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Published by: Mintel International Group Ltd.
Published: Apr. 1, 2008 - 93 Pages
Table of Contents
- Scope and Themes
- What you need to know
- Scope of this report
- Definition
- Terms
- Executive Summary
- Who are the mass affluent?
- Credit and debit
- Technology
- Mass affluent and the economy
- Financial priorities
- Mass affluent and banking
- Differentiation is key
- Financial decision-making
- Ethics
- Companies targeting the MA
- The Market
- Market size and growth forecast
- Mintel’s projection for Mass Affluent households
- Figure 1: Forecast of U.S. households with net worth between $100,000 and $1 million, 2004-09, March 2005
- Figure 2: Forecast of U.S. households with net worth between $100,000 and $1 million, 2004-09, April 2008
- The mass affluent is not just one segment
- Figure 3: Affluent segments, 2002
- Wealth in America
- Figure 4: Income distribution, 2006
- Figure 5: Distribution of households, by income, 2003 and 2006
- Figure 6: The number of households with net worth between $100K and $1 million, 1992, 1995, 1998, and 2001
- Figure 7: Family net worth, 1995-2004
- Market Drivers
- Age
- Figure 8: Populations by Generation, 2003-13
- Figure 9: Population aged 21 or older, 2002-12
- Figure 10: Median income by age group, 2006
- Continued growth in wealth
- Figure 11: Average per capita disposable income, 2000-07
- Figure 12: Household Income, 2005-07
- Stock market wealth
- Figure 13: Mean value of direct or indirect stock holdings, by percentile of household income, 1989-2004
- Real estate wealth
- Figure 14: Mean value of primary residence, by percentile of income, 1989-2004
- Figure 15: Mean value of other residential real estate, by percentile of income, 1989-2004
- Who are the Mass Affluent?
- Profile
- Figure 16: Profile of America’s rich, 2008
- How much do they earn?
- Figure 17: Income distribution of mass affluents, by gender and age, February 2008
- Figure 18: Income distribution of mass affluents, by whether the respondents have children in the household, February 2008
- They use credit cards…
- Figure 19: Percentage of mass affluent customers who use credit cards, by gender, spring 2007
- Figure 20: Percentage of mass affluent customers who use credit cards, by age, spring 2007
- Figure 21: Credit card use among mass affluents, by income, spring 2007
- Figure 22: Most popular credit cards among mass affluents, by gender, spring 2007
- Figure 23: Most popular credit cards among mass affluents, by age, spring 2007
- Figure 24: Most popular credit cards among mass affluents, by income, spring 2007
- ...and debit cards
- Figure 25: Use of debit cards among mass affluent, by gender, spring 2007
- Figure 26: Use of debit cards among mass affluent, by age, spring 2007
- Figure 27: Use of debit cards among mass affluent, by income, spring 2007
- Mass affluent and the Internet
- Figure 28: Mass affluent with access to Internet via a mobile phone by gender and age, February 2008
- Figure 29: Mass affluent with access to Internet via a mobile phone by whether the couple is married and has children in the household, February 2008
- Figure 30: Demographic profile of US MySpace and Facebook users, November 2006 (millions and % of total)
- Mass affluent consumers’ influence on retail
- The recent effect of the economy on mass affluents
- Figure 31: Effect of economy on mass affluents’ spending, by gender, February 2008
- Figure 32: Effect of economy on mass affluents’ spending, by gender and age, February 2008
- Figure 33: Effect of economy on mass affluents’ spending, by income, February 2008
- Figure 34: Effect of economy on mass affluents’ spending, by region, February 2008
- Figure 35: Effect of economy on mass affluents’ spending, by whether there are children in the household, February 2008
- Figure 36: Effect of economy on mass affluents’ spending, by marital status and whether there are children in the household, February 2008
- Figure 37: Effect of economy on mass affluents’ financial outlook, by gender, February 2008
- Figure 38: Effect of economy on mass affluents’ financial outlook, by age, February 2008
- Figure 39: Effect of economy on mass affluents’ financial outlook, by gender and age, February 2008
- Figure 40: Effect of economy on mass affluents’ financial outlook, by income, February 2008
- Figure 41: Effect of economy on mass affluents’ financial outlook, by gender and income, February 2008
- Figure 42: Effect of economy on mass affluents’ financial outlook, by marital status and presence of children in the household, February 2008
- Mass Affluents and Investing
- Who has accounts?
