Signs of Recession Recovery Emerge in the Luxury Sector
There are clear signs that the luxury sector of the home furnishings market is recovering from the recession. In the first half of 2009, affluent consumers continue to spend more on luxury home furnishings and decor, according to the latest tracking study of affluent luxury consumer purchases conducted by Unity Marketing. The survey among 1,017 affluent consumers who recently purchased any luxury (average income $207.8k; age 44.3 years) found that the average amount spent on home luxuries rose 17.6% from first quarter 2009 to second quarter. This followed a rise of 16.3% from fourth quarter 2008 to first quarter 2009. Pam Danziger, president of Unity Marketing and lead researcher on the luxury tracking study, says, “Since the beginning of 2009, the affluent segment of the market has been spurred to spend more money on their homes. Home marketers must act now to tap this growth trend that can ultimately lead their businesses out of the current slump.
The Home Luxury Report 2009 features a psychographic profile of five 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 to brands and believe luxury is best expressed in what they buy and what they own.
- Temperate Pragmatist a newly emerged luxury consumer who is not all that involved in the luxury lifestyle. As their name implies, they are careful spenders and not given to luxury indulgence.
Source: “Home Luxury Report 2009,” conducted by Unity Marketing, July 29, 2009. Website: www.unitymarketingonline.com.