Saks Global Luxury Pulse: Confidence among luxury consumers drops yet optimism is retained

It seems luxury consumers are retaining some level of calmness and optimism despite a drop in confidence elsewhere. According to the latest Saks Global Luxury Pulse survey, 45 percent of luxury consumers reported “feeling calm about the economy” which, while down 12 percentage points on the prior year, was almost on par with those feeling “optimistic”.

There was also a slight sense of positivity surrounding personal finances, with 65 percent of respondents stating that they remained optimistic in this field. This, however, conflicted with a decrease in confidence shown by such consumers, with global conflicts and general instability seeming to particularly impact those with an income of 200,000 dollars or more.

In contrast, 58 percent of luxury consumers said they were planning to spend the same or more on luxury in the next three months in comparison to the three prior. This was notably prominent among those with an income of 200,000 dollars or more, 63 percent of which agreed with this sentiment, resulting in a four percentage points increase on the same period last year.

Among their preferences, consumers showed an increasing tendency to engage with personalised content, such as product recommendations, with many stating that in this realm they found the most value in the provision of exclusive access to limited stock and rewards. Almost all of the respondents shared that they were likely to engage with activities to further enhance their shopping experience through personalisation, such as creating an account or generating a wish list.

Artificial intelligence (AI) was another area to welcome rising popularity. A total of 66 percent of luxury consumers stated that they were using AI features when shopping for fashion, most commonly putting to use AI features like size recommendations or tools allowing them to visualise a product on a body.