Archive for the ‘Uncategorized’ Category

How Well Do You Know Millennials?

Thursday, August 3rd, 2017

alc_wealth_window_millennials_300x198Much has been written about millennials. Much of it is true:

 

But millennials are not a monolith:

 

If you’re interested in understanding or reaching the right millennials for your brand, consider Wealth Window: The Richest Data on the Wealthiest People.

The Future of Luxury

Thursday, May 25th, 2017

Every day, I talk to luxury marketers. Recently, we’ve been talking about luxury retail. Here’s what I’m hearing…

Retail continues to be transformed. Changing shopping patterns, emerging technologies, and evolving consumer tastes are impacting the way the affluent shop — and what they buy.

New technologies at retail are being tested and refined. Many of these technologies are data driven, including digital identification solutions, innovative mobile apps, and wardrobe assistance driven by machine learning.

Which of these technologies will be broadly adopted? We’ll have to wait and see. But it’s clear that HNW consumers have increased expectations about their interactions with luxury brands – and data is often facilitating these enhanced experiences.

At ALC, our luxury clients are now integrating important insights that go beyond basic demographics and transactional activity, to empower more personalized communications, integrated with new techniques.

In this fast-moving world, we can’t wait for tomorrow’s technology to drive our business today. But, we can leverage a wealth of data that’s available right now to deliver more relevant, personalized communications and experiences.

Finally, if you’re having success with a new technology or an innovative data strategy, please let me know. It would be a luxury to know even more about how to succeed in the future.

Luxury Brands Must Control Their Destiny

Wednesday, April 5th, 2017

alc_wealth_window_luxury_brands-300x198A few weeks ago, it was announced that Neiman Marcus may be acquired by Hudson’s Bay. As we all know, evolving consumer shopping behavior and other factors continue to drive change in the luxury retail sector.

While retailers remain critical to many luxury brands’ success, we’re finding that more brands are taking control of their destiny…

Naturally, retail is key in luxury. It always has been. It always will be. But in our changing world, the more you know about your customers and prospects, the better off you are! There’s an old saying, “Trust in God, but tie-up your camels.” I say, trust in your retail partners, but own your own data!

Seriously, if you’re interested in understanding the benefits and options in having a custom-built audience or licensing data – and giving yourself an insurance policy – I’m happy to help!

How will Donald and Melania Trump Impact Luxury Brands?

Wednesday, November 16th, 2016

Photo Courtesy of People Magazine

Photo Courtesy of People Magazine

History suggests that America’s first families often have significant influence over the purchasing behavior of Americans and people around the world. This was certainly the case when John and Jackie Kennedy brought their sophisticated and affluent style to the White House, replacing the rather conservative, 50’s era style of the Eisenhower’s. (Tuxedos anyone?) Ronald and Nancy Reagan brought Hollywood glamour to Washington—an obvious departure from the homey style of the Carters. (Oscar de la Renta and Bill Blass certainly benefitted.)

And now, Donald and Melania Trump are bringing their lifestyles of the rich and famous to the White House, and, let’s face it, the Trumps have never been shy about the media. This begs the question: How will their affluent, opulent way of life influence luxury brands and spending on upscale goods and services?

Here are some questions that are on my mind – and probably yours as well:

 

These are just a few of the questions that will be answered over the next few months, and during the Trump presidency. But one thing seems certain, the rich will get richer, and smart marketers should be thinking about how to leverage this unique opportunity.

If you think there’s a trend you can capitalize on, let’s talk. I’d love to hear your thoughts.

Luxury Consumers Are More Plentiful and Powerful Than You Thought

Wednesday, September 9th, 2015

Luxury Consumers

Luxury Consumers Wield Purchasing Power

Luxury brands would be smart to invest heavily in marketing given the U.S. market’s current state and projections.

The luxury goods industry in America is flourishing, growing and evolving all at once. As marketers work to refine and optimize their brands for digital, they’ll find that their audience is actually much wider than historical data suggests. Likewise, the top tier of luxury consumers is continuing to reinforce their financial strength. Here’s what you need to know:

Affluent Consumers Have Company
MediaPost’s Engage:Affluent found that 20 million adults with annual household incomes of less than $75,000 bought one or more luxury goods last year. Add that to the 22 million categorically “affluent” adults with household incomes between $75,000 and $250,000, and it becomes clear that the pool of luxury-inclined consumers is more like an ocean. It’s also safe to assume that many non-affluent luxury purchasers have the potential to become the next power spenders.

