The High-End Customer Returns From Exile
Best Practices from Kurt Salmon
As the economy begins to recover, high-end consumers are coming out of their self-imposed shopping hibernation, creating a bright outlook for the luxury segment.
The luxury market is expected to remain strong, according to Kurt Salmon’s Luxury Spending Trajectory. The index, based on multiple measurements of consumer sentiment, is released monthly and provides insight into the following month’s revenue growth in the luxury sector.
Of the luxury consumers surveyed—those in households with annual incomes of $150,000 or greater—42% say they are confident or very confident in the economy, compared to 28% for lower-income consumers.
Luxury consumers have a reason to be confident. High-income consumers appear to be recovering faster from the recession than lower-income consumers and are also less likely to be worried about losing their jobs.