Zac Campbell, Content Writer at Juliettes Interiors, looks at the synergies between the luxury industry and cryptocurrency
The sharp increase in cryptocurrency transactions by luxury spenders over the course of 2021 has continued into 2022. This points to the ever-increasing degree of control and influence that the crypto world has had over the luxury industry and its consumers.
In 2021, per Market Business Insider, the worldwide cryptocurrency market surged beyond $3 trillion (£2.4 trillion) for the first time. This is largely thanks to the actions of institutional and retail investors, who have invested money into digital assets.
Luxury brands see the introduction of crypto payments as an opportunity to build customer loyalty. Offering this form of cryptocurrency as a payment method gives the customer flexibility, by allowing them to complete their transaction via an alternative payment method, which may be more suitable to their needs.
Research shows that over 56 per cent of wealthy customers are currently investing in cryptocurrencies, indicating that further affluent investors are increasingly willing to pay via this format over the coming years.
Compared to non-crypto users, crypto users are more likely to purchase higher-end items. This is due to the fact that a typical crypto user's average order value (AOV) is $450, versus $200 for non-crypto users. On top of this, almost 60 per cent of high-net-worth individuals are interested in cryptocurrency investments (via Triple A).
As a result, major luxury brands have started accepting cryptocurrency. As household names across different industries begin to integrate digital currencies into their purchases, the luxury industry will only benefit from this shift to a new payment method.
This serves as an indicator that the crypto world is able to heavily influence the habits and shopping patterns of affluent consumers in the luxury industry. Consequently, major brands are securing their space within the crypto arena in an effort to attract wealthy consumers.
Recent evidence of this can be seen via Gucci’s announcement – having already integrated Web3 blockchain technology into their brand – that it will begin accepting cryptocurrency payments in selected stores across North America this summer.
Luxury brands and cryptocurrency transactions
Luxury fashion labels such as Cartier, PRADA and LVMH, who have endorsed the Aura Blockchain Consortium, are increasingly taking advantage of cryptocurrency transactions, according to Fashionweekonline.
Due to the high amount of wealth they exchange, luxury brands have embraced this safer method of accepting payments.
Doing so might seem a left-field choice, but they know that giving high-earning customers the option to purchase high-end goods with a form of currency as high-performing as crypto makes sense. By doing so, big-name brands are ensuring that they stay well ahead of the curve and avoid being caught cold.
In 2017, luxury furniture retailer Juliettes Interiors became one of the first high-end retailers in the UK to accept Bitcoin. Five years on, Juliettes Interiors has experienced a sharp increase in crypto transactions by its customers and is reaping the benefits of making such an early move to cryptocurrency.
Allowing its customers to pay in digital currency to adorn their homes with the most luxurious furniture, or perhaps opting for the brand’s Interior Design Service, Juliettes Interiors is proud to offer its customers this increasingly popular payment method.
Indeed, a recent transaction saw a customer purchase an Exclusive Bespoke Droplet Coffee Table from Juliettes Interiors entirely through Bitcoin, vindicating the company’s choice to accept a form of currency that is yet to have a big breakthrough in the retail sector.
Commenting on the ability to make payments via cryptocurrency at Juliettes Interiors, company director Juliette Thomas stated: “By adding digital currency to our list of payment options, we have experienced a surge in cryptocurrency payments, particularly in the last 12 months.
“Many of our clients are savvy bitcoin investors, and we want to make their experience with us as seamless as possible, hence our decision to accept payments via Bitcoin.
“We want to offer our UK and international customers a convenient choice. That is why we have chosen to integrate cryptocurrency payments, which are quick, easy and hassle-free”.
Juliettes Interiors customers can pay in Bitcoin to beautify their home with our Luxury Interior Design Service or use cryptocurrency to buy the world's finest, most luxurious high-end furniture at juliettesinteriors.co.uk.