It is important for a marketer to know the market and the consumer. The marketing campaigns that are targeted to a well defined consumer group, its likely behavior and preferences is more likely to succeed in this competitive world. There are many consulting companies and advertising firms who keep studying the market and the consumers that form the market to identify any shift in the trend and to look at possible future scenarios to be able to predict the future trends. Advertising firm Digitas has studied two reports to identify the trends that could emerge in the coming decade.
Digitas has based its findings based on data from the Mendelsohn Affluent Survey and the Mendelsohn Affluent Barometer. Their conclusion is that Millennials with incomes over $100,000 will define the next wave of luxury spenders. The group of consumers between the age of 18 and 35 years who have a household income of over $100,000 but less than $200,000 are the most likely to cross the $200,000 mark in household income which they consider to be the minimum thresh hold for affluence in the US.
The study has also revealed the brand preferences of different consumer groups. The emerging millennials group is buying Armani, Cartier, Gucci and Mercedes. George Scribner, Senior Vice President, Digitas, is of the opinion that though this group constitutes only 12% of the total consumer base, this group is rather important for the luxury marketers as they would be the largest spenders in the market as they are likely to achieve significant wealth over the next decade. Those over 35 years of age but under $200,000 household income are the aspiring consumers who form the bulk of the consumer base but are generally overleveraged. They are back to being middle class with many planning a retirement. The study also found that the rich, with household incomes of over $1 million prefer brands like Hermès and Bergdorf Goodman.