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Luxury Consumption Index (LCI) Is Highly Predictive of Shifts in the GDP, U.S. Economy
Unity Marketing's proprietary LCI provides valuable intelligence for marketers and investors
Learn More about the LCI
Danziger to hold webinar to review latest LCI and key highlights of latest Luxury Tracking Survey
June 1, 2012 Stevens, PA -- As an investor, marketer, or business decision-maker, your personal and company fiscal health depends on knowing how the U.S. economy will behave in the quarters to come. If this describes you, Unity Marketing's proprietary Luxury Consumption Index (LCI) is the tool you need to predict changes in the luxury consumer market, as well as the overall U.S. economy and GDP.
"The LCI has given marketers advance warning about major changes in the U.S. economy as measured by GDP numbers," says Pam Danziger, president of Unity Marketing and author of the new book, Putting the Luxe Back in Luxury. For example, look no further than the recent economic recession.
"Government figures place the official beginning of the recession at December 2007, but the LCI showed an accelerating downturn in the purchasing behavior of affluent consumers two to three quarters prior," says Danziger. "Likewise, while official figures mark the end of the recession in June 2009, we saw the recovery coming two quarters in advance due to dramatic increases in affluent spending. This is enough lead time to change a product line introduction, increase production, or alter an investment portfolio to take advantage of the impending shift."
Why is the LCI so reliably predictive? Affluent consumers are the heavy-lifters of the U.S. economy with the top 20 percent of earners accounting for more than 40 percent of all consumer spending. The decisions these consumers both mirror and drive the behavior of the U.S. population as a whole.
What's on the Horizon?
Danziger sees some clear ambivalence on the part of the affluent consumer that is reflected in this quarter's LCI. This ambivalence will likely translate into more cautious consumer spending into the Christmas season and beginning of 2013. Retailers and marketers are advised to be reserved in expecations for the next two quarters. Customers with means will still indulge, but they are very particular about where they invest their spending. Quality over quantity is what they demand.
"Unity Marketing continues to track uncertainty among affluent consumers when it comes to their feelings of confidence in their personal financial status and how that translates into spending on luxury or high-end purchases. Luxury consumers are more positive about the country overall and their personal financial prospects over the next twelve months. Yet they are reluctant to commit to significantly increased levels of spending on luxury over the next twelve months," explains Danziger. "Further, they are conflicted about their short term financial situation, with 55 percent of those surveyed saying they think their financial status over the next three months will remain the same, neither rising nor falling in the short term."
As for the next quarter's GDP, Tom Bodenberg, Unity Marketing's economist, predicts a slight decline in GDP is likely. "We expect to see a decline of about 3/100ths of one percent. The latest LCI, though it posted a small rise, wasn't as strong as it should have been. It reflects a wariness in the economy. Were the economy stronger fundamentally, the rise in the LCI would have been greater. But since it wasn't, the LCI is indicative of an economy which is stationary at best."
Take Action>> Learn What the LCI Predicts for the Upcoming Months in the Luxury Market
Attend webinar on Thursday, June 7, 2012 at noon e.d.t.
Join Pam Danziger, president of Unity Marketing, on Thursday June 7 at noon e.d.t. as she shares the results of Unity Marketing's latest survey of nearly 1,300 luxury consumers (average income $274,900) and what it predicts for the rest of 2012 into 2013.
Register today to learn:
- The latest trends in what's hot and what's not in 20 different categories of luxury goods and services
- What Unity Marketing's LCI predicts for the second quarter of 2012 about affluent consumer sentiment and expected spending
- Marketing strategies to help you be more successful connecting with the mindset of the luxury consumers
Pam Danziger will review the results of Unity Marketing's latest luxury tracking survey, the LCI, and what it predicts for the second quarter 2012 in the luxury market
In the webinar reviewing Unity Marketing's latest luxury tracking survey, Danziger will announce:
- The latest LCI and what it predicts for the remainder of 2012?
- What sectors in the luxury market are trending up? What sectors are facing a headwind that may depress sales?
- Key trends in luxury consumer spending and purchases in the 20 luxury categories included in the luxury tracking survey, specifically:
- Home Luxuries (furniture, art, linens, tabletop, home electronics and more)
- Personal Luxuries (fashion, fashion accessories, beauty, wine & spirits, jewelry & watches)
- Experiences, such as travel, dining, beauty/cosmetic services
- Learn what's hot, what's not in luxury today in products, brands, stores, shopping destinations
You can hear Pam Danziger share the latest results from Unity Marketing's Luxury Tracking Survey, conducted among 1,292 luxury consumers from April 9-20, 2012.
The webinar lasts about 60 minutes and is recorded for your convenience. Subscription fee for the webinar is $500 and covers an unlimited number of attendees at your site. Subscribers will also receive a copy of the detail slides used in the presentation. The recorded webinar will be stored through June 25, 2012 so you can hear the talk again. Finally, your subscription fee can be applied as credit toward the purchase of any Unity Marketing report.
Click this link to register to attend.