leading re luxury portfolio
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presentationTRANSCRIPT
…an organization built on referrals & cooperation
delivering buyers…
enhancing customer relationships…
delivering to consumers…
our mission
� Expose your listings to international buyers
� Increase the likelihood that those buyers will be attracted to your firm
� Deliver marketing with tangible results
� Associate with a select group of the worlds most reputable and powerful brokers
goal for today
� What Luxury Portfolio does and how to communicate this to your customers
� Leveraging to Sell Your Listings
� Leveraging to Grow Your Business
� Understanding Today’s Luxury Consumer
What Is Luxury?
What does “need”
have to do with it?
In 2007, Costco surpassed
$600 million in sales of wine
becoming the largest wine
retailer in the United States.
1.7 Million Members
In 2009 they raised $40
million in VC money.
“Gilt Groupe - where bargain
luxury is not an oxymoron”
- Forbes Magazine
The Picture of Today’s “Luxury”
What we’ve heard/know� Grew up Middle Class
� Middle Class Values
� More tech savvy
� Family focused
� Empowered with information/research tools
� Value driven decisions
� Move away from “traditional” definition of luxury – losing the gated walls syndrome
� Exclusive to Inclusive - It’s about me!
27
� 2,337 total interviews among
households with discretionary
income of $100,000+
�Household discretionary
income groups
� Emergent Affluent
� Affluent
� Super Affluent
� Wealthy
Our 2010 Research
Top
10%
28
Upper Middle Class Affluent
Super Affluent Wealthy
Discretionary Income
$100K-$125K
$125K-$249K
$250K-$499K
$500K+
Cell Size and Impact
29
Triumph of the Middle Class
79%Grew up
85%“At Heart”
Middle Class Values Attributed to Success
Top 5:
Hard work 66%
Intelligence/being smart 53
Education 50
Determination 34
Treating others with respect 19
Not Just East Coast/West CoastDiscretionary Income
$125K- $250K-Total $249K $499K $500K+
% % % %
SOUTH 29 32 28 28
MIDWEST 19 18 22 17
WEST 26 26 26 27
NORTHEAST 24 24 23 26
Location of Primary Residence:
32
Not Wealthy for Very Long
9.7 yrsAverage length of
time with wealth
33
Wealth is a journey in which learning never stops
New wealth must master hundreds of categories on their journey in luxury consumption
Learning to Live With Abundance
Gender, Age and Race
Gender:
Male 55%
Female 45
Average Age:
Affluent 46.8 yrs
Super Affluent 48.0
Wealthy 49.3
Ethnicity:
Caucasian 90%
Asian 6
Hispanic 2
African-American 1
Other 1
Going Down!
Kids <18 in household:
38%
Family Status
Marital Status:
Married/living together 86%
Married to 1st spouse 60
Rising!
The New Middle Class Aristocracy
5%The of the population
we account for in this study provide:
of the gross margin in all US consumption
35%
5%The of the population
we account for in this study provide:
of the private assets in the American economy
65%
The New Middle Class Aristocracy
5%The of the population
we account for in this study provide:
The gas that
makes the
economy go!
The New Middle Class Aristocracy
39
So What’s Happening Now?
