● As the overall U.S. economy grew modestly during the first half of 2003, sales from “new luxury” players,
whose high-quality products are targeted to middle-market consumers but cost more than traditional
items, rose 18%, according to new research from The Boston Consulting Group (BCG).
“This new research reinforces that it’s the American consumer’s increasing desire, and willingness
to pay more for quality and something special that provides continued buoyancy for the economy,”
said Michael J. Silverstein, BCG partner. New luxury has already delivered $400 billion in
total revenue. Some new luxury companies include JetBlue Airways, Coach, Starbucks, The
Cheesecake Factory, Restoration Hardware and Bed Bath & Beyond.
“Consumers’ desire for this kind of quality and emotional reinforcement through goods is the
result of demographic and cultural shifts—rising household incomes and home equity, high divorce
rates, the changing role of women and an increased awareness of ‘self,’” said Mr. Silverstein.