PRESS RELEASE

Luxury Consumers Express Caution in Spending During 1st Quarter 2004
Luxury goods consumption index drops 2.2 points to 97.8 in March

Stevens, PA April 15, 2004—After ending 2003 on a high note, luxury consumers stepped back slightly in their overall confidence with the March 2004 Luxury Consumption Index at 97.8, compared with a baseline of 100 in January.   The luxury consumption index is a tool prepared by Unity Marketing (www.unitymarketingonline.com) to help luxury marketers assess the vitality of the affluent market.

  “Luxury consumers started the new year feeling very positive about their financial well-being, but that moderated during the first quarter 2004.” says Pam Danziger, president of Unity Marketing. “The luxury consumers’ expectations for future spending on luxuries dipped in relation to their ability to spend.”

  A key psychographic characteristic of the luxury consumer is a cautious outlook about their personal finances. “These consumers are heavily invested in maintaining their luxury standard of living and do not spend anywhere near to their capacity. Their expectation for luxury spending lags their feelings of financial well-being. Far from viewing luxury consumers as spend-thrifts, marketers need to understand that these thrifty ‘rich folks’ are always on the hunt for a bargain,” Danziger explains.

  Commenting on the luxury market’s prospects through 2004, Thomas Bodenberg, statistician for Unity Marketing and former Conference Board executive says, “Despite conflicting economic news, and the uncertainty in the marketplace caused by the Iraqi conflict, the 97.8 index shows merely a minor deterioration in confidence and purchase intentions toward luxury goods and services. As we enter the election cycle in full force, we can better examine the impact of the economic and political environment on present and future expenditures for luxury goods and services.”

This benchmark index of luxury buyers is calculated from a sample of 650 upper-income households throughout the United States. This panel, with household incomes over $75,000 (one-third over $150,000) represents one of the largest longitudinal studies of high-end luxury consumption of goods and services.   Panelists reported purchasing behavior of luxury goods and services over the most recent two months, as well as attitudinal and expectation data about their households and the health of the economy in general.

  Unity Marketing publishes its Luxury Tracking Study quarterly with the next due in June 2004.  For more information, visit this link or call Pam Danziger at 717-336-1600.

About Unity Marketing
Founded in 1992 , Unity Marketing (www.unitymarketingonline.com) is a marketing consulting firm that specializes in consumer insights for luxury marketers. Using its proprietary why people buy research strategy, Pam Danziger, company founder and author of Why People Buy Things They Don't Need (Ithaca, NY: Paramount Market Publishing, 2002) uncovers the motivations, desires and emotional needs that drive consumers to buy. Unity also publishes market research studies on the luxury market, jewelry, garden, pet accessories, home furnishings, gifts and collectibles, greeting card and stationery, tabletop, art and wall decor, personal care and cosmetics markets, as well as the Luxury Business newsletter. Pam is currently working on her new book, Let Them Eat Cake: Marketing Luxury to the Masses (as well as the Classes), to be published in 2004.

To arrange an interview or other media inquiries contact: Len Stein, Visibility, 914-712-2610; lens@visibilitypr.com