April, 2013 – This article from Rapaport / Diamonds.net discusses the fine jewelry and watch spending plans for the affluent in 2013 compared to other luxury items. (http://www.diamonds.net/News/NewsItem.aspx?ArticleID=42904&ArticleTitle=About+Half+of+Affluent+Jewelry+Shoppers+to+Maintain+Spending+Levels)
By Jeff Miller
In-Store Jewelry Purchases Remain the Norm
The American Affluence Research Center released its annual spring affluent household market tracking study, which measured the mood, online tools and spending habits of the wealthiest 10 percent of U.S. households that in total account for almost half of all consumer spending. The proprietary report also provided social media interaction trends, spending intentions and the impact of mobile devices for the year ahead.Â
In this spring survey, affluent consumers confirmed they will maintain spending levels despite expecting lower income due to higher taxes, according to American Affluence Research Center. Nonetheless, even stable spending from affluent households is good news for businesses that target these affluent consumers, according to Ron Kurtz, the president of The Kurtz Group, the parent of American Affluence Research Center.
Survey participants had a net worth of at least $800,000, representing the wealthiest 11.4 million U.S. households. The average annual income of respondents was $309,000, average net worth was $3.1 million and average value of a primary residence was $1.2 million. The survey measured past purchases and future intentions of affluent households for 17 products, including jewelry, travel, furnishings, appliances, apparel and services such as dining, recreation and charities.
Specifically for the fine jewelry and watches product category, American Affluence Research Center concluded that 42 percent of respondents intend to spend less on this category this year, while 55 percent expect to spend the same as they have and 4 percent will spend more in the coming months. For those products that often compete with the purse for jewelry, the survey suggested a double-digit surge in vacation spending by affluent households in the next 12 months, an 18 percent jump for home furnishings, a 17 percent increase on major home appliances and 16 percent of affluents will increase spending on home computers.
In terms of online habits of affluent households, the report found that 16 percent of respondents purchased jewelry and/or watches in the past 12 months. But in contrast with other product categories, jewelry purchases were least likely to have been made online as only 38 percent of affluents bought through a computer and 62 percent bought inside a store. No respondent purchased jewelry using a mobile device, according to the study. Only the ”major home appliance” category came close to this trend with 51 percent of affluents saying they bought an appliance in a store, while 39 percent purchased the appliance online and 1 percent used a mobile device.
The American Affluence Research Center found that 10 percent of those who bought jewelry online did research product and prices first, while 3 percent of all respondents simply researched jewelry or watches online without making a purchase. Six percent of shoppers did not research jewelry online before making their purchase, according to the research report. In contrast, the most popular product to purchase online was non-business airline travel, accounting for 76 percent of affluents in the survey, and 84 percent of those purchases were made via computer, while 10 percent were made by telephone, 5 percent were made on a mobile device and 1 percent in a store.
There appeared to be little variation in ages or incomes of those who did make a jewelry or watch purchase online. In all, of those affluents who bought jewelry online in the past year, 23 percent were women and 11 percent were men. By age group, 13 percent were under the age of 50, while 17 percent were between 50 and 59 and 16 percent were older than 60. And by net worth, 18 percent of those with a net worth of $800,000 to $1.49 million purchased jewelry online, while 14 percent in the $1.5 million to $5.9 million bracket and 18 percent of those with assets of $6 million or more bought jewelry online.
The study noted details on how affluent households view their future earnings, savings, investment objectives and the general economy. Special questions on the survey also quantified the ownership and usage of smart phones and tablets, participation in social media and how often they receive communications from their favorite manufacturers and retailers.