Crypto transactions see a sharp increase by Luxury spenders

The sharp increase in Crypto transactions by luxury spenders over the course of 2021 continuing into 2022 suggests the Crypto world has had a significant influence over the luxury industry and its consumers. 

As the market for cryptocurrencies and non-fungible tokens surges, luxury brands have an opportunity to build customer loyalty.

The Crypto market in 2021 surged beyond $3 trillion for the first time. This is largely because institutional and retail investors have pushed money into digital assets ranging from coins to NFT art.

Research shows that over 56% of wealthy customers are currently investing in cryptocurrencies. The data indicates that affluent investors will increase over the following years. As a result, major luxury brands have started accepting cryptocurrency. 

Global luxury spending is dominated by Chinese consumers, followed by the USA with significant growth more recently. The study documented visits to 48 stores in New York and Florida that sell high-end brands such as Louis Vuitton and Gucci, whose parent company is Kering.

Crypto and luxury brands

Globally, the luxury market is forecast to reach US$1.5 trillion by 2025, with millennials accounting for 50% of the total market. According to recent data, 58% of Crypto owners are millennials and generation Z under the age of 34. Because millennials and generation Z consumers drive 85% of global luxury sales growth, luxury brands are increasingly adopting Crypto.

In other words, the Crypto world is able to heavily influence the habits and shopping patterns of affluent consumers in the luxury industry. As a result, major brands are securing their space within the crypto arena in an effort to attract wealthy consumers.

Consequently, luxury brands that adopt Bitcoin and other cryptocurrencies will acquire new customers and increase sales. The crypto population is home to incredibly wealthy people, with over 36% of them earning more than $100k a year. Compared to non-crypto users, Crypto users are more likely to purchase higher-end items.

In fact, a typical Crypto user’s average order value (AOV) is US$450, versus US$200 for non-crypto users. As well as this, almost 60% of high-net-worth individuals are interested in crypto investments.

Luxury brands that adopted Crypto transactions

Luxury fashion labels such as Cartier, PRADA, and LVMH are increasingly taking advantage of the 2 trillion dollar cryptocurrency option/alternative.

Small and medium businesses are also stepping their foot into the Crypto world. Due to the high amount of wealth they exchange luxury brands have embraced this safer method of making transactions.

In 2017 Juliettes Interiors became the first high-end retailer in the UK to accept Bitcoin. Juliettes Interiors has recorded a sharp increase in Crypto transactions by luxury spenders in recent years.

At Juliettes Interiors, customers can pay in Bitcoin to beautify their home with our Interior Design Service or buy the world’s finest, most luxurious furniture. 

“By adding digital currency to our list of payment options, we have experienced a surge in cryptocurrency payments over the last few years. Many of our clients are savvy bitcoin investors. We want to offer our UK and international customers a real choice with cryptocurrency payments that are quick, easy and hassle-free” says Juliette Thomas, Director of Juliettes Interiors. 

The future of luxury in the crypto world

With rich nations and affluent individuals already investing in a “new type of wealth”, it is essential that luxury brands adopt this digital method. When money is set to be lavished, the luxury industry will always be the first port of call.

There is a risk of being left behind in this fast-paced world if new habits and trends are not adopted.

The millennials are serious cryptocurrency investors, and Crypto investors will continue to pump money into the future of digital currency. In other words, there is no danger of Crypto collapsing anytime soon. 

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