Not the best news, but since it’s better to be informed than uninformed, I shall deliver it: Expectations for personal income and spending plans among luxury consumers in America has hit record lows.
I told you it was bad news.
The study conducted by the American Affluence Research Center reveals:
- Preservation of capital is the primary investment objective of most respondents.
- More than two-thirds of luxury consumers have no plans to make any of eight major expenditures in the next 12 months.
- In six of 17 product categories, half or more of respondents plan to spend less during the next 12 months. In the remaining 11 categories, more than a quarter plan to spend less.
- Respondents indicate their anticipation that the stock market will rise ahead of the economy, which will improve slowly.
- Plans to purchase a vehicle among respondents have declined 30 percent from 2008.
- Home remodeling plans are one half of what they were a year ago.
What should you do with this information? If you are a value retailer, then count your lucky stars. If you are a luxury retailer, tighten up, get to know your customers, find out what they want from you. Then deliver.