Affluent and Rich Will Buy Half of All Retail Holiday Gifts This Year, Survey Says

On Wednesday, leading marketing and strategic research consulting firm Harrison Group released a study that predicts a mixed holiday retail season.

The results of the survey of 1300 adults and 1100 teens reveal that while retail sales this holiday season are expected to be down slightly at 2.5% below last year's, the 30% of the most affluent Americans actually plan to spend more money on gifts than they did last year.

Those households that earn less than $75,000 per year are approaching the holidays cautiously, expecting to spend 7.6% less on gifts than last year, for a total $83 billion holiday tab. Fuel prices, home heating costs, and the increase in food prices are taking a bite out of their gift-giving.

On the other hand affluent households are poised to make up the difference. Holiday spending among households with over $75,000 in annual income is projected to rise by 3.1%, to almost $82 billion. In short, the wealthiest 30% of households will spend almost as much on gifts as the remaining 70% combined.

Teenagers plan to spend 2.4% more on gifts this year, for a total of $4 billion.

"America, overall, seems to be experiencing an emotional recession - a withdrawal of enthusiasm and a pervasive sense of dread -- that is increasing the value of 'practical' gifting...[they] will be on the lookout for gifts that express affection while providing basic necessities...Consumers at the high end of the market appear to be unaffected by economic uncertainty and will spend with gusto. A rising tide of affluence and deepening family connections are producing interest in high-impact, high- quality gifts. Look for heavy spending on extraordinary quality," said Dr. Jim Taylor, Vice Chairman of Harrison Group.

Some analysts have pointed out that the rising tide of affluence has caused an almost unbelievable surge in the buying of non-utilitarian or, in short, needless or useless gifts during the holidays and, indeed, throughout the year. These items are, however, usually of the most fantastic quality-and it is not just the wealthy or even mainly the wealthy that have been buying these high-quality, needless things, but the middle class.

This has given rise to what people call the cult of consumerism, which is typically called (misleadingly) "materialism", wherein Americans have mistaken the goods for the Good. But, say analysts, perhaps the emotional recession felt this year in the wake of a financially wild 2007 is shifting many consumers' attention back to the "needful things", although the larger-than-ever affluent class is still going for the gold that no-one absolutely needs in its holiday buying patterns.

Many have criticized the consumption culture for leading Americans to spend and live above their means, driving themselves into debt and potentially impoverishing themselves in their later years or passing on too many debts for their children or grandchildren to settle when they die.

However, those with more optimistic outlooks say that the expanding affluent class in America can overtake the "debtor nation"-but only as long as the government does not continue its reckless tax-and-spend policies.

They also opine that the buying of needless but high-quality things that give pleasure is a positive move away from Positivism, which leads to emotional and cultural depression.

Original Newswire Source:
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