luxury then and luxury today
DESCRIPTION
LUXURY THEN A shared, collective sense of what constitutes “luxury” An easy willingness to spend at the high-end, and pay a premium for true luxury A consistent lifestyle of high-end choices (or at the very least, the aspiration to such a lifestyle) “Mass affluent” consumers engaged in - PowerPoint PPT PresentationTRANSCRIPT
© 2012 Crain Communications Inc.
TREND REPORTDecember 10, 2012
LUXURY THEN AND LUXURY TODAY
LUXURY TODAY
89% agree, “luxury is in the eye of the beholder”
89% agree, “When I decide to purchase a luxury item, I go out of my way to find the
best price possible”
92% agree, “To me, small indulgences can be just as meaningful as purchasing
a high-end luxury product”
Luxury purchases more concentrated among elite groups such as “ultra affluents”
(the 2%-3% of Americans with $250,000+ HHI)
LUXURY THEN
A shared, collective sense of what constitutes “luxury”
An easy willingness to spend at the high-end, and pay a premium for true luxury
A consistent lifestyle of high-end choices (or at the very least, the aspiration to such a lifestyle)
“Mass affluent” consumers engaged in widespread “aspirational” shopping behavior,and luxury marketers responding accordingly
with lower-priced brand extensions
SOURCE: MENDELSOHN AFFLUENT SURVEY, POINT-OF-VIEW FORUM, “LUXURY IN 2012 AND BEYOND”
© 2012 Crain Communications Inc.
TREND REPORTDecember 10, 2012
AFFLUENT AMERICAGen Y represents 31% of consumers (18-64) who live in households with $100,000 or more annual income
SOURCE: 2011 CURRENT POPULATION SURVEY, U.S. CENSUS BUREAU
TOTAL HOUSEHOLDS WITH $100,000 AND OVER ANNUAL INCOME
(18-64):
53.3M
31%:
16.6M22%:
11.8M
47%:
24.8M
GEN X21% OF TOTAL POPULATION:39.8 M
AGES: 35-44
YEARS BORN:1968-1977
BOOMERS42% OF TOTAL POPULATION:80.9 M
AGES: 45-64
YEARS BORN:1946-167
TOTAL U.S. POPULATION191.9 MILLION
AGES: 18-64
YEARS BORN:1946-1994
GEN Y37% OF TOTAL POPULATION:71.2 M
AGES: 18-34
YEARS BORN:1978-1994
© 2012 Crain Communications Inc.
TREND REPORTDecember 10, 2012
FIVE SEGMENTS OF AFFLUENT GEN Y HOUSEHOLDSGreen circles indicate increasing levels of attitudes and behaviors that reflect wealthy spending patterns;
blue circles represent more middle-class attitudes and spending patterns
GEN Y TOTAL AFFLUENT POPULATION
(ANNUAL HHI OF $100,000+):
16.6 MILLION
EMERGING HEADS OF HOUSEHOLDANNUAL HOUSEHOLD INCOME:
$100,000-199,000UNMARRIED
MEAN AGE: 28PROJECTED POPULATION:776,000 AFFLUENT
CHILDRENANNUAL HOUSEHOLDINCOME: $200,000+
LIVING WITH PARENTS
MEAN AGE: 23
PROJECTED POPULATION:1,915,000
AFFLUENT HEADS OF HOUSEHOLDANNUAL HOUSEHOLD INCOME: $200,000+MARRIED WITH CHILDREN
MEAN AGE: 30PROJECTED POPULATION: 1,021,000
ASPIRING HEADS OF HOUSEHOLDANNUAL HOUSEHOLD INCOME: $100,000-199,000MARRIED WITH CHILDREN
MEAN AGE: 30PROJECTED POPULATION: 4,724,000
ASPIRING CHILDRENANNUAL HOUSEHOLD INCOME: $100,000-199,000
LIVING WITH PARENTSMEAN AGE: 23PROJECTED POPULATION: 7,701,000
PERCENT OF GEN Y WITH HHI OF $100,000+:
48%
5%6%
12%
29%
SOURCE: U.S. CENSUS, DIGITAS, 2012 MENDELSOHN AFFLUENT SURVEY
© 2012 Crain Communications Inc.
