Loving or Loathing: Understanding Affluents’ Relationship with Luxury

 

28 million Affluent Americans say that luxury products and services play an important part in their lives, but it’s a complicated relationship. Most Affluents associate luxury with high-quality, expensive items that are not necessities in their lives, but nevertheless they are desirable for their perceived value, exclusivity, and the status they convey. For many of them, luxury is seen as a reward for their hard work and success. In many ways, it’s an expression of personal satisfaction and self-affirmation.

Despite the deep connection that many Affluents have with luxury, there is a sizable number of high-earning Affluents who have a somewhat negative view of luxury, seeing it as overpriced and a symbol of excess. What separates the two, and how can luxury marketers appeal to both groups in order to grow market share? Listen as we share findings from our most recent research on the highest earning households. Among the things that attendees will learn:

• Differences between how men perceive luxury versus women
• In which categories Affluents purchase premium, high-quality, luxury brands
• The impact of Affluents’ formative years growing up has on perceptions of luxury
• How “premium” differs from “luxury”
• Images that come to mind when Affluents think about luxury
• The importance of experience over physical

The Ipsos Affluent Survey has been tracking the purchasing and media behavior of the most exclusive audiences for almost 50 years. With studies running in 50 markets around the world, we are able to offer an unparalleled understanding of how Affluents think and act – insights critical for all marketers hoping to increase share of wallet among the wealthiest consumers.

Webinar Key Takeaways:

• Positive Views: Luxury marketers should focus in on the generally positive views of luxury and the benefits that many Affluents see those products and services bringing to their lives. Justify the higher prices against the benefits of craftsmanship, reward, and innovation.
• Focus on Quality: Affluents rate quality of products and services among the most important aspects of premium and luxury products.  They’re willing to pay extra for comfort and service, however it’s critical to meet their expectations of personalized attention or risk the loss of repeat business. 
• Gender Differences: As in so many areas, Affluent men and women think differently about luxury.  Men are more likely to focus on functional value, while women are more likely to crave the emotional satisfaction and pleasure of luxury products.  Both men and women enjoy luxury for its  exclusivity and a reward for hard work.
• Upbringing: We often see marketers targeting on the present circumstances of individuals, yet one of the most telling differences in luxury preferences seem tied to the values these individuals developed during their childhood.  Similar finances in adulthood are not necessarily and indicator of purchase preferences.