical, according to Klarna's The State of Smooth: Unpacking Luxury in 2022 Report.

In addition, a majority of consumers are interested in mobile apps and 57% are interested in flexible payment options, according to a press release on the report findings.

"A new generation of younger, digitally-savvy luxury shoppers is emerging, with new preferences towards how they shop and pay," David Sykes, head of North America, Klarna, said in the release. "While the allure of brand names (52%) and exclusivity (39%) still drive luxury purchases, today's high-end shoppers are looking for greater flexibility and innovation throughout their shopping experiences."

Additional findings include:
● There's a new group of luxury shoppers — Gen Z and Millennials — who are even more likely to purchase luxury items than their elders. Gen Z (60%) and Millennials (63%) are purchasing luxury items at a much higher rate over the last 12 months than their elders: Gen X (46%) and Baby Boomers (18%).
● Innovation and new technologies — from shopping in the metaverse to engaging with AR/VR experiences — are critical. 70% of consumers who have heard about the metaverse would be interested in shopping for luxury products there — particularly Millennials (76%), Gen Z (69%) and Gen X (67%). Luxury shoppers are also keen to engage with new technologies such as virtual dressing rooms (22%) and AR/VR experiences (18%).
● 84% of luxury shoppers consider touching and seeing a product as essential to the purchasing experience.
● Meanwhile, two in five shoppers who bought luxury products last year did so online. But luxury shoppers don't just want your average online shopping experience — nearly one in three shoppers want to speak with sales associates before making a purchase. For Gen X (49%) and Baby Boomers (54%), being able to pay securely also matters when shopping online, while Gen Z (57%) and Millennials (54%) care most about being able to buy online and pick up in-store.