Unity Marketing’s Luxury Consumption Index dropped in
October 2010, falling 6.2 points to 72.1 points.
The group said these results have “important implications
for marketers and retailers preparing for the 2010 holiday season,” noting this
could translate into reduced spending on luxuries this holiday.
“Luxury consumers started 2010 with a feeling of optimism
that the worst of the economic turmoil was over,” says Pam Danziger,
president of Unity Marketing. “But through the course of the year, reality
hasn’t lived up to those expectations.”
In the third quarter, affluent
consumers spent 1.4 percent less on luxuries than they did in the second
quarter, Danziger said. In addition, 49 percent expect to spend the same on
luxury in the next twelve months and 24 percent say they will spend less.
“Now is not the time to sit back and
breathe a sigh of relief,” Danziger added. “We still have a long way to go
before the affluent consumers feel confident enough to spend as freely as they
did in 2006 and 2007.”