Consumers of luxury goods change the face of retail

Luxury buyers are highly desirable customers for brands and retailers. 10% of American household receiving $ 120,000 or more per year, representing approximately half of all consumer spending.

In a new report from BI Intelligence, is set according to the profile of the luxury buyer preferences of people with high incomes – including how and where they shop.

Consumer spending among the wealthy grow faster than the average consumer the United States. Costs among those earning $ 120,000 a year or more is expected to grow by 6.6% in 2016, reaching $ 406 billion, according to YouGov. Among the richest 1% is expected to increase by 10%. On the other hand, the cost of the average consumer in US fell by 1% between 2014 and 2015 ..

Wealthy consumers are expected to spend most of next year, fashion, travel and food. Among these categories, the cost of fashion (in particular, clothing, accessories, handbags) will grow the most growth reaching 6.9% to $ 37.4 billion (about 9% of total costs).

Luxury brands do over advertising costs to attract buyers. The seven largest US luxury brands have collectively spent $ 133 million last year on advertising, 57% of which are allocated for ads in magazines, according to the Center for the Study of Shullman Research Center. But to attract luxury consumers, the percentages are higher for digital ads.

There are signs that fewer companies are looking to luxury brand stores than it was in the past. Luxury buyers, the average consumer is directed to the convenience and low prices of online stores such as Amazon for shopping by the official sites of the brand.

E.Dimitrov JrTrader

 Varchev Traders

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