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."