Wealthy Americans' Shopping Habits Are Shifting
Many affluent Americans traded down on their fashion brands during the third quarter of 2010, according to Unity Marketing, a Stevens, Penn.–based market-research firm and a prominent chronicler of the spending habits of the wealthy.
Pam Danziger, founder of Unity Marketing, held a conference call Dec. 2 to discuss the firm’s recently released “3Q2010 Luxury Tracking Study.” Unity Marketing’s interviews of luxury shoppers, conducted in mid-October, focused on shoppers whose average household income was $298,300.
The study found that, on average, luxury consumers spent $2,781 on luxury clothing in the third quarter of 2010—an increase of 65.9 percent over the previous year. But spending on luxury goods is showing signs of slowing. Between the second and third quarters of 2010, average spending declined by 38.9 percent.
The study also found that affluent consumers are increasingly shopping middle-market brands. According to the survey, 17.6 percent of affluent consumers had shopped at Ann Taylor and 16.6 percent shopped at Banana Republic during the third quarter. Only 10.8 percent reported they shopped at traditional luxury brand Chanel, and 11 percent reported shopping at Louis Vuitton.
Affluent shoppers are shopping middle-market brands because they are concerned about the still-recovering economy, Danziger said. They’re also changing their shopping habits. She recommended retailers seek out new ways of engaging these customers. “They are voting with the pocketbooks,” she said of the wealthy. “[They’re thinking] I don’t need to buy the best of the best all the time. It is a sign of the times.”—Andrew Asch
