While the Wall Street Journal announced 'Gleam Returns to Luxury Sales,' many of the nation's affluent consumers see mostly gloom ahead, reports Unity Marketing
In continuing signs of struggles among the luxury consumer market -- the 'heavy lifters' in the overall retail economy -- Unity Marketing's exclusive Luxury Consumption Index (LCI) retreated in October 2010, dropping 6.2 points to 72.1 points. According to the latest survey of luxury consumer confidence among 1,364 affluent luxury consumers (avg. income $298.3k; net wealth $7.3 million; 46.3 yrs; male 47 percent; female 53 percent). These results have important implications for marketers and retailers preparing for the 2010 holiday season.
Luxury consumersstarted 2010 with a feeling of optimism that the worst of the economic turmoil was over. But through the course of the year, reality hasn't lived up to those expectations, so we have seen a retreat of the LCI throughout the year," says Pam Danziger, president of Unity Marketing and author of the upcoming book, Putting the Luxe Back in Luxury. "Lower levels of affluent consumer confidence are playing out in terms of reduced of spending on luxuries. In the third quarter, affluent consumers spent 1.4 percent less on luxuries than they did in the second quarter, with declines seen in expenditures in most of the 22 categories of luxury goods and services included in the survey.