World Association of Research Professionals Vondelstraat 172, 1054 GV Amsterdam, The Netherlands Tel: +31-20-664 21 41, Fax: +31-20-664 29 22

April 2008

CONTEXT FOR THE PAPER

Wealth is being created in Asia at an unprecedented pace. Asia is already home to 2.6 millionaires (2006) and 211 billionaires. In 2006, five of the top ten countries with the fastest growth in millionaires are Asian, including the top three – Singapore, India and Indonesia. The number of Asian billionaires grew 32% in 2007, double the growth rate for the rest of the world, which was 16% (see Figures 1–3).

Figure 1: Private wealth in Asia is being created in an unprecedented, fast pace ...

Figure 2: ... 5 of the top 10 fastest growing markets for millionaires are in Asia

Figure 3: ... and Asia is producing billionaires at a rate double the rest of the world

These growth numbers are exciting enough, coming from a recent low base. But is there a critical mass? The best indicator that a critical mass is emerging is the share of world wealth held by Asian millionaires is expected to rise to 25% by 2011, overtaking Europe, according to Cap Gemini/Merrill Lynch.

To prepare to serve this new creation of wealth, this study not only tries to get under the skin of the Asian affluent, but also to see what new norms are being created which may be transmitted to the new millionaires to come. As such, we have two simple objectives:

1. Understanding the motivations of the Super Affluent. This was the primary objective of the study. As a brand with a clear focus on the affluent, it is fundamental that American Express have a deep understanding of their needs and motivations in order to develop their own services and support their retail and hospitality partners across Asia to do the same.

2. As a marketer to the affluent, American Express also looked to determine whether the Super Affluent could be potential trend setters for the broader group. Will the new wealth in the future take the same shape as those who are wealthy now? By increasing our understanding of this elite group, are there motivations and patterns of behaviour which could help anticipate how the mass affluent will behave in the future?

THE RESEARCH APPROACH

When a client wants to understand a particular target in greater depth, the conventional approach is to talk with them directly.

This presented challenges for American Express for three reasons:

1. Inaccessibility of high net worth individuals.

2. Inability of a particular target group to articulate 'the future'.

3. Credibility of small scale research to an internal and external merchant partner audience who believe they 'know' the target group well.

This resulted in a 360 degree look at the Super Affluent target, consulting not only those with the money but those who could proffer an expert opinion on this group (see Figure 4).

Figure 4: We took a multi-faceted approach to understand the affluent and luxury

Singapore was the first market to experiment with this approach and once confirmed as meeting the objectives, it rolled out to other markets. The order in which the various audiences were researched is significant as the iterative learning enabled both Synovate and American Express to develop and test their hypotheses as the project progressed. There were five distinct stages (see Figure 5).

Figure 5

Stage 1: Focus Group with Service Providers to the Super Affluent

Service providers gave us the breadth of perspective on the target group as they have regular experiences with High Net Worth Individuals. Although a vicarious look, it helped form our hypotheses which could then be explored with the Super Affluent themselves. It also tuned us in to the language and lifestyle context of the target group – important for the moderator who needed to appear credible when subsequently interviewing them. The service providers we spoke to included investment advisors, architects, interior designers, personal trainers and wedding planners.

Stage 2: Wine and Cine Sessions with Super Affluent Men and Women

The main body of the research was a detailed listening exercise carried out with Super Affluent men and women. Conventional methodologies and recruitment techniques are totally inappropriate for researching this segment. We involved several socialites, event planners and key 'insiders' to help us recruit appropriate people.

Instead of a screener, we had a list of desired attributes that are known to others in that circle ... this prevented the need to directly ask the Super Affluent sensitive information about income, lifestyle etc.

Rather than conducting a typical focus group, formal dinners were held in restaurants. We avoided the predictable, five star restaurants, preferring smaller, more intimate, newer restaurants which would have some talk value with the affluent. The invitations, menu and hosting was planned with a lot of care – much more like a dinner party than a research group.

We needed our most experienced and mature moderators in each city, i.e. those who came from affluent backgrounds or could hold their own in a dinner table conversation with the Super Affluent, without seeming too 'moderator' like!

Stage 3: In Depth Interviews with Mega Affluent

In some cities we supplemented the groups with a few in-depths among the mega affluent – those who are in the top tier of that city, well known in industry or with a strong social reputation.

