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HOME LUXURY REPORT USA: The Ultimate Guide to Seven-Years of Trends in the American Affluent Consumer Market for Luxury Goods for the Home

The Seven-Year Guide to Trends in the Affluent Consumer Market for Home Luxury Goods in the USA

Unity Marketing has studied exactly what’s on the mind of today’s luxury consumers for home luxury goods. Details about trends in affluent consumer purchases of things for their homes, including purchases that represent major investments, such as art & antiques, furniture, floor coverings, major appliances, bath & building products, home electronics, outdoor/patio purchases and mattresses & sleep systems, as well as decorative and functional purchases, such as tabletop, kitchenwares and cooks’ tools, linens and soft goods.

Home Luxury Report Report USA digs deeply into the spending habits and preferences of high-net-worth (HNW) and high-earners-not-rich-yet (HENRY) individuals. Case studies of brands that are marketing successfully to today’s affluent consumers brings the data to life and makes it actionable for marketers looking to succeed in today’s value-driven luxury consumer market.

This report includes eye-opening statistics and detailed case studies to demonstrate how your brand can thrive in today’s value-oriented luxury consumer market.

In this can’t miss report, luxury brands, marketers and retailers will learn:

  • Who has disposable income for home luxury goods purchases and where are they spending it today and where will they spend it tomorrow?
  • How does today’s affluent customer define luxury?
  • Where do luxury consumers shop for their homes and how has their shopping patterns changed pre-and-post recession?
  • What brands do ultra-affluents favor in home categories, including tabletop, major appliances, mattresses and how do their preferences differ from the HENRYs (high-earners-not-rich-yet) customers?
  • Which are the winners and losers in product choices affluent customers are making? What’s up and what’s down as measured by spending trends?
  • How do affluents — Ultras & HENRYs — spend their money on personal luxury goods?
  • What brands are making a connection with today’s luxury consumer?
The latest Home Luxury Report USA gives marketers data about seven years of trends in what American affluent consumers are buying, where they are shopping, how much they are spending and what brands they favor in home luxury goods, including:
  • Art & Antiques;
  • Home Electronics;
  • Furniture, Lamps & Floor Coverings;
  • Garden & Garden Products;
  • Kitchenware, Cookware and Cooks’ Tools;
  • Kitchen Appliances, Bath & Building Products including window covering;
  • Linens, Fabrics & Soft Goods, including drapes and curtains;
  • Mattresses and Sleep Systems;
  • Tabletop.
The report shares findings of 2,500 luxury consumers surveyed in 2014 (average income $269,500) and compares results from comparable surveys conducted over the past six years, 2008-2013. This report provides a seven-year perspective of long term trends in the luxury consumer market.

“We designed the Home Luxury Report USA 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 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 Danziger.

Further, the Home Luxury Report USA is enhanced with case studies of brands that are succeeding in connecting with today’s affluent consumer market. These case studies bring the data alive to provide guidance and direction for marketers looking to make the research actionable in their businesses.

More about the Home Luxury Report USA

Unity Marketing’s Home Luxury Report USA is the seven-year guide to the U.S. market for high-end and luxury goods for the home. This report focuses on the buying and spending habits of the nation’s affluent households — the top quintile or 20 percent of U.S. consumer households — of high-end or luxury products and services.

The Home Luxury Report USA is the annual compilation of Unity Marketing’s Affluent Consumer Tracking Study’s products and services survey detailing purchases and brand preferences. It reports the home luxury goods purchased by ~2,500 affluent consumers over the course of the three-month study period and is the only longitudinal study of its kind that tracks the luxury consumer market, what they buy, how much they spend during and after the recession.

The report contains details from continuous surveys from 2008-2014 on home luxury products bought by affluent consumers, including three-month spending, where these products were purchased and details of the types and brands of products bought.

The Home Luxury Report USA is written by Pam Danziger, one of the nation’s leading expert on the luxury market and is based upon the kind of in-depth consumer research for which Pam Danziger and Unity Marketing are known.

