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Luxury Report 2014: The Ultimate Six-Year Guide to the Luxury Consumer Market

Pages: 266
Price: $3,500.00
   

Previews

  • Luxury Market Trends: Six-Year Quarterly Tracking of Affluent Consumer Spending, 2008-2013 (Download)
  • Also Available

    Luxury Report 2014: The Ultimate Six-Year Guide to the Luxury Consumer Market

    Unity Marketing's annual report on the state of the luxury market, including a six-year trend analysis, has just been released

    WARNING: The Bain-Altagamma Report on the Luxury Market May Be Hazardous to Your Business

    American affluents enter a new age of austerity, as affluents spent nearly 25 percent less on luxury in 2013 than in 2012, according to the latest Luxury Report 2014 from Unity Marketing

    Fashion-trade magazine WWD did no service to its readers when it headlined on May 20, "Study Sees Up to 6% Growth for Luxury in '14." The story announced the results of a Bain & Company and Fondazione Altagamma study entitled Worldwide Luxury Markets Monitor, Spring 2014. While the story contains some cautions, a quick look at the headline and opening paragraphs gives executives reassurance and confidence that the luxury market will continue its healthy pace of growth. One concludes that all's well in the luxury market and it will be business as usual. But there are serious challenges ahead that will test the skill and the talents of luxury business leaders in 2014, cautions Pam Danziger, president of Unity Marketing and author of a new report, The Luxury Report 2014.

    "There is real danger in buying that optimistic headline. My read of the outlook and attitude of affluent consumers says marketers should hope for the best, but plan for the worse, Danziger cautions. "The Bain/Altagamma study projects that brands that hit the premium -or as they call it 'accessible' - price points will grow faster than demand for the heritage luxury brands. That means the rising tide of luxury consumption has slowed worldwide, as consumers trade down to less prestigious, less expensive brands. In particular, Unity Marketing foresees American affluents adopting a new attitude of austerity with a trend toward simplicity and making due with less, rather than aspiring for extravagance and indulgence."

    Unity Marketing's latest Luxury Report 2014 tracks the pace of affluent consumer spending on luxury and high-end goods and services since the recession in 2008 through 2013, based upon surveys conducted among n=1,250+ affluent consumers every three months. The survey analysis shows that throughout 2010 and 2011 affluents went through a recovery period where so-called pent up demand boosted affluent spending on luxury. However, since 2012 spending has been slowing as affluents' consumer confidence has taken a downward turn. Despite the rising values of their houses and stock portfolios that measure wealth, affluents are choosing to conserve those gains rather than spending extravagantly like they did in the run up to the recession.

    For example, the average amount spent by affluents on luxury goods and services in any three-month study period during 2013 was down 23.2 percent from 2012 levels. And the prospects for 2014 show affluents remain cautious about future spending on luxury, with nearly 80 percent of n=5,001 affluents surveyed in 2013 predicting they will spend the same or less on luxury during the coming year. Danziger says, "It isn't a doom-and-gloom scenario yet, but marketers need to exert extra effort to encourage the affluents who are the prime target for luxury brands to shop and to buy. Austerity is the watchword for affluents' attitudes in the current market, which reflects a return to simplicity and a back-to-basics lifestyle."

    Affluents are finding a 'new normal' where substance trumps style and conspicuous consumption is passť

    "One finding from the Bain/Altagamma study with which I totally agree: that the luxury market is entering, as the report states, a 'new normal' phase with the notable absence in the short term of explosive phenomena,'" Danziger states. "While the developing countries have enjoyed the most attention from growth-hungry luxury brands, the fact remains that the U.S. is the largest market for luxury goods and services in the world due to the distribution of affluence and wealth among the population." For example, the top 20 percent of U.S. households (i.e. annual income over $104,087) account for 51 percent of all income, and the top five percent (income over $191,150) take in 22.3 percent of the nation's income, according to a 2014 report on the middle-class from the Congressional Research Service. Further, net worth of U.S. households and non-profit organizations, which includes the value of homes, stocks and other assets minus debts and other liabilities, reach $81.8 trillion in the first quarter of 2014, its highest level on record, according to the Federal Reserve.

    "The U.S. consumer market is vital to luxury and high-end marketers, yet the affluent consumers view of their wealth and spending has fundamentally changed post-recession. The new demonization of income inequality and the excesses of the 1% has created an environment where affluent consumers expressing a more understated, even modest, lifestyle, that focuses more on substance than style and on quality at a price that respects the customer's intelligence and personal values. Rather than conspicuous consumption and status symbols that proclaim one's wealth, the affluent are embracing brands that give them bragging rights to how smart a shopper he or she is. For example, this past winter's 'It' coat embraced by the wealthy wasn't one from a tony Madison Avenue furrier, but the Uniqlo Ultra-Lite Down Jacket which sold for less than $70. This jacket is cool and chic in an anti-status, smart-shopper way," Danziger explains.