71
7880
71
75
Q1-08 Q1-09 Q2-09 Q3-09 Q4-09
The recent real estate and banking crisis has affected my
sense of financial security
40
Most Felt the Pressure
I worry that at some point I could run out of money
41
Worried About Losing it all
41
53
50
4748
3938
Q4-08 Q1-09 Q2-09 Q3-09 Q4-09 Q1-10 Q2-10
GenPop75%
65
54
2722
Q1-07 Q1-08 Q1-09 Q1-10
42
Spent $5,000 or more in department stores in the past year
Still Feeling the Pressure
43
Very Shaky Confidence
Confident in the ability of…
Q12010
%
Our President to lead us through tough times 38
The Federal Reserve to act responsibly 20
The national government to govern responsibly 13
Your local government to govern responsibly 13
My financial companies to act responsibly 13
U.S. business leaders to act responsibly 8
The financial industry to act responsibly 5
Top 3 Box (8,9, 10 on 10 pt. Scale)
44
Very Shaky Confidence
Confident in the ability of…
Q12010
%
Our President to lead us through tough times 38
The Federal Reserve to act responsibly 20
The national government to govern responsibly 13
Your local government to govern responsibly 13
My financial companies to act responsibly 13
U.S. business leaders to act responsibly 8
The financial industry to act responsibly 5
Top 3 Box (8,9, 10 on 10 pt. Scale)
45
Very Shaky Confidence
Confident in the ability of…
Q12010
%
Our President to lead us through tough times 38
The Federal Reserve to act responsibly 20
The national government to govern responsibly 13
Your local government to govern responsibly 13
My financial companies to act responsibly 13
U.S. business leaders to act responsibly 8
The financial industry to act responsibly 5
Top 3 Box (8,9, 10 on 10 pt. Scale)
59
53
24
18
46
49505052
4950
55
51
4846
38
39
35
41
51
4143
35
4039
49
2421
2826
22
2725
2123
11
24
9
19
14
21
151616
18
151716
Jan/Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan/Feb
me personally
your children
America
the world
46
They Are Optimistic
33
29
24
2826
18
2523 22 23
20
20
Q1-09 Q2-09 Q3-09 Q4-09 Q1-10 Q2-10
Losing Job Company Survival
47
Uncertainty Declining% worried about:
48
Coming Out of Hiding
Q12009
%
Q22010
%
I kind of like it when others recognize me as being wealthy
30 43
I feel guilty purchasing luxury goods in the current economic climate
54 45
Anticipation
59%42%
Will bounce back soon…
Q1-09 Q1 - 2010
66%
44%
Q1-09 Q1 - 2010
Real Estate Market Stock Market
We are in it together…
Together: Household Decisions
Household Tasks/Responsibilities:Summary of “Share Equally”
He Says%
She Says%
Buying homes or real estate 80 92
What we watch on TV 82 84
Buying cars 63 82
Major household purchases 78 79
Important matters concerning children 84 78
Planning vacations 68 62
Kids Weigh in More Too
45%55%
Q1-2008 Q2-2010
Among those with kids <18 in the household
Like brands that:
Are preferred by my children
53
Participate in some sort of content sharing
activity on the Internet
62%Q2 Total
Today’s “Extended Family”
Internet Activities
24Writing product reviews on review sites, retail sites, blogs, etc.
25Adding comments or postings to news articles or special intereststories I read on the Internet
34Posting comments to online communities, message boards, or online forums
39Uploading my own photos to a photo sharing site
44Maintaining my information on social networking sites
Total%Top 5 Internet Activities Currently Do:
Source: September Recontact
Social Networking
5Other
11MySpace
43LinkedIn
87Facebook
Total%
Social Networking Sites:(among the 44% who
use them)
The Power of the Internet*
59%Compare prices
* Average across all 15 categories tested
56%Compare products
37%Buy
24%Find Store
20%Does not
play a role
VS.
Media and Social Networks
57
THE DIGITAL REVOLUTION
TV Skews GenPop…& Print Skews Wealthy
* Average across all 15 categories tested
Q2-2010 GenPop
Upper Middle Class Affluent
Super Affluent Wealthy
TV 17.2 13.8 13.1 12.1 11.5
Internet 15.1 9.9 10.5 10.5 10.7
Radio 5.5 5.7 4.7 4.9 5.1
Print 4.1 3.8 4.0 4.4 4.9
Wealthy Still Love Print
* Average across all 15 categories tested
Q2%
I enjoy reading printed magazines even though I know I could find most of the same information online.
80
I tend to pay greater attention to print advertising in magazines or newspapers than advertising on the Internet
69
Electronic Media Milestones
* Average across all 15 categories tested
3,000,000 Units Sold In… 2MM Units Sold In…
7 Days(198 per minute)
G4 iPhone
80 Days(26 per minute)
2 Years
Kindle iPad
7 Days(198 per minute)
Affluents Leading New Tech Adoption
* Average across all 15 categories tested
Currently Own:Total
%<$75k
%
$75k-$125k
%
$125k+%
Any portable eReader-capable device (net):
71 60 64 81
Smart Phone 64 49 57 76
Netbook 14 8 8 21
Dedicated Electronic Reading Device
15 12 12 15
Electronic Tablet Device 11 5 6 16
Source: June 2010 Ambassadors Network Electronic Media Study
Strong Purchase Intent
* Average across all 15 categories tested
Extremely/Very Likely to Purchase(Top 2 Box of 5-pt Scale)
Total%
<$75k%
$75k-$125k
%$125k+
%
Smart Phone 26 21 27 30
Electronic Tablet Device 20 13 19 26
Dedicated Electronic Reading Device
8 8 7 9
Netbook 6 6 8 6
63
New Resourcefulness….