Guides luxury marketers to shifts and changes in their target customers’ attitudes and shopping behavior

This report provides vital data about what luxuries affluents are buying, how much they are spending, where they are making their purchases and what brands they favor. This report provides invaluable information about the mindset, attitudes and spending habits of the affluent consumers that luxury marketers target. This is not just report about people with high incomes, but affluents who buy luxury goods and services.

This report doesn’t stop with the data — It pushes further to help marketers and retailers put the information to use

This market research report helps make the research data and findings accessible and useable. It provides marketers with three powerful perspectives: “The What”, “So What” and “Now What.” This report is filled with advice and guidance for luxury marketers to take action on the research findings revealed.

Special feature: Find out which of the five different types of luxury consumers are your best customers

A special feature in Unity Marketing’s Home Luxury Report USA is a psychographic profile of five key types of luxury consumers. These include:
  • X-Fluents (Extremely Affluent) who spend the most on luxury and are most highly invested in luxury living;
  • Butterflies, the most highly evolved luxury consumers who have emerged from their luxury cocoons with a passion to reconnect with the outside world. Powered by a search for meaning and new experiences, the butterflies have the least materialistic orientation among the segments, yet they spend nearly as much as the X-Fluents on luxury;
  • Luxury Cocooners who are focused on hearth and home. They spend most of their luxury budgets on home-related purchases;
  • Aspirers, those luxury consumers who have not yet achieved the level of luxury to which they aspire. They are highly attuned to brands and believe luxury is best expressed in what they buy and what they own.
  • Temperate Pragmatist a newly emerged luxury consumer who is not all that involved in the luxury lifestyle. As their name implies, they are careful spenders and not given to luxury indulgence.


