Study shows rich getting richer, more diverse

U.S. households with an annual income of $100,000 and up grew more quickly than any other segment of the U.S. economy, data from the U.S. Census Bureau shows.

The number of affluent households increased almost 13 percent between 2005 and 2006, rising from 19.7 million to 22.2 million.

Among these households, it was those with an annual income of $150,000-$249,999 that experienced the most rapid growth in numbers, census data shows.

In addition, between 2005 and 2006, the number of households with an income between $150,000-$199,999 increased 17.9 percent, while the number of households with an income between $200,000-$249,999 increased 16.2 percent and the number of households that earn more than $250,000 a year increased 10.7 percent.

In analyzing the data, Pam Danziger, president of Unity Marketing, points out that affluent U.S. households also are becoming increasingly diverse.

Census data shows that about 13 percent of affluent households are headed by an ethic minority, 5 percent are headed by a single woman and 30 percent of affluent households are members of Generation X or the Millennial Generation, thereby bringing a more youthful attitude to shopping.

"Given the growing numbers of affluents and the increasing diversity among that population, it is dangerous for marketers to take a 'one-size-fits-all' approach to marketing to these consumers," Danziger said in a media release. "Savvy luxury marketers need to account for differences in buying preferences and behavior among the increasingly diverse segments that make up the affluent population."
Source: nationaljewelernetwork

Luxury Jewelry Market Feels Shoppers' Pain

If the diamond ring you were lusting after didn't show up in your Christmas stocking, take comfort in the fact that you're not alone. In another indication of the slowing consumer economy, jewelry retailers reported disappointing sales for November and December, suggesting that shoppers resisted the temptation to load up on pricey gemstones.

Tiffany & Co. and Zale Corp. reported 2 and 9 percent declines, respectively, in comparable-store sales for November and December from the same period in 2006. Zale also announced this week that it will close 60 retail locations within the next 90 days. Jewelry retailer Finlay Enterprises similarly announced that comparable-store sales for November and December declined 5.9 percent, and at Signet Group, U.S. sales were down 8.1 percent for the period.

"Luxury is the first thing to go because it's totally discretionary," says Pam Danziger, president of Unity Marketing, a market research firm, and author of Let Them Eat Cake: Marketing Luxury to the Masses as Well as the Classes.

According to her research, spending on jewelry in the fourth quarter was down 23 percent to $2,655, compared with $3,468 in the fourth quarter of 2006. The percentage of wealthy households that purchased luxury jewelry was also down, to 13 percent in the fourth quarter of 2007 versus 25 percent during the same period in 2006.

There is one hot spot in the field of ice, however: Blue Nile. The online retailer, which prides itself on offering quality jewelry for good value, reported that fourth-quarter revenues increased 24 percent, largely because of strong holiday sales. If consumers were in the market for bling, it appears they wanted to comparison-shop online in an effort to get their money's worth.
Source: usnews

Jewelry spending up by luxury consumers

Luxury consumers spent 54.6 percent more on jewelry and 20.3 percent more on watches in the second quarter of 2007 than they did in the first quarter, a new study finds.

The increase represents an overall boost in spending by luxury consumers who shelled out an average $15,283 on luxuries in the second quarter of the year, a 9 percent increase over spending in the first quarter, according to Unity Marketing's Luxury Tracking survey of 1,000 affluent consumers.

Luxury consumers also increased their spending on luxury fashion accessories by 28 percent, on cosmetics and beauty products by 33.8 percent, and on wine and spirits by 12 percent.

But in spite of the increased spending, luxury consumers' future spending intent appeared at its lowest level in more than a year, forcing a four-point decline in the Luxury Consumption Index to 96.2 points.

The average income of those polled in the Luxury Tracking survey is $155,500 and the average age is 44.3.
Source: nationaljewelernetwork