Key findings include:
- The affluent purchase path is showing definitive signs of shortening, with 88 percent of total purchases occurring within three clicks in 2010. This reflects a 17 percent increase in “short-term” conversions versus 2009.

- Affluent shoppers continued searching online for luxury products throughout the economic downturn, but are displaying significantly increased interest in luxury brands versus a year ago. Customers seeking luxury products more fervently was evidenced with an increase of 20 million search impressions for the brands studied. (Nov. 2009-April 2010 versus Nov. 2008-April 2009)

- Customers are spending more per transaction on luxury goods than a year ago. The most recent holiday season showed average order values growing about $20 per order, or six percent. (Nov.-Dec. 2008 over Nov.-Dec. 2009) And the total number of orders for the 2009 holiday season increased almost 25 percent, with revenue for luxury retailers’ sites increasing 32 percent during this timeframe.

The whitepaper also detailed key findings for specific luxury verticals, including fashion, multi-category and beauty, as well as providing luxury retailers with the “New Rules for Luxury Retailers” in the form of key strategies to employ in 2011 and 2012.

“During the economic downturn, many industry ‘experts’ declared that luxury shoppers would never again be willing to by fully priced luxury goods or that ‘luxury was dead.’ Well, we are happy to report that neither of those predictions proved accurate,” said Vic Drabicky, Director of International and Vertical Market Development for Range Online Media. “While the economic recovery is not even close to complete, this research signals that affluent and aspirational consumers are already shifting their behavior in favor of the luxury brands they’ve coveted during the downturn. They are seeking and purchasing more luxury goods, and in a shorter timeframe from first click to purchase than they were during the height of the economic downturn.”

The study analyzed data from 424 luxury retail brands marketed within the company’s client base. Included in the analysis were the metrics of impressions, clicks, click through rate, CPC, cost, revenue, orders, conversion rates and average order value for November 2008 through April 2010. The Luxe Groupe also examined key economic indicators, such as the Dow Jones Industrial Average, in conjunction with this luxury client data. The client names and data specific to individual brands were not released due to proprietary and contractual limitations.

Please download the entire whitepaper, and read our findings about economic indicators for the luxury retail marketplace.

Sadly, you’ll have to wait for Facebook to release their study to get your stats. Let me just say it’s fascinating and I really appreciated the content. How’s that for licking the red right off your sucker?! Ha! Sorry… It’s just too fun to tease you all.

So while I was there I caught the original purpose of the study. Why would a company like Facebook need to do research about moms on Facebook we all wondered? Doesn’t FB have some gigantic database resembling a NASA command center? Can’t they just run a report?

Turns out, they can’t. There is no report. What this got me thinking about is what Facebook even requires you to input about yourself so they can get their data. So I spent a few minutes trying to remember back SO LONG AGO to when I did setup my FB account. Get this! I couldn’t remember. I’ve been a Facebook member for so long I literally don’t remember what they required me to put in there. Therefore I created an account for my alter-ego, to remain nameless.

So far, they’ve got my alter-ego’s “name” “email” “gender” and “birthday”. Not too bad, just tell them my basic demographic, which if you have a cell phone, catalog subscription, TV subscription or grocery store loyalty card you would have shared that with them.

Facebook: Fill Out Your Profile Info

Please notice the SKIP button. I used this feature through the entire process and still only provided the minimum of information. Now, I my alter-ego has a FB account to monitor and control the minds of others interact, complain, advertise etc to all sorts of people.

You may be asking right now “Parksy-pants? What is the point of this exercise?”

You’re in luck, because I’m finally getting to my point. My POINT, since you’ve been so patient is this:

When the mass of users on the web are starting to get a concerned that advertisers are using web browsing history, demographic data, (information that will only make their experience more relevant BTW) do they stop to think about all the information that they offer up freely? While I may have been able to go all the way through this process without so much as a real fact other than a working email address, most people don’t do that. They put in every piece of detail to make the experience as rich as possible. They want things that are relevant, they want people they know to be their friend on Facebook. I don’t usually get too upset about the general consumer and their lack of understanding of what “we do” with the internet. But I do find that if people paid a bit more attention, they actually have more control over things than they thought.

So behavioral targeting, re-targeting media, relevant ads on gmail… all of it – it’s to help and yet this side hasn’t been shared. I think it’s an important reminder to us all, that the next time you run a retargeting campaign the consumer might not want to see an offer for 20% off because you are being intrusive.

Yeah, you know what – I’ll eat all the bacon the Ritz Carlton can throw me if that’s the answer consumers give you.

Luxury retailers are hesitant to get involved in the social space because it is a platform for 2-way communication with consumers—the type of marketing luxury brands typically shy away from. Social media is a playground for spreading unfiltered and opinionated information by uneducated consumers across the web, and this lack of control is the top turn-off for luxury marketers. And really, can you blame them? Luxury retailers are hyper-protective of their brands, almost to the point of remaining distant from average consumers, towering over regular joes via lofty billboards and high-society events. You might think this is elitist, but elitism is part of why they’re luxury brands. However, a few high-end retailers are participating in social media and initiating a conversation with consumers using social media sites. For example, in May 2009 Louis Vuitton released a limited edition bag available exclusively to their Twitter followers. Hooray for incremental sales, but more importantly, this gave a new platform for Louis Vuitton to engage in the conversation with consumers.

