MediaPost | Engage:Affluent

Why The Affluent Gen X Shouldn't Be Put Into A Corner

Tue, 29 Aug 2017 11:25:29 -0400

There's an affluent group that shouldn't be getting the short end of the marketing stick - the nearly five million affluent American Gen X (aged 39 - 52). According to our Affluent Perspective Global Study, affluent Gen Xers generate 31% of the affluent spending across the eight categories monitored - everything from vacations and home furnishings to clothes and dining.

The Importance Of Direct Source Data In Marketing To The Affluent

Fri, 18 Aug 2017 13:00:04 -0400

There are seemingly infinite data sources that marketers can utilize to help find their audience across media. The challenge they face is deciding how much to invest in data to maximize their return; in other words, will spending heavily on specific data to find the audience result in higher revenue than if they used a different source, or didn't use the data at all?

The Future Of Luxury: Understanding The Millennial Mindset Of Success

Mon, 24 Jul 2017 13:00:04 -0400

Predicting the future of luxury has never been more nuanced than it is right now. Fortunately for luxury marketers, positive attitudes towards luxury act as powerful levers of purchasing behaviors. According to our Affluent Perspective Global Study, a majority of the world's most successful people are happy with their lives, and luxury often plays a role in that sentiment.

Luxury And The Age Of Distraction

Wed, 28 Jun 2017 13:00:04 -0400

The erosion of attention in the era of "information overload" has become cliche. The disintegration of attention has long been related to computer technology. For instance, the first published use of the word "multitask" appeared in an IBM paper from 1965 in reference to a computer simultaneous processing powers and it has since become a mainstay in the popular idiom of the modern culture of distraction. It might be said that we're rapidly becoming beset with "digital amnesia."

All Affluent, Wealthy, And Luxury Consumers Are Not The Same

Fri, 16 Jun 2017 13:00:04 -0400

Recently I attended a conference that focused on marketing to affluent consumers. As I listened to a day's worth of presentations, I realized that the speakers were using the market descriptors "affluent," "wealthy," and "luxury" interchangeably. However, based on the work we have done in these three market segments, we must note that while they overlap somewhat, the three categories relate in most respects to consumers with different demographic and behavioral profiles.

The Affluent Mobile Story Is Told Across Multiple Devices

Tue, 06 Jun 2017 13:00:05 -0400

When pursuing an omnichannel approach, it's important to not only understand which device the consumer is on but, perhaps more importantly, that you're reaching the same consumer across various devices.

Inclusive Advertising In A Mobile-first World

Wed, 24 May 2017 15:22:04 -0400

According to the Center for the Study of Women in Film and Television, female film protagonists reached an all-time high in 2016. Films like "Hidden Figures" and "20th Century Women" have predominantly female casts and have achieved enormous success in 2017. This comes a year after the infamous failure of the Motion Picture Academy to nominate a single actor of color or a single female director at the 2015 Oscars, an event that inspired the Equal Opportunity Commission to investigate the U.S. film industry, and to recently find them guilty of discrimination against female directors. In spite of the obvious strides forward, more can be done, and more needs to be done.

Stop Thinking Digital To Get The Attribution You Deserve

Wed, 17 May 2017 10:00:07 -0400

In our data-driven world, guesses, feelings and estimates about how ads are performing are unacceptable. Advanced analytics tools are helping us see exactly how customers are moving down the digital path to purchase, and which marketing activities are responsible for driving those actions. But what if you're a digital marketer who works in an industry that does most of its business offline?

For The Affluent, A Lease Model Is No Longer Off Limits

Wed, 10 May 2017 10:00:10 -0400

An uncertain economy might scare some marketers, but for others, it presents an interesting opportunity to adopt a new perspective. In the past, the affluent were often regarded as spenders - those who had money on hand and were willing to spend it on a major purchase. Yet, consumers today, especially the younger ones, are much less inclined to tie their money up in a big purchase.

Attention, Affluent Marketers: Please Watch Out For The Gap Between Millennials And Luxury

Wed, 03 May 2017 10:00:07 -0400

Based on recent questions we have received about what’s really going on with Millennial consumers and their viewpoints on luxury and upscale products and services, we recently conducted a qualitative research study, “Millennials: Their Current and Future Need for Luxury,” in collaboration with The Luxury Marketing Council of Connecticut – Hudson Valley.

The exploratory study’s primary purpose was to lay the foundation for a more comprehensive understanding of Millennials' luxury-related passions, values, and buying habits in significant luxury and upscale markets. This study included both an online survey of 46 respondents and an in-depth, 90-minute focus group discussion with five accomplished Millennials (all from the eastern United States), concentrating on the following two topics:

How Millennials describe luxury

Their current and future need for luxury products and services and their rationale for their outlook

More so than in the past, this key affluent demographic, upscale Millennials, described the word “luxury” using such negative terms as “expensive” and “unnecessary.” Also, some key attributes of luxury in the minds of the older generations — Gen-Xers and Boomers — such as “exclusive” and “designer” were not as important, if at all, to many of the Millennials.

