Luxury Tracking Report - 2Q2009 Luxury Consumer Tracking Study

Published by: Unity Marketing Inc.

Published: Aug. 11, 2009 - 213 Pages

Table of Contents

Chapter 1— Introduction

Special Investigation: Luxury Consumers and their Changing Attitudes and Motivations toward their Luxury Lifestyle12

Qualitative and quantitative research methodologies

How affluents get their biggest luxury kicks - From luxuries for their homes, their person or those they experience

Figure 1: Source of Greatest Luxury Satisfactions (2009 & 2006)

Demographic distinctive

Figure 2: Source of Greatest Luxury Satisfactions by Age (2009)

Figure 3: Experience as Source of Greatest Personal Satisfaction by Generation (2009)

Luxury Marketers >> Take Action:

Attributes that Most Influence Affluents in their Luxury Purchases

Figure 4: Attributes of High-End Purchases that Most Influence Purchasers to Buy

Luxury Marketers >> Take Action:

Demographic distinctive in what influences consumer in their luxury purchases

Figure 5: Attributes of High-End Purchases that Most Influence Purchasers to Buy by Gender

Luxury Marketers >> Take Action:

Attitudes about Affluent's Luxury Lifestyles

Figure 6: Attitudes about Luxury Lifestyles -- Level of Agreement

Luxury Marketers >> Take Action:

Experiential value of the luxury lifestyle increases with age

Materialistic pursuit of luxury tied with income

Figure 7: Attitudes about Luxury Lifestyles -- Strongly Agree by Income

Luxury Marketers >> Take Action:

Figure 8: Coach Purchase Incidence 1Q07-2Q09

Coming next quarter

Chapter 2 — Luxury Tracking Study Topline Findings

Affluent Consumer Confidence Bouncing Back and Luxury Consumer Spending Was Up Over Same Period Last Year

Figure 9: Luxury Consumption Index

Is the economy recovering or are our expectations re-aligned?

Luxury Consumers’ Feelings of Financial Well-Being

Figure 10: Feelings of Financial Well-Being

Spending Trends on Luxury In Past Twelve Months

Figure 11: Trends on Spending on Luxury in the Past Twelve Months

Luxury Consumers' Future Spending Expectation

Figure 12: Trends in Spending on Luxury in the Coming Twelve Months

Confidence in Financial Health of Country

Figure 13: Financial Health of the Country

Financial Prospects in Next Twelve Months

Figure 14: Financial Prospects Next Twelve Months

Investments and Savings in the Current Quarter

Figure 15: Trends in Saving and Investing Now Compared with Twelve Months Ago

Investments and Savings in the Coming Year

Figure 16: Trends in Saving and Investing in Coming Twelve Months

Total Luxury Purchase Incidence

Figure 17: Overall Luxury Purchase Incidence (All Affluent Consumers)

→ Key Finding: Implications For Marketers on Purchase Incidence

Luxury Purchase Incidence

Figure 18: Luxury Purchase Incidence

Luxury Consumers’ Average Spending on Luxuries

Figure 19: Average Spending on Luxuries

Luxury Marketers >> Take Action:

Spending by Income Segment

Figure 20: Luxury Spending by Income Segments (current quarter and same period year ago)

Total Spending by Age Segments

Figure 21: Total Spending on Luxury by Age Segments -- Young Affluents and Over 40 Year Olds (Current period and same period
previous year)

Luxury Marketers >> Take Action:

Total Luxury Spending by Gender

Figure 22: Total Spending on Luxury by Gender (Current period and same period previous year)

Trends in Spending by Key Demographic Segments

Figure 23: Trends in Spending on Luxury by Demographic Segment (Age, Gender, Income)