Affluent Consumers Have Power
According to Ipsos, affluent shoppers spend 3.2 times more than the average household in many luxury categories.

Furthermore, the Engage:Affluent survey showed that 21 percent of non-affluent luxury purchasers bought only one luxury item in the past 12 months. 30 percent of affluent households with incomes between $75,000 and $250,000 bought six or more luxury items, and more still – 36 percent of households with incomes of $250,000 and higher – also bought six or more items. Meanwhile, only 14 percent of households with incomes under $75,000 reported buying six or more items, and their repeat purchasing peaked at just 3 items (28 percent).

The takeaway here is that while non-affluent consumers add to the market’s depth, the true spending power remains with the affluent. Nearly half of affluent buyers spent $3,000 or more on their most recent purchase, compared to the one in six mass-market purchasers who spent that amount. Overall, affluents represent roughly 50 percent of the nation’s income and 40 percent of all consumer spending, HubSpot notes.

The Consumer Base is Growing
In 2014, Reuters reported that the global number of luxury buyers had reached 330 million and was expected to swell to 500 million by 2020. The numbers came from a Bain & Co report that also confirmed the power of affluents, as the study found that more than half of global luxury spending came from the wealthiest age bracket, those 49 and older. While many of the 10 million new luxury consumers per year over the next four years will be attributed to rising wealth in other parts of the world, the U.S. will certainly carry its weight as those with luxury tastes and emerging wealth begin to realize increased spending power.

Luxury Brand Buyers Are At Your Fingertips
Luxury marketers and agencies can take advantage of these buying trends by directly targeting the ultra-affluent. With Wealth Window’s Power Spenders database, you can reach more than 21 million consumers with high discretionary spending on non-essential items. These individuals define the luxury lifestyle and spend freely on the brands they love. So, are you ready to connect with them? Click here to learn more.

Who is the Affluent Millennial? 3 Things We Know

Thursday, July 23rd, 2015

affluent millennials

The Millennial 1%: Young, Rich, and Redefining Luxury

There’s a wave of new money in the consumer marketplace, and it’s coming from a group you might not expect: millennials.

While much of Generation Y is plagued by historic student loan debt and jobless woes, more than 6.2 million millennials ages 18-34 have household incomes over $100,000, says millennial marketing expert Jeff Fromm.

According to the 2014 Ipsos Affluent Survey USA, millennials now account for nearly a quarter of affluent U.S. households and counting. These are young, successful and savvy professionals who – as they enter their collective stage of wealth accumulation – are changing the way marketers and brands communicate their messages. While they only comprise less than 10 percent of their demographic, affluent millennials carry significant social and financial influence among their generation, which represents roughly one-third of the entire U.S. population.

Who exactly is the affluent millennial? What are their preferences and tendencies? How are they reached? Here are three things we know:

1. They’re Moving Fast
According to Fromm, 50 percent of affluent millennials are married, and six percent are engaged. Affluent millennials are also more likely than their non-affluent counterparts to be expecting a child within the next year.

Emerging from the challenges of the recession with confidence in their financial standing, affluent millennials are not afraid to make life decisions. They’re starting families, buying homes, making investments, running businesses and launching new ventures – all in their 20s and 30s.

2. They’re Redefining Luxury
Affluent millennials are rewriting the definition of luxury. In 2012, luxury advertising executive Duke Greenhill addressed their pull in a popular Mashable article titled, “How Brands Can Prepare for Affluent Millennials.”

Greenhill made three key points in the shift from the luxury baby boomer segment to that of Generation Y:

  1. Millennials appreciate craftsmanship and design.
  2. Their quest for status and achievement is ongoing.
  3. They see luxury value with a pack mentality that Greenhill describes as “inclusive exclusivity.”

Wealthy millennials are less driven by blind brand loyalty and more attracted to experiences, stories and adventures. More importantly, they’re expected to dominate the luxury marketplace within the next few years.

3. They’re Dictating the Marketing World
It’s no secret that millennials love social media. They invented it, and it’s their preferred method of communication between brand and consumer. 88 percent of affluent millennials visit at least one social network per week, with Facebook being the most prevalent. This explains why mobile advertising drove 73 percent of Facebook’s revenue in Q1 of 2015.

Social media is just the start, though. Fromm’s assertion that affluent millennials “feel more confident in their decisions and don’t require as much hands-on assistance from brands” aligns with the inbound marketing boom we’re seeing today. According to the Content Marketing Institute, 72 percent of B2C marketers were producing more content in 2014 than they were the previous year. To a similar tune, Curata found that 71 percent of surveyed B2C marketers said they would increase their investment in content marketing “without a doubt.”

