Factors of Luxury Fashion Consumption

Abstract

For my research, I utilized the data from a luxury outlet store located right outside of New York City. The store is a popular fashion house that is owned by the biggest luxury retail conglomerate in the world. The data collected shows the sales results in a nine month period from January 1st, 2019 to October 1st, 2019. In that time frame, there were 4,300 transactions in the store. The mall that the store is located in is a tourist destination that people from all over the world visits. I collected information about the shopping client’s demographics, spending habits such as average dollar amount spent per transaction, and average units per transaction as well as a few other key performance indicator to understand how people of different demographics shop differently. From the data that I collected, it is shown that women purchase less items, but more expensive pieces. Women contribute 66% of the overall turnover in the store. There is a huge growing demand for luxury items from the Unites States, China, APAC countries, and African countries. The key performance indicators and the overall sales results are all very telling about the shopping differences between the different demographics. I chose this store because it is one small section of the luxury retail market. There is a lot of data related to people’s demographics and their spending habits. I wanted to compare this store’s data to the research that has been done previously. I also gathered information about how this particular brand segments their clients and how each client segment contributes to the overall business. This will show how people of different classes shop differently and how much each group contributes to the luxury retail market.