This is clearly demonstrated in a 2008 survey of the affluent by The American Affluence Research Center that revealed the great diversity in how consumers define luxury by price points and brands for 37 different products.

Given this ambiguity surrounding the definition of the word “luxury”, I’m not sure how anyone can accurately describe the current luxury market much less make predictions of how the luxury consumer will behave in the future.

To elaborate a bit further on her point as to how the market may change after the recession is over, it is important to note that purchasing power is now influenced by a new generation. Gen X/Y affluent consumers have a different value system. Words such as “sustainable”, “enduring”, “value”, “social responsibility” will be integrated into the new language of marketing to what will become the modern luxury movement.