In place of the traditional aggressive sales mindset, Fromm says the focus for marketers has shifted to a hands-off approach. This is particularly true in the financial arena, where he notes Charles Schwab and American Express as successful purveyors of content that affluent, inspired millennials find useful and engaging.

The Key Question for Marketers: Will You Reach Them?
The affluent millennial may seem like a needle in a haystack – an average looking 20-something at a hip bar in a big city. But with Wealth Window, you can gain direct access to this powerful group. Better yet, together we can generate sub-segments based on various attributes including net worth, home value, luxury travel, power spending and more.

The question now shifts from means to action. Are you ready to truly reach affluent millennials with your strategy and messaging? Contact me to learn how.

Nonprofits Are Benefitting from the Wealthy’s Desire to Give Back

Monday, July 6th, 2015

A vast majority of high net worth individuals donates to nonprofit fundraisers.

High Net Worth Donors give because they believe nonprofits can make a difference.

As many charitable organizations return to levels of gifting not seen since pre-recession fundraising, a refreshingly optimistic new survey is shedding light on where that money is coming from and why.

The 2015 U.S. Trust Insights on Wealth and Worth Survey, conducted by Bank of America’s Private Wealth Management arm, identifies “what the wealthy consider to be important elements of a life well lived.” Among them is a strong desire to give back. In fact 78% of the survey respondents who hold investable assets of more than $3,000,000 participate in traditional philanthropic activities for many good reasons such as:

 

You see, the 1% do have a heart!

An earlier report, The 2014 U.S. Trust Study of High Net Worth Philanthropy, found that 98.4% of high net worth households gave to charity, a 3% increase over the previous year. 84.4% of those gave with the intention to advance social or charitable goals. The report notes that high net worth donors are motivated to give because “ they feel moved about how their gift can make a difference.” The vast majority believes that nonprofit organizations have the ability to solve societal problems.

Of course this is not lost on directors of fundraising at all types of nonprofits from cultural to environmental to political to health and humanitarian. Acquiring a few mission-driven, high net worth donors can add up faster than gaining many low dollar donors signing up for a free umbrella in return.

The operative words here are “high net worth donors.” There are thousands of donor and income lists available on the market, but where does a nonprofit go for an audience of high net worth individuals identified as proven donors?

Why Wealth Window Major Donors of course. Right in synch with the rise in the number of affluent individuals in America, I can report higher numbers of wealthy donors on the file — nearly 7 million in total. That number was just 6 million a year ago. I can also help you navigate to the types of donors best suited to support your organization by types of causes they join. I also recommend that you test our “Power Donors” by how many thousands of dollars they give: $2,500-$4,999; $5,000-$9,999; and $10,000-$14,999.

HNWIs Demand for Luxury SUVs On the Rise

Tuesday, June 16th, 2015

Market luxury automobiles and SUVs to high net worth individuals HNWI.

High Net Worth Individuals are driving sales of Luxury SUVs.

Suddenly the wealthy are trading in their sports cars for more practical luxury SUV models. CNBC reports that super-luxurious SUV sales are up 44% this year.

Lamborghini hopes to muscle in on market share in 2018 with the introduction what many are calling the “Rambo Lambo.” This luxury SUV will join the likes of the Porsche Cayenne, Cadillac Escalade, and Land Rover’s Range Rover. There will also soon be new models from Tesla, Bentley, Jaguar, and a rumored Rolls-Royce.

Trucks in Tuxes

Fortune magazine is calling it a “Seismic shift in the luxury car market.” New Range Rovers are on a 6-month waitlist, the number of Escalades has doubled, and sales of a flashier Lincoln Navigator with LED running lights are up 84%. Hyundai, yes the maker of the $15K Ascent, is even mulling a luxury Genesis SUV.

In all, luxury SUVs constitute 46% of the high-end auto market, while sales of luxury sedans and sports cars are slipping. It can’t just be that cheap gas is driving this trend. Those who can afford to sit in the captain’s chair of a sweet $80,000 ride can afford to pay a few more bucks at the pump. So what’s putting these pricey SUV’s in the fast lane?

My Opinion? Three words: High Net Worth 

As more people enter the ranks of High Net Worth Individuals (HNWIs), they are opting to drive big, roomy, luxurious SUVs. While there may be some cannibalization of smaller models among the luxury SUV brands, overall sales are rising.

Notice I did not say “high income.” A nice salary is not enough to comfortably put you behind the wheel of these large automobiles. A sizable, diversified investment portfolio can, which is what an HNWI has.

