Research and Markets: This important new study of the U.S. Luxury Market provides the results of a four-year longitudinal research study of the luxury market.DUBLIN, Ireland -- Research and Markets (http://www.researchandmarkets.com/reports/c38174) has announced the addition of The U.S. Luxury Market Continues to Boom to their offering. The international luxury market continues to generate dynamic revenue growth for the leading marketers. The aggregate results of the 25+ leading global luxury marketers in 2005 show average revenue growth of 10.9 percent. This follows average growth of 14.5 percent in 2004, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. a new study on the luxury market. The fastest growing luxury companies in this longitudinal study longitudinal study a chronological study in epidemiology which attempts to establish a relationship between an antecedent cause and a subsequent effect. See also cohort study. of the luxury market include Orient Express Orient Express Luxury train that ran from Paris to Constantinople (Istanbul) for over 80 years (1883–1977). Developed by the Belgian businessman Georges Nagelmackers, its luxuriously furnished cars became the symbol of glamour for European society. Hotels, Compagnie Financiere Richemont, Coach and Polo Ralph Lauren Polo Ralph Lauren (NYSE: RL) is American fashion designer Ralph Lauren's luxury lifestyle company. Polo Ralph Lauren specializes in high-end casual/semi-formal wear for men and women, as well as accessories, fragrance, and housewares. , all reporting growth of 18 percent or higher in 2005. U.S. luxury market reaches $1 trillion in 2005 The luxury market in the U.S. was equally strong last year. The report estimates the total luxury market to have reached $1,002.2 billion in 2005, up 11.6 percent from $898 billion in 2004. This includes luxury purchases by affluent consumers in the four luxury categories the report tracks -- home luxuries; personal luxuries, like fashion, jewelry jewelry, personal adornments worn for ornament or utility, to show rank or wealth, or to follow superstitious custom or fashion. The most universal forms of jewelry are the necklace, bracelet, ring, pin, and earring. , wine and spirits, pets; automobiles and luxury experiences, such as travel, dining, entertainment. "The key metric we used to track the U.S. luxury consumer market is the average amount spent by affluent households buying what they perceive of as 'luxuries,'" Pam Danziger. "In 2005 the typical luxury consumer spent $52,588 buying luxuries, up 3.8 percent over the average amount spent in 2004 of $50,640. "But that is only one value that we use to measure of the total size of the luxury market. We also factor in the overall percentage of affluent households buying luxuries and the total number of affluent households which numbers 30.2 million, including the near-affluent consumers (incomes $75,000-$99,999) who occasionally trade up to luxury," Danziger says. Key trend in luxury -- Shift to experiences In 2005 the dominant trend in the luxury market was a shift in spending more - significantly more - on experiential luxuries; in other words Adv. 1. in other words - otherwise stated; "in other words, we are broke" put differently , the things people do rather than material goods one has or one owns. The typical luxury consumer spent $22,746 on experiences in 2005 that is nearly double what they spent in 2004. Luxury consumers also spent nearly 20 percent more buying luxury automobiles, a highly experiential luxury good. While spending on experiences and automobiles went up, luxury consumers spent less overall on home luxuries, down 4.6 percent to $19,990. Out of the nine product categories classified under home luxuries, only three posted an increase in average spending. They were luxury kitchen appliances and kitchen and bathroom fixtures; kitchenware, cookware and cook's tools; and garden and outdoor luxuries. "In keeping with the experiential trend in luxury, the only home categories where luxury consumers are spending more are the ones that are experiential in that they function and are used in the home, not the purely decorative home categories," Danziger explains. Spending on personal luxuries like luxury apparel, fashion accessories, jewelry and watches, wine and spirits, pet luxuries and pens and desk accessories, rose 5.6 percent to $10,007 in 2005. A moderating factor in the growth of personal luxuries is that the super-affluent households (incomes $150,000 and above) didn't hold up their high 2004 spending levels, while spending on personal luxuries among the near-affluent ($75,000 to $99,999) and the affluent ($100,000 to $149,999) increased at a significant rate. Luxury goods hold less allure to the affluent - Life-changing experiences is what they crave We predict the trend toward experiences will continue to grow as luxury consumers spend more on life-changing experiences, while their need for more luxury goods wanes. "Today's luxury market is less about ostentation and materialism and more about a search for meaning and emotional fulfilment," Danziger says. "While luxury consumers live a very comfortable and materially enriched life, they are well aware that buying more stuff isn't going to give them the real fulfilment they desire." This is particularly prominent among the baby boom generation (which makes up 57 percent of all households with incomes of $100,000 or more), the leading edge of which turns 60 this year. At that life stage, they have already acquired the material trappings of luxury, so buying another mink coat mink coat highly prized fur apparel; traditionally associated with wealthy ladies. [Western