Wealthy Overestimate Price of Luxury Carpet
Coral Gables, FL, Dec. 7, 2008--A national survey of the wealthiest 10% of U.S. households shows that the affluent expect to pay far more for luxury carpet than high-end carpet actually costs.
The respondents were asked to specify the most they could imagine spending for carpeting. They were also asked to name the carpet brand they would most likely purchase. This research also included 36 other categories and services for context and insight.
The respondents were asked to specify the most they could imagine spending for carpeting. They were also asked to name the carpet brand they would most likely purchase. This research also included 36 other categories and services for context and insight.
Key findings included:
• The majority of respondents who provided a price were unable to suggest a brand preference.
• Only five brands were identified by more than 2% of the respondents.
• Floor covering retailers greatly under-price the cost expectations of affluent consumers.
• Women with a net worth in excess of $5.9 million expect to pay approximately $40 per square foot for their next carpet purchase.
"This research confirms that the carpet brand awareness is poor and remains highly fragmented. Furthermore, affluent consumers purchasing carpet remain underserved," said Chris Ramey, president of Affluent Insights.
Ron Kurtz, president of The American Affluence Research Center, said affluent buyers do not appear to be very knowledgeable about the pricing and brands of products that are generally recognized by marketers as being in the higher price points associated with the luxury category. This, he said, seems to create an opportunity to substantially increase the market for high-end carpet if the affluent market can be educated about why they should consider purchasing luxury products and brands.
The data in this report was drawn from the Fall 2008 Affluent Market Tracking Study, the latest in an ongoing series of twice-yearly surveys of the most affluent 10% of U.S. households.
The research was based on self-administered questionnaires mailed to a randomly selected, national sample of men and women in households that, based on income and ownership of certain assets, met the minimum net worth requirement of $800,000. The profile of the rebalanced sample for this research:
• Average net worth $3.1 million with a median net worth of $1.5 million
• Average annual household income is $304,000.
• Average investible assets are $1.6 million.
• The average age is 55 and 86% are married.
As a group, these 11.2 million households hold 89% of the value of all publicly traded stock and stock mutual funds in the U.S.
The floor covering research results will be presented by Chris Ramey at Surfaces, on Feb. 3.