U.S. Luxury Market Continues To Boom
The total luxury market in the United States reached $1 trillion in 2005, up 11.6% from $898 billion in 2004, based on United Marketing estimates.
Luxury consumers spent less overall on home luxuries, down 4.6% to $19,990. Out of the nine product categories classified under home luxuries, only three posted an increase in average spending: luxury kitchen appliances and kitchen and bathroom fixtures; kitchenware, cookware and cooks tools; and garden and outdoor luxuries.
The dominant trend in the luxury market was a shift toward spending significantly more on experiential luxuries, or life-changing experiences, a trend that Unity predicts will continue to grow. Today's luxury market is less about ostentation and materialism and more about a search for meaning and emotional fulfillment, according to Pam Danziger, president of Unity Marketing. Those in the traditional luxury goods business need to develop strategies that will turn their luxury goods into a real experience for their customers, she said.