A new report on luxury spending predicts a dismal
year ahead for luxury retailers. The Affluent Market Tracking Study is a depressing read for luxury manufacturers and retailers: consumers are not planning on increasing spending on luxury items any time soon.
There's not much hope in sight for the luxury market, according to a new study.
Spending among U.S. luxury consumers has reached a record low because of the economic outlook, and designer apparel and fine jewelry are among the categories taking a hit, the American Affluence Research Center said in a report released Thursday.
In six of 17 product categories surveyed, half or more than half of the respondents plan to spend less during the next 12 months. The six are: designer apparel; fine jewelry and watches; dining in upscale restaurants; cameras and photographic equipment; antiques, art or wine collectibles, and political contributions.
For the remaining 11 categories, which include dining in casual and family restaurants, entertainment (concerts), major home appliances and home furniture, more than 25 percent plan to spend less.
The study found that more than two-thirds of high-end consumers have no plans to make any of eight major expenditures in the next 12 months: motor vehicles; cruises; boats; major remodeling; building or purchasing a primary home, and building or purchasing a vacation residence. Acquisition plans for all eight major items are equal to or at historic lows.
These numbers reflect an all-time low for this particular report. 81% of respondents say that they have reduced their expenditures on all items in the last year and plan to do the same in the year ahead. Over half of those surveyed will reduce or eliminate vacations because of the economy.