Trends in Spending by Demographic Segments in Major Luxury Categories

Figure 24: Home Luxury Spending Trends by Demographic Segment

Figure 25: Personal Luxury Spending Trends by Demographic Segment

Figure 26: Experiential Luxury Spending Trends by Demographic Segment

Where Luxury Consumers Shopped for Their Luxury Goods

Home Luxury Goods

Figure 27: Favorite Shopping Destinations for Home Luxury Goods Shoppers

Personal Luxury Goods

Figure 28: Favorite Shopping Destinations for Personal Luxury Goods Shoppers

Luxury Shoppers’ Favorite Department Stores

Figure 29: Store Brand Usage for Any Luxury Shopping

Chapter 3 — Personal Luxury Purchases Detail

Personal Luxury Purchase Incidence

Figure 30: Personal Luxury Purchase Incidence

Personal Luxuries Spending

Figure 31: Personal Luxury Spending,

Personal Luxury Spending by Demographic Segments

Figure 32: Personal Luxury Spending by Demographic Spending

Where Personal Luxuries Are Bought

Figure 33: Where Luxury Consumers Shop for Personal Luxuries

Automobiles & Recreational Vehicles  Purchase Details

Amount Spent on Automobiles & Recreational Vehicles

Figure 34: Automobile Spending by Demographic Segment

>> Automobile Luxury Marketers: Take Action

Type of Luxury Automobile Bought

Figure 35: Type of Luxury Automobile

Country of Origin

Figure 36: Country of Origin

Clothing & Apparel  Purchase Details

Type of Clothing & Apparel Bought

Figure 37: Type of Clothing & Apparel Bought

Amount Spent on Clothing & Apparel

Figure 38: Clothing and Apparel Spending by Demographic Segment

Clothing & Apparel: Estimated Spending by Product

Figure 39: Estimated Spending on Luxury Clothing & Apparel (2007-2008)

Where People Shopped for Luxury Clothing & Apparel

Figure 40: Clothing & Apparel Shopping Choices

Estimated Spending on Clothing & Apparel by Type of Store

Figure 41: Estimated Spending on Luxury Clothing & Apparel by Type of Store

Clothing & Apparel Brand Usage

Figure 42: Clothing & Apparel Brand Usage

>>Clothing and Apparel Luxury Marketers: Take Action

Fashion Accessories  Purchase Details

Type of Fashion Accessories Bought

Figure 43 : Type of Fashion Accessories Bought

Amount Spent on Fashion Accessories

Figure 44: Fashion Accessories Spending by Demographic Segment

Fashion & Accessories: Estimated Spending by Product

Figure 45: Estimated Spending on Luxury Fashion Accessories (2007-2008)

