Consumers’ spending on luxury goods is growing at a modest rate, while spending on experiences is booming. According to Unity Marketing’s Unity Luxury Consumer Survey, the average amount spent by an affluent household on luxuries—including home and personal luxuries, automobiles and luxury experiences—rose 3.8% from $50,640 in 2004 to $52,588 in 2005.
The average luxury consumer household spent 4.6% less on home luxuries in 2005 ($19,990) as 2004 ($20,948). Personal luxury spending, on things like luxury apparel, fashion accessories, jewelry and watches, wine and spirits, pet luxuries and pens and desk accessories, rose 5.6% to $10,007 in 2005.
Luxury consumers‚ spending on experiences including travel, dining, entertainment, spas and beauty services and home services, nearly doubled, from an average of $11,632 in 2004 to $22,746 in 2005 (a 95.5% increase).
Americans are growing wealthier and feel entitled to spend on luxury. As luxury consumers’ incomes rise, so does their spending. But Unity Marketing found that near-affluent households are buying luxuries at about the same rate as super-affluent households, only they are spending less. Consumers at all income levels feel entitled to luxury. More info: www.unitymarketingonline.com.