How do I know there is a growing number of HNWIs? We just updated Wealth Window and I see more than 19 million multi-millionaires on the file. This time last year we reported 15 million. I also see nearly 700,000 luxury automobile owners on the file. Luxury auto dealers, and all luxury retailers for that matter, might want to steer these HNWIs into the showroom. Let me know if you would like to test-drive the list.

Now Trending Among Affluent Foodies: Culinary Tourism

Tuesday, May 26th, 2015

Market culinary travel destinations to affluent high net worth travelers.

Affluent foodies are flocking to culinary travel destinations.

According to the 2015 Virtuoso Luxe Report, Culinary travel is one of the top 10 travel trends of the year. Take the Silverado Resort and Spa’s Royal Oak in Napa Valley for example. Here culinary travelers can enjoy a seven-course, farm-to-table feast at Thomas Keller Restaurant Group’s pop-up restaurant Ad Lib for just $295 with wine pairing. Make your reservation soon — it pops down in October!

Meanwhile there’s a revolution in the cruise industry’s dining culture. Geoffrey Zakarian, a Food Network Iron Chef and the chef at Lamb’s Club in New York, has restaurants on two Norwegian Cruise Line ships. Royal Caribbean’s Quantum of the Seas is a floating home for Michael’s Genuine Pub of famed Miami chef Michael Schwartz. Up on the next deck is Jamie’s Italian restaurant, of British celebrity chef and star of “The Naked Chef,” Jamie Oliver. Crystal Cruises operates a restaurant in partnership with celebrity fusion chef, cuisine Nobu Matsuhisha.

Affluent travel destinations are also turning to culinary experiences to entice affluent foodies. At the Ritz-Carlton on Seven Mile Beach, famed chef Daniel Boulud, of NYC’s famed Daniel, dazzles crowds at the Cayman Cookout, an annual event that brings in top celebrities like Marcus Samuelsson, Jose Andres, and Anthony Bourdain to spice things up for a well-heeled audience of jet-setters.

Serious epicures can also delight in hands-on extraordinary food-focused experiences in far-flung places. Guests at Peru’s Inkaterra Machu Picchu Pueblo Hotel learn about the local tea by picking, grinding and bagging leaves themselves. Istanbul offers insider tours to the city’s famed bazaars and classic Turkish meal cooking lessons back at the hotel. In Kenya, luxury tent campers pick fresh produce from organic gardens and assist in creating an alfresco lunch, surrounded by the Masai Mara game reserve.

“Unique food and drink are the perfect attractions, especially for second and tertiary destinations that now must market more proactively in the globally competitive market,” states Erik Wolf, President and CEO of the International Culinary Tourism Association.

Now if only there was a way to reach high-net-worth travelers with a passion for gourmet dining. Oh but there is! Wealth Window can put that package together for you.

Younger Affluents Want to Retire Early and Make Money Too

Monday, May 11th, 2015

The young and affluent are retiring earlier than their Boomer parents.

High net worth Americans, or those with more than $1 million in investable assets, plan to retire by age 56. Average holdings for these retirees tend to be $3.2 million, but the younger the millionaire, the lower the target retirement age.

A recent study by BMO Private Bank finds that one in five Americans with more than $1 million in investable assets plans to retire before 40. While most want to spend their retirement traveling, over half intend to keep earning income by working part time, starting a new career, or launching their own business.

In fact some 33% of retirees with $1 million to $5 million in assets continue working, not because they have to, but because they want to. Half have shifted into a different line of work to pursue a passion, experience new things, or enjoy greater flexibility.

Jack Ablin, CIO of BMO chalks this phenomenon up to the Millennial mindset. They share different priorities than their Boomer parents. They’re less tied to a single career path and more easily maneuver through various income-producing positions throughout their working life. That leaves them more focused on their quality of life than on an individual job.

What can marketers do with this information?

Millionaires in their forties or early fifties have retirement or some kind of lifestyle change on the mind. Young, wealthy retirees (or potential retirees) may be your best mail order candidates. Many are still earning income, while their portfolio growth may outpace their spending. They’re looking to use their financial freedom to feed their intellect and find new activities, which is why checking the mail and finding new opportunities could be one of their favorite parts of the day.

A few ideas jump right out at me…

 

The young, wealthy retirement community presents a lucrative audience expansion opportunity for many types of marketers. Of course the key is identifying young high net-worth individuals, not just high-income earners. In order to retire, there must be a nest egg of at least $1 million, which many young “retirees” plan to grow.

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