A recent Google study has highlighted some facts about the affluent consumers that we here at Martini have long believed. But, as always, it’s nice to have some backup, especially from Google!
Time is Money: Wealthy Drop Dollars Online (AdAge)
Of course Google has as much interest as us in having the affluent shop online. But they call out a couple personality assumptions that we think are key.
First, comfort and convenience. Many of the current affluent group made their money in technology. The two internet booms, along with the modern finance, have been some of the greatest wealth creators in recent history. Both of those worlds rely heavily on technology, and so the beneficiaries of those booms tend to be more comfortable researching, finding, and purchasing online. Not only do they want their favorite brands online (91% said so), those who buy online actually tend to spend MORE ($114,632 annually vs $22,813 annually for those who shop offline). So if your luxury brand isn’t online yet, shouldn’t you be wondering how much of the market you’re missing?
Second, efficiency. 89% of the millionaires are working full time. Considering the working environments prevalent in society today, how many of those do you think are at 40 hours a week and have time for relaxing strolls down 5th Ave? More likely they’re squeezing in Christmas shopping on an iPhone between board meetings. Reaching these folks and making it quick for them to find your brand online is key.
There’s a trove of other great stats in the article, so I encourage you to check it out for yourself. This is too important a trend in the luxury space to miss.
1 Comment
November 17, 2008 at 4:28 pm
What luxury brands should do in bad ecconomic times.
Doom and gloomers are using this bad economic time to create panic and make money with their snake oil fixes. This holiday season is forecasted to be as bad as the one in 2001. Guess what, we lived through that and we will make it through this. The immediate gratification group will have to hunker down and ride this out as the truth is we are probably only about half way through the ride.
This is a time to go inside. Clean house, so to speak, as in a rapid growth period all our energies are focused outward, now it is time to look inward. This time gives us a chance to do some house cleaning, create more efficiencies within. Fat cat brands that had not addressed the rapid marketing and advertising changes because…… “why exert effort to learn something new when it is easier to just drink champagne” will have to address where they spend their marketing dollar and where to invest in the next generation of web reach. The magazine and TV ads are too expensive for what they bring and study after study shows the social media is here. It is expected by most industry professionals that TV as we know it will be on the web within 5 years. This rapidly changing medium requires an educated eye and an investment in the creation of the new next thing instead of lagging behind and not differentiating your brand from the others. This is a time when Darwinism will rule as the strongest, most innovative and forward thinking that implement a strategic plan instead of shaking in their boots…..will be the one to come out on top. Now is the time to bring in that consultant, create a new game plan, examine efficiencies internally, invest in R & D, and distinguish your brand both in products and in marketing approach. You can’t choose the economic environment but you can rise to the challenges.