There’s not much hope in sight for the luxury market, according to a new study.
Spending among U.S. luxury consumers has reached a record low because of the economic outlook, and designer apparel and fine jewelry are among the categories taking a hit, the American Affluence Research Center said in a report released Thursday.
In six of 17 product categories surveyed, half or more than half of the respondents plan to spend less during the next 12 months. The six are: designer apparel; fine jewelry and watches; dining in upscale restaurants; cameras and photographic equipment; antiques, art or wine collectibles, and political contributions.
For the remaining 11 categories, which include dining in casual and family restaurants, entertainment (concerts), major home appliances and home furniture, more than 25 percent plan to spend less.
The study found that more than two-thirds of high-end consumers have no plans to make any of eight major expenditures in the next 12 months: motor vehicles; cruises; boats; major remodeling; building or purchasing a primary home, and building or purchasing a vacation residence. Acquisition plans for all eight major items are equal to or at historic lows.
“The outlook among luxury consumers for an improvement in the economy and their willingness to spend are at all-time lows for our studies,” said Ron Kurtz, founder of the research center based in Alpharetta, Ga. “This signals continued weakness in the luxury market.
“Their concerns are underlined by the emphasis placed on preservation of financial assets, which contrasts with attitudes from prior years, when respondents said their primary objective was capital appreciation and growth,” he said.
Eighty-one percent of the respondents said they reduced overall expenditures during the past 12 months and/or will do so during the next 12 months. More than half plan to take fewer or no domestic vacation trips during the next 12 months, and almost three in 10 respondents will stay in less expensive accommodations.
Vehicle purchases have declined 30 percent from 2008. Home remodeling plans are only half of what they were a year ago. And plans to acquire either a primary residence or a vacation home have declined to record lows.
The Affluent Market Tracking Study, conducted twice a year by the AARC, focuses on the luxury market and the 11.2 million households representing the wealthiest 10 percent of all U.S. households, as determined by the Federal Reserve Board, based on net worth. The study included more than 640 participants for the survey, who have an average annual household income of $290,000, average primary residence value of $1.2 million, average net worth of $3.1 million and average investable assets of $1.4 million.
@tradesy is turning the concept of a showroom upside down with its new space in Santa Monica. Here, the company plans to hold events, art exhibits and a showcase rare fashion pieces like this Louis Vuitton boxing set. Get all the details on Tradesy’s first showroom on WWD.com. #wwdnews
Spotted last night at the @erdem x @hm launch event: Kate Bosworth, Rashida Jones, Kirsten Dunst and Selma Blair. The party, which took place in LA, also marked the opening of their pop-up shop. “I was interested in creating a collection that wasn’t in any way disposable. It was about pieces you’d create and keep forever, things that have a permanence to it,” designer Erdem Moralioglu said. #wwdeye (📷: Katie Jones)
Renee Zellweger in yellow in 2001 and again in 2017. Chosen as one of the 12 @pantone Leading Spring Colors (and dubbed “Meadowlark”), it only makes sense that the bright hue stands the test of time and is making a resurgence this season, seen already on stars like @blakelively and @gigihadid. (📷: Donato Sardello & @rexfeatures) #wwdfashion #tbt
Dior’s 70th anniversary celebration continues with a new exhibition at the Royal Ontario Museum in Toronto. “Christian Dior,” which is scheduled to run through March 18, takes a look at the founders tenure from 1947 to 1057 and feature 40 designs. Pictured here is an evening gown from the Ailée, fall 1948-49 haute couture collection. #wwdfashion (📷: Brian Boyle)
As one of the most recognizable models in the world, Christy Turlington Burns has an insider’s view of the fashion industry and the allegations of sexual harassment swirling around it. “I can say that harassment and mistreatment have always been widely known and tolerated in the industry. The industry is surrounded by predators who thrive on the constant rejection and loneliness so many of us have experiences at some point in our careers,” Turlington told WWD, along with her suggestions for how the modeling world should protect younger women and men. Read more on WWD.com. Link in bio. (📷: Tony Palmieri) #wwdnews
@asics America has tapped a new brand ambassador: famed DJ/record producer @steveaoki. This initiative is intended to set the tone for the new brand identity and philosophy and will include partnerships with influencers and in-store and off-line activations that will continue into next year. This is Asics’ most significant marketing effort in two decades, and is expected to attract younger consumers to the brand. #wwdfashion
24-year-old Jean Prounis is redefining the rules of jewelry. Formerly a studio assistant to Jemima Kirke and a design apprentice at Ghuran, she focuses on handcrafted subtleties and ancient goldsmithing techniques. “There was a really sterile feel in the environment and I wanted to have jewelry with character that shapes how you wear it everyday,” Prounis said. Each piece is hand made in New York, either by Prounis or three other jewelers in the district. #wwdfashion
“These collections continue to build on that vision, empowering differently abled adults to express themselves through fashion,” said @tommyhilfiger of his line of adaptive apparel, which launches today. The line consists of 37 men’s and 34 women’s styles based upon the pieces from the spring Tommy Hilfiger sportswear collection. #wwdnews