Even the Rich Are Watching Their Spending

According to recent surveys released by Unity Marketing and Ipsos Mendelsohn, affluent households are spending less of their money on luxuries and are choosing instead to focus on improving their homes.

Unity Marketing’s survey showed that 56 percent of respondents whose average annual earnings was approximately $210,700 are spending less of their money on luxury items than they did last year, while 54 percent plan on spending less in the coming year.

The Ipsos Mendelsohn survey found that heads of households earning $100,000 or more pointed to the home category as the top shopping category for March to July 2008. This includes remodeling services, furniture, flooring, appliances and tableware.

Twenty-two percent ranked the home category as the top spending category, followed by apparel with 18 percent, travel with 14 percent, leisure, entertainment, dining with 11 percent, personal insurance with 9 percent, and computers, electronics with 8 percent.

Watches, jewelry, fine writing instruments received just 3 percent, followed by alcoholic beverages with 3 percent, and fragrances, cosmetics, lotions with 2 percent.

The average spend for this time span was $9,841.

Home decorators in the U.S. are also utilizing the Internet in big ways.

Sixty-nine percent of the 1,360 respondents to the Unity Marketing survey said they compare prices online, while 50 percent research product specifications, sizes, etc. online.

Forty-seven percent learn about specific brands on the Web, while 47 percent find out where to shop for specific products/what stores carry, etc.

Thirty-eight percent place orders for products online.

Source:
http://www.emarketer.com/Article.aspx?id=1006661