A More Diverse Affluent Market Is Emerging as the Affluent Segments of the Population Grows
A More Diverse Affluent Market Is Emerging as the Affluent Segments of the Population Grow Faster than the Lower and Middle Income Segments
U.S. households with incomes $100,000 and over are the fastest growing segment of the U.S. economy, according to data from the U.S. Census Bureau. The number of affluent households rose from 19.7 million in 2005 to 22.2 million in 2006, an increase of nearly 13 percent.
Further, it is affluent households with incomes from $150,000 to $249,999 that grew the fastest in 2006. The number of households with incomes between $150,000 and $199,999 grew 17.9 percent between 2005 and 2006, while the number of households with incomes between $200,000 and $249,999 grew 16.2 percent in the same period. And the number of households at the top of the income distribution, $250,000 and above, rose 10.7 percent.
'One-size-fits-all' marketing strategy doesn't work in today's increasingly diverse luxury market
"As the number of affluent households grows and their wealth increases, the luxury market is becoming more diverse," says Pam Danziger, president of Unity Marketing and author of Shopping: Why We Love It and How Retailers Can Create the Ultimate Customer Experience.
"For example, about 13 percent of affluent households are headed by an ethnic minority. Some 5 percent of affluent households are led by a woman with no husband present. Further 30 percent of affluent households are members of the GenXer and Millennial generations and so bring more youthful tastes and attitudes to the marketplace as luxury consumers.
"Given the growing numbers of affluents and the increasing diversity among that population, it is dangerous for marketers to take a 'one-size-fits-all' approach to marketing to these consumers. Savvy luxury marketers need to account for differences in buying preferences and behavior among the increasingly diverse segments that make up the affluent population. Unity Marketing is taking the lead to provide luxury marketers with new information about the distinct segments that make up the luxury market."
Introducing the Four Segments of Affluent Consumers
To respond to this need to better understand the increasingly diverse affluent consumer, Unity Marketing has begun tracking four distinct segments of affluent consumers. Beginning with the first quarter 2008 Luxury Tracking study, those with household incomes of $100,000 annually or above will be divided into four segments:
Comfortable affluent, who earn between $100,000 and $149,999;
Abundantly affluent, who earn between $150,000 and $199,999;
Super-affluent, with household incomes between $200,000 and $249,999; and
Ultra-affluent, with incomes $250,000 and above.
"As a resource of consumer insights, Unity Marketing is sharpening its focus on the increasingly diverse luxury consumer market," says Danziger. "We expect to find differences in consumer behavior among the different segments of luxury consumers that will help marketers zero in on how to best serve their particular target market. With more disposable income concentrated in these segments of affluent consumers, it is critical that marketers understand and meet their unique and distinctive needs."
Track Future Shifts in the Luxury Market Before They Actually Start to Impact Your Business
Unity Marketing's flagship consumer insight service for luxury marketers and retailers is its quarterly Luxury Tracking study. The syndicated Luxury Tracking study gives luxury marketers the ability to anticipate the ups and downs in the market in the only longitudinal luxury panel research study of its kind.
The Luxury Tracking study is a cost-effective way for luxury marketers to monitor their brand and competing brands' usage among their target market. Luxury tracking gives marketers the data they need to predict changing patterns of affluent shopping consumer behavior before it occurs, so they are ready with new products and marketing initiatives before the changes and shifts in consumer behavior start to gain traction.
The Luxury Tracking study is a vital tool to gain more insight and understanding about the luxury market from one of the world's foremost experts on the mindset of the luxury consumer, Pam Danziger, president of Unity Marketing and author of Let Them Eat Cake: Marketing Luxury to the Masses -- as well as the Classes.
About Unity Marketing's Luxury Tracking Study and a Special No-Risk Trial Offer for New Subscribers
New subscribers to the Luxury Consumer Tracking Study can take advantage of a special no-risk offer on a trial subscription to the service that can be rolled over into a full year of the service at a reduced cost. New subscribers may purchase a trial of a single quarter of the study for $2,500 which will include customization of the tracking study to fit your product and brand preference needs. This offer carries no commitment to subscribe for the usual year.
Once the subscriber experiences the powerful insights available in the Luxury Consumer Tracking Study, they may subscriber for an entire year (an additional four quarters) for $10,000 – that is a 25 percent savings off the normal annual subscription cost of $12,500. New subscribers will therefore get five quarters of luxury tracking for the normal list price for four. In effect, you will receive one a quarter for free.
What Luxury Tracking Subscribers Get
Subscribers will receive:
Four Quarterly Reports -- Luxury Tracking Study quarterly analysis report of what 1,000-1,250 affluent consumers bought in the past three months, what they plan to buy in the next three months, how much they spent and their brand preferences. Each subscriber will have their brands and up to five or six key competitor brands included in the survey. The survey questionnaire is also customized to each subscribers specific product and service categories.
Luxury Market Report, 2008 - Who Buys Luxury, What They Buy, Why They Buy Year-end summary of luxury consumer purchases and spending, covering trend years 2006-2007 consumer purchases. This annual report represents a $3,500 value.
Access to Unity Marketing's affluent consumer survey panel Subscribers can access this affluent consumer survey panel for customized market research projects. Costs to be calculated separately.
Half-price discount on all other Unity Marketing reports ordered.
For media: Charts, tables and graphs are available on request.
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