Introduction & Methodology
Unity Marketing's Annual State of the Luxury Market Report
The US Luxury Market Dwarfs All Others
Figure 1: U.S Luxury Market Relative to Rest of World 2014 (Source: Bain & Company)
More about the Luxury Report
Home Luxuries
Personal Luxuries
Automobiles, including automobile brands
Experiential Luxuries
Affluent Consumer Tracking Study (ACTS) Methodology
Two Segments of Affluents based upon Income Are Surveyed
Compilation of Affluent Consumers’ Luxury & High-End Purchases
New ACTS Shopper Track Survey Adds Additional Perspective on Affluent Shopping Behavior
Sample Demographics
Income Demographics
Figure 2: Income Sample
Net Worth
Figure 3: Net Worth
Gender
Figure 4: Gender distribution
Age Distribution & Cohort
Figure 5: Age Distribution
Luxury Marketers>> Take Action
Luxury Marketers>> Get Inspired by Suitsupply
Occupation & Employment
Figure 6: Occupation
Other Demographic Variables
Figure 7: Educational Attainment
Figure 8: Marital Status
Figure 9: Life Stage
Figure 10: Home Ownership
Figure 11: Ethnicity
Chapter 1— Prospects for the Future Luxury Market
Overview
Affluents Enjoying the Little Things in Life – Resisting the Temptation to Over-Spend & Liking It
Demographic Forecast: Luxury Drought
Figure 12: Dent Research, Consumer Spending by Age
Figure 13: LCI Historical 1Q2004-present
The Consumer Economy at Large
Figure 14: Personal Consumption Quarterly Change 2008-1Q15
Figure 15: Personal Consumption Expenditures 1Q15 Percent. Change Previous Period, details
Luxury Marketers>> Take Action as Economy Still Struggles
Figure 16: GAFO Retail Sales & Percentage Change 2007-1Q2015
GAFO Retail Sales in 2015
Figure 17: GAFO Store Sales YTD 2015-2014
Figure 18: Fastest Growing Retailers 1Q2015
Luxury Marketers>> Take Action by Tapping Consumer Trends
Chapter 2— Demographics of Affluence
Income Defines Affluence
Figure 19: U.S. Households by Income
Affluent Households Growing Fastest
Figure 20: Household Growth by Income
Luxury Marketers>> Take Action to Define Affluents by Wealth or Income
Figure 21: Average Income of Top Quintile Households
Luxury Marketers>> Take Action Don’t Overlook HENRYs
Luxury Marketers>>Get Inspired by Millionaires
Figure 22: Number of Millionaires by Country
Affluents Account for 40-50% of All Personal Consumption
Figure 23: Average Expenditures of Households by Income Quintile
Figure 24: U.S. Household Income 2002-2011
Figure 25: Affluent Average Income 2000-2013
More Demographic Characteristics of Affluent Consumer Market
Diversity among Affluents
Figure 26: Number Affluent Households by Ethnicity
Figure 27: Top 20% Income earners by Ethnicity
Age of Affluence
Figure 28: Income by Age
Luxury Marketers>>Take Action on the Luxury Drought
Figure 29: Number of Consumers in Window of Affluence
Figure 30: Population Projections through 2045 for 35-44 & 45-54 year olds
Luxury Marketers>> Take Action against a Culture Hostile to Luxury Indulgence
Luxury Marketers>> Take Action Get Ready for the Millennials
Luxury Marketers>> Get Inspired by PANDORA
Luxury Marketers>> Take Action Deliver Experiences, not more Things
Figure 31: Source of Greatest Luxury Satisfactions
Demographic distinctive
Figure 32: Source of Greatest Luxury Satisfactions by Age
Luxury Marketers>> Take Action as Purchase Motivations Change with Age
Figure 33: Experiences Source of Greatest Happiness & Satisfaction by Age
Chapter 3 -- Overview of Affluents’ Luxury Purchases & their Spending
Highlights of Affluents’ Luxury Purchases and their Spending
Figure 34: Trend in Demand for Luxury Goods & Service
Luxury Spending Trends
Figure 35: Trends in Total Spending on Luxury Goods & Services
Figure 36: Trend in Percent Change in Luxury Spending
Figure 37: Trends in Income Segment Spending
Figure 38: Trends in Spending by Major Category
Luxury Marketers>> Take Action
What’s Hot, What’s Not in Luxury
Figure 39: What’s Hot, What's Not in Luxury as measured by change in spending year-over-year
Total Luxury Purchase Incidence
Figure 40: Overall Luxury Purchase Incidence (All Affluent Consumers)
Luxury Goods & Services Demand
Figure 41: Luxury Goods & Services Demand
Luxury Consumers’ Average Spending on Luxuries
Figure 42: Average Spending on Luxury
What's Hot, What's Not in Luxury this Year compared with Last
Figure 43: Major Categories by Percent Change Year-over-Year
Spending by Income Segment
Figure 44: Luxury Spending by Income Segments
Figure 45: Comparative Spending by Income
Total Spending by Age Segments
