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Survey Shows Luxury Spending Returning
Posted: June 25, 2009
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"[However], despite these positive indications, more than 40% of all the affluents surveyed said they plan to cut their spending on luxuries in the next 12 months," said Danziger. "So we are seeing a long, slow crawl to higher levels of affluent consumer confidence. At the same time, there continues to be trouble ahead for luxury marketers, as the affluents are holding back on their expectations about spending more on luxuries for the remainder of the year."
"We remain cautious about the luxury market's prospects after the recession," said Tom Bodenberg, chief economist, Unity Marketing. "It is likely that there will be an uptick in luxury consumer spending once the recession has played its course, as some affluents will relieve pent-up demand for luxury goods as a vehicle of lifestyle aspiration and expression. At the same time the media's focus on 'recession chic'—personal expression that deliberately excludes luxury goods—may leave a lingering distaste for conspicuous consumption and parading luxury labels."