Given this scenario, brands that market to affluent and luxury consumers had better pay close attention to how Millennials view upscale and luxury products and services. And when these less-than-positive descriptions come from Millennials — the future affluent consumers — how do they impact prospects for the affluent and luxury goods and services marketplaces in the future?

This challenge is even more daunting since most Millennials in this exploratory study, when asked about their need for luxuries, answered that they don’t need them. There were a few exceptions, as some respondents cited “quality” and “designer” as positive attributes of luxury. In addition, Chanel, Hermès, and Rolls-Royce were all mentioned as notable and recognized luxury brands, so there is at least some name brand awareness among this younger generation.

Notably, though, in this survey, not one American brand was mentioned as being among the top luxury brands. That said, this overall lukewarm interest in luxury is a clear warning shot across the bow of the affluent and luxury worlds, and its implications call for more innovative approaches to making a case for upscale and luxury products and services among Millennials … or that case may well be closed.

Ultra-Luxury Brands Breaking Into Emerging Markets

Wed, 26 Apr 2017 09:00:00 -0400

Alongside Brazil, India, and China, other emerging markets, like Iran, South Africa, Indonesia and Malaysia, are set to hit their stride in the coming decade. The significance of flexibility and collaboration will increasingly become key in luxury brand marketing strategies within these areas.

Should Affluent Hispanics Be Considered General Market?

Wed, 19 Apr 2017 10:00:06 -0400

Multicultural marketing has created a marketing economy based on segmenting the population by ethnicity. While ethnicity segmentation has worked for the past several decades, as I pointed out in an earlier column, that foundation is starting to crack. Our industry is experiencing a paradigm shift. As we attempt to make sense of this existential crisis of marketing models, we should consider how we segment and why.

In Luxury Auto, Dealers Must Be Data-driven

Wed, 12 Apr 2017 10:00:06 -0400

The dealership is no longer a consumer's first stop when researching an auto purchase. While the test drive remains essential, most consumers begin their search online, drastically cutting down on the time they have historically spent looking around showrooms. All signs point to a period in time, not far off, where consumers can buy their cars online and then drive away with the cars without speaking to a salesperson.

Luxury, In The Words Of Female And Male Luxury Buyers

Wed, 05 Apr 2017 15:45:03 -0400

This month's column follows up on the many comments we received from readers of last month's column, "Luxury, In The Words Of Upscale Americans," which focused on the differences in how upscale Americans, as defined by their spending power (i.e., their household incomes and wealth), describe luxury in response to the following question: "When you read, see, or hear the word luxury, please describe briefly what you think about."

A Brand's Purpose Resonates With Luxury Buyers

Wed, 29 Mar 2017 12:28:02 -0400

The idea of a brand having a purpose isn't new. All brands have always had one, but today, that word means something much different to consumers. Today, purpose is more about what the brand stands for than it is about why it exists. Yes, consumers want to know the brand, buy from the brand and talk about the brand, but they ultimately will only stand up for the brand if they believe it has a meaningful purpose.

How To Make Luxury Relevant Again

Thu, 23 Mar 2017 11:37:02 -0400

The luxury industry is at a tipping point. Both Euromonitor and Deloitte, global firms that study the luxury market, testify to it. They predict growth slowing in the global luxury market, with particular weakness in the Western Europe and North America.

Blogging: The Most Powerful Form Of Luxury Advertising In China

Wed, 22 Mar 2017 10:00:06 -0400

In a recent report by BNP Paribas, "The Shopping Guide: Bloggers in China," fashion bloggers are said to "have filled a void on the internet ahead of luxury/fashion brands and publishers" in educating Chinese consumers about different global brands. That the rise of fashion bloggers and the development of the Chinese luxury market happened in tandem is no coincidence. The influx of rapid change has meant certain individual consumers have positioned themselves as experts in introducing new luxury items to the rest of the market.

The IoT Checks In: Bringing Connectivity To Luxury Hotels

Wed, 15 Mar 2017 14:00:05 -0400

One of the oldest industries in the world is poised to pave the way forward for one of our newest technologies, the Internet of Things (IoT). Luxury hotels could be the frontier that finally moves the vision of IoT fully connected living from CES displays to real life. Frankly, given all the efficiency and cost saving advantages the IoT could bring the hospitality industry, it's almost surprising it hasn't happened yet. (McKinsey finds that IoT hype actually understates the full potential.) So it seems appropriate now to take a moment to imagine how we should communicate this revolution to the end user, the global affluent guest.

