The American Middle Class Spends Money Cautiously Against Light Luxury Brands.

PamDanziger, a luxury goods market expert, said consumers with annual incomes of $100 thousand ~25 million were more cautious about buying non essentials. "For themselves, this consumption attitude is wise, but it is not good news for the market."

PamDanziger's research shows that light luxury brands such as RalphLauren, Coach and MichaelKors have always been highly sought after by 25 to 34 years old, but not wealthy but strong purchasing power groups.

The consumer group accounts for 18% of American households.

She defines a new name for such consumer groups: HENRYs (HighEarnersNotRichYet), which means that people who earn high but are not rich.

Because of slow growth in income, this group is becoming more conservative in terms of spending.

"This has led directly to the disappointing performance of RalphLauren, Coach and MichaelKor.

Because of the economic downturn, the traditional middle class is increasingly cautious about buying these non essential items.

The report points out that

Retailers such as J.C.Penney and Kohls were also affected and their performance was mediocre.

The reasons for these companies are: inventory stagnation, delayed shipment, bad weather in February, and reduced international tourists.

But there is another reason for not ignoring: Americans are gradually decreasing.

And household expenses.

This consumption trend will impact the operation of these companies in the next few years.

Theoretically, falling oil prices give consumers more disposable income.

However, the latest report of the US Department of Commerce indicates that the US retail industry is depressed because consumers are more willing to spend in other fields than traditional retail.

Morgan Stanley's latest report shows that compared with ten years ago, today's

They spend more on rental goods, smart phones and personalized services, and spend less on clothing and accessories.

Messi, chief financial officer of department store KarenHoguet, blamed Netflix on the decline in sales.

KarenHoguet pointed out at the recent meeting that electronic products and online subscription services gradually seized the market share from the clothing industry. "I think this is mainly because consumers' shopping tendency is beginning to tend to electronic products, cable TV services, Netflix and so on.

While some products, such as cosmetics, are still selling well among young people, on the whole, consumers' purchase preferences have been pferred from clothing and household goods.

Hoguet said helplessly: "consumers spend their disposable income on cars, health care, electronics and home decoration, which we do not sell."

Even if consumers buy clothes, they may not be willing to buy them at full price.

Retail expert RobinLewis summed up the reasons on his personal website: consumers fell in love with promotional activities.

RobinLewis wrote: "with the promotion of coupons, discounts, membership scores, gifts and other promotional activities, the exception has evolved into a rule that consumers can spend less money on the same thing."