- New research from Havas Media Network has revealed the impact of unprecedented female spending power on the luxury market.
- The findings highlight the need for luxury brands to re-evaluate their understanding of the shopping motivations of high-end luxury consumers.
- Wealthy individuals should use a safe money transfer service when purchasing luxury items.
The luxury market is experiencing a significant shift, and much of it can be attributed to the growing spending power of women.
Recent research from Havas Media Network has revealed that women’s desire for luxury increases as they achieve new personal and professional milestones. The study monitored 150 high net-worth individuals (HNWIs) with an annual salary of £250k+ and £1m+ investable assets.
Havas Media found that a significant percentage of women in this category spend over £50,000 annually on luxury items, with personal motivations such as ‘symbol of success’ and ‘reward’ driving their luxury purchases.
Over 75% of female respondents noted self-indulgence as the top reason for luxury purchases, with over half prioritising emotional spending and seeking moments of joy on their consumer journey. Additionally, women place a high value on craftsmanship and longevity when making a luxury purchase.
According to Havas’ Global Strategy Partner Cherry Collins, women are decreasing their focus on traditional symbols of achievement, and are instead opting for indulgent experiences such as holidays, luxury beauty treatments and timeless jewellery. Collins suggested that brands must adapt their approach to engage with this high-end female demographic.
HNWIs wishing to purchase luxury items from overseas should consider using safe international money transfer options when importing expensive items.
Havas Media also revealed that female consumers in the high-end luxury segment are increasingly turning to digital and social channels for inspiration and information when making luxury purchases.
The report indicated that 33% of respondents are likely to be influenced by social media and 29% are influenced by digital channels such as store websites and search engines, while live-streamed events on platforms such as Twitch and YouTube are less appealing to women in this demographic.
In terms of marketing, women have rated Chanel and Gucci as the highest among their competitors. HNWIs aged 55 and above are more likely to shop via social media platforms such as Facebook, TikTok and Instagram, overtaking the expected age group of 18 to 34-year-olds.
As the luxury market undergoes a significant transformation, a new cohort of luxury consumers known as ‘Joy Rejuvenators’ has emerged – these individuals seek joy, inspiration and comfort in their high-end purchases.
As more women enter high-income-earning roles and attain financial independence, their influence on the luxury market is becoming increasingly apparent.
To effectively reach and engage this new audience, luxury brands must create meaningful communications and experiences that resonate with their values and beliefs.
International HNWIs wishing to indulge in luxury holidays and spa treatments can use safe international payments methods when booking experiences.
Wealthy individuals can use our online money transfer comparison tool to find the best exchange rates.