TREND REPORTDecember 10, 2012
CAREER PATHSJobs are a good indication of future wealth
ASPIRING HEADS OF
HOUSEHOLD
Technology or finance, but in non-metro
region, focused on family needs first
ASPIRING CHILDREN
Retail job rather than career or pursuing
“passion” careers like acting or entertainment
EMERGING HEADS OF
HOUSEHOLD
Creative, upwardly mobile in financial services,
technology, architecture,
advertising and real estate
AFFLUENT CHILDREN
“Mission” careers like education, the arts,
nonprofits or counseling with
salaries well below their parents
AFFLUENT HEADS OF
HOUSEHOLD
Traditional high-paying careers like medicine, legal and finance, as well as
software design and engineering
© 2012 Crain Communications Inc.
TREND REPORTDecember 10, 2012
SOUTH
32%Higher representation of Gen Y groups Aspiring Heads of Household, Emerging Heads of Household and Affluent Children.
NORTHEAST
25%Higher representation of Gen Y groups Aspiring Children, Affluent Children and Affluent Heads of Household.
WHERE THEY LIVE: AFFLUENT GEN YThe most affluent group live primarily in Northeast and West.
WEST
23%Slightly higher representation of Affluent and Emerging Heads of Household, with other groups evenly distributed.
MIDWEST
20%More Aspiring Heads of Households than any other Gen Y groups.
© 2012 Crain Communications Inc.
TREND REPORTDecember 10, 2012
GEN Y SPENDING POWERMillenials living with parents spend far more than they earn
I KEEP UP WITH THE FINANCIAL
NEWS
I AM ACTIVELY INVOLVED IN THE MANAGEMENT OF
MY PERSONAL FINANCES
I LIVE FROM PAYCHECK TO
PAYCHECK
IT IS IMPORTANT TO ME THAT I
MAKE AS MUCH MONEY AS POSSIBLE
32%Index: 131
72%Index: 118
25%Index: 99
49%Index: 94
17%Index: 70
52%Index: 85
27%Index: 108
50%Index: 96
35%Index: 141
73%Index: 121
18%Index: 72
65%Index: 124
21%Index: 86
59%Index: 96
28%Index: 112
60%Index: 116
43%Index: 177
73%Index: 120
11%Index: 45
57%Index: 109
SOURCE: MENDELSOHN AFFLUENT SURVEY, 2012, GEN Y (18-34) BASE DIRECTIONAL DATA ONLY
ASPIRING HEADS OF HOUSEHOLD:
$53,968
$59,119
$132,847
ASPIRING CHILDREN:
$70,599
$20,440
$136,643
EMERGING HEADS OF HOUSEHOLD:
$49,995
$60,453
$138,118
AFFLUENT CHILDREN:
$93,397
$39,609
$451,437
AFFLUENT HEADS OF HOUSEHOLD:
$85,813
$139,612
$341,556
AVERAGE HOUSEHOLD INCOMEAVERAGE PERSONAL INCOMEAVERAGE EXPENDITURES
Spending PowerHeads of Household segments spend on home and family expenses.
Their Financial BehaviorsHeads of Household segments are now more engaged with their finances.
© 2012 Crain Communications Inc.
TREND REPORTDecember 10, 2012
Not Living The Wealthy Lifestyle:
Aspiring Heads of Household:
Annual HHI: $100,000-$199,000
Married with children
Mean age: 30
Aspiring ChildrenAnnual HHI: $100,000-$199,000
Living with parents
Mean age: 23
PROFOUND DIFFERENCES
Not Yet Living Wealthy Lifestyle, But On The Path:
Emerging Heads of Household:
Annual HHI: $100,000-$199,000
Unmarried
Mean age: 23
Already Living A Wealthy Lifestyle:
Affluent Children :
Annual HHI: $200,000+
Living with parents
Mean age: 23
Aspiring Heads of Household:Annual HHI: $ 200,000+
Married with children
Mean age: 30
© 2012 Crain Communications Inc.
TREND REPORTDecember 10, 2012
GEN Y AND BOOMERS ENGAGE WTH MEDIAFOR DIFFERENT PURPOSES
Gen Y is much more likely to use digital tools to seek out entertainment, while boomers are more utilitarian. The red graphdenotes the reach of each segment; the blue graph denotes the likelihood of the segment to participate in that activity.
GEN Y MEDIA USE AND ACTIVITY BOOMER MEDIA USE AND ACTIVITY
REACH REACH
INDEX
INDEX
SOURCE: DIGITAS