We wanted to get a view of these trends from the very top. This segment was truly the upper echelon that is very difficult to access. Focus groups would have not been an appropriate methodology – we met them one-on-one at a location of their convenience.

Stage 4: Client and Merchant Partner Groups to Flesh out Key Themes

Based on the listening exercise we identified key trends and themes. We now needed to understand these in more detail. We conducted groups with American Express employees as well as top Merchant Partners in each city. These groups talked about each theme, and how they had experienced / observed them. This was a valuable source of examples and anecdotes that helped us understand the boundaries of each theme.

Stage 5: Client Workshops to Develop the Themes into Insights

Finally, we needed to sort out the themes – the ones that were new news, useful to marketers, interesting to observe in future and so on. We adopted a collaborative approach to develop the themes into insights.

Brainstorming with the larger client team – including all key stakeholders – helped us elaborate on the meaning of each theme and the story behind its development.

The main benefits of this iterative approach were:

• A broader, total perspective on the Super Affluent.

• An opportunity to discover and evolve hypotheses throughout.

• An internal client understanding of and commitment to the target group.

• Sharper insight, not 'findings'.

The markets studied include Singapore, Hong Kong, Australia, Japan, China and India. American Express released detailed individual country white papers into the public domain and these are available upon request. This paper takes each individual report a stage further by combining learnings across markets to identify wider patterns and trends across Asia Pacific.

THE INSIGHTS

In each market, five key insights emerged which drive decision making today among the Super Affluent. This paper now focuses on how these Insights look across the five markets. Within each insight, we can see:

• Its meaning.

• Its expression.

• The implications.

Insight 1. Experiencing Wealth: Going beyond Milestones, to “Feel Good” Luxury and the “Everyday”

Two facets to new wealth were discovered. First, there are purchases which serve as milestones of success (e.g. first diamond, first yacht). But a second facet is growing – the Asian consumer in some markets is beginning to move beyond the predictable high ticket items and seek value in the everyday.

In Singapore and Hong Kong, the most obvious way of enjoying and experiencing wealth is to spend on personal passions. The Super Affluent feel that passion has no price – personal interests deserve the very best and the price tag does not matter. This extends to loved ones and family members as well.

“Bought another unit on the same floor of his apartment and converted it to a library... private time for his passion” (Male Affluent, Hong Kong)

“A client's daughter was turning 10 and it was a big deal for him... he heard about an international rock band from Taiwan and he flew them in to perform at her birthday party” (Service Provider, Singapore)

Having said this, the love of the conventional luxury goods and services, which is increasing among the mass affluent, is now passé among the Super Affluent. For the Super Affluent, it is okay to be ordinary sometimes. They are, in a way, taking a break from luxury and enjoying simple pleasures in a confident and relaxed way.

This includes feeling comfortable with buying things that cost very little, enjoying simple meals and small restaurants and hawker centers, staying at small boutique hotels while traveling instead of luxury chains. This confidence is symbolic of their comfort with wealth; they no longer feel they need to demonstrate.

“At the launch of the latest Ferrari model the person who purchased the car was a little noticed man who wore shorts and slippers... he paid in full, in cash” (Service Provider, Singapore)

“In the past people would plan way ahead for a 'special dinner' at my restaurant. Now people seem to just come for the simplest reason – they want to enjoy the food!” (Prestige Merchant, Hong Kong)

This is in stark contrast with China where wealth is still relatively new. Wealth is new ... experiencing wealth is new ... which means every experience is like 'the first time' – a true milestone – which makes it so much more poignant in its meaning. Given the history of the Chinese Affluent, the first time they achieve social and personal milestones (designer clothes, branded watches, handcrafted jewellery, exclusive club memberships, art collections or even owning a show case home) is highly valued. It gives them a sense of accomplishment and an emotional reward they cherish. This segment celebrates every first and is always in pursuit of the next – reflective of their desire to shape a distinctive affluent identity among their peers.

“I bought a piece of land in a Beijing suburb, and I designed my own villa. I made it look the way I wanted it to look – inside and outside. Its custom designed by me! Everything is the best... the landscape design, the interior colours, even the water faucets. I bring friends there for weekend gatherings and they all say it is very nice” (Male Affluent, China)

In contrast, the Indian Affluent have always lived well, but now luxury has entered the everyday aspects of life. No longer restricted to special occasions, Affluent Indians desire that luxury permeate every mundane detail. They demand the newest, latest designs, the most modern technologies, the most personalized service, even the most specialized gourmet coffee every time.