Sources of Wealth…Total
%
Someone else’s business
43
Spouse/partner 34
Own business 21
Investing 14
Real estate 13
Inheritance 5
Other 5
64
Affluence & Wealth is Self Made
65
New Resourcefulness
Because of the recession, I have become a more resourceful person
77%Q2
66
New Resourcefulness
I have become a much smarter shopper thanks to today’s economic
situation
73%Q2
Household sticks to a monthly budget
Q1-09
61%
Q1-10
55%
67
Planning and Budgeting
Q2-10%
I prefer to shop in stores with a reputation for great pricing
86
I usually wait for something to go on sale before I buy it
74
I shop with coupons fairly regularly 60
I always look at the offers I receive in the mail 60
I look for sales in the newspaper 59
68
The Strategic Shopper
69
I Like Brands That…
Q12009
%
Q42009
%
Q12010
%
Help me feel smart 54 58 61
The New Status
70
Word Associations That Matter
Top 3
Value
Saving
Deals
Makes Me More Interested in a Product/Service
Bottom 3
Fab
Chic
Trendy
Source: Sept. Re-contact, Top 3 Box (8,9,10)
Words That Describe Me
Source: Sept. Re-contact, Top 3 Box (8,9,10)
Top 10
Honest
Reliable
Intelligent
Loyal
Knowledgeable
Self-sufficient
Consistent
Family-focused
Resourceful
Friendly
Bottom 10
Gambler
Socialite
Cheap
Luxurious
Trend-setter
Risk-taker
Fashionable
Religious
Worrier
Simple
72
The Impact on Real Estate….
Whose research do you rely upon more when considering real estate purchases?
73
They Rely on Their Own Research
74
Self Reliance
Q1/07%
Q2/10%
I depend on the salesperson to know the specific details of a product that makes it worth more
67 49
I have close relationships with a few salespeople that I count on
39 25
75
Self Reliance
I can get information faster on the Internet than dealing directly with a company's
customer service representative
85%Q2
76
Today’s Big Irony:
77
Happiness Rating: Very HappyTop 3 Box (10-pt scale)
We’re Happier Today!
40
58
6669
Q1-07 Q1-08 Q1-09 Q1-10
78
Job Still Tied to Self Esteem
Q2%
I work harder than most people I know
75
My job/profession is a critical element in my self esteem
71
My job now requires that I work harder for less reward
50
My life revolves around my job and career
44
79
67
5956
Q1-08 Q1-09 Q2-2010
As I have accumulated more moneyin my life, I have become happier
…but it’s not just about Affluence
80
And We Feel More Successful
Say they are very successful
45%2007
66
75
69
78
In Career In Personal Life
Q1 Q2
I Feel Very Successful.
Hundreds of Page 1 Google Rankings..
Sample of Page #1 rankings (hundreds more!)…
colorado landmark realtorscolorado luxury homesnc luxury homes
luxury homes georgialuxury homes ukga luxury homes
miller realtorscenter entrance colonialtennessee luxury homes
luxury home salesluxury homes in manhattanpembroke hall
san diego luxury real estateluxury homes in new york citymarin luxury homes
luxury homes in georgiasan francisco luxury homedallas luxury homes
england country homesluxury real estate trendstexas luxury homes
orange county luxury homesvirginia beach luxury homesluxury homes in texas
wc & an miller realtorsluxury homes carmelsan antonio luxury homes
luxury homes in arizonaengland luxury real estatenew york luxury homes
my luxurywest palm beach luxury homesgeorgia luxury homes
north carolina real estatetexas luxury homes for saleaustin luxury homes
luxury homes in floridalouisiana luxury homesflorida luxury homes
“Milan Luxury Homes”
Page 1, Pos. 1
“England Luxury Homes”
Page 1, Pos. 1 & 2
“New Zealand Luxury Homes”
Page 1, Pos. 1
“Switzerland Luxury Real Estate”
Page 1, Pos. 1
“Belgium Luxury Homes”
Page 1, Pos. 1 & 2
“Manhattan Luxury Homes”
Page 1, Pos. 1 & 2
“Coral Gables Luxury Homes”
Page 1, Pos. 1
“Coconut Grove Luxury Homes”
Page 1, Pos. 1
“Luxury Homes for Sale Miami, FL”
Page 1, Pos. 1
Visitors in 2009 From Over 15,500 Cities
Listing Syndication
� Listings on LuxuryPortfolio.com are also displayed on our partner websites, including:
� www.wsj.com (Wall Street Journal)
� www.frontdoor.com (real estate portal for HGTV)
� www.openhouse.com
� www.relohomesearch.com
� www.youtube.com
� All properties with a LuxeTours™ are automatically syndicated to YouTube (the #2 search destination on the web).
