Just wanted to highlight two very different surveys that look at projected holiday spending this year.
The first is a Harrison Group Study that predicts a mixed holiday spending season, with families earning under $75k a year spending less than last year and buying essentials, while those earning more than $75k per year (a fairly modest definition of the "high end") are expected to spend much more aggressively:
Consumers at the high end of the market appear to be unaffected by economic uncertainty and will spend with gusto. A rising tide of affluence and deepening family connections are producing interest in high-impact, high-quality gifts. Look for heavy spending on extraordinary quality and sublime luxury, from fashion to designer technology and event tickets to jewelry.
The second, more interesting study is the Elite Traveler / Prince & Associates 2007 Holiday Spending Survey . Based on telephone interviews with more than 800 high net worth individuals (70% with a net worth of $1M-$9.9M and 30% with a net worth of $10M+), the survey looks at projected spending by category.
Among the key findings:
While the economy may be cutting back on the spending and holiday cheer of the Masses, Holiday Spending by the Elite Affluent (Super Rich with a Net Worth $10 million +) is expected to increase significantly – between 17% and 67% across more than a dozen luxury categories.
Top spending categories of the Elite Affluent by percent increase are projected to be:
- Jewelry (67% growth)
- Electronics (53%)
- Events at Hotels (44%)
- Wines & Spirits for Entertaining (39%)
- Stays at Hotels & Resorts (36%).
Top spending by dollars spent are projected to be:
- Yacht Charters ($487,900)
- Automobiles ($187,400)
- Jewelry ($152,400)
- Charitable Donations ($116,300)
- Villa Rentals ($86,200)
- Hotel/Resort Stays ($83,400)
- Watches ($66,700)
The survey was conducted by Russ Alan Prince of Prince & Associates and Elite Traveler Magazine--authors of The Sky's the Limit, the book referenced in an earlier post.