Premium Electronic Good's Demographic

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Premium Electronic Good's Demographic

Unfortunately, there is no data available regarding market and demographics of male premium electronics consumers over 45 years old and with an income of 60,000 GBP. While there is no preexisting information to fully answer your question, we were able to find relevant market data about the consumer electronics market in the United Kingdom (U.K.) and the luxury goods U.K. consumer.

In short, the consumer electronics market is saturated in the U.K., where high penetration of smartphones, PCs, and TV sets has resulted in a high market value, but a flat demand. On the other hand, premium (or luxury) goods consumers are usually defined as those that have an annual income of at least 100,000 GBP, averaging a yearly household income of approximately 191,000 GBP. Luxury goods consumers of over 45 years old enjoy buying in stores and are most often driven to purchase goods by impulse. However, men are less impulsive than women and also cite novelty as a reason for buying premium products. Additional information is provided in the following sections.

METHODOLOGY

The questions provided required us to follow different research paths. Firstly, we extensively searched for information about the consumer electronics market in the U.K. Some reports were available referring to specific market segments (for example, portable electronic luxury goods), but most of the information available refers to either specific segments, or the overall consumer electronics market. Unfortunately, after going through several market reports, we determined data specific to premium electronics and potential consumers of over 45 with an income of 60,000 GBP or more can only be accessed with a paid subscription or purchasing a market report.

The second research path we followed referred specifically to the acquisition of luxury goods in the United Kingdom and the sales channels and marketing strategies often used by premium brands. Our research found that premium goods consumers are characterized by an annual income of above 100,000 GBP, averaging an annual household income of 191,000 GBP. In this market segment, we were unable to find specific information about premium electronics buyers. The most detailed information about this segment was only available in a BCG report which mentions technology accounts for approximately 10% of the European luxury market.

However, we were able to find a useful 2015 Deloitte survey report which interviewed over 1,000 luxury good consumers in Europe. This report has the additional benefit of reporting information about U.K. consumers specifically, providing an available snapshot of purchasing decision drivers, in occasions categorized by age range and/or gender. This was the only source available which reported consumer trends for this segment and with this level of detail. The information was complemented with a McKinsey report about the luxury market in the U.K., which refers mostly to business strategies.

CONSUMER ELECTRONICS MARKET TRENDS IN THE U.K.

Several industry reports have found that, despite its high market value, demand for consumer electronics in the United Kingdom has not experienced strong growth in the past few years. The BMI Research report argues that demand has actually decreased since 2016. Furthermore, the downward trend will continue until 2022 due to a saturated consumer electronics market in the PC, TV set, and smartphone segments. On the other hand, segments with a positive outlook are those that have experienced recent innovations like wireless speakers and wearable electronics. These devices are benefiting from the high penetration of smartphones and PCs and are often considered an accessory to other connected electronics.

According to the available data, U.K. consumer electronics demand will remain slightly below 30 billion USD (equivalent to approximately 21 billion GBP) for the next 4 years. Additionally, the demand for different segments will mostly remain the same as well, with PCs, mobile handsets, and audiovisual equipment (including TV sets) accounting for approximately one-third of the demand each. Reports also highlight the negative influence of Brexit over consumer confidence, which is likely to continue to affect consumer behavior and have a negative impact on the consumer electronics market.

LUXURY GOODS MARKET IN THE U.K.

Research from McKinsey and Deloitte argue that the luxury goods market in the U.K. has been performing strongly and has a positive outlook. However, the average yearly income of the luxury goods consumer in Europe is estimated at over 220,000 EUR (equivalent to approximately 191,000 GBP). Although a majority of luxury consumers are over 35 years old, millennials are becoming an increasingly relevant demographic for this market. Deloitte has found that, especially in the U.K., the purchasing drivers of older generations differ significantly from those of millennials.

The study found that consumers over 35 years old tend to buy luxury goods mostly due to impulse (36%) or due to attractive offers or sales (17%). However, although impulse purchases account for the most common reason for buying luxury goods, it is a less common driver for males. The data shows only 27% of men report purchasing luxury goods by impulse, while 41% of females are impulse buyers. The next most common reason reported by both, men and women, is "novelty", which accounts for 18% of luxury good purchase decisions.

Purchasing channels, brand awareness, and marketing

Unlike other countries in Europe, U.K. consumers are less likely to wait for seasonal sales to buy premium products. Just 15% of U.K. consumers reported only buying during this period. Similarly, less than 5% of buyers purchase only when new collections debut, meaning U.K. luxury consumers are less driven by new releases and sales than their European counterparts. Furthermore, unlike other European consumers, British luxury enthusiasts become aware of new brands or new releases when visiting department stores (55%), and are less likely to visit new brand stores (10%) to follow recent trends.

According to McKinsey and Deloitte, luxury brands' success relies greatly on creating positive experiences for consumers and developing a physical attachment to their products. Consumers are more likely to purchase premium products when they can see and feel them in person. For these reasons, regular retail stores are essential for their business model. Especially for consumers over 45, retail stores are where they most often make purchases, accounting for over 80% of their luxury goods acquisitions. Most buyers (54%) between 45 and 54 years old also report that a major advantage of buying in stores is being able to immediately take their items. Older consumers (over 55 years old) mention one of the main reasons they prefer to purchase luxury goods in stores is receiving in-store service. Therefore, purchasers over 45 enjoy visiting stores because of the ability to see and feel products, buying them immediately, and receiving high-quality service.

Another relevant finding is the influence of social media in purchasing decisions. The Deloitte study found U.K. consumers are more likely to use social media to look for latest trends (58%), gather information about prices (46%), and come up with gift ideas (42%). Here, it is important to mention most male customers (51%) use social media to find product reviews, comments and, recommendations. Finally, a majority of consumers over 34 become aware of new luxury brands and premium products through magazines, while a majority of younger consumers do so online. Overall, the most relevant marketing channels for learning about new brands are magazines, online media, and television, in that order.

CONCLUSION

Although we were unable to find information about the premium consumer electronics market and consumer profile, we were able to identify some relevant consumer electronics market trends. Additionally, we also included relevant information regarding premium goods consumers in the United Kingdom, including details about purchasing channels, brand awareness, and marketing channels.
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