Mytheresa Focuses on Big Spenders Over Deal Seekers

As consumers’ financial pressures continue, luxury eCommerce platform Mytheresa is resisting the trend of catering to those seeking offers and discounts, instead increasing its focus on loose-fisted shoppers with cash to burn.

On a call with analysts Thursday (Feb. 15) discussing the global online shopping company’s second-quarter fiscal 2024 financial results, CEO Michael Kliger noted that, as cash-strapped customers look for ways to pinch pennies, the designer platform is more interested in maintaining the loyalty of those who are not as affected by month-to-month shifts in the economic climate.

“Aspirational customers … are looking for deals. They are looking for discounts. The pressure [they feel] in the economic situation is continuing,” Kliger said. “So, we are totally focused on our top customers. [We’re not focused] on winning back market share from the aspirational customers. … Our focus remains strongly, on the [big] spenders that have the far better economics, that have the far better loyalty ratios and have the far higher average order [value].”

The company saw net sales rise 8.3% year over year even in spite of ongoing economic challenges, suggesting that luxury shoppers are turning to digital channels more than ever. Plus, there is a growing number of consumers in that big-spending bracket, with Mytheresa noting in Thursday’s earnings results that the number of “Top Customers” in the United States grew by nearly half year over year and by 16% around the world.

“The further evidence of our focus on top customers is that our average order value increased once more by +5.4%,” Kliger observed.

Indeed, consumers with cash to burn are the most likely to be highly digitally engaged. PYMNTS Intelligence’s 2023 Global Digital Shopping Index found that 40% of those who make more than $100K/year are digital enthusiasts — those who highly demand digital shopping features. This share is considerably greater than the 33% of those who make $50,000 to $100,000 and the 27% of those who make less than $50,000 who said the same.

Plus, findings highlighted in the August edition of the PYMNTS Retail Tracker® Series Report revealed that 67% of luxury shoppers say that stores should feature higher levels of digital integration. Additional research cited in the study showed that online sales account for up to 20% of all sales in the luxury sector.

Additionally, Mytheresa is growing its digital reach. The company announced earlier this month the launch of its new Apple Vision Pro app, simulating the experience of shopping in Capri, Italy or Paris, France, in realistic, animated environments, enabling consumers to browse designer brands such as Valentino and Saint Laurent and visualize their ideal wardrobe.

In Thursday’s earnings release, the eCommerce company said this launch makes it “one of the first luxury platforms to underline digital leadership.”