The Luxury Market
AARC’s research indicates that the true luxury market is composed of roughly the wealthiest 1% of U.S. households, based on net worth. These 1.2 million households appear to have the best understanding of the price points and brands of true luxury goods and services.
These luxury consumers, who are the most likely to be viewed as conspicuous consumers, have the following profile:
- With an average annual income of $1.3 million, they earn about 15% of the total income earned by all American households.
- They have a minimum net worth of $7.9 million.
- With an average net worth of $18.8 million, they control over a third of the total net worth of all U.S. households.
“How can anyone describe the ‘luxury’ consumer and estimate
the size (dollar value) of the ‘luxury market’ if the word ‘luxury’
cannot be defined in an objective and quantifiable way?”