This proprietary survey examines the state of the luxury industry as of February 2009. According to high net-worth consumers - luxury brands are failing to deliver on the fundamentals of luxury at a critical time for the industry. The study examines the state of the industry and the economy (brand perceptions, definition of luxury), plus luxury branding and purchase channels (attitudes about purchasing and influencers). Published March 2009. 99 pgs. PDF format.

Table of Contents

• Research Methodology and Questions.....3
• Key Findings.....7
• Part I:State of the Luxury Industry.....15
• What Defines A Luxury Brand (by gender, age, income, net worth).....16
• How Luxury Brands Are Performing (by gender, age, income, net worth).....21
• Perceptions and Opinions of Luxury Brands (by gender, age, income, net worth).....27
• Part II. State of the Economy.....39
• Recent Changes in Luxury Purchase Behaviors.....39
• View of the Luxury Industry in General.....45
• Changes in Financial Behaviors/ Plans (debt, savings, investing, spending).....49
• Part III. Luxury Branding and Purchase Channels.....58
• Attitudes About Purchasing Luxury Brands (by gender, age, income, net worth).....58
• How Consumers Learn About Luxury Products (by gender, age, income, net worth).....69
• Influencing the Purchase Decision (by gender, age, income, net worth).....76
• Making a Luxury Purchase (by gender, age, income, net worth).....83
• Respondent Profile.....92

At a time when consumers are cutting back for many reasons, the luxury industry’s two biggest draws for consumers are discounting and sales. Luxury leaders need to quickly get beyond the price and cost-cutting exercises and start innovating again on quality, craftsmanship and, especially, customer service.

Survey Methodology: A national sample of 500+ wealthy American consumers was surveyed online by the Luxury Institute. The Institute’s respondents had an average income of $308,000.00 and an average net-worth of $3.9 million.