The Rich and Superrich Embrace Online Shopping

10/20/2008

The wealthy spend money online. In fact, it is the preferred shopping medium by the super rich, according to Internet search giant Google.

The recent study took a look at wealthy shoppers ranging in age from 25 to 64 years. The underlying assumption was that luxury shoppers would prefer an in-store, more personal shopping experience.

Why This Age Group (25-64 Years)

Google explains by saying that this is the demographic luxury goods marketers are most interested in reaching. Various industry experts cite possible problems with this. For example, a demographic analyst for Ogilvy & Mather points out that cutting off the age at 64 leaves out many, making it appear that millionaires are younger than they actually are as a demographic.

To back up this claim, he points to the Census Bureau, which shows that the wealthiest 5% of American households make $177,000 or more. Their average age? 50.

According to Google, marketers should start targeting the ultra affluent at age 37.

Age disparity aside, the study showed some surprising findings. For example, it discovered that while the rich and the super rich shop online, the super rich actually prefer to shop online more than their less wealthy counterparts. Ninety-five percent of the 263 millionaires surveyed had made their most recent luxury purchase online.

Luxury is Now Online

As little as a few years ago, many luxury good retailers resisted the online market place, saying it wasn’t for them. That’s changed – big time. Many industry experts believe that time is a factor in the shift, meaning that many of the rich and superrich are pressed for time.

Online shopping saves for luxury good shoppers, much as it does for any other online shopper. They can get product reviews and other pertinent information in a flash – and make a purchase that much quicker.

Study Definitions

Ultra-affluents (the super rich): Net worth of at least $1 million; household incomes of at least $250,000/year (married couples) and $175,000 (singles).

Millionaires (the rich): Those with an income exceeding $1 million.

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