Today’s affluent consumers place a higher priority on family, altruism and enriching experiences, ahead of luxury products and short-term satisfaction, shows a research from Collinson Group.
The research was conducted online in Brazil, China, India, Singapore, the United Arab Emirates, USA and UK with 4,437 consumers within the top 10-15% income in late 2014.
The study found that spending on grandchildren, children and partners is the main indulgence for Indian consumers. Giving back to charity and the community, and protecting the environment also rate higher than buying leading brands and driving a luxury car. Affluent Indian consumers also expect banks to behave ethically much more than other nations (79% vs 68% globally), states the release issued by Collinson.
The study has divided mass affluent category into four groups - Mid-Life modernists, Prudent Planners, Stylish Spenders and the Experientialists.
Mid-Life modernists are the most prominent tribe in India and are characterised by their enthusiasm for technology. Prudent Planners are motivated primarily by family and trying to help others. The Stylish Spenders yearn for the finer things in life. Finally, there are the Experientialists who put ‘money-can’t buy experiences’ at the top of their priorities.
Prudent Planners
Prudent Planners are the largest tribe representing 41% of the overall sample. This group is motivated primarily by family and altruistic goals and is most prevalent in the United States and United Kingdom. Three quarters of this tribe (76%) cite spending time with family as their top indulgence and they have a higher than average interest in giving to charity (31%) and protecting the environment (30%). As the largest proportion within the affluent middle class at 41%, they are particularly valuable customers but are less motivated by material products and spend less time using technology such as smartphones or apps. Prudent Planners travel less than the other tribes but still take an average of six business and leisure trips a year.
Stylish Spenders
In contrast, Stylish Spenders seek the finer things in life. This tribe is most common in China and the United Arab Emirates and is four times more likely to buy leading brands than other affluent middle class consumers (76% compared to 22%) and drive a luxury car (70% compared to 25%.) This is the group which invests the most in travelling in style across all aspects of the travel journey. Stylish Spenders are a small but very influential tribe with over half under 34 years of age (55%) and 32% earning over $190,000 per annum. Despite their high spending power, this group is the most loyal to brands they trust, participating in an average of five loyalty programmes and feeling loyal to up to eight brands.
Mid-Life Modernists
Mid-Life Modernists stand out for their enthusiastic use of technology, with 61% citing gadgets as their biggest indulgence, 90% spending more than five hours a week using their smartphone and 45% spending over 20 a week online via a computer. Mid-Life Modernists are well represented in India and Singapore. Digital experience has a significant influence on this group and businesses which invest in this area can create powerful advocates amongst Mid-Life Modernists. This tribe is willing to endorse and promote a brand they feel loyal to via social media, with three quarters prepared to recommend a company to their friends and family; 74% more likely to make a repeat purchase from a trusted brand and 67% saying they are engaged members of loyalty programmes.
Experientialists
Unique, ‘money can’t buy’ experiences and exclusivity rather than standard products and services motivate the Experiential tribe. This group is prevalent in China, the United Arab Emirates and the United Kingdom and are most likely to enjoy experiencing a different culture (76%) and use travel as a way of keeping in touch with friends and family (67%). Experiences such as spending on holidays (81%), dining out and luxury foods (64%) are also a priority.
Use of technology differentiates the tribes
The research shows a strong correlation between the most active users of technology and willingness to recommend and endorse brands they trust. A group of ‘technophiles’ spend over 20 hours a week of their leisure time on the Internet and are avid users of apps, social media, online shopping and streaming of digital content. Within this group, 72% are willing to make a repeat purchase from a brand they feel loyal to, 70% would recommend that brand to friends and family and 53% will choose this particular brand even if it is more expensive.
There are however clear differences in how the tribes prefer to use technology. For example, Stylish Spenders particularly value information which is personalised to them as well as the opportunity to tell others about access to exclusive destinations, hotels and restaurants via social media channels.
Smartphones, apps and digital experiences are valued by Mid-Life Modernists and offering promotions and price comparisons via mobile devices, particularly those that can benefit a whole family, is an effective way to engage with them.
Prudent Planners continue to value face-to-face interactions and retaining this as an option, rather than solely focusing on digital channels, is important for this sizeable segment.
Experientialists “live for the moment” and expect brands to regularly update digital content and offer unique experiences to maintain their interest.