Culture: Misc.] See : Luxury , diamond necklace or designer handbag just doesn't have the same appeal. But even the GenXer luxury consumers, who are at a more materialistic life stage and who spend proportionately more on luxury goods than boomers, also exhibit an equally strong passion for experiences. "When we ask luxury consumers about the source of their greatest luxury satisfaction, consistently the majority says that experiences give them the most pleasure. Luxury goods just don't provide the same luxurious feelings. And the more affluent you are, the more value you place on experiences. Luxury marketers, especially those grounded in the traditional luxury goods business, need to understand this experiential shift and develop strategies to turn their luxury goods into a real experience for their customers," Danziger explains. About This Luxury Report 2006 This Luxury Report 2006 is the definitive study of the luxury consumers' buying and spending preferences, written by Pam Danziger, the nation's leading expert on the 'new luxury' market. This report provides vital market size, growth and demographics for anyone and everyone that sells luxury, from marketers, advertisers, retailers, service providers. The Luxury Report 2006 is an essential tool to understand the dynamics of the luxury market, today and into the future. This important new study of the luxury market provides the results of a four-year longitudinal research study of the luxury market, which combines qualitative and quantitative methodologies. This report is compiled from detailed statistics collected in eight waves of the quarterly Luxury Tracking surveys during 2004 and 2005. In 2005 over 4,000 luxury consumers were surveyed. The average income of respondents in 2005 was $139,075 and the gender distribution was 65 percent female and 35 percent male. The average age of respondents was 42.9 years, with 47 percent of respondents being Baby Boomers See generation X. and 38 percent being GenXers. More details about products and brands included in Luxury Report 2006 Details about what these luxury consumers bought, how much they spent, where they made their purchases, and in certain categories the luxury brands they patronized pa·tron·ize tr.v. pa·tron·ized, pa·tron·iz·ing, pa·tron·iz·es 1. To act as a patron to; support or sponsor. 2. To go to as a customer, especially on a regular basis. 3. are reported in four major categories of luxury. Significantly more product categories and more brands were included in the 2005 Luxury Tracking surveys, notably: Home Luxuries - Art and Antiques (Specific data is collected on already-framed reproductions; unframed reproductions; custom-framed art or reproductions; other custom framing; original art; sculpture, statues, 3D art; antique furniture Antique furniture is the term for collectible interior furnishings of considerable age; often its age, rarity, condition, utility, or other unique features makes the furniture desirable. and collectibles; wall decor) - Electronics and Photography Equipment (Computers; iPods and other MP3 devices; cameras; cellular phones; televisions; DVD/video players; audio equipment; home entertainment systems; PDA's) - Furniture, Lamps and Floor Coverings (Lamps and lighting; upholstered furniture; wooden furniture; rugs and floor coverings) - Garden and Outdoor (Patio furniture pa´ti`o fur´ni`ture 1. Furniture such as chairs, tables, settees or loungers, suited for use on a patio , i.e. such that will not be damaged by exposure to rain, sun or other outdoor elements. ; grills; lighting accents; fencing; power gardening equipment; decorative pots; garden statues; chimeneas Chimeneas is a municipality located in the province of Granada, Spain. According to the 2005 census (INE), the city has a population of 1485 inhabitants. [ edit ] Municipalities of Granada - Home Decorating Fabrics, Wall and Window Coverings (Wall coverings, such as wall paper; ready-made curtains, drapes drape v. draped, drap·ing, drapes v.tr. 1. To cover, dress, or hang with or as if with cloth in loose folds: draped the coffin with a flag; a robe that draped her figure. ; window coverings, such as blinds, shades; home decorating fabrics for custom upholstery, curtains, drapes, etc.) - Kitchen Appliances, Bathroom Equipment and Building Products (Kitchen appliances, such as stoves, ovens, refrigerators; bathroom equipment, such as tubs, showers, toilets, fixtures; kitchen equipment, such as cabinets, countertops; air conditioning/filtration systems; water systems) - Kitchenware, Cookware, Housewares house·wares pl.n. Cooking utensils, dishes, and other small articles used in a household, especially in the kitchen. (Small appliances; cookware; bakeware; cutlery; storage and organization; barware bar·ware n. The glassware and other items used in preparing alcoholic drinks. ) - Linens and Beddings (Sheets and pillowcases; comforters, spreads; pillows and pillow accents; bath linens; mattresses and box springs; duvets and shams; feather beds and mattress covers; table linens) - Tabletop, Dinnerware, Stemware stem·ware n. Glassware mounted on a stem with a broad base. , Flatware (Dinnerware, including fine china, ceramic or stoneware stoneware, hard pottery made from siliceous paste, fired at high temperature to vitrify (make glassy) the body. Stoneware is heavier and more opaque than porcelain and differs from terra-cotta in being nonporous and nonabsorbent. , serving ware and decorative accents; crystal and glassware decoratives, stem ware, serving pieces, barware; flatware, including sterling silver flatware, serving pieces, decorative accents and other flatware) Personal Luxuries - Clothing and Apparel (Women's casual, dress/business, formal/evening, outerwear; men's casual, dress/business, formal/evening, outerwear; teen's clothing; children's clothing; baby clothing) - Cosmetics, Fragrance and Beauty Products (Fragrances, perfumes; bath and body lotions; face care; hair care; cosmetics and makeup; sun and tanning tanning, process by which skins and hides are converted into leather. Vegetable tanning, a method requiring more than a month even with modern machinery and tanning liquors, employs tannin; its use is shown in Egyptian tomb paintings dating from 3000 B.C. products) - Fashion Accessories (Women's handbags, shoes, brief cases, and fashion accessories, such as scarves, belts; men's wallets, brief cases and men's fashion accessories, including shoes, belts, etc.; luggage for men and women) - Jewelry (Women's and men's jewelry by type, including necklaces, earrings, bracelets, rings, bridal/wedding, pins and brooches; women's and men's jewelry by material, including 14k and above gold, sterling silver, platinum, gold plate or vermeil ver·meil n. 1. Vermilion or a similar bright red color. 2. Gilded silver, bronze, or copper. adj. Bright red in color. , costume jewelry costume jewelry n. Jewelry made from inexpensive metals and imitation or semiprecious stones. ; and women's and men's jewelry by stone, including diamonds, other precious gemstones, semi-precious gemstones, pearl, faux or man-made, no gemstone gemstone Any of various minerals prized for beauty, durability, and rarity. A few noncrystalline materials of organic origin (e.g., pearl, red coral, and amber) also are classified as gemstones. content) - Watches (Women's and men's watches by style, including formal/dress or casual/sports) - Wine, Liquor and Spirits (Wine, champagne, vodka, whiskey, rum, scotch, cognac Cognac (kônyäk`), city (1990 pop. 19,932), Charente dept., W France, in Angoumois, on the Charente River. The French brandy to which Cognac gives its name has been manufactured and exported from the city since the 18th cent. , bourbon Bourbon (b  rbôN`), European royal family, originally of France; a cadet branch of the Capetian dynasty. , sherry/port) - Pens, Writing Instruments and Desk Accessories - Pet Products Automobiles (including brands Acura, Audi, BMW BMW in full Bayerische Motoren Werke AG German automaker. Founded as an aircraft engine manufacturer in 1916, the company assumed the name Bayerische Motoren Werke and became known for its high-speed motorcycles in the 1920s. , Cadillac, Jaguar, Infiniti, Land Rover See LANRover. , Lexis Lexis® An online legal information service that provides the full text of opinions and statutes in electronic format. Subscribers use their personal computers to search the Lexis database for relevant cases. They may download or print the legal information they retrieve. , Lincoln, Mercedes, Porsche, Saab, Volvo) Experiential Luxuries - Dining - Entertainment - Home Services - Spa, Massage, Beauty and Cosmetic Services - Travel (Foreign and domestic luxury hotels, commercial air, resorts, cruises, group tours, adventure travel, private air travel) Now you can make critical business decisions based upon facts -- not beliefs, assumptions or fantasies This report provides the facts and figures you need to develop winning marketing and business strategies. By working with the facts, not fantasies, you have a much better chance of success marketing to the luxury consumers. This report gives you a horizontal view of the luxury market, recognizing that luxury marketers compete not just with companies within their vertical product niche, but across all luxury categories as well. Within each category of luxury, the key drivers for purchase are studied, such as role of luxury brand in purchase decision; the influence of sales price on purchase; where the shopper bought their last luxury; why they bought luxuries; whether their luxury purchases were made a gifts; and other motivational factors. Special feature: Find out which of the four different types of luxury consumers are your best customers A special feature in the Marketing's Luxury Report 2006 is a psychographic In the field of marketing, demographics, opinion research, and social research in general, psychographic variables are any attributes relating to personality, values, attitudes, interests, or lifestyles. They are also called IAO variables (for Interests, Attitudes, and Opinions). profile of the four key types of luxury consumers. These include: -X-Fluents (Extremely Affluent) who spend the most on luxury and are most highly invested in luxury living; -Butterflies, the most highly evolved luxury consumers who have emerged from their luxury cocoons with a passion to reconnect with the outside world. Powered by a search for meaning and new experiences, the butterflies have the least materialistic orientation among the segments, yet they spend nearly as much as the X-Fluents on luxury; -Luxury Cocooners who are focused on hearth and home. They spend most of their luxury budgets on home-related purchases; -Aspirers, those luxury consumers who have not yet achieved the level of luxury to which they aspire. They are highly attuned at·tune tr.v. at·tuned, at·tun·ing, at·tunes 1. To bring into a harmonious or responsive relationship: an industry that is not attuned to market demands. 2. to brands and believe luxury is best expressed in what they buy and what they own. Companies Mentioned: - Orient Express Hotels - Compagnie Financiere Richemont - Coach - Polo Ralph Lauren For more information visit http://www.researchandmarkets.com/reports/c38174 |
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