NEW YORK — More consumers bought luxury apparel in the third quarter, though the luster of the sector overall dimmed because of stock market declines and the uncertainties stemming from the U.S. presidential election campaign, a new survey said. The outlook is brighter for the fourth quarter.
The Unity Marketing Luxury Tracking Study found that 40 percent of those surveyed purchased luxury clothing, compared with 36 percent in the second quarter, said Unity president Pamela N. Danziger. Fashion accessories also got a boost, with 29 percent of people polled buying them, 2 percentage points higher than the previous quarter.
However, affluent consumers overall spent an average of $750 on top-flight goods in the third quarter, a 35 percent decline from $1,150 in the second quarter, the report said. Fifty-three percent said they felt their financial position was unchanged from the second quarter, while 40 percent said that the country was less well off in the three months that ended Sept. 30.
“The market for luxury goods and services is driven by consumers’ feelings, not needs,” Danziger said. “Luxury consumers, with their surfeit of material wealth, have no pressing need to go shopping when things don’t look promising. Luxury consumers are in a unique position to wait it out when times are tough and that is just what they did in the third quarter.”
Unity’s luxury index and tracking study are based on a sample of more than 700 U.S. households with annual incomes in excess of $75,000. One-third of those households had annual incomes of at least $150,000. They were polled about their purchases of home and experiential luxuries, like fine dining and travel, as well as personal luxuries.
Nineteen percent of the respondents said they spent more on luxuries in the third quarter, down from the 35 percent who said they did so in the previous quarter.
Unity’s Luxury Consumption Index showed affluent consumers’ confidence in the economy sagged 6.7 points in the third quarter, falling to 96 from 102.7 in the second quarter.
“The big hit in personal luxuries was in jewelry and watches — only 13 percent of affluent consumers bought them in the third quarter, versus 22 percent in the second quarter,” Danziger said.
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Unity is forecasting that luxury spending will rebound in the fourth quarter, because of the stock market’s upswing since the reelection of President Bush, who is seen as generally good for business, Danziger said.
“It’s not that they feel [their improved stock portfolios] in their pocketbook,” Danziger said. “It’s how they feel about it emotionally.”