Luxury is still growing among the most affluent U.S. consumers, but the weakened economy has dampened the eagerness to spend and has shifted shopping patterns, putting consumers in the driver’s seat, aided by Internet research and better deals online, according to the second annual survey of Affluence & Wealth in America, produced by American Express and Harrison Group.
A total of 12 million households were surveyed, with an average discretionary annual income of $352,000. The top 10 brands were: Ritz-Carlton, Louis Vuitton, Coach, Ralph Lauren, Target, Four Seasons, Prada, Rolex, Costco and Nordstrom, according to the survey.
“The ratings of about 200 brands were based not only [on] familiarity and regard, but also a lack of active dislike, that is, lack of bad experiences, with customer service or some other interaction with a brand,” said Jim Taylor, vice chairman of market research firm Harrison Group.
About 300 top executives from fashion, retail, travel and hospitality companies attended the conversations with von Furstenberg and Karan, which were moderated by Travel + Leisure editor in chief Nancy Novogrod.
Von Furstenberg has found more success on the second incarnation of her company, now 10 years old, by offering contemporary apparel to a wide range of demographics.
“It would be pretty depressing to dress only rich people, because they don’t always look so good,” she said. “It was the young, hip girls who I saw buying my vintage wrap dresses who inspired me to get back into the business.”
Von Furstenberg also diversified into the luxury sector by partnering with H.Stern, starting in 2004. “Jewelry is expensive, but the value is there, and we really launched a trend with bold, strong jewelry.”
She described her most challenging moment — before making up her mind to get back into the business. “People thought I was a has-been,” von Furstenberg said. “When you doubt yourself, nothing will happen. But once I decided, it wasn’t hard.”