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Stevens, Pa.--Although leading luxury brands such as Richemont and LVMH have recently announced remarkable revenue and profit growth, the latest results of a luxury consumer confidence and spending survey conducted by Unity Marketing say differently.

“Luxury consumer confidence as measured in the Luxury Consumption Index (LCI) took a deep dive to levels not seen since the recessionary period of 2008 and 2009,” Pam Danziger, president of Unity Marketing, said.

The latest Unity Marketing Luxury Tracking survey, conducted Jan. 7-18 among 1,333 affluent luxury consumers, showed a 15 percent decline in the average amount spent on luxury in Q4 2011.

“The LCI has been on a topsy-turvy course since 2010--one quarter it goes up, the next down,” Danziger said. “But looking over the course of the last two years, the LCI lost more than it gained. At the start of 2012, the percentage of luxury consumers expressing a definite willingness to spend more on luxury was down.”

A willingness to spend more on luxury is a major component of the LCI, Danziger added.

Tom Bodenberg, consumer economist for Unity Marketing, said the information doesn’t mean an end to luxury spending, but signals that affluent consumers are non-committal and in a trend of non-conspicuous consumption.

“The buying behavior will shift to an almost ‘hidden’ form of consumption of luxury goods, where ostentation is minimized,” Bodenberg said. “The actionable demand for luxury goods and services, on the whole, is flat and still substantially below the levels of two to three years ago.”

Interestingly, Bodenberg said, this “recession-proof” segment of the marketplace has been greatly affected by the economic downturn.

“Media reports of a ‘renaissance’ in the luxury market appear to be limited to an extreme top tier of consumers, a small number compared with the bulk of the luxury marketplace potential,” he said.

Danziger said customers of luxury goods and service brands who used to indulge in those purchases before the recessions still have the money but now shy away from the extravagances. The new affluent customer, she said, is keen on finding value when they shop, looking to maximize their investment in spending.

“Luxury marketers must make sure their brands give these customers a high yield when they buy,” Danziger said. “Marketers need to recognize these customers are thinking more like investors when shopping for high-end goods than consumers. If your brand doesn’t deliver a suitable return on investment, they’ll turn to competitive brands that will give them high quality without such an extravagant investment.”

Additional information about the results of the latest Unity Marketing Luxury Tracking Study can be found by calling Pam Danziger at 717-336-1600 or by registering on the Unity Marketing website here.