Another reason luxury retailers are not participating in the social space is because of the myth that the luxury demographic does not spend time on social sites. A recent study by eMarketer says that affluent internet users will grow from 43.7MM in 2006 to 57.1MM in 2011, while in February, Facebook identified its fastest-growing segment as women over 55, up 175% since November 2008. Luxury customers are online and participating in social media, but there is another crucial demographic influencing and participating in social media: future luxury customers. 52% of Facebook users are between the ages of 18 – 25 years old, and they will determine the future of luxury brands within the next 30 years. Luxury retailers should be communicating with the next generation, those who aspire to luxury brands as soon as they can afford them, say when they’ve graduated college and landed there first real job. And when the money does come, consumers will purchase from the brands they have built a relationship with since their teens and early twenties.

Lastly, if luxury brands do not participate in social media it likely means there is an uncontrolled brand presence being directed through unofficial groups, posts and images. Luxury brands are supposed to have all the characteristics that mass market retailers do not: customer service, unrivaled quality and an exclusive price point. If luxury brands’ products, employees and reputations are solid shouldn’t it be trumpeted from Facebook’s News Feed?

Whether he approves of it or not, I think Paolo Nutini’s “New Shoes” (the song from which I stole the title of this article), should be retail’s theme song right now. For the past 9 months, we have had nothing but bad news, predictions of unmitigated doom and gloom about the end of retail as we know it (I even wrote a little rant about it here). True, times have not been good, but we are beginning to see a few shoots of green (as Chairman of the Fed Ben Bernanke likes to say) in the retail market – and no matter how small, I think they are worth celebrating.

Looking at retail results as a whole, the numbers are still down. In May, retail sales dropped about 4% (excluding Wal-Mart who has stopped giving monthly data – but has the ability to greatly shift the actual percentage). Of the top 30 retailers included, 22 showed more year-over-year drops. The last time we saw retail sales grow was in August. For some retailers, May marks 12+ months of consecutive losses. Abercrombie is down for 13 months in a row, Nordstrom for 12 months and Saks for 11 months. Sigh.
Luckily, there are a few rays of sunshine piercing the darkness.

For example:

• Gap is showing its best month in the last year and a half (I like to think it is because Range handles search for the GAP brands, but I digress)
• In the teen market, Aeropostale and Buckle are showing growth north of 10%
• Consumer confidence levels are overall on the rise

While the trend is clear that the retailers that are doing well are doing so on an economical side, remember there was a time not too long ago when even the discounters were losing ground (Ross was down September, October, November and January, but posted a 4% gain in May).

We are nowhere near being out of the woods just yet, but I am beginning to think of it this way: if we all just did what Paolo Nutini said, we would be in the clear… “put some new shoes on and suddenly everything is right.”

My gifts are weird and cheap, so in a recession, my Father’s Day purchasing power is still pretty strong, for all intents and purposes. But for those who buy NICE gifts, how does Dad fair during a recession? I mean, he already gets the short end of the stick, especially when compared to Mom. She get’s flowers and jewelry, candy and homemade cards. Mom gets thought, and dear old dad gets a bunch of Armor All.

The NRF recently produced a study for Fathers Day spending and giving us a preview of what to expect. Now put down the As Seen on TV “Grabit Screw Extractor” and pay attention, this is where things get interesting.

According to the study, a mere 17.9% will be shopping online for a gift. Where is everyone else? What are they doing? Shopping offline, of course. For the sake of fathers everywhere, I hope these people are better at it then I am. Catalogs and department stores look to fare well during the season, but online retailers should have no fear. This online group of shoppers is looking to spend upwards of $130 online, which is roughly 50% more than their offline only counterparts. 50% more! That’s a tremendous difference!

Prepare the inventory kids, the shoppers are coming. I know all of the RANGE clients have high hopes on each impending holiday, and Fathers Day will be no less. Treat dad to something cool this year, you know – like an ionic air purifier, for the car.

I had to sit back and laugh as I watched the momentum of her “marketing plan.” Working in this industry, you assume that you and your peers are the innovators of marketing efforts… that you are uniquely qualified to create new ways to connect and new ways to shamelessly promote. Social networking has turned that assumption on its head. This marketing revolution is not just being led by teenagers and early adopters, it is being led by fathers, business women and… believe it or not… your Mom.

According to ComScore Media Metrix, more than 65% of unique Facebook visitors in February of this year have children and more than 71% of users are over the age of 25. The Chief Household Officer (a.k.a. stay-at-home mom) down the street is using Facebook, Twitter and MySpace, as well as her own blog and friends’ blogs, to keep in touch with the world outside of diapers and playdates. More so, she is promoting her own passions and building her personal identity online.

