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In 2006 Luxury Consumer Spending Shifts as Influence of Young Affluents in the Luxury Market Grows

Average spending by affluent consumers on luxury goods and services rose 6.6 percent in 2006 driven by vigorous spending by the nation's young affluents

Stevens, PA June 14, 2007 - While confidence in the U.S. economy continues to fluctuate, affluent consumers remain committed to maintaining their luxury lifestyles. In 2006 American affluent consumers continued to spend significant amounts of money indulging in luxury goods and services. The typical luxury consumer's spending on luxuries rose 6.6 percent to reach $56,065, following an increase of 3.8 percent in spending in 2005, according to the newly released Luxury Report 2007 - The Ultimate Guide to the Luxury Consumer Market from Unity Marketing.

"The Luxury Report 2007 is the authoritative source on the buying and spending habits of the luxury consumer," says Pam Danziger, president of Unity Marketing and author of Let Them Eat Cake: Marketing Luxury to the Masses as well as the Classes. "It is based upon surveys of over 4,000 luxury consumers with an average household income of $149,800 and age 43.1 years. The report tracks trends in the luxury market from 2005 and 2006. It provides a wealth of information for luxury marketers who must make business decisions based upon facts about the luxury consumer, not beliefs, assumptions or fantasies."

The Luxury Report 2007 provides details about what luxury consumers bought, how much they spent, where they made their purchases, and in certain categories, the luxury brands they purchased. For a listing of brands and product categories in the report, visit http://www.unitymarketingonline.com/cms_luxury/luxury/Luxury_Report_2007.php

According to the Luxury Report 2007, spending on luxury experiences declined slightly in 2006, with spending on home and personal luxuries on the upswing. This reverses a trend from 2005 when spending on experiences rose, while home luxury spending declined over 2004. Spending on luxury automobiles remained flat from 2005 to 2006.

The Luxury Report 2007 also details the fastest growing categories in the luxury market and provides data about what influences the consumers most in terms of buying products in the category, such as style and design; product or design brand; store where the purchase was made, etc. This insight is invaluable for luxury marketers, retailers and advertisers in terms of positioning their products and brands to appeal to the luxury consumers' mindset.

Young Affluents Spent Most Lavishly on Luxury Goods Last Year and Are the Key to Future Growth in the Luxury Market

"In 2006 the most vibrant segment in the luxury market was the young affluents -- the high-income, 40 year old and under consumers. I call them the 'Want-It-All' generation because they are such active purchasers of luxury, especially luxury goods," Danziger says.

"The young affluents spent a stunning 31.9 percent more on luxury in 2006 than the over 40 year olds. Young affluents have a ravenous appetite to enhance their lifestyles through luxury goods. Their hyperactive spending contributed to the shifts we found toward more luxury goods spending in 2006. But they are hardly slackers when it comes to enjoying luxury experiences. They spent just about the same as the older luxury consumers on luxury experiences in 2006."

Commenting on the young affluents, Danziger says, "Young affluents are becoming the key target market for luxury goods marketers. Being younger, they haven't had the time to acquire all the material trappings of the luxury lifestyle that the Baby Boomer and older luxury consumers have. So they have a ravenous appetite to enhance their lifestyles through luxury goods. Older affluents, on the other hand, don't need a lot of new 'stuff,' rather they spend more of their money on luxury experiences, like travel, fine dining and entertainment."

Unity Marketing has recently published a study that examines the emerging young affluent luxury market. Called the Generations of Luxury study, it investigates the young affluents market and defines he nine key trends that distinguish the young affluents from the older luxury consumers. For more information visit http://www.unitymarketingonline.com/cms_luxury/luxury/insights_study.php

"The Luxury Report 2007 and the Generations of Luxury study are sister publications that will be invaluable tools for luxury marketers who need to understand both where the luxury market is today and where it is going tomorrow," Danziger says.

Special Offer for Marketers Who Need to Understand the Present and Future of the Luxury Market

Unity Marketing's Luxury Report 2007 and Generations of Luxury studies are available at a special price. Subscribe to The Luxury Report 2007 and get the Generations of Luxury report for more than half-off the published price -- Get both reports for $5,000. Visit http://www.unitymarketingonline.com/cms_luxury/luxury/Luxury_Report_2007.php to order both reports.

About Unity Marketing's
Luxury Report 2007: The Ultimate Guide to the Luxury Consumer Market

Unity Marketing's Luxury Report 2007 is the definitive study of the luxury consumers' buying and spending habits, written by Pam Danziger, the nation's leading expert on the 'new luxury' market and based upon the kind of in-depth consumer research for which Pam Danziger and Unity Marketing are known.

This report provides vital market size, growth and demographics for anyone and everyone that sells luxury, from marketers, advertisers, retailers, service providers. The Luxury Report 2007 is the ultimate guide to today's luxury market. It is an essential tool to understand the dynamics of the luxury market, today and into the future.

This important new study of the luxury market provides the results of a two-year longitudinal research study of the luxury market conducted quarterly. This report is compiles detailed statistics collected in eight waves of Unity's quarterly Luxury Tracking surveys during 2005 and 2006. In both years over 4,000 luxury consumers were surveyed. The average income of respondents in 2006 was $149,800 and the gender distribution was 62 percent female and 38 percent male. The average age of respondents was 43.1 years, with 50 percent of respondents being Baby Boomers and 36 percent being GenXers.

Luxury Report 2007 was published May 2007 and is 225+ pages. Published price is $3,500.

Special Offer: Unity Marketing's Luxury Report 2007 and Generations of Luxury studies are available at a special price. Subscribe to The Luxury Report 2007 and get the Generations of Luxury report for more than half-off the published price -- Get both reports for $5,000. Visit http://www.unitymarketingonline.com/cms_luxury/luxury/Luxury_Report_2007.php to order both reports.

For media: Charts, tables and graphs are available on request.

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 Cartier, PPR, Diageo, Stearns & Foster, Waterford/Wedgwood, Prudential Fine Homes, Ritz Carlton, Orient-Express Hotels, The World Gold Council, The Conference Board and American Express, Danziger taps consumer psychology to help clients navigate and master the changing luxury consumer marketplace.

In recognition of her ground-breaking work in the luxury consumer market, Pam received the Global Luxury Award presented by Russia's Harper's Bazaar magazine 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).

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