• by Karl Greenberg , December 17, 2010

People who buy luxury items have traditionally been older and wealthier. Not this year.

Global management, technology and consulting firm Accenture, surveying 1,003 consumers 18 and older in late November, found that buyers of luxury gifts this year are younger and less solvent. The company says that buyers between the ages of 25 and 34 are more likely to purchase some form of luxury gift this year, but that the likelihood of that happening drops when the consumer is older than 34.

Accenture says over 25% of luxury buyers will shop for luxury gifts online, with younger customers showing the greatest desire to shop online. Mass retailers (16%) and discount stores (10%) were the next-most-popular shopping destinations, followed by specialty stores (4%), and luxury brand stores (3%) rounded out the bottom of the list.

The firm says 92% of consumers expect to spend the same or less on luxury gifts this holiday season than last year, and 36% plan to spend less than $250 on all of their holiday gift purchases, including luxury. Thirty-four percent plan to spend more than $500 total on gifts. Accenture says price has been the most important product attribute by far -- more than quality, brand or store experience -- among the reasons consumers choose a luxury gift item this holiday.

While the company says overall sales of luxury items this holiday season will stay flat, discounts are driving luxury, with 70% of consumers saying deals are the biggest influences on their decision whether to purchase a luxury good as a holiday gift this year. About half say discounts and sales will also play a major role both in which luxury items they decide to buy and where they buy them.

Among those with the highest incomes, consumers were willing to spend slightly more to get a steeply discounted luxury item, and while 76% of respondents overall were actively keeping track of sales and promotions this holiday, the study found that paradoxically, the likelihood to track sales grew with income level.

Also a surprise, respondents said lowering pricing on luxury does not lower brand perception, as only 1% of consumers indicated that a deep discount would negatively impact their impression of a luxury product.

Invitation-only shopping is also big this year. The Accenture survey found that 32% of those who said they are "extremely likely to purchase a luxury gift this holiday" belong to a members-only discount Web site like Gilt.com. Most members of such groups surveyed say promotions will influence what luxury goods and gifts they buy this holiday season.