Where People Shopped for Luxury Fashion Accessories

Figure 59: Fashion Accessories Shopping Choices

Estimated Spending on Fashion Accessories by Type of Store

Figure 46: Estimated Spending on Fashion Accessories by Type of Store

Luxury Fashion Accessories Brand Usage

Figure 47: Fashion Accessories Brand Usage

>>Fashion Accessories Luxury Marketers: Take Action

Fragrance, Cosmetics, and/or Beauty Products  Purchase Details

Type of Fragrance, Cosmetics and/or Beauty Products Bought

Figure 48: Type of Cosmetics & Beauty Products Bought

Amount Spent on Fragrance, Cosmetics and/or Beauty Products

Figure 49: Fragrance, Beauty, Cosmetic Spending by Demographic Segment

Cosmetics & Beauty: Estimated Spending by Product

Figure 50: Estimated Spending on Luxury Cosmetics and Beauty Products

Where People Shopped for Luxury Fragrance, Cosmetics and/or Beauty Products

Figure 51: Fragrance, Cosmetics, Beauty Products Shopping Choices

Estimated Spending on Beauty by Type of Store

Figure 52: Estimated Spending on Luxury Beauty by Type of Store

Cosmetics, Beauty Products, Fragrances Brand Usage

Figure 53: Beauty Brands Purchase Incidence

Wine & Spirits — Purchase Details

Type of Wine & Spirits Bought

Figure 54: Type of Wine & Spirits Bought

Amount Spent on Wine & Spirits

Figure 55: Wine & Spirit Spending by Demographic Segment

Wine & Spirits: Estimated Spending by Product

Figure 56: Estimated Spending on Luxury Wine & Spirits by Product Type

Jewelry  Purchase Details

Type of Jewelry Bought

Figure 57: Type of Jewelry Bought

>>Jewelry Luxury Marketers: Take Action

Amount Spent on Jewelry

Figure 58: Jewelry Spending by Demographic Segment

Estimated Spending on Women's & Men's Jewelry

Figure 59: Estimated Spending on Women's & Men's Jewelry

Type of Women’s Jewelry Bought

Figure 60: Type of Women’s Jewelry Bought

Women's Jewelry: Estimated Spending by Product Type

Figure 61: Estimated Spending on Women's Jewelry by Product Type

Type of Men’s Jewelry Bought

Figure 62: Type of Men's Jewelry Bought

Women's Material of Composition

Figure 63: Material of Composition Women’s Jewelry

Women's Jewelry: Estimated Spending by Product Material & Gemstone

Figure 64: Estimated Spending on Women's Jewelry by Material

Figure 65: Estimated Sales of Women's Jewelry by Gemstone

>>Jewelry Luxury Marketers: Take Action

Men's Material of Composition

Figure 66: Men's Jewelry: Material of Composition

Where People Shopped for Jewelry

Figure 67: Jewelry Shopping Choices

Estimated Spending on Jewelry by Type of Store

Figure 68: Estimated Spending on Jewelry by Type of Store

Jewelry Brand Usage

Figure 69: Jewelry Brand Usage

Watches  Purchase Details

Type of Watches Bought

Figure 70: Type of Watches Bought

Amount Spent on Watches

Figure 71: Watches Spending by Demographic Segment

Watches: Estimated Spending by Type

Figure 72: Estimated Sales of Watches by Type

Material of Composition Formal/Dress Watches

Figure 73: Material of Composition Formal/Dress Watches

Where People Shopped for Luxury Watches

Figure 74: Watches Shopping Choices

Estimated Spending on Watches by Type of Store

Figure 75: Estimated Spending on Watches by Type of Store

Watches Brand Usage

Watches Brand Usage

Figure 76: Watch Brand Usage

Personal Electronics  Purchase Details

Type of Personal Electronics Bought

Figure 77: Type of Personal Electronics Bought

Amount Spent on Personal Electronics

Figure 78: Personal Electronics Spending by Demographic Segment

Personal Electronics: Estimated Spending by Type

Figure 79: Estimated Sales of Personal Electronics by Type

Where People Shopped for Luxury Personal Electronics

Figure 80: Personal Electronics Shopping Choices

Estimated Spending on Personal Electronics by Type of Store

Figure 81: Estimated Spending on Personal Electronics by Type of Store

Personal Electronics Brands

Biggest Winners & Losers in the Personal Luxury Market

Figure 82: Top Ten Fastest Growing Products and Biggest Losers in Personal Luxury Market