“I know a gentleman who sends his personal launch during the night all the way from Alibagh to Mumbai to pick up coffee from a gourmet shop there because that's the only coffee his girlfriend drinks! Talk about luxury in simple things!” (Service Provider, India)

Experiencing wealth in Australia could not be more different. Here, the focus is egalitarianism, at least in public domains. But Australians are extremely house proud – so a beachfront home is an example of a more inwardly driven success milestone. They want the luxury of feeling good. Simple things such as the uniqueness of a product or service, indulgences that hold personal meaning, or simply knowing that one can afford to ignore the price tag. These are elements that add to the 'feel good' of being Affluent. For its own sake, Bigger, Better and More are clearly 'out'.

“If I am motivated to buy something for pleasure, I don't usually let the price tag get in the way. I allow myself indulgences because my philosophy is I've worked hard, I deserve it, and if I want it, I should have it. I feel good about that” (Female Affluent, Australia)

The implications here for marketers are:

1. Appreciate the significance of the 'first time' in many luxury purchases In China, and to some extent in India, consumers are looking outward and inward to acquire possessions and experiences that symbolise their success. But it is all very new. Providers need to share their knowledge to help affluent consumers to develop their own affluence expertise and personal style. Lifestyle providers who do so will be able to establish their own identity as a premium service partner.

2. Luxury delivery is not restricted to luxury categories. Regular everyday items and services will also need to be packaged or delivered with some thought to luxury – either in content or presentation.

3. It is not just about the brand name: The Super Affluent will pursue the perfect combination of quality, service, experience and price in products and services – regardless of brand name.

4. A surprising, unusual or innovative delivery method for a product or service – invisible sensorial luxuries can increase brand value, create distinction and drive purchase decisions and loyalty. Brands need to examine if there are ways to increase the feel good factor that attracts and appeals to the affluent consumer – and their senses.

Insight 2: Social Superiority – Same Motivations, Different Expressions

Social superiority is an intrinsic human need. The Affluent have always striven for distinction in society, and this need remains constant today. However in Affluent circles across Asia, this is expressed differently:

The Indian market is perhaps where this trend is the most visible. Today with more affluent consumers having greater access to luxury lifestyles and the symbols of affluence, creating distinction takes more effort for the Super Affluent. As a result they are willing to spend time, energy and money 'upping the stakes' – to constantly move ahead in the race for social standing. In most instances this is about looking for the next, bigger and better – custom made items, following global trends in cars, travel, art, homes! Or simply, being the first to know, which confers high social currency. In parallel, there is also a subtle undercurrent emerging... those who define social currency as the ability to exude presence, class, sophistication and confidence.

“In my circle everyone has a beach house. But the question is 'do you have your own jetty for the boat?” (Female Affluent, India)

In Singapore, social superiority is not about what you own but how rare that object or service is. The new definition of 'exclusive' asserts the affluent consumer's personal sense of self and special-ness by being unusual and customized. The demand for things that are the 'only one in Asia', and wanting the only such design in Singapore, are symbols of this.

“We decided on an architect who promised us upfront that he would not use any design elements from anything else he's done, and he wouldn't replicate what he did for us anywhere else – so it's our own, exclusive design” (Female Affluent, Singapore)

Some Hong Kong affluents have taken a step further. Always known for its glamour and flair, it appears to the Super Affluent that everyone owns a bit of 'flash'. Thus being understated is the new what to stand out in the Hong Kong Affluent space. Brand names are still important but the Hong Kong Super Affluent projects an inner confidence, going stealth when it comes to everyday demonstrations of luxury. Typical examples are 'not wanting to display the label' or 'taking time to look at details' rather than relying only on the branding.

“I see many people walking the streets carrying well known brand handbags – they are everywhere! I have many versions of them. But now, I am looking for something different – perhaps a new designer or some-thing more uniquely designed.” (Female Affluent, Singapore)

Rather than possessions and services defining the currency of social standing, in Australia, it is defined by 'time-out'. Affluent Australians seek to build a lifetime of stories enriched with people, places and experiences – they believe that true Affluence is accompanied by an increase in leisure time. Status is derived from being able to control time away from work, and reinvest this precious commodity in pleasurable activities and personal relationships.

