Having just returned from this exceptional American Express conference - exceptional content and conversation delivered in the exceptional environment of the Four Seasons Westlake Village Hotel in California - I immediately wanted to share some top line insights with all of you.

We will post more findings, and considerable color commentary from the 2008 Affluence and Wealth Survey, conducted by American Express Publishing and The Harrison Group in coming days, but here is our preview personal filing:

 

• Concern about the economy, and its impact upon luxury goods and travel purchases, was certainly top of mind.  Dr. Jim Taylor of the Harrison Group, thought there would be an 8-10% drop in expenditures this year. How long could it last? Taylor’s hopeful guestimate was that by year-end things would be better again, nonetheless echoing  Amex Publishing CEO, Ed Kelly’s comment that “It’s not about the money, but the mood.”
• How are consumers responding to the new environment? Paraphrasing Ed Kelly’s opening remarks, people are searching for greater certainty in their shopping experiences — the certainty of excellent value and quality. And they are doing their homework to find it. They turn to
• "Confident word of mouth” — people they trust and respect
• Fact-based, not emotion-based  magazine advertising,  that offers small details of what makes something truly extraordinary
• A combination of online and in-store shopping 

• And now, for a few nifty nuggets-from the Harrison Research:
  • Word of mouth? Just 10% of  affluent and luxury shoppers have an inordinate impact on others.
  • Savvy purchasing can increase the value of affluent household income by over 35%, freeing up in excess of $100,000 in after-tax cash flow in many of these households.
  • The top 10% of American households owns 71% of American wealth.
  • 82% of affluent and wealthy individuals, asked about conspicuous consumption said they believed in ‘stealth wealth’—having money, but keeping it under the radar.
  • Day-to-day running of upscale households is often managed by the female head of household, and the "home executive team" is populated by the children of the family. They are deeply involved because parents value their opinions and the shared experience of decision-making. Parents learn that "their kids are often more familiar with brands, particularly luxury brands, because they have been exposed to them throughout their lifetime," said Cara David, a co-director of the study and senior vice president, strategic insights, marketing and sales, American Express Publishing.

COMING NEXT WEEK in Luxury Travel 360 - Surviving Luxury 2008 and Beyond: a Summit Presentation by Robert Frank, Wealth Reporter for the Wall Street Journal and author of Richistan: A Journey Through the American Wealth Boom and the Lives of the New Rich.

PLUS-More depth and Insights from  Harrison Survey & Jim Taylor

Hershel Sarbin