Chapter 4 — Experiential Luxury Purchases Detail

Luxury Experiences Purchase Incidence

Figure 83: Experiential Purchase Incidence

Luxury Consumers' Average Spending on Experiential Luxuries

Figure 84: Experiential Luxury Spending

Experiential Spending by Demographic Segment

Figure 85: Experiential Spending by Demographic Segment

Luxury Dining — Purchase Details

Amount Spent on Luxury Dining

Figure 86: Fine Dining Spending by Demographic Segment

Fine Dining Brand Purchase

Figure 87: Multi-Chain Restaurants Brand Preference

Figure 88: Celebrity Chef Brand Preference

Luxury Entertainment — Purchase Details

Amount Spent on Luxury Entertainment

Figure 89: Entertainment Spending by Demographic Segment

Luxury Home Services — Purchase Details

Type of Home Services

Figure 90: Type of Home Services Bought

Amount Spent on Luxury Home Services

Figure 91: Home Services Spending by Demographic Segment

Luxury Spa, Massage and Beauty Treatment — Purchase Details

Type of Spa, Massage, Beauty Treatment Services Purchased

Figure 92: Type of Spa, Beauty Services Bought

Amount Spent on Luxury Spa, Massage and Beauty Treatment

Figure 93: Spa, Massage, Beauty Services Spending by Demographic Segment

Luxury Travel — Purchase Details

Type of Travel Overview

Figure 94: Type of Travel Overview: Domestic, Foreign or Both

Foreign Travel Choices

Figure 95: Type of Foreign Travel Bought

Domestic Travel Choices

Figure 96: Type of Domestic Travel Bought

Number of Days for Travel

Figure 97: Number of Vacation Days

Amount Spent on Luxury Travel

Figure 98: Travel Spending by Demographic Segment

Luxury Hotel Brand Preferences

Figure 99: Luxury Hotel Brand Purchases

Chapter 5 — Home Luxury Purchase Detail

Home Luxury Purchase Incidence

Figure 100: Home Luxury Purchase Incidence

Home Luxury Spending

Figure 101: Home Luxury Spending

Home Luxury Spending by Demographic Segments

Figure 102: Total Home Luxury Spending by Demographic Segments

Art & Antiques — Purchase Details

Type of Art and Antiques Bought

Figure 103: Type of Art Bought

Amount Spent on Art & Antiques

Figure 104: Art & Antique Spending by Demographic Segment

Art & Antique: Estimated Spending by Product

Figure 105: Estimated Spending on Luxury Art & Antique Products

>>Art Luxury Marketers: Take Action

Where People Shopped for Luxury Art & Antiques

Figure 106: Art & Antiques Shopping Choices

Estimated Spending on Art & Antiques by Type of Store

Figure 107: Estimated Spending on Luxury Art & Antiques by Type of Store

Home Electronics — Purchase Details

Type of Home Electronics Bought

Figure 108: Type of Electronics Bought

Amount Spent on Luxury Home Electronics

Figure 109: Electronics Spending by Demographic Segment

Home Electronics: Estimated Spending by Product

Figure 110: Estimated Spending on Luxury Electronics Products

Where People Shopped for Luxury Home Electronics

Figure 111: Electronics & Photography Shopping Choices

Estimated Spending on Electronics & Photography Equipment by Type of Store

Figure 112: Estimated Spending on Luxury Electronics by Type of Store

Home and Personal Electronics Brand Usage

Figure 113: Electronics & Photography Brand Purchase

Home Decorating Fabrics, Window & Wall Coverings — Purchase Details

Type of Home Decorating Fabrics, Window & Wall Coverings Bought

Figure 114: Type of Home Decor Fabrics, Window & Wall Coverings Bought

Amount Spent on Home Decorating Fabrics, Window & Wall Coverings

Figure 115: Spending Fabrics, Window, Wall Coverings by Demographic Segment

Home Décor Fabrics, Window & Wall Coverings: Estimated Spending by Product

Figure 116: Estimated Spending on Luxury Fabrics, Window & Wall Coverings

Where People Shopped for Luxury Home Decorating Fabrics, Window and Wall Coverings

Figure 117: Home Decorating Fabrics, Windows & Wall Coverings Shopping Choices

Estimated Spending on Fabrics, Window & Wall Coverings by Type of Store

Figure 118: Estimated Spending on Luxury Fabrics, Wall & Window Coverings by Type of Store

>>Fabric, Window and Wall Covering Luxury Marketers: Take Action

Furniture, Lamps & Floor Coverings — Purchase Details

Type of Furniture, Lamps & Floor Coverings Bought

Figure 119: Type of Furniture, Lamps, Floor Coverings Bought

Amount Spent on Furniture, Lamps and Floor Coverings

Figure 120: Furniture, Lamps and Floor Covering Spending by Demographic Segment

Furniture, Lamps and Rugs: Estimated Spending by Product

Figure 121: Estimated Spending on Luxury Furniture, Lamps and Floor Coverings Products

Where People Shopped for Luxury Furniture, Lamps and Floor Coverings

Figure 122: Furniture, Lamps, Floor Coverings Shopping Choices

Estimated Spending on Furniture, Lamps and Rugs by Type of Store

Figure 123: Estimated Spending on Luxury Furniture, Maps and Rugs by Type of Store

