The Personal Luxury Report 2010 details major trends in purchase of personal luxury products and how marketers should respond.

Fewer affluent consumers indulged in the purchase of luxury clothing, fashion accessories, jewelry and other personal luxuries, according to the Personal Luxury Report 2010, a new report from Unity Marketing detailing the latest trends in luxury shopping, including how the market luxury has changed and ways marketers should respond.

"The consumer market of high-income individuals willing to pay a premium for personal luxury products dropped sharply from the levels reached in 2006, when more than half of affluents made any personal luxury purchases," said Pam Danziger, president of Unity Marketing and author of the report.

Unity's luxury surveys found that just 44 percent of affluent consumers bought any personal luxuries in 2009, down 10 percentage points from 2006, when 54 percent of affluents made any personal luxury purchases.  The 2009 survey sample included 4,739 luxury affluent consumers (average income of $220,200), representative of the 22 million affluent households in the country.

>> There was a dramatic contraction of the market of  affluents indulging in personal luxury in 2009.  However, counter-trends are in play that are cause for optimism among luxury marketers and retailers.

"Despite lower purchase levels, the affluents who bought personal luxuries last year spent nearly 50 percent more on their purchases than they did in 2008.  This indicates a trend toward a smaller group of high-spending consumers that must be carefully targeted in order for marketers' companies to remain healthy," Danziger explains.

Key trends in the market for personal luxuries include:

• Luxury Automobiles:  American luxury car brands made real progress in terms of greater purchases among affluents in 2009, as Euro-brands declined in purchase.
• Luxury Clothing & Apparel:  Department stores lost share of affluents' clothing purchases, while patronage among
• luxury branded boutiques increased over 2008 levels.   At the product level, men's clothing, including casual, business and outerwear, was a bright spot in this category.
• Luxury Fashion Accessories:  Department stores also lost share of affluents' fashion accessories spending, while discount stores, outlet stores and warehouse clubs doubled their take in accessories spending over 2008 levels.  In products, affluents were more likely to trade down to mass brands in women's shoes.  As in clothing, men's accessories were a bright spot.
• Luxury Beauty & Cosmetics:  The most important finding in beauty was loss of share by department stores in favor of specialty personal care/cosmetics stores, such as Sephora and Ulta.  While department stores still retain the #1 slot as destination leader, the specialty stores are rapidly closing the gap as measured by share of affluent shoppers' spending.
• Luxury Wine & Spirits:  In wine & spirits, a number of items rank among personal luxuries fastest growing products as measured by increased spending during 2009, including high-end Scotch, Whiskey, Rum, Bourbon and Cognac.
  Luxury Jewelry:  Growth in purchases of women's luxury jewelry was modest in 2009, only up 6.5 percent over 2008 levels.  Men's jewelry really popped, however with spending up more than double 2008 levels.  Men's jewelry now accounts for about 20 percent of the luxury consumers' jewelry expenditures, a substantial increase over the 10 percent in 2007.
• Luxury Watches:  Affluents who bought watches greatly increased spending in 2009.  All categories, men's and women's casual and dress, enjoyed growth in share of wallet.
• Luxury Personal Electronics: In personal electronics, laptop computers were tops, followed by cellular phones and MP3 players.  Electronic specialty stores captured 40 percent share of spending. 
  "As these key findings show, the personal luxuries market has changed by more than just who is buying and how much they are spending," says Danziger.  "Affluent consumers are also buying a different basket of personal luxury items from a different slate of distribution channels."

"It is a competitive new market for personal luxuries.  Marketers must understand who their customers are, what items draw their interest, and where they wish to shop.  Consumer intelligence like this report is the best first step to meeting the affluent consumer on his or her own turf."

The Personal Luxury Report 2010 is a compilation of the quarterly luxury tracking surveys that Unity Marketing conducts every three months with 1,000-1,250 affluent consumers who purchased one or more luxuries in the study period.  Unity's luxury tracking study is the only longitudinal study of its kind that tracks the luxury consumer market, what they buy, how much they spend.  The survey sample of 4,739 luxury consumers surveyed in 2009 with an average income of about $220,200 is representative of the 22 million affluent households in the country.

This market research report helps make the research data and findings accessible and useable.  It provides marketers with three powerful perspectives:  "The What", "So What" and  "Now What."  This report is filled with advice and guidance for luxury marketers to take action on the research findings revealed.  The report is written to reveal the key research findings, explain why they are important to luxury marketers, and then help marketers find ways to put the research to use in developing new concepts, new strategies, new tactics for success. Click below link to purchase the report:

www.unitymarketingonline.com/cms_luxury/luxury/Personal_Luxury_Report_2009.php

About Pam Danziger and Unity Marketing

Pamela N. Danziger is an internationally recognized expert specializing in consumer insights for marketers targeting the affluent consumer.  She is president of Unity Marketing, a marketing consulting firm she founded in 1992. Pam received the Global Luxury Award for top luxury industry achievers presented at the Global Luxury Forum in 2007 by Harper's Bazaar.