Affluent Market Tracking Study #18, Fall 2010 Survey of the Wealthiest 10% of US Households

If your perceptions of today's luxury and affluent consumers (who are often very different) are largely derived from what you read in the media and online, you are probably creating your marketing strategies and plans based on false premises. To stay ahead of your competitors, you need AARC's new research report to understand today's luxury and affluent consumers and how to market to them.

The 18th in a continuing series of research reports based on twice-yearly surveys of the most affluent 10% of U.S. households, this survey was designed to provide information critical for effective marketing to the affluent and luxury consumers. These households account for about half of all consumer spending and a third of gross domestic product.

This report identifies:

• Spending plans over the next 12 months of both the luxury and affluent consumers (and they are often different)
• Which of 8 major expenditures show the most sales potential and among which segments
• Which of 17 product categories show the most sales potential and among which segments
• Which segments are reducing Christmas and holiday gift spending and which are not
• Which segments are planning the remodeling of a kitchen or bathroom and what they plan to buy and where
• Which segments of the affluent are generally reducing expenditures (and why) and which are not
• What the affluent expect of the stock market, business conditions, and their personal income during the next 12 months

Top 5 Ways to Use and Benefit from This Research

1) Develop an understanding of the general mood of the affluent and their expectations for business conditions and personal income over the next 12 months. Gives you a basic perspective on general market conditions that will determine marketing opportunities and challenges.

2) Identify changes in the spending plans of the affluent for your specific product category during the next 12 months. Shows you how potential sales of your product category compare to prior years and indicates what competitive pressures may result in your industry

3) Learn which segments of the affluent market represent the best sales potential for you during the next 12 months. Identifies the market segments that are cutting back on spending and those that are continuing to spend for your product category.

4) Determine which segments of the affluent market are interested in remodeling a kitchen or master bathroom, what they will buy for the remodeling project, what they will spend, and where they will make most of their purchases. Learn which consumers are the best prospects for purchasing specific items for a major kitchen and bathroom remodeling project.

5) Create your marketing and sales plans with data based on the future intentions of the affluent. Unlike many other surveys of the affluent, this is not an extrapolation of past actions that they have been asked to remember and reconstruct.

Focused on the wealthiest 11.4 million households with an average $3.1 million net worth (as determined by The Federal Reserve Board) these surveys regularly measure and track their 12-month outlook for the economy, the stock market and their personal earnings, savings, investment objectives, and spending plans for 17 product categories and 8 major expenditures.

Special questions in this survey reveal which segments of the affluent are making a general effort to reduce or defer expenditures, and the reasons for doing so, and which segments are continuing to spend at a strong pace. This included questions on specific spending plans for Christmas and Hanukah gifts.

This survey also contained a series of questions to identify which segments of the affluent market are planning the major remodeling of their kitchen or master bathroom, how much they might spend for such remodeling projects, where they would make most of the necessary purchases, and the types of items to be purchased, e.g. counter tops, cabinets and vanities, floors, EnergyStar appliances, and water efficient toilets, heaters, and fixtures.

The surveys track plans for major purchases (vacation homes, primary residences, home remodeling, automobiles, boats, and cruises) during the next 12 months. The surveys also track anticipated changes in spending during the next 12 months for 17 categories of products and services. These include fine jewelry and watches, domestic and international travel, dining in casual and upscale restaurants, furniture, major appliances, entertainment equipment, home computer equipment, entertainment, recreational activities, collectibles, designer and non-designer apparel, and charitable and political contributions.

For much of the preceding, the report shows historical trend data and data by demographic segment within the overall affluent population.

Please Note: Data is delivered in a Word Zip File.