CONSUMERS: It's the Luxury Economy, Stupid.

It what appears to be yet another troubling sign for our economy (not that signs advertising $4 per gallon diesel fuel aren't troubling enough), along comes Unity Marketing's "Luxury Consumption Index," a quarterly survey that examines the spending pattern of more than 1,000 consumers with an average income in excess of $150,000.

In what should come as no surprise to any marketer that targets an audience with discretionary income, luxury consumer confidence in our economy is eroding just like everyone else's — and with it, so also is luxury consumer spending. According to the fourth quarter 2007 Luxury Consumption Index, spending by higher income consumers in America dropped to its lowest level in four years — almost 13% off of average.

If nothing else, this weak performance at the top of the economic pyramid confirms what many discretionary-dollar marketers have seen or suspected for a long time. Our advice if you target big spenders? Get with your marketing people, your agency or both right now, assemble in a room, close the door, put your thinking caps on and don't come out until you've developed some creative packaging, partnering, pricing or value-added promotions that'll incent those consumers to open their wallets for you.

Or call us.

SOURCE: Marketing Management, NOISE