Fewer affluent consumers bought luxury clothing, fashion accessories, jewelry and other personal luxuries last year, according to the “Personal Luxury Report 2010,” by Unity Marketing.
The survey found that just 44% of affluent consumers bought any personal luxury in 2009, down 10% points from 2006, when 54% of affluents made any personal luxury purchases.
Those Who Spend, Spend More
It is a sharp drop from the high levels reached in 2006, said Pam Danziger, president of Unity Marketing and author of the report.
That said, other trends are in play as well that are cause for optimism among luxury marketers and retailers. “Despite lower purchase levels, the affluents who bought personal luxuries in 2009 spent nearly 50% more on their purchases than they did in 2008. This indicates a trend toward a smaller group of high-spending consumers that must be carefully targeted in order for marketers’ companies to remain healthy,” Danziger said.
Findings from the report include:
- American luxury car brands made real progress in terms of greater purchases among affluents in 2009, as Euro-brands declined in purchase.
- Department stores lost share of affluents’ clothing purchases, while patronage among luxury branded boutiques increased over 2008 levels. At the product level, men’s clothing, including casual, business and outerwear, was a bright spot in this category.
- Department stores also lost share of affluents’ fashion accessories spending, while discount stores, outlet stores and warehouse clubs doubled their take in accessories spending over 2008 levels. In products, affluents were more likely to trade down to mass brands in women’s shoes. As in clothing, men’s accessories were a bright spot.
- While department stores still retain the #1 slot as destination leader, the specialty stores are rapidly closing the gap as measured by share of affluent shoppers’ spending.
- In wine & spirits, a number of items rank among personal luxuries fastest growing products as measured by increased spending during 2009, including high-end Scotch, Whiskey, Rum, Bourbon and Cognac.
- Growth in purchases of women’s luxury jewelry was? modest in 2009, only up 6.5% over 2008 levels. Men’s jewelry really popped, however, with spending up more than double 2008 levels.? Men’s jewelry now accounts for about 20% of the luxury consumers’ jewelry expenditures, a substantial increase over the 10% in 2007.
- In personal electronics, laptop computers were tops, followed by cellular phones and MP3 players. Electronic specialty stores captured 40% share of spending.
About the survey: The 2009 survey sample included 4,739 luxury affluent consumers (average income of $220,200), representative of the 22 million affluent households in the country.