The High-Net-Worth Market Is Important, but the Comfortably Well-Off Consumers Make More of a Difference for Today's Luxury Marketers
Unity Marketing helps luxury marketers understand the implications of key trends in the luxury market
Stevens, Pa July 7, 2007 -- The just-published 11th annual World Wealth Report, compiled by Merrill Lynch and Capgemini Group, examines the high-net-worth market made up of 9.5 million people worldwide who hold more than US$1 million in assets. Among the key findings in this study is that North America ranks number one in the world in terms of total high-net-worth individuals (HNWI) and the size of their financial assets.
"The high-net-worth market, totaling 3.2 million people in North America, are a small but influential market segment for ultra high-end luxury marketers that sell goods and services only the truly rich can afford," explains Pam Danziger, president of Unity Marketing and winner of this year's Global Luxury Award, presented at the Global Luxury Forum (London, April 20, 2007). "But today's American luxury market is far broader and more diverse than just the rich."
"High-income consumers, especially those 18 million households that are comfortably well-off with incomes from $100,000 to $249,000, are the prime target market for many of the leading luxury brands and retailers today," Danziger continues.
"A luxury lifestyle is attainable not just for the rich but to people with more modest levels of income thanks to the increased availability of luxury goods and services. And the new trend toward fractional ownership makes the pleasures that once only the rich could enjoy available to the merely affluent."
"While the high-net-worth consumer market is an important one, most luxury marketers' success today is directly related to how well they satisfy the luxury cravings of the comfortably well-off shoppers in their midst," Danziger explains. "That is the focus of Unity Marketing's latest study on...
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