Wealthy Consumers Embrace Social Networking

Luxury Brands Must Embrace Social Networks as Major Drivers of Customer Relationships, According to Luxury Institute's WealthSurvey "Social Networking Habits and Practices of the Wealthy"


NEW YORK, NY--(Marketwire - November 17, 2009) - The objective and independent New York City-based Luxury Institute (www.LuxuryInstitute.com) released its latest WealthSurvey today documenting the Social Networking Habits and Practices of the Wealthy.

According to a sample of more than 400 high net-worth consumers, social networking sites are now mainstream channels of interaction for wealthy consumers of all ages:

--  Membership in social networking sites has increased significantly
    since early 2008 from 60% to 72% of wealthy consumers. Wealthy consumers 55
    years of age and above have participation levels of 62%.
    
--  Facebook, LinkedIn, and newcomer Twitter have shown the strongest
    growth in that timeframe.
    
--  One out of four (24%) wealthy social networkers say they would be
    likely to join a community dedicated to a luxury brand that is sponsored by
    the brand, and 20% would join an independent luxury brand community not
    sponsored by the brand.
    
--  Nearly one in five social networkers belong to a social shopping site.
    Ideeli and Rue LaLa are the most popular.
    
--  More than 40% of wealthy social networkers say they do notice
    advertiser brands on social networking sites they visit.
    
--  Thirteen percent of social networkers have joined a group that is
    based around a product/service or a brand. Of these, more than one-third
    were solicited via email or other form of communication.
    

"As the luxury industry tries to reinvent itself, we continue to provide the only unbiased and objective research that helps the industry see where wealthy consumers are going and where the industry needs to follow," says Milton Pedraza, CEO of the Luxury Institute. "Our research indicates strong participation among wealthy consumers in all key evolving areas of social networking. Although no one can predict the new innovative forms of interaction that will take place online, it is clear that social networks will serve as central and irreversible conduits for consumer-to-consumer and consumer-to-provider cooperation and value creation in the near future. We are seeing more leading luxury brands embrace social media, but the overall luxury industry continues to lag to its own detriment."

A national sample of more than 400 wealthy American consumers was surveyed online by the Luxury Institute. The Institute's respondents had an average weighted household income of $415,000 and an average weighted household net-worth of $4.9 million. Survey results are weighted to match the profiles of the latest Survey of Consumer Finances from the Federal Reserve.

About the Luxury Institute (www.LuxuryInstitute.com)

The Luxury Institute is the uniquely independent and impartial ratings and research institution that is the trusted and respected voice of the high net-worth consumer. The Institute provides a portfolio of proprietary publications, research and consulting services that guide and educate high net-worth individuals and the companies that cater to them on leading edge trends, high net-worth consumer rankings and ratings of luxury brands, and best practices. The Luxury Institute also operates LuxuryBoard.com, the world's first global, membership-based online community for luxury goods and services executives, professionals and entrepreneurs.

Contact Information: For Further Information, Please Contact: Evins Communications, Ltd. Dotty J. Giordano Vice President & Director Phone: (212) 377-3588 E-mail: dotty.giordano@evins.com The Luxury Institute, LLC Martin Swanson Business Development Phone: (914) 909-6350 E-mail: mswanson@luxuryinstitute.com