As ultra-wealthy Americans continue their return to less-guilty spending, there are 4 major trends that considered-purchase brands need to seriously consider in order to shorten the buying cycle.
Based on the findings from “The Survey of Affluence and Wealth in America 2010″, the recently completed study by American Express Publishing and the Harrison Group, America’s affluent are projected to generate a splurge-surge of $56 billion in discretionary spending and an estimated $28 billion net impact on the luxury market.
Here are the 4 biggest trends to act on now:
- It Is Good To Be Rich
Tired of feeling bad about their wealth when the country stood at the precipice of economic collapse, the ultra-wealthy are once again basking in their bank accounts and reclaiming their bragging rights. Whether this new attitude is because they think their personal economy has improved or they simply can’t stay camouflaged as middle-class any longer, they are exhibiting an increased desire to let others know they are indeed supremely wealthy. If this follows the traditional Show & Tell behavior, it should predict showy things will be showing up again. Good news for uber-expensive cars, jewelry, vacation homes, couturier clothing, private jets and yachts. (Admit it. It just feels good to say uber again without talking about Uber.)
- Persuasion Immunity
As the affluent consumer re-enters the discretionary spending arena:
- They have a renewed sense of themselves and what they value.
- They are feeling immune to the typical persuasion language they’ve heard for eons from the luxury brands.
- They feel they have become smarter and more resourceful through this period of restraint.
- They are more independent and they have re-prioritized what they take pleasure in and what they value.
This is not the time to take for granted what you know about your luxury customer. They’ve changed. They now do what they call “precision shopping” – do you even know what that is? Start by looking at your luxury customer in a new light. Whether you need to re-engage or simply reinforce your customers, don’t say a flattering word until you are seeing them the way they now see themselves.
- Sale On
The wealthiest Americans have a new perception of value – and they are looking for the sale. Even for high-end products, they are willing to wait for sales. The most luxurious of brands are no longer fearful of losing brand status by offering carefully presented sales. So go ahead and put your cherished big-ticket luxuries on sale.
Remember, your sale can help the ultra-wealthy spend big while feeling good about saving a little.
- Undying Brand Loyalty
There are some brands so close to the hearts and self-worth of the wealthy that this period of shopping restraint has generated a renewed passion for and dedication to their most beloved brands. Rather than spread the wealth around and try new brands, they are hunkering down and buying only the ones they love.
Smart luxury brands will find ways to return that love a thousand fold. Click here for more information on the survey.