The Luxury Market FactsOctober 28, 2011
The luxury market has been the most robust market of any business sector. In the U.S. luxury is a $400 billion market. Authorities estimate that it will grow at a rate of 15% a year and will become a $1 trillion market by 2012.
There are 1.2 million U.S. households with a net worth of over $5 million, up from 300,000 in 1983. Real household income for the top 20% of households is up 70%
in the last 20 years.
The top 5% are richer. In the early 1980s they accounted for 16% of the income earned. Today they account for 27%. The rich are definitely getting richer.
The best customers, the 2.7 million in the U.S. with liquid portfolios of $1 million or more, are changing in a number of ways. They want sophisticated marketing.
It used to be that the luxury buyer was an old Protestant white guy. Now it is much more diverse. Women who have left the corporate world are the fastest growing group of entrepreneurs in the country. Ten million of them are successfully growing businesses in the U.S.
Luxury brands no longer live by brand image alone because the customer has become increasingly value-driven and more and more demanding of superior service, intelligent communication and a personalized understanding of their desires. Audrey Ross has been working with-In Miami’s luxury real estate market for over 30 years and understands how today luxury markets have evolved to meet and exceed the luxury real estate consumer!