Leveraging Social Media
� Visit LuxuryPortfolio.com and find shortcuts to link to us on:
� Twitter (twitter.com/luxuryportfolio)
� YouTube
� From your mobile phone at www.luxuryportfolio.com/mobile
� Share your properties with the “Share” Link
Our Twitter Page
1,875 Following!
Our Facebook Page
2,198 Following!
Our YouTube Channel
Over 100K property views
per month!
Property Advertising OpportunitiesUnique Homes $600 duPont Registry $300
The Wall Street JournalDomestic Edition $195
International Edition $350
LuxuryPortfolio.com Banner Ads
WSJ.com Real Estate “House of the Day”
WSJ.com Real Estate “House of the Day”
WSJ.com Real Estate “House of the Day”
Luxury Portfolio Magazine/Direct Mail Piece
� Consumer-focused marketing piece focuses on luxury lifestyle (not “listing magazine”)
� Customization opportunities available
� Distributed to high-net-worth consumers
� Additional available distribution includes:
� Targeted direct mail to affluent lists
� Distribution in airport club lounges
� Placement in local high-end venues
LuxeTrends®
• You can easily sign-up clients to receive customized, co-branded version each month
Luxe Introductions
• You can request a letter of introduction to be sent to your existing or prospective client
• Simply login to Luxe Xchange and click on my customer to register for client letter
Properties for the Home Page
E-mail: [email protected]
Mobile Site
LuxuryPortfolio.com/Mobile
Accessible from any web enabled phone
Link included on “email a friend”
The Listing Presentation Box
The Listing Presentation Box
� Presentation Box is “green” and wrapped in silken cloth and branded with your company logo
� Customized welcome letter personalized for your seller
� Folder with Listing Sheets describing: Our Powerful Network, Award-Winning Website, Targeted Digital Communication, Extraordinary Demographics and Unprecedented Advertising.
� The Luxury Portfolio Brand Brochure
� Samples of Unique Homes Magazine, The Wall Street Journal and the Luxury Portfolio Magazine.
$49.95 + shipping & handling ($39.95 for 4 or more).
Overnight available for a fee and if ordered by 3:00 central time.
Seller Reports & Luxe Analytics™
• Create seller reports on web activity and either print or e-mail to your clients via Luxe Xchange
• Luxe Analytics data includes exposures, views, which language, currency, and country of origin
903 total views on LuxuryPortfolio.comin last 4 months (Pulled 8/19)
LuxeAnalytics for listing # M1385446
Visitors from 37 different counties and viewed in 5 different languages
Final Things to KnowAbout Luxury…
• Consumers are democratic in their approach to luxury
• Americans now value individuality over exclusivity
• Exclusivity is “old luxury”
• Individuality is “new luxury”
Things to know about Luxury
Motivators to purchase luxury
1. Enjoyment & pleasure
2. Enhances quality of “my” life
3. Will reduce “my” stress
4. Reward for “my” hard work
5. Deepens “my’ relationships
6. Expresses Me!
It’s all about the experience and/or the treatment / performance
“In the factory we make cosmetics, but in my stores we sell hope”
-Charles Revson, founder of Revlon
Things to know about Luxury
Things to know about Luxury
Luxury is Experiential…
…It’s not having about the money
“Whoever said that Money can’t buy
happiness simply didn’t know where to go
shopping”
- Bo Derek
Marketing Points to Remember
• In 1930 average American household spent 150 minutes on preparing dinner
• Today the average American household spends 15 minutes
• Consumers prefer Bag Salad 2-1 over traditional garden lettuce
• Today homes have large extensive gourmet kitchens