Wednesday, 11th May 2005 (4151 views)

The US Luxury Consumption Index rose 5.3 points to reach 100.9 at the close of the first quarter 2005, new figures reveal.

Reversing a downward trend in luxury consumer confidence tracked since the second quarter 2004, the latest survey of luxury consumers conducted in association with Unity Marketing's quarterly luxury consumer tracking study discovered that consumers are feeling more confident about their financial status.

The poll of 732 luxury consumers (average income $132,800) found that 36 per cent of respondents said their financial condition was better off now than at the end of 2004 and many expect to spend more on luxury items, such as jewellery, as a result.

"Despite rising gas prices and feelings of uncertainty about the economy as a whole, luxury consumers in the first quarter of 2005 are beginning to see light at the end of the tunnel in terms of their personal financial status," said Pam Danziger, president of Unity Marketing and author of Let Them Eat Cake: Marketing Luxury to the Masses -- as well as the Classes.

Spending on luxuries in the first quarter 2005 rose 11 per cent from $10,596 in Q1 last year to $11,726 for the first quarter of 2005.

Unity Marketing reports that prospects look strong for the rest of 2005 in terms of luxury spending, with 28 per cent of luxury consumers expecting to spend more buying luxury over the next twelve months and 55 per cent expecting that their financial status will continue to improve in the next twelve months.

 

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