Luxury Spending Up in Second Quarter, But Cloudy Patches Forecasted Ahead

Affluent consumers went on a spending spree for luxuries in the second quarter 2007, according to the results of recent survey by Unity Marketing. Conducted at the close of the second quarter 2007, Unity Marketing's Luxury Tracking survey of 1,000 affluent consumers revealed that the typical luxury consumer spent $15,283 buying luxury goods and services during the second quarter, 9 percent more than the average expenditure of $14,024 in the first quarter.

While spending went up in the second quarter, luxury consumers' confidence as measured by future spending intent was at its lowest level in over a year. å±?ith spending going up this quarter while confidence in the future went down, this suggest an 'eat, drink and be merry' attitude for now, as these consumers foresee some cloudy patches ahead, said Unity Marketing's economic forecaster Tom Bodenberg. å...¸he decline in future expectations can be accounted for by continued uncertainty in the housing market, instability caused by the increasingly tense Iraqi/Iranian situation, and the continued high price of refined petroleum and uncertainty about energy supply.'

The silver lining in the doom-and-gloom forecast for the luxury market is the most aggressive future buying lies with the younger, upper-most income segments of the luxury population. é?­s opposed to the older luxury consumers, the young affluents are more likely to see their financial situation improving over the next twelve months which gives them greater confidence to spend more on the luxuries they desire, é?½aid Pam Danziger, president of Unity Marketing. In the second quarter the young affluents also continued their aggressive purchasing of luxuries, spending 39 percent more buying luxuries as compared to those over 40 years old.

æ"¢or luxury marketers concerned with their future, the passions and desires of the young affluents -- what I call the 'Want-It-All' generation -- is where they need to focus their marketing planning and strategies,' Danziger says.