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Press Release: American Express Publishing Corporation
May 27, 2004
NEW YORK, NY -- American Express Publishing Corporation released yesterday a White Paper entitled "The State
of Luxury," containing research and analysis on the $400 billion U.S. luxury market. The White Paper includes
highlights from the recent American Express Publishing Luxury Summit, which brought together the world's leading
luxury producers, marketers and retailers to examine the new luxury market, and incorporates proprietary research
from various sources, including American Express, The Boston Consulting Group and Four Seasons Hotels & Resorts.
According to the White Paper, luxury is no longer just for the rich. In fact, "New Luxury" encompasses
the 47 million households with an average yearly income of $50,000 or more. That's because companies are now making
luxury more affordable and accessible than ever, which has resulted in a spending boom in the luxury sector and
an optimistic future for premium products and services.
The White Paper indicates that "New Luxury" luxury is no longer considered any one thing, but is defined
as an experience that appeals directly to the emotional needs of the consumer. The Boston Consulting Group identified
four key emotional drivers for the "New Luxury" consumer:
While the traditional luxury consumer still exists, the "New Luxury" consumer has more money than
ever, does not live in a traditional household, is female and is spending more on personal consumption. "New
Luxury" consumers are spending on items with an emotional impact in ways that increase personal satisfaction.
"Offerings of luxury cars have exploded and the volume of luxury goods overall -- which typically expands
twice as fast as the economy -- is expected to increase 5 to 10 percent this year," said Ed Kelly, the President
and CEO of American Express Publishing.
According to the White Paper, there is one luxury that is most in demand -- time. When asked if they could have
more time or more money, affluent consumers worldwide were split. "Time is the single most precious resource
that anybody has. It doesn't matter what your income is, or where you live. No matter how much money you make,
you can never make more time," said Barbara Talbott of Four Seasons Hotels & Resorts.
Brent Handler, President of Exclusive Resorts, LLC., whose company sponsored the White Paper, believes that the
travel and hospitality industry must develop new products and services that cater specifically to the "New
Luxury" consumer. "Breakthrough luxury categories include the 'practical luxury' of fractional ownership,
enabling more people to enjoy the experience of multiple vacation homes or private air travel," said Mr. Handler.
"The State of Luxury" also delves into the importance of branding, "New Luxury" consumer purchasing
behavior, how companies can capture the "New Luxury" consumer, as well as the future of luxury, the market
for which is growing at a rapid rate of about 15 percent annually. The luxury market is expected to reach nearly
$1 trillion by the end of this decade.
About American Express Publishing
American Express Publishing's luxury lifestyle magazines attract a desirable affluent audience of over 5.1 million
consumers with an average household income of $183,978 and total assets of $1.6 million (MMR 2003). American Express
Publishing is the leading publisher of luxury lifestyle magazines. Travel + Leisure, Food & Wine, Departures,
Travel + Leisure Golf, and Travel + Leisure Family magazines are part of the American Express Publishing Corporation,
a subsidiary of the American Express Company managed by Time, Inc. The company also publishes Executive Travel
SkyGuide and a variety of cooking, travel, wine, time management, and financial books and products, plus a custom
publishing group.
About The Boston Consulting Group
The Boston Consulting Group is a general management consulting firm that is a global leader in business strategy.
BCG has helped companies in every major industry and market achieve competitive advantages by developing and realizing
unique strategies. Founded in 1963, the firm now operates 60 offices in 37 countries.
About Exclusive Resorts
Exclusive Resorts(TM), LLC., is the pioneer and global leader in the luxury residence club industry. The Company
offers a membership-based program that allows anytime, anywhere access to an ever-expanding portfolio of the finest
multi-million dollar residences, valued in excess of $500 million, in the world's most desirable destinations.
With a median value in excess of $2.5 million, Exclusive Resorts' residences are extremely spacious, elegantly
designed and luxuriously appointed, and offer personalized services and amenities found only at the world's finest
hotels and resorts. Exclusive Resorts' portfolio includes more than 200 ultra-luxury residences in dozens of locations
around the world. The Company is based in Denver, Colorado. For more information, please call 800.447.8988 or visit
www.exclusiveresorts.com.
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Contact:
American Express Publishing
Elisa Shevitz, 212-382-5679
elisa.i.shevitz@aexp.com
or
Evins Communications, Ltd.
Naomi Burton, 212-688-8200 (ext. 19)
naomi.burton@evins.com
Source: American Express Publishing Corporation