This article was compiled with the help of generative AI based on data and analysis that is original to EMARKETER.
High-income consumers, those earning $150,000+ annually, are charting a unique "discovery-to-purchase" journey that begins in physical stores but frequently concludes in digital channels, according to new EMARKETER research.
"These consumers demonstrate more technological comfort than their peers," our analyst Paola Flores-Marquez said on the “Behind the Numbers: Reimagining Retail” podcast. "They're willing to explore multiple channels before making purchase decisions."
Digital channels play a crucial role post-discovery, with 27.5% of high-income shoppers researching products on brand websites or apps compared with 19.4% of general consumers. EMARKETER’s research revealed that high-income consumers are more likely to:
Physical retail remains crucial, said Flores-Marquez, but there are key differences when it comes to connecting with these consumers:
Don’t think that high-income consumers spend with abandon. “Value remains paramount for high-income consumers," said our analyst Sky Canaves, noting that many are turning to social communities for insight.
“You can go to the Costco Subreddit and hear about people's experiences, ask questions, and get very direct feedback,” she said.
Like shoppers of every cohort, high-income consumers frequently turn to Amazon for not only value but also convenience, Canaves said.
“Especially in categories like beauty, health, and personal care, premium brands should really be looking at having some presence on Amazon, especially as it's offering more opportunities for these brands to reach and target consumers through its advertising offerings,” she said.
As younger generations enter high-income brackets, particularly Gen Z, shopping patterns may evolve. While maintaining the high-income preference for quality, these consumers may combine luxury purchases with value-seeking behaviors, having been influenced by ultra-low pricing from platforms like Temu and Shein.
“It's going to come down to preparing for much higher levels of digital savvy, and it's going to be hard to pull the wool over [Gen Z’s] eyes because they're looking for product quality,” said Canaves. “They're already well-versed in dupes and looking for the best possible quality at the lowest possible price. Even as they spend more, they're not going to be willing to accept lower quality or same quality for much higher prices.”
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