Post-Recession, The Rich Are Different.ppt

Post-Recession, The Rich Are Different A number of surveys released in the past six weeks suggest Ms. Bensons new selectiveness is widespread among the wealthiest Americans. Though many of these people might seem unscathed by the financial crisis -- they didnt lose their homes, jobs or retirement savings -- they were deeply affected by what took place around them. If youre conscious at all, it just seeps in, Ms. Benson says. Whats showing up in the latest research is a broad-based caution -- a sudden aversion to salespeople, a tepid response to ads focused on brand images, and a new interest in price-shopping. In Harrison Groups first-quarter survey of consumers with a median income of $275,000, 38% said they wait for items to go on sale, versus 31% in 2010. Indeed, obtaining discounts on luxury goods has become a competitive sport among many well-to-do consumers, including Jim Taylor, vice chairman of the Waterbury, Conn.-based Harrison Group. Though he is wealthier this year than last, he recently spent a week comparison-shopping for a suit. He ultimately bought his Michael Kors suit on O for $185. Laurence Geller, CEO of the luxury-resort-owning Strategic Hotels Resorts, told me recently that his favorite place to shop is the Nordstrom Rack discount outlet in Chicago. Harrison Group researchers found Costco and Target were the favorite stores of the wealthiest Americans.  In fact, one time-honored tenet of the luxury industry -- that discounted prices lower products prestige -- appears to no longer be true, according to several studies. A survey released in April by the American Affluence Research Center, a luxury consultant based in Alpharetta, Ga., found that 60% of respondents said discounts didnt affect their opinion of brands.  Items the rich do value at full price are one-of-a-kind clothes and accessories and experiences that create fond memories. Weekend getaways and vacations were the top two things the wealthy intended to spend mor