The recession left the middle class severely limited in their ability to purchase goods and services. This makes HENRYs are the 'new mass market' for brands up and down the pricing scale.
Stevens, PA (PRWEB) December 17, 2013
Meet the HENRYs. These affluent consumers - their name means High Earners Not Rich Yet - are doing well, with an income between $100K and $250K. But they're a far cry from wealthy; reserve that adjective for the ultra-affluents, who earn more than $250K per year, or for those with high net worth, with amassed wealth of more than $1M. The HENRYs are the unassuming mass segment of the affluent consumer market, and they are your most important target now and for the future, says Pam Danziger, president of Unity Marketing.
The latest Unity Marketing Luxury Trend Report, "Meet the HENRYS: Positioning for the Mindset of the High-Earners-Not-Rich-Yet Mass Affluent Customers," highlights just why these lower-income affluents are so important to marketers. "The recent recession has left the true middle class severely limited in their ability to purchase goods and services in the near future," says Pam Danziger, president of Unity Marketing and author of the report. "This means HENRYs are the 'new mass market' for marketers and brands up and down the pricing scale."
The HENRYs are ready to respond in force, if not necessarily in high levels of individual spending. While HENRYs spend about half as much as do ultra-affluents on luxury and high end purchases, their significantly greater numbers (21.6 million households) mean that the total value of the HENRY market is about four times that of the ultra-affluent market (2.9 million households at the top 2%).
"Marketers have historically felt that ultra-affluents were their ideal consumer, but there simply aren't enough ultra-affluents to keep luxury brands afloat," says Danziger. "Instead, luxury brands need to broaden their reach to include these consumers. This creates a unique challenge, as they are now competing with mass market brands that would also like to reach up tap into HENRY spending."
Trend report reveals how Trunk Club, Black Box Wines, Leo Schachter Diamonds, Costco, Alex & Ani and more hit the mark with the new mass-affluent customer
Danziger also found that targeting HENRYs is a sound strategy for helping brands position themselves in the future. "While it is typical for brands to identify a target customer and stick with this demographic as it ages, today's luxury brands need to look at young HENRY consumers age 25-34. As these younger affluents mature, their incomes will rise, making this population the source of most of tomorrow's ultra-affluents. Luxury brands that want to continue to reach the highest income customers need to reach out to slightly less affluent Millennials today."
In Unity Marketing's most recent trend report, "Meet the HENRYs," a profile of these high-value customers emerges by examining their demographics, purchase behavior, and psychographic. critically-important group of consumers. This 76-page report discusses the HENRYs in detail and contains actionable strategies for building customer loyalty now and in the future.
The concise, highly-focused Meet the HENRYs trend report includes:
•HENRY Demographics and how understanding their income, education, marital status, and age distribution helps marketers target their best customers today and in the future. Brands profiled include: Michael Kors, Black Box Wines, Trunk Club.
•HENRY Purchase Behavior reveals the market potential for the 21.6 million HENRYs as compared with the 2.9 million ultra-affluent customers. Brands profiled include: Coach and Alex and Ani
•HENRY Psychology distinguishes the purchasing style and drive of five different HENRY customers so you can position your brand to you best potential customer.
•Five Key Take Actions sums up the most important take action steps for luxury and mass marketers aiming to capture the huge spending potential of the mass-affluent HENRY customers. Brands profiled include Lincoln, Costco, Leo Schachter Diamonds, Apple and Bare Escentuals.
About Unity Marketing and Pam Danziger
Pamela N. Danziger is an internationally recognized expert specializing in consumer insights for marketers targeting the affluent consumer. She is president of Unity Marketing, a marketing consulting firm she founded in 1992. Pam received the 2007 Global Luxury Award for top luxury industry achievers presented at the Global Luxury Forum by Harper's Bazaar. Luxury Daily named Pam to its list of "Women to Watch in 2013."
Pam gives luxury marketers "All Access" to the mind of the luxury consumer. She uses qualitative and quantitative market research to learn about their brand preferences, shopping habits, and attitudes about their luxury lifestyles, then turns these insights into actionable strategies for marketers to use to reach these high spending consumers.
Pam's latest book is Putting the Luxe Back in Luxury: How new consumer values are redefining the way we market luxury (Paramount Market Publishing, 2011). Her other books include Shopping: Why We Love It and How Retailers Can Create the Ultimate Customer Experience, published by Kaplan Publishing in October 2006; Let Them Eat Cake: Marketing Luxury to the Masses-as well as the Classes,(Dearborn Trade Publishing, $27, hardcover) and Why People Buy Things They Don't Need: Understanding and Predicting Consumer Behavior (Chicago: Dearborn Trade Publishing, 2004).