Two demographic segments -- ultra-affluents and young affluents -- will lead the luxury market out of the recession, while more mature baby boomer affluents will continue to be thrifty
Unity Marketing's exclusive Luxury Tracking Study results are in for the fourth quarter 2009 and they show a marked improvement in consumer sentiment among affluent consumers, defined as those at the top 20 percent of household income. The survey tracking luxury consumption was conducted from January 8-14, 2010 among 1,614 affluent consumers (avg. income $239.3K, 45.9 years, 41 percent male/59 percent female.
In the beginning of 2010 the Luxury Consumption Index (LCI) which measures consumer confidence in the ranks of the affluent stands at about the same level it was in September 2007, just as the recession began to drag the index down. Throughout 2009 the LCI has steadily gained points. Overall the index has recovered about 80 percent of the points it lost since it bottomed out in September 2008.