>>Furniture, Lamps and Floor Coverings Luxury Marketers: Take Action

Garden, Outdoor, Lawn & Patio Products — Purchase Details

Type of Garden/Outdoor Bought

Figure 124: Type of Garden/Outdoor Living Luxuries Bought

Amount Spent on Garden

Figure 125: Garden/Outdoor Spending by Demographic Segment

Outdoor/Garden Luxury: Estimated Spending by Product

Figure 126: Estimated Spending on Luxury Outdoor/Garden by Products

>>Garden and Outdoor Luxury Marketers: Take Action

Where People Shopped for Luxury Garden, Outdoor, Lawn, & Patio Products

Figure 39: Garden, Outdoor, Patio, Lawn Shopping Choices

Estimated Spending on Outdoor/Garden by Type of Store

Figure 127: Estimated Spending on Luxury Outdoor & Garden by Type of Store

Kitchenware, Cookware & Housewares — Purchase Detail

Type of Kitchenware, Cookware & Housewares Bought

Figure 128: Type of Kitchenware, Cookware, Housewares Bought

Amount Spent on Kitchenware, Cookware & Housewares

Figure 129: Kitchenware, Housewares Spending by Demographic Segment

Kitchenware, Housewares: Estimated Spending by Product

Figure 130: Estimated Spending on Luxury Kitchenware, Housewares by Product

Where People Shopped for Luxury Kitchenware, Cookware, Housewares

Figure 131: Kitchenware, Cookware, Housewares Shopping Choices

>>Kitchenware and Cookware Luxury Marketers: Take Action

Estimated Spending on Kitchenware, Housewares by Type of Store

Figure 132: Estimated Spending on Kitchenware, Housewares by Type of Store

Kitchen Appliances, Bath & Building Products — Purchase Details

Type of Kitchen Appliances, Bath & Building Products Bought

Figure 133 : Type of Kitchen Appliances, Bath & Building Products Bought

Amount Spent on Kitchen Appliances

Figure 134: Kitchenware, Housewares Spending by Demographic Segment

Kitchen Appliances, Building & Bath: Estimated Spending by Product

Figure 135: Estimated Spending on Luxury Kitchen Appliances, Bath and Building Products

Where People Shopped for Luxury Kitchen Appliances, Bath and Building Products

Figure 136: Kitchen Appliances, Bath & Building Products Shopping Choices

Estimated Spending on Kitchen Appliances, Bath & Building Products by Type of Store

Figure 137: Estimated Spending on Kitchen Appliances, Building and Bath Products by Type of Store

Linens & Bedding Products — Purchase Details

Type of Linens and Bedding Bought

Figure 138: Types of Linens & Bedding Bought

Amount Spent on Linens and Bedding

Figure 139: Linens and Bedding Spending by Demographic Segment

Linens & Bedding: Estimated Spending by Product

Figure 140: Estimated Spending on Luxury Linens & Bedding Products

Where People Shopped for Luxury Linens & Bedding Products

Figure 141: Linens & Bedding Shopping Choices

Estimated Spending on Linens & Bedding by Type of Store

Figure 142: Estimated Spending on Linens & Bedding by Type of Store

Tabletop, Dinnerware, Flatware, Servingware — Purchase Details

Type of Tabletop Purchased

Figure 143: Type of Tabletop Purchased

Amount Spent on Tabletop

Figure 144: Tabletop Spending by Demographic Segment

Tabletop: Estimated Spending by Product

Figure 145: Estimated Spending on Luxury Tabletop Products

Where People Shopped for Luxury Tabletop Products

Figure 146: Tabletop Shopping Choices

Estimated Spending on Tabletop by Type of Store

Figure 147: Estimated Spending on tabletop by Type of Store

Tabletop Brand Usage

Figure 148: Tabletop Brand Awareness & Usage

Biggest Winners & Losers in the Home Luxury Market

Figure 149: Top Ten Fastest Growing Products and Biggest Losers in Home Luxury

Luxury Tracking Survey Methodology

Quarterly Tracking of Luxury Consumer Purchasing

Luxury Consumers and Their Attitudes and Personalities Was investigated in More Depth

Sample Demographics

Income Demographics

Figure 150: Income Demographics

Gender

Age Distribution

Figure 151: Age Distribution

Generations

Figure 152: Generations

Other Demographic Variables

Abstract

This report summarizes the results of the Luxury Tracking Survey recording luxury purchases from April through June 2009, based upon a survey fielded in early July 2009. These second quarter results are compared with quarterly results from the second quarter last year and the first quarter this year. The next survey will cover July through September 2009 purchases and will be fielded in early October 2009.

Unity Marketing’s luxury tracking study is intended to keep luxury brand marketers’ and retailers’ fingers on the changing pulse of the luxury market. Through regular quarterly surveys, companies will better understand the shopping and buying habits of their affluent customers and anticipate how they will be spending their luxury budgets in the coming months.

To enable luxury marketers to understand variations within the affluent market, perspectives of three different segments of the luxury market were gathered, based on household income. These segments correspond to the top 20 percent of U.S. households based upon income:

• Comfortable affluent, with household incomes between $100,000 and $149,999 (56 percent of the sample 2Q2009);
• Super- affluent, household incomes between $150,000 and $249,999 (33 percent 2Q2009);
• Ultra-affluent, with incomes $250,000 and above (11 percent 2Q2009)

About MarketResearch.com
MarketResearch.com is an online aggregator selling over 250,000 market research reports, company profiles and country profiles from over 650 research firms. Our reports will provide you with the critical business and competitive intelligence you need for strategic planning and marketing research. Coverage includes the US, UK, Europe, Asia and global markets.