Segmentation Can Help Overcome Addressable TV's Small Scale

Wed, 08 Mar 2017 10:00:06 -0500

While TV has long been a fantastic way to deliver messaging to a wide audience, marketers have recently been attracted to new methods that allow them to use the deeply engaging medium in a more targeted fashion. Delivering TV ads to highly specific audiences by leveraging data is something of a holy grail for marketers, and can help them reduce the waste that comes with typically massive scale buys.

Luxury, In The Words Of Upscale Americans

Wed, 01 Mar 2017 13:43:03 -0500

This month's column follows up on comments we received from readers of last month's column, "Luxury, In The Words Of Today's 3 Major Generations," which focused on the differences in how Millennials, Gen-Xers, and Boomers describe luxury in response to the following question: "When you read, see, or hear the word luxury, please describe briefly what you think about." This month we focus on descriptions of luxury among the following two segments of consumers based on their spending power.

How Creative Polymaths Are Influencing Luxury Brands

Wed, 22 Feb 2017 10:00:07 -0500

We've all heard it: branding and consumerism in the 21st Century is a global village, a place of hyper-specialization and fragmentation, right? Well, one very current trend that seems to be going against that tide lies in a new generation of "polymath creatives" that is discreetly but powerfully shaping luxury markets from automobile design to fashion.

The Luxury Of Simplicity

Thu, 16 Feb 2017 12:50:03 -0500

Volvo ran a series of ads earlier this year using the theme, "Our idea of Luxury is Simplicity." What Volvo astutely realized is that a rewarding relationship feels easy and uncomplicated and that buyers of luxury goods and services are seeking a seamless, effortless experience, not only finely-crafted products.

When It Comes to Identifying Affluence, Third-party Data Remains A Vital Tool

Wed, 08 Feb 2017 11:26:03 -0500

Marketing to affluent audiences relies heavily on reaching audiences that have the spending capacity to afford a brand or service. This includes both a brand's existing customers, as well as prospects who match the spending or behavioral characteristics of those valuable existing consumers. The trick is for marketers to use all of the data and tools at their disposal to reach both existing and untapped audiences.

Luxury, In The Words Of Today's 3 Major Generations

Wed, 01 Feb 2017 11:00:06 -0500

Luxury, affluence, and wealth marketers define their target markets in many different ways (by income, wealth, generation, buying habits, attitudinally, etc.).

Micro-moments Google Data: How High-end Brands Can Inspire Themselves

Wed, 25 Jan 2017 10:00:05 -0500

Google recently unveiled findings regarding micro-moments. These are defined as intent-driven moments of decision-making and preference shaping that can occur during a consumer journey.

Lessons Learned From The Earliest Of Early Adopters, Our Kids

Wed, 18 Jan 2017 13:00:05 -0500

So much of today's conversations center on connectivity. How connected are we? Is it too much for our lives and the lives of our kids? All this chatter about connectivity has me wondering just what it really means to be connected.

Faced With Cautious Affluent Consumers, Nimble Marketing Matters

Wed, 11 Jan 2017 11:00:06 -0500

At the start of the year, it's generally standard practice for marketing organizations to do a postmortem on the previous year and think about how they're going to apply their learnings to the year ahead. But 2017 has the potential to be a very different year, as the U.S. undergoes a political transition that could have a wide-ranging impact on the economy.

It's Now 2017: Time For A Reality Check Regarding The Luxury Marketplace

Wed, 04 Jan 2017 11:00:05 -0500

As 2017 begins, we believe it's a good time to take a deep dive into which American consumers are actually buying luxuries. Listening to luxury and affluent brand marketers as we continually do, we find that many of them focus their attention and marketing efforts solely on very high-income and wealthy consumers.

Affluents And The Bourbon Boom

Wed, 28 Dec 2016 13:00:06 -0500

If you haven't noticed, there's a boom in American whiskey right now. Led by bourbon, the category has grown 40% in the past decade, with revenue growth of 47% to $2.7 billion in 2014. The "International Wine and Spirits Review" forecasts 20% growth in the next five years. Supply can hardly keep up with demand, leading to shortages of the amber liquid in top markets across the country. And it's the favorite way for pop culture heavyweights to booze up, from Don Draper on "Mad Men" to Frank Underwood on "House of Cards" to Raylin Givins on "Justified." Like vodka and Scotch before it, bourbon is having its moment.

Why 'Stickiness' Should Become A Major Component Of Affluent Marketing

Thu, 15 Dec 2016 10:00:07 -0500

In an era with more media options, more advertising, and more consumer choice than ever before, brands find themselves in intense competition for customer dollars and loyalty. Faced with so many available options, consumers' buying decisions are less predictable than they were in the past, largely because cost is not always the primary concern.