Figure 46: Total Spending on Luxury by Age Segments -- Young Affluents and Mature Affluents
Figure 47: Comparative Spending by Age
Total Luxury Spending by Gender
Figure 48: Total Spending on Luxury by Gender
Figure 49: Comparative Spending by Gender
Luxury Marketers>> Take Action by Meeting Your Best Customer
Luxury Marketers>> Get Inspired by Suitsupply
Chapter 4 -- ABOUT Luxury Consumers’ Favorite Shopping Destinations
Highlights of Luxury Consumers' Shopping Destinations
Luxury Department Stores
Figure 50: Net Patronage Mass/Discount and Luxury Department Stores
Figure 51: Luxury Department Store Brand Usage
Mass & Discount Department Stores
Figure 52: Mass/Discount Department Store Brand Usage
Luxury Branded Boutiques
Figure 53: Overview Luxury Fashion Boutique Brand Usage by Income
Figure 54: Luxury Fashion Boutique Brand Usage Details
Home Stores
Figure 55: Home Stores Brand Usage
Luxury Marketers>> Get Inspired by RH
Online Destinations
Figure 56: Online Internet Retailer Brand Usage
Luxury Marketers>> Take Action
Figure 57: Trends in Net Affluent Usage by Major Class of Store
Luxury Marketers>> Get Inspired by the Rebirth of “Main Street”
Chapter 5 – Home Luxury Purchase Detail
Highlights of Home Luxury Purchases
Figure 58: Home Luxury Demand & Spending Trends
Home Luxury Demand Details
Figure 59 Home Luxury Purchase Incidence
Home Luxury Spending
Figure 60: Home Luxury Spending
Home Luxury Spending by Demographic Segments
Figure 61: Total Home Luxury Spending by Demographic Segments
What’s Hot, What's Not in the Home Luxury Market
Figure 62 : Top Ten Fastest Growing Products and Biggest Losers in Home Luxury,2011-2012
Top Shopping Destinations for Home Luxury Products
Figure 63: Top Shopping Destinations Home Luxury Products
Art & Antiques — Purchase Details
Figure 64: Art & Antiques Demand & Spending Trends
Amount Spent on Art & Antiques
Figure 65: Art & Antique Spending by Demographic Segment
Type of Art and Antiques Bought
Figure 66: Estimated Spending on Luxury Art & Antique Products
Where People Shopped for Luxury Art & Antiques
Figure 67: Estimated Spending on Luxury Art & Antiques by Type of Store
Luxury Marketers>> Get Inspired by Zatista
Luxury Marketers>> Get Inspired by Amazon
Luxury Marketers>> Get Inspired by an Art Gallery that POPS! DeBruyne’s in Naples, Florida
Furniture, Lamps & Floor Coverings — Purchase Details
Figure 68: Furniture, Lamps & Floor Coverings Demand & Spending Trends
Amount Spent on Furniture, Lamps and Floor Coverings
Figure 69: Furniture, Lamps and Floor Covering Spending by Demographic Segment
Luxury Marketers: Get Inspired by the Affluents
For Home Furnishings Marketers…New Research Reveals How to Grow Your Business by Targeting the Top 20%
Type of Furniture, Lamps & Floor Coverings Bought
Figure 70: Estimated Spending on Luxury Furniture, Lamps and Floor Coverings Products
Where People Shopped for Luxury Furniture, Lamps and Floor Coverings
Figure 71: Estimated Spending on Luxury Furniture, Lamp and Floor Coverings by Type of Store
Luxury Marketers>> Get Inspired by Restoration Hardware
Luxury Marketers>> Get Inspired by West Elm & Etsy
How West Elm is partnering with Etsy to create a local community feel
Garden, Outdoor, Lawn & Patio Products — Purchase Details
Figure 72: Garden/Outdoor Demand & Spending Trends
Amount Spent on Garden
Figure 73: Garden/Outdoor Spending by Demographic Segment
Type of Garden/Outdoor Lawn & Patio Products Bought
Figure 74: Estimated Spending on Luxury Outdoor/Garden by Products
Where People Shopped for Luxury Garden, Outdoor, Lawn, & Patio Products
Figure 75: Estimated Spending on Luxury Outdoor & Garden by Type of Store
Home Electronics — Purchase Details
Figure 76: Home Electronics Demand & Spending Trends
Amount Spent on Luxury Home Electronics
Figure 77: Electronics Spending by Demographic Segment
Type of Home Electronics Bought
Figure 78: Estimated Spending on Luxury Electronics Products
Where People Shopped for Luxury Home Electronics
Figure 79: Estimated Spending on Luxury Electronics by Type of Store
Kitchenware, Cookware & Cooks’ Tools — Purchase Detail
Figure 80: Kitchenware/Cooks' Tools Demand & Spending Trends
Amount Spent on Kitchenware, Cookware & Housewares
Figure 81: Kitchenware, Housewares Spending by Demographic Segment
Type of Kitchenware, Cookware & Housewares Bought
Figure 82: Estimated Spending on Luxury Kitchenware, Housewares by Product
Where People Shopped for Luxury Kitchenware, Cookware, Housewares
