| In the final installment in our series about what economic trends may bring for the US in 2009 and beyond, Pam Danziger, president of Unity Marketing, explains how the luxury markets are faring during this recession. She explains how this recession is different from past bumps in the road, and what jewelers should be doing to weather the current downturn. (Watch our previous installments: Michael Niemira, the chief economist for the International Council of Shopping Centers (ICSC), discusses changes in the retail landscape and consumer spending, and the timeframe for recovery in the US Gerald Celente, founder of the Trends Research Institute, in two parts: Part 1 and Part 2.) Unity Marketing's latest survey of affluent consumers finds some reason for optimism. For the first time in nearly two years, there is evidence that the recession may be moderating among the affluent. But luxury goods marketers should not celebrate yet; the evidence also shows that affluent consumers are changing their patterns of consumption, and these changes may outlast any economic downturn. Unity Marketing's exclusive Luxury Consumption Index (LCI) continues to drag after hitting an historic low in the third quarter of 2008. In the latest survey of 1034 affluent consumers, whose average income is $207000, the LCI showed a very slight improvement of 1.5 points. The in-depth survey was conducted April 3 to 8, 2009 and included questions about the consumers' financial situation and luxury lifestyle ... |