- Figure 43: Ownership of mutual fund accounts by mass affluent, by gender and age, spring 2007
- Figure 44: Ownership of mutual fund accounts by mass affluent, by income, spring 2007
- Figure 45: Percentage of investors who invest with different financial institutions, 2005
- What is in their portfolio?
- Figure 46: Percentage of mass affluent customers with these investment products, April 2007
- Figure 47: Percentage of mass affluents who have accounts in three most popular firms, spring 2007
- Mass affluents and real estate
- Figure 48: Distribution of total assets of the mass affluent group, 2005
- Baby Boomers and real estate
- Where do mass affluents get mortgages?
- Figure 49: Where mass affluents get their first mortgages, by gender and age, spring 2007
- Mass affluents and retirement
- Figure 50: : Where retirement money will come from, 2007
- Figure 51: Major financial goals of the mass affluent, by gender, February 2008
- Figure 52: Major financial goals of the mass affluent, by age, February 2008
- Figure 53: Major financial goals of the mass affluent, by gender and age, February 2008
- Figure 54: Major financial goals of the mass affluent, by income, February 2008
- Figure 55: Major financial goals of the mass affluent, by whether respondent has children, February 2008
- Mass affluents need help with retirement planning
- Figure 56: Mass affluents who have 401(k) accounts with former employers, by gender and age, February 2008
- Interest in retirement offers banks a huge opportunity
- Figure 57: Mass affluents whose bank has offered to assist with retirement planning, by gender and age, February 2008
- Mass Affluents and their Banks
- Top banks
- Bank products owned
- Figure 58: Bank products owned by mass affluent, by age, spring 2007
- Figure 59: Bank products owned by mass affluent, by age, spring 2007
- Figure 60: How many banks mass affluents use, by gender and age, February 2008
- Figure 61: What is important to mass affluents in opening an account, by gender and age, February 2008
- Figure 62: How mass affluent customers communicate with their bank, by gender, February 2008
- Figure 63: How mass affluent customers communicate with their bank, by age, February 2008
- Figure 64: How mass affluent customers communicate with their bank, by gender and age, February 2008
- Figure 65: How mass affluent customers prefer to complete major transactions with their bank, by gender and age, February 2008
- Competitive Challenges posed by Mass Affluents
- Overview
- Differentiation is key
- What does the mass affluent customer think?
- Figure 66: Degree of differentiation between financial institutions, by gender, September 2007
- Figure 67: Degree of differentiation between financial institutions, by age, September 2007
- Figure 68: Degree of differentiation between financial institutions, by income, September 2007
- Online presence is key, too
- How are Decisions Made—and Who Makes Them?
- Figure 69: How financial decisions are made, by age and gender, February 2008
- Figure 70: How financial decisions are made, by income, February 2008
- Mass affluents want advice—but they think they do a good job themselves
- Figure 71: Percentage of mass affluents who agree with the given statement and believe they are good money managers, by gender, spring 2007
- Figure 72: How mass affluents feel about making investment decisions, February 2008
- Figure 73: How mass affluents feel about making investment decisions, February 2008
- Where do they go for advice?
- Figure 74: Who mass affluent consumers use for financial advice, 2002
- Ethics and Decision-making
- Figure 75: Investor feels that company ethics are important, by gender, September 2007
- Figure 76: Investor feels that company ethics are important, by gender, September 2007
- Figure 77: Investor feels that company ethics are important, by income, September 2007
- Mass Affluents and Insurance
- Figure 78: Percentage of mass affluents who believe insurance is important, by gender and age, spring 2007
- Figure 79: Mass affluents’ insurance ownership, by gender and age, spring 2007
- Mass Affluents and Loans
- Figure 80: Percentage of mass affluent respondents that have loans, by gender, spring 2007
- Figure 81: Percentage of mass affluent respondents that have loans, by age, spring 2007
- Who is Targeting Mass Affluents?