Anecdotally, in my own Facebook “friend group,” it is not my industry peers driving the conversation. The most updates, innovations and comments are coming from a handful of women – stay-at-home and working mothers. In fact, when I called a friend recently (gasp!) on the telephone, she seemed downright irritated that I was unaware that her child was sick – based on her Facebook status updates.

A year ago, I remember telling friends that I would stay on MySpace because I was “too old for Facebook.” Well, I have had a baby since that declaration, and I have to tell you… I haven’t logged into my MySpace account in months. And I rarely sit at a computer and log in to my Facebook account. In fact, if not for Facebook’s iPhone app, which allows me to check my friends’ updates in mere seconds, all of my friends would think I had fallen off the face of the planet.

So my point is two-fold:

1. The Mom Brigade is driving the evolution of social networks. They are innovative, they are active, they are vocal, and they trust their peers.
2. Please, folks… be careful with what you post in your status updates. Your friends might think what color underwear you have on or the newest addition to your tattoo collection is quite fascinating, but your Mom is… quite literally… watching!

Apparently, out of the roughly 250MM cell phones in the US, 10%-12% of those are smartphones. Of those on a smartphone, 36% use this to access the web over a traditional PC.

Pretty impressive stats, by themselves, but I’m more interested in putting them in a different context. If you hopped into the Delorean (the flying one that runs on garbage, not the plutonium-fueled one that gets you chased by Libyans) and go back a decade or so, you’d probably read headlines about traditional media losing a chunk of its audience to digital. You can probably see where I’m going with this. Digital stands to lose a chunk of its audience to mobile. The monarch of Media Mountain is starting to lose some of its serfs.

Of course, it’s not like digital is dead (far from it),but if you’re one those brands who has a pretty big stake, say in something like search, you might want to start thinking about this – like right now. Mobile adoption by brands is still pretty low, which means you can actually get in and work out the channel’s intrinsic kinks at unbelievably low prices. Get in while the tickets are still cheap.

Now as someone in the digital marketing field, I immediately question what “approximately equal to” means anyhow. Are we talking about feeling, action or just a vague credibility the user might associate out of the corner of their eyes as they read up on the latest adventure of blog author X? But that’s the M-F diner shift part of me.

In my other life (when the timecard has been punched and apron hung), I find myself frequenting blogs multiple times daily, and just like a loyal (or rabid, if you prefer) follower of any other media, I like reading certain authors enough that I imagine a certain rapport and trust between the two of us. Don’t judge—if you read a lot of blogs, you probably do this, too, even if it’s with an author who makes your blood boil in rage. In any case, I trust my peeps; as such, I’ve found myself associating the ad impression shown with the tastes of author, and because I’m a superfan, I tend to think that his or her tastes would probably overlap with mine in real life. In other words, I’m associating that image within the overall context of what can be dubbed as MY APPROVAL SPACE. In essence, this author, who I’ve deemed fit for my consumption has chosen to place product X on their site – it will be easier for me to make a positive association. After all, it’s a blog from some little author, just doing what they love, putting up what their passionate about, and controlling their space so that we can all reap the collective benefit & knowledge right? – Right???

You know the funniest part of all this? I’ve created and bought several ad campaigns through networks that cover these blogs; ones I even read yet still in that moment in time, I’m just sitting there reading, wanting to lick the damn lids off those yogurts caps that keep flashing across the screen even though I don’t really care for raspberry pasteurized cultures.

So for now at least here’s what I think – Test with blogs, especially niche blogs that feel genuine and truly cared for. Do I think it’s a true direct response campaign? To be honest, I’m not totally sold. On the other hand, I’ve got a sixer of yogurt in the fridge that might beg to differ (it is alive you know).

Now that’s scary.

Okay, that’s a little dramatic, but it’s rainy outside, and it’s put me in a theatrical mood.

On to the meaty stuff!

Recently, comScore released findings from their June 2008 study, “Reaching Shoppers in a Down Economy”.

Insert ray of light, hope or at least a weapon to help fight your way to as close to victory as you can come.

The bottom line for marketers is that people are shopping less frequently (down 68%) and purporting to use coupons more often (up 59%). It’s really not rocket science –Consumers still want stuff –they just need a way not to feel threatened by it. So what can brands do? Obviously this question depends on who your brand is and what you’re willing to communicate to customers. If you’re comfortable with the obvious discount offer, then offer it. Build search campaigns around appropriate terms, partner with reputable coupon sites or utilize a combination of the above. If you’re a brand that’s always been part of this mix, make sure your organic search is built to capture the growing demand and continue to unearth new trends in the recent resurgence. Even if you err on the side of luxury, take heart: there are ways to communicate extended value to your loyal base and think about your holiday product assortment. Maybe this year we push the $1,200 handbag versus the $3,500 and shoot for increased volume; hey—at least it’s an idea.

No matter what your economic bracket is, doubt and insecurity linger. Retailers need to find a way to reassure shopper that their purchases are sound and wait for tomorrow to come. Perhaps all that relationship building will pay dividends when the tides turn.