(NEW YORK) November 29, 2012 – Wealthy shoppers from seven global luxury markets share opinions and observations on issues confronting providers of high-end goods and services in the new 2012 State Of The Luxury Industry Global Trends survey from the independent and objective New York-based Luxury Institute. Respondents are among the top 10% of earners in the U.S., United Kingdom, France, Germany, Italy, China and Japan, with minimum income of $150,000 in the U.S.
Despite an economic slowdown and a crackdown on conspicuous consumption, 43% of wealthy Chinese consumers still plan to spend more on luxury products in the coming year. This varies dramatically from the 10% of Japanese and 9% of American consumers who say they’ll boost luxury spending, while in Germany and Italy, where only 5% of wealthy shoppers plan to spend more.
Indicative of strength in U.S. luxury retail, wealthy Americans plan to increase spending in all surveyed luxury categories compared to last year. Notable areas where recoveries are underway: ready-to-wear , jewelry, and private jet travel. Yachting also has the wind at its back, with 22% of U.S. consumers planning to spend more on luxury boating in 2012.
Everywhere except for Japan, discounting has enhanced luxury goods’ appeal and stimulated spending. Wealthy Chinese (59%) and Italian (53%) shoppers are most likely to say that discounting has improved their view of luxury and prompted greater expenditures.
“Product differentiation and exceptional service are what keep luxury relevant,” says Luxury Institute CEO Milton Pedraza. “Especially in an uncertain economy, firms need to give wealthy shoppers reasons to buy more.”
About the Luxury Institute (www.LuxuryInstitute.com)
The Luxury Institute is the objective and independent global voice of the high net-worth consumer. The Institute conducts extensive and actionable research with wealthy consumers about their behaviors and attitudes on customer experience best practices. In addition, we work closely with top-tier luxury brands to successfully transform their organizational cultures into more profitable customer-centric enterprises. Our Luxury CRM Culture consulting process leverages our fact-based research and enables luxury brands to dramatically Outbehave as well as Outperform their competition. The Luxury Institute also operates LuxuryBoard.com, a membership-based online research portal, and the Luxury CRM Association, a membership organization dedicated to building customer-centric luxury enterprises.