“It's a rare day that I work beyond 3.30pm. I've been doing this for 20 years and I am realizing what I do with my time is really precious, like spending more time with family.” (Male Affluent, Australia)

In all cultures, currency of social superiority is about the need to access a culturally valued yet scarce commodity. This is defined differently across cultures – Australia, that commodity is control over one's time, while in India, it is about possessions. This strongly suggests that this is subject to multiple interpretations within each culture. One cannot therefore assume that what equals social superiority in one market is the same across all markets.

The implications here for Marketers are:

1. It is important to the Affluent that they stand out. Brands and services must ensure that the need for exclusivity, uniqueness and a way to stand apart are met through goods and services. However, they must be aware of the meaning of 'standing out' in each market in order to ensure they appeal in the most relevant way.

2. Providers can also expect word of mouth to play a large role in promoting their products and services. This is especially true of Singapore or Hong Kong, where there is a need to raise the provider's social currency in affluent circles and minimize the accessibility/overtness of marketing to ensure exclusivity is maintained.

3. For markets such as India and China, Affluent consumers want to know that they come first. Moving forward, lifestyle providers must focus on knowing the affluent consumer intimately – not only their name but their preferences. This must be reflected in delivering the entire brand experience.

4. While symbols are becoming a more discrete part of the affluent lifestyle, they continue to be important statements of affluence. Brands targeted at the Affluent will need to work toward creating a balance between making a statement that resonates with the affluent, and over exposure of their brands. Loud brand statements work against the emerging desire to engage in subtle affluence.

Insight 3: Towards Connoisseurship

The Asian Affluent are outgrowing the conventional definitions of luxury – earlier defined by possessions of precious, expensive and exclusive products and services. Now it is not just about owning luxury, but knowing about it and often more importantly experiencing it ... and often before others do.

The Super Affluent Connoisseur seeks hands on discovery of the origin, craftsmanship or the story of luxury that makes the product or service unique or special. In Hong Kong and Singapore in particular, 'discovering something new' and the 'Talk value' that creates is the new luxury. It is not about possession and ownership, it is more about the experience of the product or service that is appreciated”

“You'd have to be interested in it. If you buy something and you appreciate it, you'd naturally want to learn more about it... it's building up your own level of knowledge and that's valuable. You're appreciating things at a different level.” (Male Affluent, Hong Kong)

“I like to go to this small, intimate restaurant where the chef cooks 'the catch of the day' and the meal is served by the chef's wife! I tell everyone I know about the place!” (Female Affluent, Singapore)

In Japan, the trend towards connoisseurship is very strong. The Japanese Affluent are finely attuned to detail and perfection – and spend time and money acquiring expertise of a higher order. This often involves intimate collaboration with service providers who are experts themselves. Wine school in Bordeaux, specialist antique dealers, and rice experts for Sake are examples of this.

This also extends to them expressing themselves by casting their own ideas into shape. Designing their own jewellery, choosing a careful menu, arranging the right music for themselves or a particular occasion are all aspects that the Affluent like to get involved in, rather than leave it to the service provider.

“I have developed the ability to appreciate things of beauty over the past 30 years through traveling all over the world. For instance the charm of rare crafts found in Asian countries is of extreme value to me. I never measure things by whether they are expensive or cheap, branded or not, real or fake... I judge things with my own eyes” (Male Affluent, Japan)

The implications for Marketers are:

1. Consumers are increasingly going beyond brands – craftsmanship, detail in construction and stories in design are what will attract the Super Affluent to certain brands over others.

2. Stories create value. Sparkling display cases and extravagant mannequins will only go so far. The new 'connoisseurs' want to go behind the counter and 'hear' and learn about the products they desire: Where is it made? What is the process? What are the materials? What's unique? Is there a story behind it? What is it and will it be worth sharing with my friends?

3. It's about the experience, not just the transaction. The experience of the purchase adds 'talk value' too and is part of the pleasure. Providers need to increasingly focus on ways to 'plus' the buying experience – from the purchasing environment to the sales people to the special-ness of the selling transaction.

