Nearly half of affluent Americans (44%) bought luxury items in the second quarter of 2010, up slightly from 42% in the first quarter, but not as high as pre-recession levels, according to Unity Marketing. Unity defines affluence as those with average annual household incomes of $100,000 or more.
About a quarter of affluent consumers (26%) say that on the scale of “good, better, and best,” they mostly have “good” and scale back on some purchases in order to be able to afford “the good life” in other areas. Nearly four in 10 affluent consumers (38%) say they mostly buy better than average products and services, with occasional top of the line purchases on items that matter most to them. Some 21% of affluent consumers tend to buy the best of the best, and always aim to get top of the line products and services. One in seven affluent consumers (15%) say that luxury purchases are not a part of their lifestyle.
Nearly eight in 10 luxury consumers (79%) have made changes to their purchasing habits in 2010, down from 86% who reported doing so in 2008. Unity Marketing’s Luxury Consumption Index — which measures current and future luxury spending and current and future financial well-being — shows that affluent Americans are increasingly feeling better about their financial situation and are spending again after bottoming out in September 2008.
Source: “Luxury Report 2010” and “Luxury Consumption Index,” Unity Marketing, Pam Danziger, President, 206 E. Church St., Stevens, PA 17578; 712-336-1600; pam@unitymarketingonline.com; www.unitymarketingonline.com. Price: Call for information.
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