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Unity Marketing Predicts Luxury Consumer Behavior for Fourth Quarter

Written by Pamela N. Danziger. Posted in The Luxury Market Business

mikimoto-starlight-earrings

Unity's Luxury Consumption Index (LCI) proves predictive of third quarter results, offers indications for future

 

According to reporting in The Wall Street Journal, U.S. consumers spent less in October than hoped, disappointing retailers and leading to a rocky first part of November on Wall Street, as the stock market reacted to this decline in consumer spending. However, those who follow Unity Marketing's Luxury Consumption Index(LCI) expected the dip and could plan accordingly.

In July Unity Marketing's exclusive LCI took a deep dive, predicting a drop in luxury consumer spending during the third quarter -- which is exactly what happened, according to the results of Unity Marketing's latest survey of affluent consumers luxury purchases. Luxury consumers spent nearly 20 percent less in the third quarter than in the second quarter 2011.

New survey finds improved outlook for 1Q2012

Commenting on Unity Marketing's fourth quarter survey of 1,498 affluent luxury consumers (average income $279.1k; avg. age 44.4 yrs.), Pam Danziger, president of Unity Marketing and author of the just released Putting the Luxe Back in Luxury, says, "Our latest survey reveals turmoil in the luxury consumer mindset, just like the Dow Jones Industrial Average measures turmoil in the investment markets.

Affluents are uncertain about their present financial status and worried about the overall economy, which translates into more cautious spending on luxury indulgences. For example, 70 percent of the luxury consumers surveyed this month said they are spending the same or less on luxury now than they did twelve months ago."

Confused about the Gifting Market? Is It Up, Down or Going Sideways?

Written by Pamela N. Danziger. Posted in The Luxury Market Business

woman wrapping a gift

Unity Marketing plans to launch a new study of the gifting market early in 2012 to give marketers the facts and figures.

 

The Christmas gift shopping season is nearly over, but it seems like the pundits and industry watchers haven't got a clue about what the gift giving consumers are really up to. Take Black Friday sales for example. While some industry experts gleefully put sales on this much-examined retail day several percentage points ahead of last year, others quickly pointed out that any increase in revenues was likely due to the practices of opening store doors as early as Thanksgiving night, effectively tacking another six or eight hours of sales time onto Black Friday.

And just yesterday, the National Retail Federation (NRF) revised its forecast upward from their previously bullish pre-Thanksgiving estimates. But on the same day, the New York Times featured a story that said stores sales are lagging after Thanksgiving. As a result, they are taking drastic steps, including deep discounts, staying open late, and extending specials, to entice shoppers into the stores before Christmas.

Not only that, the New York Times article also reports that troubled retailers plan to manipulate the way they account for holiday gift sales this year to get a more favorable report from the actual year-over-year comparables. In other words, if the real data doesn't tell the story they want to tell their shareholders, they are going to 'cook the books' in order to do so.

Christmas Cards: Who Is Sending Them This Year?

Written by Pamela N. Danziger. Posted in The Luxury Market Business

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Who Is Sending Christmas Cards This Year? Fewer than Last Year


Marketers can expect a tough year in sales of cards as demand for greeting cards in general, and Christmas cards in particular, continues to dwindle.

Marketers need to find future direction and opportunity as cultural trends push consumers away from greeting cards -- Unity Marketing plans a new study of the greeting card, stationery and paper products market.

Stevens, PA December 7, 2011 - With less than three weeks before Christmas, how many holiday cards have you received in the mail this year?  Fewer than last year, Unity Marketing predicts.

The market for greeting cards is a tough one in today's environment with consumers having so many faster, easier and in many cases cheaper ways to send a greeting. Times have gotten even tougher as a result of the recession, with many consumers looking to cut spending anywhere they can. 

And now with the U.S.P.S. slowing the pace of first class mail and making 'snail mail' even less convenient, consumers are being encouraged - even driven - to alternatives to the traditional greeting card.

What is behind this declining demand for greeting cards?  "Many cultural trends are afoot that are changing consumers' demand for greeting cards, but one thing is for certain. The business of selling traditional greeting cards is only going to get harder as consumers turn to newer, faster and better communications alternatives," says Pam Danziger, president of Unity Marketing and author of Putting the Luxe Back in Luxury. 

Help for Jewelers: Understand Your Customers New Needs

Written by Pamela N. Danziger. Posted in The Luxury Market Business

mikimoto-necklace

Jewelers Losing Dominance in the Jewelry Market -- New Unity Marketing Study Shows Jewelers How to Capture Back their Lost Share

New study of the jewelry market is packed with ideas to help jewelry retailers boost sales this holiday season and beyond

As if the recession wasn't bad enough, jewelers and specialty jewelry stores have been hit by a number of additional factors that have hurt their businesses, according to a new study of the jewelry market published by Unity Marketing. Specifically:

  • Jewelers are challenged by the rising cost of precious metals, which has caused consumers to seek out more affordable alternatives, such as new metals like palladium, plated metal, costume jewelry and faux gems like CZs and moissanite to consumers looking for value.
  • Jewelry shoppers have turned their back on jewelry stores as their chosen place to shop and have instead favored department stores, internet websites, artisans and art galleries, TV shopping and discounters for new jewelry pieces. Etsy.com is emerging as an online destination for jewelry customers that want that handmade touch.
  • With a new value consciousness, today's jewelry consumer is finding she can pick up a new piece for a great price if she shops smart. That is one reason why the average amount jewelry shoppers spent on their last piece of fine jewelry declined by nearly 60 percent from pre-recession 2007 when the average price was $734 to $466 in the most recent survey.

SHE HAS OVER $6 TRILLION DOLLARS TO SPEND AND WOULD BUY FROM YOU IN A HEARTBEAT. IF ONLY SHE COULD FIND YOU. NOW SHE CAN.

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