- A recent survey from Saks, the renowned luxury retailer, shows that high net-worth individuals (HNWIs) and middle-class consumers are prepared to make luxury purchases and are optimistic about the luxury economy.
- While macroeconomic challenges have impacted the luxury consumer market, the Saks survey reveals that luxury consumers believe that their finances are in good health.
- The survey notes that those earning $200,000 or more per year expressed greater confidence in the economy compared to the previous survey, in April 2023.
A recent survey from Saks, the renowned luxury fashion retailer, has revealed a surge in optimism among luxury consumers willing to invest in luxury fashion and architectural pieces.
The Saks Luxury Pulse survey for 2023 notes that 58% of respondents plan to maintain or increase their spending on luxury items over the next three months.
The survey also observes a notable uptick in luxury spending from the previous survey conducted in late April, when only 53% of respondents expressed the same intentions. This marks the first surge in luxury spending intentions since May 2022.
According to Marc Metrick, the Chief Executive Officer of Saks, there has been a noticeable increase in purchase intent among luxury consumers, which suggests that core luxury consumers are beginning to see a shift in their spending habits and have renewed faith in the personal luxury market.
Wealthy individuals wishing to purchase luxury items on the global personal luxury market will require a safe money transfer method to ensure their funds are securely transferred.
Metrick also recognised the importance of building meaningful relationships with a broader range of luxury shoppers who may be more budget-conscious in the present but have the potential to become loyal patrons in the long run.
The survey has also revealed that higher-income respondents, particularly those earning $200,000 or more per year, expressed a greater level of confidence in the economy compared to previous surveys, with 48% of this group expressing optimism – up from 42% in the previous survey in April 2023.
With 64% of this group planning to increase or maintain their luxury spending over the next quarter, up from 57% in the previous survey, this demonstrates a more optimistic outlook on the economy among the majority of respondents.
In addition to their plans for luxury purchases, 74% of respondents expressed their intention to book a trip to luxury destinations overseas. 72% revealed their intention to purchase luxury items in anticipation of their travels.
Emily Essner, the Chief Marketing Officer of Saks, suggested this trend is more prevalent among respondents earning more than $200,000 per year, with 81% planning trips.
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