Affluents Looking to Spend More on Luxury This Year

January 29, 2013

This article is included in these additional categories:

Automotive | Financial Services | Household Income | Travel & Hospitality | Uncategorized

Ipsos-Affluents-Luxury-Spending-Plans-Jan201318% of affluents (adults 18+ with household income of at least $100k) plan to increase their luxury spending in the next 12 months, compared to 15% who expect to rein in such spending, finds Ipsos MediaCT in its latest Mendelsohn Affluent Barometer, conducted in December 2012. That’s a significant reversal from October 2012, when just 13% anticipated spending more over the coming year, compared to 18% who anticipated a contraction in spending. Ultra affluents – with household income of at least $250k – have an even more buoyant outlook. 24% of this wealthy segment of the population plans to up spending on luxury items in the next 12 months, versus just 3% who will cut back. That compares with just 7% who anticipated an increase and 9% who forecast a decrease only 2 months earlier.

While those signs are positive for luxury brands, there is a slight bit of less encouraging news. In December, 7% of affluents said they didn’t plan to spend anything on luxury, up from just 1% in October. Similarly, 3% of ultra affluents said they wouldn’t spend on luxury, while none had said that a couple of months prior.

Examining luxury interest across various categories, the survey results reveal that 20% of affluents are more interested in premium, luxury brands in the vacations and personal travel category, versus just 8% who are less interested. The gap is even larger among the ultra affluent, with 34% more interested versus only 2% less interested. On a “net” basis (percent more interested minus percent less interested), ultra affluents are showed a great deal more interest in luxury brands in the groceries (29%), personal care and wellness (23%), and automobile (16%) categories.

As luxury marketers up their spending on digital, providing a satisfying mobile experience should be an area of focus, according to a study from ForeSee.

About the Data: The Mendelsohn Affluent Barometer was conducted online December 17-31, 2012, with 1,004 adults 18+ with household income (HHI) of $100K+ (“Affluent”). The sample included 182 Ultra Affluents, defined as adults 18+ with HHI of $250K+. The data were weighted to reflect US Census data.

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