Modern Jewelry Trends

Think social networking sites are just for teen party photos and favorite bands? According to a new survey from Unity Marketing, 40 percent of luxury consumers visited Facebook, YouTube, MySpace, or another social networking site in the past three months. The fact that these consumers have an average income $150,200 and an average age of 43.6 years doesn’t mean they don’t like to waste time online.

“Even middle-aged affluent consumers are networking online,” says Pam Danziger of Unity Marketing, who surveyed 1,074 consumers who made a luxury purchase in the last three months. “Young affluents, those 40 years and under, were the most active social networkers, but even one-third of the over 40 year old consumers reported visiting a social networking site.”

Jewelers are already interacting with potential new customers on social networking sites. In this month’s Modern Jeweler, we interview retail jewelers who are marketing on Facebook and MySpace in Online Marketing 2.0.

Of course, the 40 percent figure includes visits to YouTube, which isn’t primarily a social networking site. Videos on YouTube include a wide range of topics, from how-to to how much. (Modern Jeweler’s Million-Dollar Bling: Basel for Billionaires video has been viewed 3,405 times in the last six months.) LinkedIn, the business networking site, would have been better addition to the question. LinkedIn even has a few De Beers executives as part of its community.

The conventional wisdom about many consumers now researching luxury products online before buying was supported by the study: 46 percent of buyers of luxury fashion, fashion accessories, cosmetics, jewelry and watches used the Internet in support of their recent luxury purchases and spent 12.5 percent more on average.

“They used the Internet both to research purchases, especially to compare prices and read other customers’ reviews, as well as to make purchases,” Danziger says. “The research also shows that they will visit a retailers’ website to browse before they head out to the store. The lesson is that luxury marketers and retailers which offer their customers a website get a significant return on investment in terms of more spending.”

The consumers surveyed say the convenience of shopping at home is the top reason to shop online, followed by a wide selection of merchandise. They also report comparing prices and evaluating product features. “When asked what features were most important for a luxury shopping site to offer these luxury consumers, they were adamant about three features – in depth product information and specifications, detailed product pictures and a flexible return policy. They were far less concerned with company or brand news, lifestyle content or a store locator,” Danziger says.

This entry was posted on Friday, November 16th, 2007 at 7:21 pm and is filed under Online Marketing. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.