Luxury Retailers Better Brace Themselves for Amazon
SAN DIEGO (TheStreet) -- This year Amazon quietly unveiled its luxury beauty products store, a slick online destination offering thousands of high-end makeup, skin care and hair care products from brands such as NARS, Dr. Brandt, Jack Black and Deborah Lippmann.
In launching the store, Amazon continued its positioning to be a serious contender in the luxury marketplace, a quiet march bricks-and-mortar luxury retailers ought to take notice of and start preparing for, according to a new report.
"Amazon, to me, has very quietly, in the background, become the No. 1 'store' for upscale people. And when I tell people that, they look at me like I'm nuts," says Bob Shullman, author of the Shullman Luxury and Affluence Monthly Pulse.
Shullman's December report about Amazon and the luxury and affluent marketplace provides a variety of revealing statistics. As household income increases, so does Amazon's penetration of the upscale household segments.
- 69% of the adults in the $250,000-plus household income segment have shopped on Amazon in the past 12 months.
- 64% of the $500,000-plus household income segment shop on Amazon once a month or more frequently.
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