- Charles Schwab
- HSBC
- Citibank
- MasterCard
- Bank of America
- Wells Fargo
- Fifth Third
- Wachovia
- Ameriprise
- Advertising and Promotion
- Print
- Figure 82: Ameriprise print ad, October 2007
- Figure 83: Ameriprise print ad, September, 2007
- Figure 84: HSBC print ad, March 2008
- Figure 85: HSBC print ad, January 2008
- Figure 86: Schwab print ad, March 2008
- Direct mail
- Figure 87: HSBC direct mail ad, March 2008
- Figure 88: Wachovia direct mail ad, February 2008
- Figure 89: Wachovia direct mail ad, February 2008
- Figure 90: Wells Fargo direct mail ad, March 2008
- Email
- Figure 91: Charles Schwab email ad, October 2007
- Figure 92: TIAA-CREF email ad, March 2008
- Figure 93: Charles Schwab email ad, March 2007
- Figure 94: Wells Fargo email ad, March 2008
- TV commercials
- Figure 95: American Century television advertisement, 2008
- Figure 96: Aviva investments funds television advertisement, 2008
- Figure 97: Charles Schwab television advertisement, 2008
- Figure 98: Charles Schwab television advertisement, 2008
- Figure 99: Fidelity Investments television advertisement, 2008
- Figure 100: Fidelity Investments television advertisement, 2008
- Figure 101: Fidelity Investments television advertisement, 2008
- Figure 102: Fidelity Investments television advertisement, 2008
- Figure 103: Franklin Templeton investments television advertisement, 2008
- Figure 104: TD Ameritrade IRA retirement television advertisement, 2008
- Figure 105: Wachovia television advertisement, 2008
- Appendices—Other Useful Consumer Data
- Figure 106: Most important considerations when opening a financial account, by race and income, February 2008
- Figure 107: Most important considerations when opening a financial account, by race and age, February 2008
- Figure 108: Most important considerations when opening a financial account, by race and income, February 2008
- Figure 109: Income distribution of mass affluents by race and age, February 2008
- Figure 110: Marital status, by race and age, February 2008
- Figure 111: Mass affluents who are parents or guardians, by age and race, February 2008
- Figure 112: Number of people living in household, by race and age, February 2008
- Figure 113: Major financial goals of the mass affluent, by race, February 2008
- Figure 114: Credit card use among mass affluent, by age, spring 2007
AbstractThe mass affluent segment is defined as those having between $100K and $1 million in liquid investable assets (excluding the primary residence). People in this group fall between the middle class and the wealthiest consumers and are willing to pay for higher quality and performance. They are concentrated largely-though not solely-in the Baby Boomer segment; those who are between the ages of 43-61. They can afford "affordable" luxuries, such as Godiva chocolates and daily Starbucks' lattes, even if they can't spring for the most luxurious and expensive clothing, cars, or gourmet restaurants.
Because such a large percentage of this group are Baby Boomers, they are headed for retirement in record numbers, and offer tremendous opportunity for financial services firms that can offer assistance in retirement planning and income distribution.
" They are looking increasingly for advice on their financial situation, though they are choosy about where they get it. However, banks are missing an opportunity - less than half say that their primary bank has offered to assist them with retirement planning.
" They are very interested in the quality of their relationships and experiences. For instance, financial services companies who target this group with experiential marketing will have an edge.
" They are less interested in leaving a meaningful estate to their heirs than previous generations - which means more need for retirement planning and less need for estate planning.
" The economy is affecting the ability and willingness of the mass affluent segment to spend. A large portion of this group say they are worried about the economy and are spending less. Because a large part of the wealth held by mass affluents is in real estate, the current downturn in the market is making them more economically vulnerable than any other segment.
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