Figure 83: Estimated Spending on Kitchenware, Housewares by Type of Store
Linens, Fabrics & Soft Goods — Purchase Details
Figure 84: Linens, Fabrics & Soft Goods Demand & Spending Trends
Amount Spent on Linens, Fabrics & Soft Goods
Figure 85: Linens, Fabrics & Soft Goods Spending by Demographic Segment
Type of Linens, Fabrics & Soft Goods Bought
Figure 86: Estimated Spending on Luxury Linens, Fabrics & Soft Goods
Where People Shopped for Luxury Linens, Fabrics & Soft Goods
Figure 87: Estimated Spending on Linens, Fabrics & Soft Goods by Type of Store
Linen Brand Usage
Figure 88: Linen Brand Usage
Luxury Marketers>> Get Inspired by Parachute and Boll & Branch
Major Home Appliances, Bath Fixtures, Window Coverings & Building Products — Purchase Details
Figure 89: Major Home Appliances & Building Products Demand & Spending Trends
Amount Spent on Major Appliances, Bath, and Building Products
Figure 90: Major Appliances, Bath & Building Products Spending by Demographic Segment
Type of Major Home Appliances, Bath and Building Products Bought
Figure 91: Estimated Spending on Luxury Major Home Appliances, Bath and Building Products
Where People Shopped for Major Home Appliances, Bath and Building Products
Figure 92: Estimated Spending on Major Home Appliances, Building and Bath Products by Type of Store 153
Major Appliance Brand Usage
Figure 93: Major Appliance Brand Purchase
Mattresses & Sleep Systems — Purchase Details
Figure 94: Mattress & Sleep Systems Demand & Spending Trends
Amount Spent on Mattresses & Sleep Systems
Figure 95: Spending on Mattresses & Sleep Systems by Demographic Segment
Type of Mattresses & Sleep Systems Bought
Figure 96: Estimated Spending on Types of Mattress & Sleep Systems
Where People Shopped for Luxury Mattresses & Sleep Systems
Figure 97: Estimated Spending on Mattresses & Sleep Systems by Type of Store
Mattress Brand Usage
Figure 98: Mattress Brand Usage
Luxury Marketers>> Get Inspired by Saatva
Tabletop, Dinnerware, Flatware, Servingware — Purchase Details
Figure 99: Tabletop Demand & Spending Trends
Amount Spent on Tabletop
Figure 100: Tabletop Spending by Demographic Segment
Type of Tabletop Purchased
Figure 101: Estimated Spending on Luxury Tabletop Products
Where People Shopped for Luxury Tabletop Products
Figure 102: Estimated Spending on Tabletop by Type of Store
Tabletop Brand Usage
Figure 103: Tabletop Brand Usage
Luxury Marketers>> Get Inspired & Appeal to Luxury Customers
Marketing Tabletop Brands to the Affluent: Why a One-Size-Fits-All Luxury Marketing Strategy Will NEVER Work!
Chapter 6 – What Luxury Means
Which Categories of Purchase Give Affluents the Greatest Thrill
Words that Describe Luxury
Figure 104: Words that Describe Luxury
What Luxury Means by Segments
Figure 105: What Luxury Means to Men & Women, Index
Figure 106: What Luxury Means to Young & Mature Affluents, Index
Luxury Marketers>> Take Action
Luxury as Defined by Ultra-affluents & HENRYs
Figure 107: What Luxury Means to Ultra-Affluents & HENRYs, Index
Luxury Marketers>> Get Inspired by J.W. Hulme
Luxury Marketers>> Take Action
Which Luxury Purchases Deliver the Most Enjoyment
Segments that Get the Least Enjoyment
Luxury Marketers>> Take Action
Chapter 7 – Personalities of Luxury
Luxury Marketers: Meet Your Customers
Figure 108: Five Personalities of Luxury
Trends in Distribution in the Market of the Luxury Personalities
Figure 109: Trends in Distribution of Luxury Personalities, 2009-2014
New Luxury Consumer Personality Emerged in 2007 and Remains a Force in the Current Market
Demographics of the Luxury Personalities
Figure 110: Demographics of the Luxury Personalities
Meet the X-Fluents
Meet the Aspirers
Meet the Cocooners
Meet the Butterflies
Meet the Temperate Pragmatists
Personalities' Attitudes toward Luxury
Figure 111: Attitudes about Luxury by Personality Segment
Five Personalities & the Cars They Drive
Five Personalities and the Hotels Where They Stay
Personalities & Their Spending on Luxury
Figure 112: Luxury Personalities & Their Spending on Luxury
How the Personalities Define Luxury
Figure 113: Definition of Luxury by Personality Type
Figure 114: Index to How Luxury Personalities Define Luxury
How to Sell to the Different Luxury Personalities
Selling to X-Fluents
Selling to Aspirers
Selling to Butterflies
Selling to Cocooners
Selling to Temperate Pragmatists
Final Thoughts: Use the “L-Word” with Caution
Let Unity Marketing Be Your Research Partner

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