Finance: Luxury Consumers Still Spending

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The recent economic slowdown hasn’t deterred one powerful consumer group from spending more on spa and beauty services. Consumers with an average income of $155,000 actually increased their spending by 25% on experiential luxuries (which also include travel, fine dining and entertainment), according to The Luxury Report 2008, recently released by Pam Danzinger of Unity Marketing. In fact, these consumers spent an average of $5,000 on spa, massage and beauty services in 2007.     

     Just who are these luxury consumers? More than 60% of the survey’s 4,200 respondents are women and their average age is 45 years old. The report also provides valuable insight into the spending habits of this sought-after demographic. Listed below are some key facts and figures excerpted from the report’s findings. To learn more about The Luxury Report, visit www.unitymarketing.com.

• When shopping for spa and beauty services, more than half of the respondents indicated they were most strongly influenced by a service provider’s reputation.
• Half of these consumers also consider the recommendation of friends and colleagues to be an important factor in shopping for spa and beauty services.
• New and exclusive treatments and products don’t influence these consumers as much as a spa’s reputation or personal recommendation. Only about one-fourth of the respondents said new, different or exclusive items would strongly influence their spending habits.

• A good value isn’t as crucial a decision-making factor. Only 42% of the respondents indicated that it was important that the spa or beauty service represented a good value for the price.
• Sale items and discounted services are of even lesser importance. A mere 20% said it was an important consideration.
• About one-third of these luxury consumers consider the Internet as an important source of information to find out about spa and beauty treatments.

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