Affluent Insights 2014: Where are Affluents?
For many luxury brands, Asia seems to be the next best destination. With its strong base of millionaires and nouveau riche, the luxury goods and services sector is sure to see a steady increase in demand in the coming years. Asia replaced North America as the region with the highest number of high net worth individuals in 2013.
Agility Research & Strategy’s Syndicated Study have been focusing on understanding this consumer base. And the resultant - Affluent Insights 2014 – “aims to understand the consumption patterns, brand preferences and detailed insights of the Affluent Asian consumer”. Infographics that bring together a strategic picture on a week in the life of the affluent consumer from China, Hong Kong, Singapore, America, and Indonesia is sure to be a handy tool for a luxury brand.
Here is a look at the infographics and the details they present.
China
The majority of Chinese respondents are females (54%), aged 18-34 years (59%). They are likely to be married (85%) with children younger than 15 years (83%). They are usually employed in high-ranking positions such as Vice president, director, general manager, or department head (22%). 24% of them have investments between USD$ 0.5 million to USD$ 5 million. The different days detail the information channels they pay attention to for the top categories they spend in, as well as their favorite brands, shopping sites, and vacation spots.
Hong Kong
The majority of Hong Kong respondents are females (58%), aged 18-34 years (55%). They are likely to be married (62%) with children younger than 15 years (56%). They are professionals such as doctors, lawyers, or engineers (19%). 33% of them have investments between USD$ 0.5 million to USD$ 5 million. The different days detail the information channels they pay attention to for the top categories they spend in, as well as their favorite brands, shopping sites, and vacation spots.
Singapore
The majority of Singaporean respondents are males (56%), aged 18-34 years (43%). They are likely to be married (71%) with children younger than 15 years (55%). They are usually middle to high level managers in private or public companies (29%). 18% of them have investments between USD$ 0.5 million to USD$ 5 million. The different days detail the information channels they pay attention to for the top categories they spend in, as well as their favorite brands, shopping sites, and vacation spots.
USA
The majority of American respondents are males (51%), aged 18-34 years (41%). They are likely to be married (86%) with children younger than 15 years (43%). They are usually employed in C-Suite positions (19%). 24% of them have investments between USD$ 0.5 million to USD$ 5 million. The different days detail the information channels they pay attention to for the top categories they spend in, as well as their favorite brands, shopping sites, and vacation spots.
Indonesia
The majority of Indonesian respondents are males (57%), aged 18-34 years (59%). They are likely to be married (74%) with children younger than 15 years (69%). They are usually business owners, partners, or entrepreneurs (22%). 16% of them have investments between USD$ 0.5 million to USD$ 5 million. The different days detail the information channels they pay attention to for the top categories they spend in, as well as their favorite brands, shopping sites, and vacation spots.
Affluent Luxury Consumer Segmentation
Not all affluent consumers are the same, but finding common characteristics that defines segments in this market can help us understand and better target this high value consumer base. Focusing on smaller homogeneous groups that think and behave in a similar fashion allows a brand to customize its offering, making them more relevant to the consumer. Nowadays, luxury is about providing a personable, customization experience to the end user.
Our friends at Agility Research and their team of data scientists and methodologists propose a new insightful segmentation solution - the Affluent Luxury Consumer Segmentation. Using data from syndicated studies conducted every quarter, they have identified four distinct affluent consumer profiles based on behaviour and psychographic attitudes in relation to purchasing luxury products from different categories.
The Affluent consumer audience can, therefore, be segmented as such:
“Exclusivity is a luxury only a premium brand can deliver.”
The Exclusivity Seeker
is a key segment for many high-end brands as they have considerable disposable income and spend liberally across multiple luxury categories. These consumers spend on luxury cosmetics and fashion and are especially likely to spend on travel. For this segment exclusivity is a luxury a premium brand can deliver. They are likely to be female, 40-49 years old, a Manager, Director, or VP in a public or private company.
“Luxury products that I buy on my travels elevate my social status.”
The Indulgent Traveler
buys luxury predominantly at airports or in cities they travel to. The travel indulger is also something of a socialite who is looking to elevate his social status by buying luxury products. He is likely to be a professional (e.g., doctor, lawyer, engineer), male , and 30-49 years of age. The Travel Indulger spends money on high-end accessories such as premium/ luxury watches and jewellery.
“ Online luxury does not phase me; I research and buy virtually.”
The Virtual Shopper
does not have an issue with luxury converging with the online world. She both researches and makes luxury purchases online. She values luxury goods for their higher quality and uniqueness. The virtual Citizen is predominantly a female professional who is 20-29 years old. Her wardrobe is likely to displays fashion pieces from Calvin Klein, Gucci, Coach, and/or Chanel.
“Luxury is great, but only at the right price online and tax-free.”
The Luxury Bargain Hunter
sees luxury goods desirable, but only at the right price. This segment goes online to search for luxury products and prefers to buy products tax free. The Luxury Bargain Hunter is likely to be a female aged 50-59, a professional, or a mid to high level manager. While they have the least spending power out of all the segments, the Luxury Bargain Hunters spend more than others on electronic gadgets and on their vehicle.
Seek a consultant at www.affluential.com to get a more comprehensive profile of each segment or to apply their unique segmentation solution to your projects.