Pam Danziger says luxury consumer spend up in 2005
16 Jan '06
6 min read
But interestingly their purchase incidence of luxury, i.e. the percentage of households that purchase luxuries, is level across all income levels.
Danziger explains, “That means near-affluent households are buying luxuries at about the same rate as super-affluent households, only they are spending less. It's the difference between buying last season's Coach bag in the Coach outlet store as compared with the latest Dolce & Gabbana number at Saks Fifth Avenue. Both are luxurious to the individual consumer.
“That is another key trend in the luxury market today — The consumer is the final arbiter of what is luxury, not the manufacturer, the designer, or the retailer. Consumers at all income levels feel entitled to luxury, whether it is a 'big' luxury like a two-karat right-hand diamond ring from Cartier or a 'little' luxury like a similar-sized Moissanite ring from J.C. Penney's.”
Every quarter Unity Marketing conducts a Luxury Consumer Tracking Study among 1,000+ luxury consumers. For the fourth quarter 2005, a total of 1,126 consumers were surveyed with an average income of $139.2k and average age 41.1 years. Year-end 2005 statistics are compiled from the four tracking studies during the year and will be published in Unity Marketing's Luxury Report 2006 — Who Buys Luxury, What They Buy, Why They Buy (http://www.unitymarketingonline.com/reports2/luxury/luxury1.html)
You can sample the data contained in the Luxury Tracking Study for your company's specific category of luxury through this link: http://www.unitymarketingonline.com/reports2/luxury/luxurytracker_reg.html
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