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Luxury Consumption Index Reaches 104.8 points as Luxury Consumers Express Confidence in Economy
As quickly as it fell in third quarter, the Luxury Consumption Index reaches its highest point ever at end of fourth quarter, Unity Marketing reports
Stevens, PA January 25, 2006 - Luxury consumers' confidence rose 10.4 points to reach an all time high at the end of fourth quarter 2005, according to Unity Marketing's exclusive Luxury Consumption Index. This comes after it dropped to 94.4, its lowest point ever, at the end of the third quarter 2005. The index measures luxury consumer feelings about their personal financial status and the prospects for the country as a whole.
"Luxury consumers' attitudes about the economy and their personal financial status have sea-sawed over the last six months, but ended 2005 with a strong upward trend," said Pam Danziger, president of Unity Marketing and author of Let Them Eat Cake: Marketing Luxury to the Masses - as well as the Classes. "Significantly more luxury consumers feel their personal financial situation is better now than three months ago and that the country overall is better off. But while they feel better, the residual effects of the ups-and-downs they experienced in the recent past makes them a little tighter when it comes to luxury spending. In other words, they are more likely to take any windfalls to the bank, rather than to the store."
In a survey of 1,126 luxury consumers (average income $139.2k and age 41.1 years) conducted in association with Unity Marketing's quarterly luxury consumer tracking study, the typical luxury consumer spent $14,614 on luxuries in the fourth quarter, virtually the same level of spending ($14,534) as reported in the third quarter.
Commenting on the increase in this quarter's Luxury Consumption Index, Thomas Bodenberg, Unity Marketing's economic forecaster said, "The strong increase in the index this quarter reflects a belief that the economy has 'weathered' the effects of Katrina. Also the mild winter has lessened the impact of rising oil prices on heating costs. In addition, the growing opposition to the Iraq War indicates a strong belief that U.S. involvement has a finite limit, given the mid-term election cycle."
Unity Marketing publishes its Luxury Tracking Study quarterly with the next due in March 2006.
About Unity Marketing's Luxury Consumer Tracking Study
Every quarter Unity Marketing conducts a Luxury Consumer Tracking Study among 1,000+ luxury consumers. For the fourth quarter 2005, a total of 1,126 consumers were surveyed with an average income of $139.2k and average age 41.1 years. Year-end 2005 statistics are compiled from the four tracking studies during the year and will be published in Unity Marketing's Luxury Report 2006 - Who Buys Luxury, What They Buy, Why They Buy
In the tracking study detail purchase information is collected on these categories of luxury:
Home Luxuries:
- Art, Wall Décor & Antiques
- Electronics and Photography, such as computers, televisions, home entertainment centers, cameras, PDAs, etc.
- Home Decorating Fabrics, Window & Wall Coverings
- Furniture, Lighting and Lamps, and/or Floor Coverings, including rugs
- Outdoor, Lawn, Patio & Garden Products, such as lawn furniture, patio accessories, plants, grills, etc.
- Kitchenware, Cookware & Housewares
- Kitchen Appliances and Bath & Building Products, such as cabinets, bathtubs, etc. for home remodeling
- Linens & Bedding
- Tabletop, Dinnerware, Flatware, Servingware, Decorative Accents
Personal Luxuries:
- Automobiles and/or recreational vehicles, such as boats, RVs, etc.
- Clothes & Fashion Apparel
- Fashion Accessories, such as handbags, wallets, suitcases, shoes, etc.
- Fragrance, Cosmetics and/or Beauty Products and Skin Care regimes
- Jewelry
- Watches
- Pet Products
- Wine & Spirits · Pens & Writing Instruments
Experiential and Luxury Services:
- Travel and vacations
- Dining and restaurants
- Entertainment
- Personal and health services, such as beauty treatments, spa, massage and cosmetic procedures, health club, country club, etc.;
- Home services, such as landscape, housecleaning, home remodeling, home decorating, party planning and catering, etc.
Luxury brands & magazines
Also included in the tracking study are measures of luxury brand awareness and usage as well as magazines luxury consumers purchase. View a listing of brands.
This is a semi-custom research service with subscribers adding specific product categories and their brands and the brands of five key competitors to the survey. In addition, subscribers can add up to six personal questions to the survey through the year. See more information about subscribing to luxury tracking, or call Pam Danziger at 717-336-1600.
About Pam Danziger and Unity Marketing
Pamela N. Danziger is a nationally recognized expert specializing in consumer insights for luxury marketers, whether they sell luxury to the masses or the 'classes.' She is president of Unity Marketing, a marketing consulting firm she founded in 1992.
Advising such clients as Lenox, Cartier, Herend, Rémy Amerique, Stearns & Foster, Prudential Fine Homes, Baccarat, The World Gold Council, The Conference Board and American Express, Danziger taps consumer psychology to help clients navigate and master the changing luxury marketplace. Her latest book, Let Them Eat Cake: Marketing Luxury to the Masses-as well as the Classes, (Dearborn Trade Publishing, $27, hardcover) is in book stores now. She is the author of the recent book, Why People Buy Things They Don't Need: Understanding and Predicting Consumer Behavior (Chicago: Dearborn Trade Publishing, 2004). She is working on her next book, Shops That Pop! Predicting the Future of Shopping set for publication in Fall 2006.
She has appeared on CNN's In the Money, NBC's Today Show, CNBC, CNN International, CNNfn, CBS News Sunday Morning, Fox News' Your World with Neil Cavuto, ABC News Now, NPR's Marketplace and is frequently called upon by the Wall Street Journal, New York Times, American Demographics, Women's Wear Daily, Forbes, USA Today, Associated Press, Los Angeles Times, Chicago Tribune for commentary and insight.
For media, Unity Marketing can make tables, charts and graphs available about the luxury market upon request. Contact: Pam Danziger, 717-336-1600
February, 2006 (About 100 pages)
Published Price: $2,500
(Please Note: With the purchase of this report, subscribers may apply subscription fee for 4Q2005 report to annual Luxury Tracking subscription) |
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Major Findings
More Information
Luxury Brands included in the Study
Luxury Consumption Index
Table of Contents
Luxury Tracking 2005 Survey, Methodology & Questionairre
To Order:
Paper Copy
Downloadable PDF
To subscribe to the Luxury Tracking Consumer Survey, please call Pam at 717-336-1600.
3Q2006: Luxury Consumer Tracking Study
2Q2006: Luxury Consumer Tracking Study
1Q2006: Luxury Travel
4Q2005: Luxury Tracker 2005 Wrap Up
3Q2005: The Luxury Internet Shopper
2Q2005: Luxury Consumers Continue to Invest In their Homes
1Q2005: What Influences Luxury Customers To Buy (Luxury Tracking Report 1Q2005
4Q2004: Luxury Gifting (Luxury Tracking Report 4Q2004
3Q2004: The Frugal Luxury Shopper (Luxury Tracking Report 3Q2004
2Q2004: Motivators to Buy Luxury: The Drive to Self-Actualization
1Q2004: Luxury Brands and their Role in Luxury Purchases
Luxury Consumer Tracking Study Project Description & Methodology
Luxury Tracking for Publishers
To subscribe to the Luxury Tracking Consumer Survey, please call Pam at 717-336-1600.
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