Luxury Report 2010Unity Marketing Inc.
May 1, 2010
400 Pages - SKU: UM2692450
Additional InformationPress Release
Unity Marketing's Annual State of the Luxury Market Report Is Published
Latest report gives marketers the data they need to track trends in the luxury consumer market and plan new strategies to succeed despite the recession
Stevens, PA May 7, 2010 -- Unity Marketing has just published its annual report on the state of the luxury market. The Luxury Report 2010: the Ultimate Guide to the Luxury Consumer Market, provides detail data about the purchase behavior and spending patterns of the nation's most affluent consumers from 2007 through 2009. In addition to its focus on historical shifts and trends in the luxury consumer market, it gives marketers a forward-look into the future trajectory of the affluent consumer that will transform the luxury market in 2010 and beyond.
Latest report gives marketers the data they need to track trends and plan new strategies to succeed after the recession
"We designed the Luxury Report 2010 as both a powerful desk reference and a source for insight into the future trends in the luxury market. The new report provides the kind of detailed facts and figures about trends in the luxury consumer market that will delight data-driven executives. But it also focuses on the mindset and attitudes of the luxury consumer, making it an invaluable tool for luxury brand executives to plan for the future of their changing marketplace," says Pam Danziger, president of Unity Marketing and lead analyst for the new luxury market study.
A total of 4,739 luxury consumers were surveyed in 2009 with an average income of about $220,200.
Highlights reported in the latest Luxury Report 2010 include:
Dramatic increase in consumer spending on luxury goods -- Average spending by luxury consumers increased nearly 30 percent, with over 50 percent increase in spending on home and personal luxuries and a nearly 20 percent increase in spending in automobiles over 2008 levels. Recording the highest rates of growth in spending in 2009 were luxury linens and bedding, wine and spirits and art and antiques.
Spending on experiences declined below 2008 levels -- Affluents spent less on experiences in 2009 than they did in 2008, down 8 percent overall. While the average number of trips taken in 2009 rose, spending on travel declined, suggesting that affluents took advantage of favorable discount offers that let them travel for less.
Participation in the luxury economy overall is down in 2009 -- While spending on luxury rose sharply in 2009, those increases were driven by the much smaller, ultra-affluent segment (HHI $250,000 and above) of the economy. Actual levels of participation in the luxury market, as measured by overall purchase incidence, was down dramatically in 2009, as compared with 2006 pre-recession levels.
Net/Net: Luxury marketers have fewer customers in 2009 than they had prior to the recession.
The actual number of customers of luxury goods and services declined sharply throughout the recessionary period staring in 2007 through 2009. So far there are no signs that the customers who dropped out of the luxury market as a result of the recession have returned.
Here is the real and painful story about fewer luxury consumers in the market at the close of 2009. For example:
In 2006 some 52 percent of all affluent consumers bought any home luxury, as compared with only 41 percent in 2009;
In 2006 some 54 percent bought any personal luxury. This dropped ten percentage points to only 44 percent in 2009;
In 2006 60 percent of affluent households enjoyed luxury experiences; in 2009 only 45 percent participated in experiential luxuries.
Only two product categories have retained the same share of customers in 2009 as in 2006 -- Only in automobiles and kitchen appliances, bath and building products has the share of luxury consumers who purchased remained stable, 10 percent and 14 percent respectively.
In all other categories, declines in consumer participation are noted with fine dining, luxury clothing and apparel and luxury travel purchases losing the largest share of affluent consumers.
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