Sujata Bhatia Vice President

American Express Business Insights

Nov 10, 2011

Who is the Luxury Consumer?

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American Express Business Insights

+ = Actual behavior, not self-reported

~90MM Cards >5B annual transactions

~ 130 markets

Constantly refreshed

Highly trained & experienced team

Advanced data modeling & analytics

Better informed decisions

Improved business performance

unique data analytical expertise

deeper insights

3

Luxury Spend Slowdown - 2009 vs. 2008

Brazil & India

Europe

US

Australia & Japan

4

Luxury Spend Recovery - 2010 vs. 2009

Brazil & India

Europe

US

Australia & Japan

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Luxury Spend Recovery - Q1 2011 vs. Q1 2010

Brazil & India

Europe

US

Australia & Japan

6      ’09        ‘10   ’09        ‘10  70  

80  

90  

100  

110  

120  

     

Spen

d In

dex

(200

7=10

0)

’09        ‘10   ’09        ‘10  

Post-Recession Recovery by Industry

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Newcomer : a consumer of luxury fashion in the post-2008-09 recession period who had no purchases in luxury fashion leading up to or during the recession

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Newcomer Spend Contribution - Luxury Fashion

18%  

26%  

28%  

31%  

33%  

36%  

Brazil  

Germany  

Italy  

France  

India  

US  

% Newcomer

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Gen X Generational Share - Luxury Fashion

32%  

34%  

35%  

35%  

40%  

44%  

France  

Italy  

Australia  

US  

Japan  

UK  

% Gen X = 29 - 46 Year-Old Consumers

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Gen X vs. Boomer Profiles

Gen X (29 - 46 Years Old)

Boomers (47 - 64 Years Old)

¡ Mostly male ¡ Fastest growing segment ¡ Travels to where their parents

couldn’t ¡ Growing spend in home

furnishings and electronics

¡ More male, but losing share

¡ Largest customer segment

¡ Travel destinations include

traditional holiday locales

¡ More brand loyal than Gen X

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Business Insights in Action

0,50 1,00 1,50

Monday

Tuesday

Wednesday

Thursday

Friday

Saturday

Sunday

Your Store

via montenapoleone

Henry Las Vegas

“Street View” Competitive Trends

Customer Segmentation Strategy

• 42 years old • Highest on-line

affinity • Enjoys golf,

electronics, and fine dining

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Thank You