A Return to Luxury: Consumer Spending on Luxuries Rises, Spurring Growth for Many Businesses
|
| Tweet |
|
Free PDF Download The Top 10 Reasons to Own a Home-Based Business - By Jocelyn Chavez |
After swearing off excessive spending and shunning frivolous purchases, consumers appear to be ready to indulge again and are treating themselves to the most splurge-worthy items. Recently released retail sales figures point to strong growth in the luxury goods sector. From luxury homes and vehicles, to high-end fashion apparel, upscale dining and modest luxuries like haircuts and gourmet coffee, people are once again partaking in products and services they'd forgone amid the economic downturn. With consumer spending on luxuries rising, the pent up demand that's being unleashed is spurring economic growth and benefitting businesses; making this an ideal time to tap into the momentum and own a business that offers consumers sought-after luxuries. Whether you're interested in owning an established retail or restaurant franchise, a popular coffee concept, or a proven spa, salon or beauty business, there are an array of franchises and business opportunities that enable you to cater to the growing demand for large and small luxuries.
If bustling, upscale stores and restaurants seem even busier lately, they are. Sales at high-end stores and restaurants rose 8.5% in March, 2011, marking the sixth consecutive month of growth and the largest year-over-year increase since December 2010, according to MasterCard Advisors SpendingPulse, a macroeconomic indicator that tracks consumer retail spending.
Fashion-starved consumers, who have gone without, are not settling when it comes to indulging their clothing cravings. Many style-conscious shoppers are bypassing mid-range merchandise, in favor of high-end brands. Overall luxury fashion spending is up 35% in the past year, yet mainstream fashion spending rose only 8% since last year, according to the most recent data from American Express Business Insights, which tracks the spending habits of its' 90 million cardholders.
In addition to embracing upscale apparel and fine dining, consumers are also spending on other small luxuries again. A recent, 2010, annual survey conducted by BIGresearch for STORES magazine, asking consumers which products and services they consider "untouchable," and cannot live without, and which expenses they deem "expendable," and are willing to forgo, finds that consumers are starting to enjoy the same discretionary services and items that they may have previously forsaken due to the economic dip. The percentage of consumers unwilling to cut expenses increased from the previous year in many of the 36 product/service categories. Some of the leading product categories topping the list of untouchables that consumers are increasingly enjoying include:
- Haircuts and color, department store shopping, and casual sit-down dining, which were among the key categories that returned to the untouchable list.
- Internet service, which topped the list of untouchables (with 81.5% of respondents choosing not to go without this expense).
- Additional products and services highlighted on the untouchables list include: fast food dining, mobile/cell phone service, fast-casual dining, a new pair of shoes, a new pair of jeans, upgraded mobile devices (such as cell phones, smart phones, iPads and eReaders) and a daily cup of gourmet coffee (16.7%).
Related Articles
Home
> Franchises
> Jocelyn Chavez
> A Return to Luxury Consumer Spending on Luxuries Rises Spurring Growth for Many Businesses
> Google +
|
Free PDF Download The Top 10 Reasons to Own a Home-Based Business - By Jocelyn Chavez |
|
About the Author: Jocelyn Chavez RSS for Jocelyn's articles - Visit Jocelyn's website As a copywriter at Franchise Solutions, a leading online franchise and business opportunity marketing company, Jocelyn Chavez profiles franchisors and franchisees to help prospective business buyers find the right business to buy. She has reported on a wide range of topics that impact the business community, including emerging industry trends, online lead generation, small business financing, and tips for people researching business ownership. To learn more about franchises and businesses for sale, please visit http://www.FranchiseSolutions.com. Click here to visit Jocelyn's website. Lawn Care and Landscaping Franchises Reclaiming Lawns and Reinventing Careers Make a Fresh Start this Fall Become Your Own Boss The EcoAdvantageGreen Franchises Sustainable Solutions Childrens Services Franchises Offer the Perfect Fit Franchise Solutions Named a Top 5 Portal for Overall Performance and Lead Quality by Franchise Benchmark |
Related Forum Posts
Share this article. Fund someone's dream.
Share this post and you'll help support entrepreneurs in Africa through our partnership with Kiva.
Over $50,000 raised and counting - Please keep sharing! Learn more.
Featured Video
Trending Articles
|
|
Like this page? PLEASE +1 it! |
Newsletter
Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!
Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!
Popular Articles
10 Activities for Local-Remote Workteam Building
Top Books for Entrepreneurs
The Freedom Formula by Christine Klosser
10 Activities for Local-Remote Workteam Building
Top Books for Entrepreneurs
The Freedom Formula by Christine Klosser
Suggestions
Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.
Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.







