Join our mailing list:

New Unity Marketing Survey Finds that Affluents Will Continue to Support their Favorite Charities in 2009

The results of the survey point to a cultural shift taking place among affluents. They are turning away from conspicuous consumption toward a desire to do good and give back.

Stevens, PA February 24, 2009 -- Despite the current economic crisis and continuing recession, affluent consumers expect to maintain their current level of charitable giving throughout 2009. Some 66 percent of those surveyed said they are likely to keep their level of charitable contributions the same in 2009 as in 2008. This according to Unity Marketing's latest survey of 1,166 luxury consumers (average income $199.2k; age 45.6 years; 61 percent female and 39 percent male).

In even better news for charities that are highly dependent upon their affluent patrons for support, some 15 percent of those surveyed -- and 26 percent of those with incomes of $250,000 and above -- plan to increase their contributions to charitable causes this year.

Over 80 percent of affluents surveyed gave back

Over 80 percent of the affluents surveyed reported some level of charitable giving in the past year. More than 70 percent said they donated money to a charity or non-profit. Some 39 percent gave of their time by volunteering to a cause and about one third (30 percent) attended a fund raising event sponsored by a charity or non-profit.

Affluent consumers are also highly attuned to their indirect charitable giving by buying products where a percentage of the proceeds are donated to a cause or purchasing products from a retailer that supports a specific cause. Some 43 percent of affluent bought a product that gives back, while 32 percent supported a retailer that supported a cause.

The culture is shifting and the lifestyle of luxury indulgence is no longer the American ideal

Commenting on the results of this recent survey, Pam Danziger, president of Unity Marketing, a consumer insights firm that specializes in understanding the mindset of the affluent consumer market, said, "Luxury consumers' desire to do good and give back is a bellwether of more profound changes taking place in the luxury market. Seems like only yesterday that luxury was what everyone aspired to and a badge of honor for those who enjoyed the high life. How quickly luxury has gone bad. In a day when CEO bankers go to Capitol Hill with their tail between their legs and their hands out for more taxpayer money, luxury has lost its luster. Luxury is now synonymous with excessive indulgence, self-gratification, and an arrogant, wasteful lifestyle."

"The culture is shifting and the lifestyle of luxury indulgence is no longer the American ideal. What is emerging is a shift in the culture that disdains the pursuit of materialism, the drive to have and own more stuff, to a new age of post-materialism," Danziger continues. "Affluent consumers have been on an extended spending spree for the past 10-20 years, which gave rise to the rapid growth of the luxury industry. Now that the luxury bubble has burst, consumers have discovered that the pursuit of material wealth isn't the answer.

"Affluent consumers no longer measure their achievement in the things they have and own or by the size of their home or brand of their car. They are measuring life success in new ways, including what they contribute to society and how they help make the world a better place for all of us. We can see the impact of this changing mindset play out in politics with the successful election campaign of President Barack Obama. He tapped into this new psychology of caring and sharing that is taking hold in the affluent consumer mindset," Danziger says.

Luxury Marketers: Did you feel the ground shift beneath your feet on Inauguration Day?

Barack Obama gave voice to this cultural shift on inauguration day. The new president held up responsible consumerism, giving back and doing good as the ideals for this new age. In the inaugural address President Obama set out to "prepare the nation for a new age." He said the "ground has shifted beneath them," referring to those who fail to recognize the emerging new age. Evidence of this new age is found throughout the culture, especially in our weakened economy which is the "consequence of greed and irresponsibility on the part of some," especially those who "prefer leisure over work or seek only the pleasures of riches and fame."

President Obama's inaugural speech delineates a new path for the country and a new course for its citizens. It calls for a return to traditional American values -- middle-class values -- that are what made America great. It calls for an end to greed, leisure living, gain and reward without hard work. It demands we take responsibility for those with less and lend a helping hand where we can. And it challenges us to protect the environment and live in a responsible and sustainable way.

When the recession is over, the luxury consumer market will be very different than before this recession

Commenting on the new way Americans are viewing luxury and affluence, Danziger says, "When the current recession is over, we will find the luxury market is going to be very different from the way it was before the current crisis. These changes we see in how people view luxury and their value system that rejects rampant materialism will be lasting. The next generation of affluent consumers are thinking about the effect of their consumption on future generations. They are learning that conspicuous consumption is not the way to grow wealth, to achieve happiness or to make their life more meaningful. Affluents who have much are giving back, doing good, taking concrete steps to make the world a better place."

"As this new age dawns, luxury doesn't mean the same thing it once did. People with money will always want the best quality, best workmanship, best style and design, but they want the emphasis on concrete attributes and values that are measurable and defined by facts and figures, not image or status," Danziger explains.

"Luxury is turning inward not to an external or outward show of status or wealth, but to an inner state of being defined by personal happiness and an outstanding quality of life," Danziger concludes.

New study tracking affluent consumers luxury purchases published

Unity Marketing has just published the results of its most recent luxury tracking survey, 4Q2008 Luxury Consumer Tracking Study fielded January 2009 and including a special report: Luxury Consumers and Their Charitable Giving. The report details affluent consumer luxury purchases in the past quarter, including what luxuries they bought, how much they spent and where they made their luxury purchases. The report also details the luxury brands they favored.

The 4Q2008 report includes all historical data for the 2008 sales year. The subscription fee for the 4Q2008 Luxury Consumer Tracking Study can be applied toward the purchase of the Luxury Report 2009, the annual compilation of the 2007 and 2008 luxury tracking study results, which will be available shortly. To learn more about the 4Q2008 luxury tracking study, visit this link http://www.unitymarketingonline.com/cms_luxury/luxury/luxury3/Luxury_Tracking_4Q2008.php

About Pam Danziger and Unity Marketing

Pamela N. Danziger is an internationally recognized expert specializing in consumer insights, especially for marketers and retailers that sell luxury goods and experiences to the masses or the 'classes.' She is president of Unity Marketing, a marketing consulting firm she founded in 1992.

Advising such clients as PPR, Diageo, Google, Waterford-Wedgwood, Lenox, Swarovski, GM, Orient-Express Hotels, Italian Trade Commission, Marie Claire magazine, The World Gold Council, and The Conference Board, Pam taps consumer psychology to help clients navigate the changing consumer marketplace.

In recognition of her ground-breaking work in the luxury consumer market, Pam received the Global Luxury Award presented by Harper's Bazaar for top luxury industry achievers in 2007.

Her latest book is Shopping: Why We Love It and How Retailers Can Create the Ultimate Customer Experience, published by Kaplan Publishing in October 2006. Her other books include Let Them Eat Cake: Marketing Luxury to the Masses -- as well as the Classes, (Dearborn Trade Publishing, $27, hardcover) and Why People Buy Things They Don't Need: Understanding and Predicting Consumer Behavior (Chicago: Dearborn Trade Publishing, 2004).

				Search: