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Survey Of Millionaires Identifies Both Luxury And Mainstream Brand Preferences, Sales Opportunities | October 14, 2015 (0 comments)
Atlanta, GA—18 fine jewelry brands were tested in the new Millionaire Monitor, the American Affluence Research Center’s 27th tracking study of the wealthiest 10% of U.S. households. The millionaires were asked which of the brands they were aware of, which they had made a prior purchase from, and which they would consider for a future purchase.
Awareness of jewelry brands ranged from around 20% for Graff and Buccellati, to a high of 98% for Tiffany and Cartier. Four other brands with high name recognition (95% or higher) were Chanel, plus mass-market retailers Kay, Zales, and Jared. (All charts courtesy AARC).
On average, the millionaires recognized just under 12 brands, while a few more names were recognized by those under age 50, women, and those with higher income and net worth.
Prior purchases of the brands ranged from a low of zero for Graff to a high of 50% for Tiffany. The four other brands named most frequently were Chanel, David Yurman, Kay, and Cartier. All were named in the range of 20% to 27% of the millionaires.
On average, the millionaires reported purchases from 3.2 brands. The higher income and net worth groups were more likely to have purchased from a few more brands. Among the brands of which the respondent was aware, the brands that would definitely or possibly be considered for a future purchase ranged from a low of 14% for Graff to a high of 50% for Tiffany. Of the remaining brands, the top names were David Yurman (49%), and Chanel and Cartier (both at 35%), and Buccellati (32%). The limited awareness and prior purchase experience with many brands presents them with opportunities for strengthening their market position.
The survey also had good news for retailers as the millionaires have a relatively positive 12-month outlook about the economy, the stock market, their personal wealth, and their spending plans. December holiday gift spending is expected to increase over last year. About $24 billion, or three quarters of total holiday gift expenditures by millionaires, will be spent on gift cards and other gift "currency" such as checks and cash. "Conversion of this ‘currency’ through creative marketing is a huge opportunity for retailers and brands," according to Ron Kurtz, AARC president.
The 12 million households represented by the survey are the wealthiest 10% of U.S. households based on net worth. All have a minimum $1 million net worth and account for about 40% of total consumer spending. Additional data on the mood and spending plans of the affluent for eight major expenditures and 17 products and services is available upon request.