luxury then and luxury today

9

Upload: harlan-duncan

Post on 31-Dec-2015

149 views

Category:

Documents


2 download

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 Presentation

TRANSCRIPT

Page 1: LUXURY THEN AND LUXURY TODAY
Page 2: LUXURY THEN AND LUXURY TODAY

© 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”

Page 3: LUXURY THEN AND LUXURY TODAY

© 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

Page 4: LUXURY THEN AND LUXURY TODAY

© 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

Page 5: LUXURY THEN AND LUXURY TODAY

© 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

Page 6: LUXURY THEN AND LUXURY TODAY

© 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.

Page 7: LUXURY THEN AND LUXURY TODAY

© 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.

Page 8: LUXURY THEN AND LUXURY TODAY

© 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

Page 9: LUXURY THEN AND LUXURY TODAY

© 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