The Luxury Market and Carpet Sculpture

Excerpts taken from “Top 9 Revenue Streams and Market Research“

Astute market watchers have noticed the continuing exuberance of the luxury marketplace. With Americans getting richer by the hour, the demand for luxury products seems insatiable. Carpet sculpture certainly reflects the definition of ‘luxury’.

The custom rug fabricator who offers a versatile selection of rug designs and has a commitment to quality craftsmanship will prosper in this environment.

“In the last decade it has been the most robust market of perhaps any business sector. If you look at the regular retail mass market, its gross revenue growth over time, the increases have been in the range of 4%-6% annually. For the last decade, the luxury category has grown anywhere from 20% - 32%. In the U.S. alone, luxury is a $400 billion market. Authorities estimate that it will grow at a rate of 15% a year and will become a $1 trillion market by 2010.

On the consumer side the numbers for the U.S. are staggering. There are 1.2 million households with a net worth of over $5 million, up from 300,000 in 1983. Real household income for the top 20% of households is up 70% in the last 20 years. 215 million people will be over 50 by 2010. As a result, $12 trillion in inheritance will change hands in the next 20 years. The top 5% are richer. In the early 1980s they accounted for 16% of the income earned. Today they account for 27%. The rich are definitely getting richer.” Greg Furman, Founder and Chairman of the Luxury Marketing Council.

This is reassuring when the economy takes a downturn because the luxury market is not so easily swayed by recession. My personal experience when I launched my rug making business in the early 90’s was a prime example. The economy was in a recessive period and I set my focus on the affluent luxury market. I had no problem making sales. Obviously these consumers have the disposable income to make expensive purchases and when there is a problem to be solved, like a needed rug, they will generally make the purchase.