    The new Luxury Report 2014 provides research and data needed for marketers to connect with today's affluent luxury consumer who has profoundly changed in the post-recession environment. "Marketers can no longer assume that affluent consumers are willing to spend up without a compelling reason and luxury marketers need to modify their positioning and branding to match the new normal luxury style. The recent recession has reshaped the American economy in ways that will affect us for decades to come. Affluent consumers no longer feel like wearing a symbol of wealth, knowing that the American middle class has been severely weakened from the recession. Most affluents, both the HENRYs (income $100-250K) and Ultra-affluents ($250K+), would rather throw their lot in with the 99 percent and avoid the conspicuous consumption that characterized luxury in previous years," Danziger concludes.

    More about the Luxury Report 2014

    The Luxury Report 2014 provides research analysis and data about trends in the affluent luxury consumer market. It gives marketers three key perspectives about this customer:

    • Demographics of the affluent, which tells us more about the customers who can afford to buy luxury and high-end goods and services;
    • Purchase behavior over the past six years which tracks what luxuries they have bought, how much they spent, where they made their purchases and the brands that they have bought; critical since past consumer behavior often predicts future behavior; and
    • Affluent Consumer Psychology or psychographics which tells us about the attitudes and values and how marketers can tap the psychology of those who have the willingness to spend.

    For example, Unity Marketing's tracking of affluent consumer behavior highlights that in today's luxury market, consumers' income demographics (i.e. who has the most money to spend) are less important than psychographics that describe one's willingness to spend. Further, people's willingness to spend today is more influenced by the customer's age, i.e. younger, rather than income. High income ($250k+) and young age (under 45 years) are the highest-spending customers in the luxury market today. The question for marketers is how are you positioned to capture this customer?

    The Luxury Report 2014 examines consumers' buying behavior and spending habits in 21 important categories in the luxury market. Specifically:

    Home Luxuries

    • Art & Antiques;
    • Home Electronics;
    • Furniture, Lamps & Floor Coverings;
    • Garden & Garden Products;
    • Kitchenware, Cookware and Cooks' Tools & Housewares;
    • Major Home Appliances, Bath, Window Coverings & Building Products;
    • Linens, Fabrics and Soft Goods;
    • Mattresses & Sleep Systems; and
    • Tabletop.

    Personal Luxuries

    • Clothes & Apparel;
    • Cosmetics, Beauty & Fragrance Products;
    • Fashion Accessories;
    • Jewelry;
    • Watches;
    • Personal Electronics; and
    • Wine & Spirits.

    AutomobilesExperiential Luxuries

    • Luxury Dining;
    • Travel;
    • Spa, Salon, Massage Services; and
    • Physician Services.

    This report doesn't stop with the data -- It pushes further to help marketers and retailers put the information to use

    The Luxury Report 2014 translates data into information and insights that marketing executives can use to make critical strategic decisions. It makes the research data and findings accessible and useable. It provides marketers with three powerful perspectives: "The What", "So What" and "Now What." This report contains advice and guidance for luxury marketers to take action on the research findings revealed

    Special feature: Find out which of the five different types of luxury consumers are your best customers

    A special feature in Unity Marketing's Luxury Report 2014 is a psychographic profile of five key types of luxury consumers. Which of these personalities does your brand target? How can you attract more good personality prospects to your brand?

    • X-Fluents (Extremely Affluent) who spend the most on luxury and are most highly invested in luxury living;
    • Butterflies, the most highly evolved luxury consumers who have emerged from their luxury cocoons with a passion to reconnect with the outside world. Powered by a search for meaning and new experiences, the butterflies have the least materialistic orientation among the segments, yet they have have strong spending potential for the right brand experience;
    • Luxury Cocooners who are focused on hearth and home. They spend most of their luxury budgets on home-related purchases;
    • Aspirers, those luxury consumers who have not yet achieved the level of luxury to which they aspire. They are highly attuned to brands and believe luxury is best expressed in what they buy and what they own.
    • Temperate Pragmatist a newly emerged luxury consumer who is not all that involved in the luxury lifestyle. As their name implies, they are careful spenders and not given to luxury indulgence.

