About 90% of the married respondents to a recent survey of the affluent plan to give a December holiday gift to their spouse, and the most frequent sources of the gifts will be traditional department stores (62%) and specialty retail stores (57%). Gift cards or money equivalents will be given by about 20% of the spouses.

About one in two said they have children under 18 to whom they will give gifts. Specialty retail stores (58%) will be the most frequent source of the gifts. Traditional department stores (55%) will be a close second, and the internet and discount department stores were essentially tied (at almost 50%). Gift cards or money equivalents will be given, about equally, by about 31% of the survey respondents.

Almost six in ten said they have children 18 and over to whom they will give gifts. Traditional department stores (57%), specialty retail stores (43%), and discount department stores (35%) will be the most frequent sources of the gifts. Gift cards or money equivalents will be given, mostly as cash or checks, by about 69% of the survey respondents.

About 80% of the respondents plan to give gifts to other relatives, and 62% will give gifts to friends. For both types of recipients, traditional department stores and specialty retail stores were named the first and second most frequent sources of gifts. For relatives, the internet was named third (39%) and for friends discount department stores were named third (37%). For both types of recipients, gift cards or certificates will be given to about by about 25% of the survey respondents.

For each type of recipient, catalogues were named as a source of gifts by about one in four of the respondents.

These results were obtained from the recently completed Fall 2005 “Affluent Market Tracking Study #8″ by The American Affluence Research Center. A continuing series of twice-yearly surveys, these studies track the 12- month economic outlook and spending plans of the wealthiest 10% of Americans, the 11 million households representing about half of all consumer income and spending and a third of the total US economy. These are the consumers who have helped the more upscale retailers to out perform others in recent years.

The survey participants were asked to rank their first, second, and third most important sources of gifts based on the total dollar value of gifts purchased.

Highlights of the national survey of 448 men and women in the wealthiest 10% of U.S. households can be found on the AARC website, www.affluenceresearch.org. The survey participants have an average income of $308,000 and an average net worth of $2.7 million. The survey has a 5% margin of error at the 95% confidence level.

Ron Kurtz is a principal of The American Affluence Research Center and The Management Resource Group. Both companies provide marketing research and strategic planning services to prominent clients in the travel and hospitality industries, especially those targeting the affluent market.

Prior to founding MRG in 1989, Ron’s experience included over 20 years in senior management positions in the airline, hotel, and tour business. As the founding President of Sea Goddess Cruises, he created the product category of small deluxe ships for the very affluent. He also served as the chief marketing officer of four cruise lines, including Norwegian Cruise Line and Windstar Cruises.

Ron has been a key contributor to 6 start ups and 11 turnarounds of substantial businesses. He earned his MBA at Harvard Business School.

For further information: http://www.affluenceresearch.org and http://www.mrgconsultants.com

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It’s possible to treat everyone on your list to a luxury gift without spending a fortune. You just have to know where to find great deals on luxury gifts and how to fit luxury gifts into your budget. If you can’t afford to give an entire designer ensemble, opt for a less expensive accessory. Instead of a mink coat, try mink fur-trimmed gloves. A trip to a day spa, instead of an all-out spa vacation. You get the idea.

How do you define a luxury gift? Webster defines a luxury as

(1) something adding to pleasure or comfort but not absolutely necessary
(2) an indulgence in something that provides pleasure, satisfaction, or ease.

So you see, it isn’t always about the price. A luxury gift can be anything that a person doesn’t find absolutely necessary and probably wouldn’t buy for himself/herself but would love to receive. It’s a special treat.

Here are several affordable luxury gifts that are sure to please:

Jewelry and Watches

A piece of fine jewelry or a designer watch are always welcome gifts but may not be in your budget; especially if you have a long gift list. There’s still a way to get the glitz for much less than retail. Swarovski crystal is a great alternative to diamonds. Or, you could always visit online discount sites if you prefer the real thing. I recently found a Raymond Weil ladies watch for 35% off retail. I’ve also seen substantial discounts on premium designer jewelry and watches on auction sites.

Soothe Mind and Body

Is someone on your gift list stressed out? Treat him or her to a spa service such as a massage, manicure, pedicure or facial by giving a gift certificate. These services cost much less than a full spa day and the recipient will still feel pampered.

Bath and Fragrant Products

This happens to be my absolute favorite when it comes to indulgences. High end soaps, shower gels and bubble bath are richer and more luxuriant than the lower end versions. They also last longer and smell better. I love Bath and Body Works products (especially the new Tutti Dolci Apple Torta line).

Cashmere

There’s just something about cashmere that says luxury. Maybe it’s the feeling of having this ultra-soft wool next to your skin. If your budget won’t allow for a sweater or robe, try less expensive items like scarves, gloves and hats.

