Consumer spending on luxury goods rose steadily from 2nd quarter 2009 through 2nd quarter 2010, then tapered off and declined slightly through the end of 2010, according to Unity Marketing. 
Ultra-affluent consumers — those with household incomes of $250,000 or higher — increased their spending on luxury goods and services by 34% between early 2009 and the end of 2010, while consumers with incomes of $100,000-$249,999 increased their spending on luxury items by 25% during that time.
Luxury purchases still haven’t rebounded fully from the recession, however; only about four in 10 affluent consumers bought luxury home goods, personal items, or experiential services in 2010, compared to more than half in 2006.
The study identifies ultra-affluents and younger affluents (age 44 and younger) as the key growth markets for luxury purchases. Although ultra-affluent households make up only 2% of U.S. households, they spend three or four times as much as affluent households with incomes of less than $250,000.
Younger affluents are of interest to luxury marketers because they’re more likely to be focused on acquiring goods than affluent Boomers, who have shifted away from buying objects to seeking new experiences. [Affluent Market, Consumer Spending & Attitudes]
Source: “The Luxury Report 2011: Ultimate Guide to the Luxury Consumer Market,” Unity Marketing, Pam Danziger, President, 206 E. Church St., Stevens, PA 17578; 717-336-1600; pam@unitymarketingonline.com; www.unitymarketingonline.com. Price: $3,5000.
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