    Special Offer: Order your copy of the Luxury Report 2014 and receive a FREE copy of Unity Marketing's best-selling trend report: Meet the HENRYs: Positioning for the mindset of the High-Earners-Not-Rich-Yet mass affluent consumers (a $695 value)June 2014, (266 pages in PDF)Subscription Price: $3,500 (Subscription fee for Luxury Report 2014 can be credited towards the annual Luxury Tracking Study for first-time subscribers)

    The Unity Marketing Luxury Report 2014 is also available in special editions containing subsets of the data.

    released

    WARNING: The Bain-Altagamma Report on the Luxury Market May Be Hazardous to Your Business American affluents enter a new age of austerity, as affluents spent nearly 25 percent less on luxury in 2013 than in 2012, according to the latest Luxury Report 2014 from Unity Marketing

    Fashion-trade magazine WWD did no service to its readers when it headlined on May 20, "Study Sees Up to 6% Growth for Luxury in '14." The story announced the results of a Bain & Company and Fondazione Altagamma study entitled Worldwide Luxury Markets Monitor, Spring 2014. While the story contains some cautions, a quick look at the headline and opening paragraphs gives executives reassurance and confidence that the luxury market will continue its healthy pace of growth. One concludes that all's well in the luxury market and it will be business as usual. But there are serious challenges ahead that will test the skill and the talents of luxury business leaders in 2014, cautions Pam Danziger, president of Unity Marketing and author of a new report, The Luxury Report 2014.

    "There is real danger in buying that optimistic headline. My read of the outlook and attitude of affluent consumers says marketers should hope for the best, but plan for the worse, Danziger cautions. "The Bain/Altagamma study projects that brands that hit the premium -or as they call it 'accessible' - price points will grow faster than demand for the heritage luxury brands. That means the rising tide of luxury consumption has slowed worldwide, as consumers trade down to less prestigious, less expensive brands. In particular, Unity Marketing foresees American affluents adopting a new attitude of austerity with a trend toward simplicity and making due with less, rather than aspiring for extravagance and indulgence."

    Unity Marketing's latest Luxury Report 2014 tracks the pace of affluent consumer spending on luxury and high-end goods and services since the recession in 2008 through 2013, based upon surveys conducted among n=1,250+ affluent consumers every three months. The survey analysis shows that throughout 2010 and 2011 affluents went through a recovery period where so-called pent up demand boosted affluent spending on luxury. However, since 2012 spending has been slowing as affluents' consumer confidence has taken a downward turn. Despite the rising values of their houses and stock portfolios that measure wealth, affluents are choosing to conserve those gains rather than spending extravagantly like they did in the run up to the recession.

    For example, the average amount spent by affluents on luxury goods and services in any three-month study period during 2013 was down 23.2 percent from 2012 levels. And the prospects for 2014 show affluents remain cautious about future spending on luxury, with nearly 80 percent of n=5,001 affluents surveyed in 2013 predicting they will spend the same or less on luxury during the coming year. Danziger says, "It isn't a doom-and-gloom scenario yet, but marketers need to exert extra effort to encourage the affluents who are the prime target for luxury brands to shop and to buy. Austerity is the watchword for affluents' attitudes in the current market, which reflects a return to simplicity and a back-to-basics lifestyle."

    Affluents are finding a 'new normal' where substance trumps style and conspicuous consumption is passť

    "One finding from the Bain/Altagamma study with which I totally agree: that the luxury market is entering, as the report states, a 'new normal' phase with the notable absence in the short term of explosive phenomena,'" Danziger states. "While the developing countries have enjoyed the most attention from growth-hungry luxury brands, the fact remains that the U.S. is the largest market for luxury goods and services in the world due to the distribution of affluence and wealth among the population." For example, the top 20 percent of U.S. households (i.e. annual income over $104,087) account for 51 percent of all income, and the top five percent (income over $191,150) take in 22.3 percent of the nation's income, according to a 2014 report on the middle-class from the Congressional Research Service. Further, net worth of U.S. households and non-profit organizations, which includes the value of homes, stocks and other assets minus debts and other liabilities, reach $81.8 trillion in the first quarter of 2014, its highest level on record, according to the Federal Reserve.

    "The U.S. consumer market is vital to luxury and high-end marketers, yet the affluent consumers view of their wealth and spending has fundamentally changed post-recession. The new demonization of income inequality and the excesses of the 1% has created an environment where affluent consumers expressing a more understated, even modest, lifestyle, that focuses more on substance than style and on quality at a price that respects the customer's intelligence and personal values. Rather than conspicuous consumption and status symbols that proclaim one's wealth, the affluent are embracing brands that give them bragging rights to how smart a shopper he or she is. For example, this past winter's 'It' coat embraced by the wealthy wasn't one from a tony Madison Avenue furrier, but the Uniqlo Ultra-Lite Down Jacket which sold for less than $70. This jacket is cool and chic in an anti-status, smart-shopper way," Danziger explains.

