By George Anderson
Haven’t these people heard of comparison-shopping apps? While a larger number of consumers have been drawn to luxury fashion courtesy of flash sale sites, new research from American Express Business Insights shows that consumers, Gen Yers in particular, are spending more of their dollars on full-price sites such as Neiman Marcus, Nordstrom and others.
According to the research, flash sales sites experienced a 92 percent increase in dollar sales in 2010 and then a more modest 21 percent jump last year. At the same time, full-priced sites saw 2011 sales improve 25 percent on top of the 20 percent lift in 2010.
Despite being the smallest demographic group among luxury consumers, Gen Yers are leading the increase in the full-priced segment, up 31 percent in 2011 versus the year prior. Gen X consumers increased full-price purchasing by 23 percent over the same period, following by Boomers (+19 percent) and Seniors (up six percent).
Interestingly, the research suggests that many new luxury consumers are entering the category via flash sales sites.
“The new focus on full-priced online fashion shows that giving consumers a taste of luxury will undoubtedly help build brand loyalty over time,” said Ed Jay, senior vice president of American Express Business Insights, in a press release. “With Gen Y leading the way — and even Seniors’ growing interest in flash sales — online retail is certainly becoming a critical touch point for customer acquisition.”