Silk

You can find affordable gifts in this luxurious fabric at online discount sites as well. The prices at these sites are so reasonable, that you could spring for silk pajamas without breaking the bank. You could always opt for silk scarves, pashminas or ties.

Fine Foods

Gourmet gifts are great for the person who has everything because they’re consumable. Gourmet foods are generally made of the finest and rarest ingredients and run the gamut from caviar, and lobster to Belgian chocolates. Although some of your recipients wouldn’t dream of paying for these gourmet delicacies, they’ll be glad you did (or at least they’ll think you did). You can impress for less by visiting igourmet.com.

High-End Cookware and Utensils

If someone on your gift list would rather prepare their own gourmet meals, why not arm them with state-of-the-art cookware or utensils. It’s not difficult to find top brands such as All-Clad, Cuisinart, KitchenAid and Le Creuset at savings of up to 70%.

Luxury Bedding

Someone who thinks that all sheets are created equal hasn’t slept on sheets with a thread count above 400. If you want to give someone a luxurious night’s sleep, try sheets with a thread count of 600 or higher. I’ve found a 1,000 thread-count queen sheet set for $179.00 online - 62% off the retail price.

Maid Service

Wouldn’t you feel pampered if someone else handled the house cleaning for you? Give your friend or family member a gift certificate from Merry Maids or Maid Brigade and relieve the recipient of the burden of house cleaning. Service can be scheduled through the companies’ local offices. House cleaning gift certificates are available in amounts of $100 and higher.

Sharon Owens is the editor of Luxewise.com where visitors find tips and resources to become more savvy shoppers of luxury goods.

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Men reported spending much more in 2004 than women on December holiday (Christmas and Hanukah) gifts in a recent survey of the wealthiest 10% of U.S. households. The differences in 2005 gift expenditures will be about the same or a little greater, as men plan to reduce their spending less than women in 2005.

Men reported spending an average of $1,212 on holiday gifts for their spouse, more than double the average $568 spent by women on their spouse. Spending by men (and women) for holiday gifts was $948 ($604) for children under 18, $1,896 ($1,044) for children 18 and over, $734 ($549) for other relatives, and $523 ($395) for friends.

Average gift expenditures for a spouse were highest among those 60 and over ($1,575 versus $740 for those under 60) and those with a net worth of $6 million or more ($2,617 versus $744 for those with a net worth of $1 to $6 million). Those with an income above $200,000 averaged $1,188 versus $601 for those under $200,000 in income.

Average gift expenditures for children under 18 were highest among those 60 and over ($3,835 versus $760 for those under 50), those with a net worth of over $6 million ($1,395 versus $759 for those with a net worth of $1 to $6 million), and those with the higher income ($897 versus $607 for those with incomes above and below $200,000 respectively).

Average gift expenditures for children 18 and over were highest among those over 60 ($2,226 versus $1,191 for those 50 to 59), those with a net worth over $6 million ($4,097 versus $1,219 for those with a net worth of $1 to $6 million), and those with the higher income ($2,075 versus $1,092 for those with incomes above and below $200,000 respectively).

Average expenditures for other relatives and for friends showed a pattern similar to that of children, but the differences were somewhat smaller.

The average expenditure of spenders, weighted by the percent buying for that type of person, totaled $2,807 for the people represented by this survey. That is about five times the average of $565 for all adults, based on a recent survey for The National Retail Federation.

These results were obtained from the recently completed Fall 2005 “Affluent Market Tracking Study #8″ by The American Affluence Research Center. A continuing series of twice-yearly surveys, these studies track the 12- month economic outlook and spending plans of the wealthiest 10% of Americans, the 11 million households representing about half of all consumer income and spending and a third of the total US economy. These are the consumers who have helped the more upscale retailers to out perform others in recent years.

The survey participants were asked to identify the people to whom they would give holiday gifts this year. They were then asked how much they had spent on those people in 2004 and by how much their expenditure would change in 2005.

Highlights of the national survey of 448 men and women in the wealthiest 10% of U.S. households can be found on the AARC website, www.affluenceresearch.org. The survey participants have an average income of $308,000 and an average net worth of $2.7 million. The survey has a 5% margin of error at the 95% confidence level.

Ron Kurtz is a principal of The American Affluence Research Center and The Management Resource Group. Both companies provide marketing research and strategic planning services to prominent clients in the travel and hospitality industries, especially those targeting the affluent market.

Prior to founding MRG in 1989, Ron’s experience included over 20 years in senior management positions in the airline, hotel, and tour business. As the founding President of Sea Goddess Cruises, he created the product category of small deluxe ships for the very affluent. He also served as the chief marketing officer of four cruise lines, including Norwegian Cruise Line and Windstar Cruises.

Ron has been a key contributor to 6 start ups and 11 turnarounds of substantial businesses. He earned his MBA at Harvard Business School.

For further information: http://www.affluenceresearch.org and http://www.mrgconsultants.com

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