    The new Luxury Report 2014 provides research and data needed for marketers to connect with today's affluent luxury consumer who has profoundly changed in the post-recession environment. "Marketers can no longer assume that affluent consumers are willing to spend up without a compelling reason and luxury marketers need to modify their positioning and branding to match the new normal luxury style. The recent recession has reshaped the American economy in ways that will affect us for decades to come. Affluent consumers no longer feel like wearing a symbol of wealth, knowing that the American middle class has been severely weakened from the recession. Most affluents, both the HENRYs (income $100-250K) and Ultra-affluents ($250K+), would rather throw their lot in with the 99 percent and avoid the conspicuous consumption that characterized luxury in previous years," Danziger concludes.

    More about the Luxury Report 2014

    The Luxury Report 2014 provides research analysis and data about trends in the affluent luxury consumer market. It gives marketers three key perspectives about this customer:

    • Demographics of the affluent, which tells us more about the customers who can afford to buy luxury and high-end goods and services;
    • Purchase behavior over the past six years which tracks what luxuries they have bought, how much they spent, where they made their purchases and the brands that they have bought; critical since past consumer behavior often predicts future behavior; and
    • Affluent Consumer Psychology or psychographics which tells us about the attitudes and values and how marketers can tap the psychology of those who have the willingness to spend.

    For example, Unity Marketing's tracking of affluent consumer behavior highlights that in today's luxury market, consumers' income demographics (i.e. who has the most money to spend) are less important than psychographics that describe one's willingness to spend. Further, people's willingness to spend today is more influenced by the customer's age, i.e. younger, rather than income. High income ($250k+) and young age (under 45 years) are the highest-spending customers in the luxury market today. The question for marketers is how are you positioned to capture this customer?

    The Luxury Report 2014 examines consumers' buying behavior and spending habits in 21 important categories in the luxury market. Specifically:

    Home Luxuries

    • Art & Antiques;
    • Home Electronics;
    • Furniture, Lamps & Floor Coverings;
    • Garden & Garden Products;
    • Kitchenware, Cookware and Cooks' Tools & Housewares;
    • Major Home Appliances, Bath, Window Coverings & Building Products;
    • Linens, Fabrics and Soft Goods;
    • Mattresses & Sleep Systems; and
    • Tabletop.

    Personal Luxuries

    • Clothes & Apparel;
    • Cosmetics, Beauty & Fragrance Products;
    • Fashion Accessories;
    • Jewelry;
    • Watches;
    • Personal Electronics; and
    • Wine & Spirits.

    Automobiles Experiential Luxuries

    • Luxury Dining;
    • Travel;
    • Spa, Salon, Massage Services; and
    • Physician Services.

    This report doesn't stop with the data -- It pushes further to help marketers and retailers put the information to use

    The Luxury Report 2014 translates data into information and insights that marketing executives can use to make critical strategic decisions. It makes the research data and findings accessible and useable. It provides marketers with three powerful perspectives: "The What", "So What" and "Now What." This report contains advice and guidance for luxury marketers to take action on the research findings revealed

    Special feature: Find out which of the five different types of luxury consumers are your best customers

    A special feature in Unity Marketing's Luxury Report 2014 is a psychographic profile of five key types of luxury consumers. Which of these personalities does your brand target? How can you attract more good personality prospects to your brand?

    • X-Fluents (Extremely Affluent) who spend the most on luxury and are most highly invested in luxury living;
    • Butterflies, the most highly evolved luxury consumers who have emerged from their luxury cocoons with a passion to reconnect with the outside world. Powered by a search for meaning and new experiences, the butterflies have the least materialistic orientation among the segments, yet they have have strong spending potential for the right brand experience;
    • Luxury Cocooners who are focused on hearth and home. They spend most of their luxury budgets on home-related purchases;
    • Aspirers, those luxury consumers who have not yet achieved the level of luxury to which they aspire. They are highly attuned to brands and believe luxury is best expressed in what they buy and what they own.
    • Temperate Pragmatist a newly emerged luxury consumer who is not all that involved in the luxury lifestyle. As their name implies, they are careful spenders and not given to luxury indulgence.

    Special Offer: Order your copy of the Luxury Report 2014 and receive a FREE copy of Unity Marketing's best-selling trend report: Meet the HENRYs: Positioning for the mindset of the High-Earners-Not-Rich-Yet mass affluent consumers (a $695 value) June 2014, (266 pages in PDF) Subscription Price: $3,500 (Subscription fee for Luxury Report 2014 can be credited towards the annual Luxury Tracking Study for first-time subscribers)

    The Unity Marketing Luxury Report 2014 is also available in special editions containing subsets of the data.

    Quantity:

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