Insight 4: The Quest for Deep Rooted Authenticity

There is a clear progression here. Once a depth of knowledge has been acquired, there is no compromise on quality. Quality now means the truly authentic, 'the real deal', something which can be traced back to its origins or is rooted in great craftsmanship.

In Australia, for instance, true affluence is very quiet... for them it is not about cost but about 'worth'. They seek goods and services that are novel, high tech, superbly functional and exquisitely detailed... and it often does not come with a brand name. The Affluent are discriminating buyers who are willing to invest time and learn about quality, craftsmanship and functionality of whatever they are buying.

This can be true luxuries such as watches, clocks, antiques and heirlooms to pass on to the next generation, or even everyday items like household storage or features in automobiles.

“I spend a lot of time sifting the wheat from the chaff. The more affluent you become – and I suppose older and wiser – the less likely you are to follow trends. You search for value.” (Female Affluent, Australia)

In Japan, the authentic, real thing symbolizes personal self expression. For them, satisfaction comes in knowing they have built a lifestyle based on their own individual sense of style and expression of character. They value not mere possessions, but a true understanding of what it means.

“I used to buy so called 'luxury products' and thought they were authentic. As I mature I have begun to appreciate the intrinsic value of products that are connected not by a brand name but by my personal connection to it. I have stopped thinking of how I may be perceived, but focus on how I would like to express myself.” (Male Affluent, Japan)

“I attended wine school; I learned that there are various types of grapes, cultivated in different soils and temperatures that produce different wine tastes. Therefore I always look forward to going to Bordeaux and Bourgogne in France for wine tasting” (Female Affluent, Japan)

In countries that have a notably long history of ancient culture – India, China, Japan, the authentic also carries traditional cultural nuances. Staying connected to the past, owning original antiques, patronizing ethnic art, re-discovering or staying true to ancient traditions of hospitality are all expressions of this pride in their cultural heritage.

“I like travelling to places like Tibet and Yunnan – I feel like these places connect me to a bigger China. My husband likes collecting teapots for the same reason. Now I am influenced by him and I like to collect hand crafted products made of ivory or jade” (Female Affluent, China)

“In New York or London you see galleries that combine the old and the new, contemporary and traditional which is fabulous – but you have to travel to them! Now I am starting to see galleries like that here in Mumbai – but with Indian artists. I think that's fabulous” (Female Affluent, India)

In Australia, a relatively new culture, the Australian Affluent are in search of something that will last for generations, and give them a way to leave their mark on the future.

“I would like to pass my possessions on as a legacy to my kids, and they must be able to say in their generation that this is the best” (Male Affluent, Australia)

“My apartment was empty for five years because I could not find the right furniture to spend the rest of my life with. Recently, I bought a dining table made of Australian wood – just hit the mark with its attention to detail – the care, the quality of finish and workmanship. It's a future antique” (Male Affluent, Australia)

Implications for Marketers

1. Back to the roots, or culturally anchored products and services will find a place in the market. In India, for instance, the Affluent are blending local and global luxuries to create a distinctly unique 'ethnic chic' lifestyle.

2. Providers in the market place must cater to the consumer's emotional need to be a discriminating and informed buyer. Brands that aspire to be a part of the Affluent lifestyle statement should seek to develop their reputation as offering the best – in craftsmanship, quality, endurance and authenticity.

3. Shorten the distance to familiarity. Many new global brands compete in affluent consumers' minds with indigenous brands that have not only serviced affluent consumers for a long time, but also offer flexibility in their range of their product line as well as built relationships with them. The desire to celebrate their heritage means that International brands should strive to understand these cultures and customers to enhance their relationship building efforts.

Insight 5: Inner Wealth – in Search of the Simple Life (that Money can't buy)

There is a point where the 'quest' slows down and a point of contentment is reached. This was evident in Japan, Australia and Hong Kong and within each of these markets, again, the expression is different.

The meaning of 'Inner Wealth' is the point when people see beyond the extrinsic and intrinsic value of objects and focus on what is most important to them. Invariably these are the smaller pleasures in life: providing time and space for one's passions; freedom to choose the use of one's time; focusing on physical and mental health and well being and (re) focusing on relationships.

“I've noticed there is a change taking place among my clients ... luxury is becoming more about rewarding themselves with time to indulge than in the acquisition of material possessions” Service Provider, Australia

“Now it's no longer through materialistic possessions to show that one is capable. It is more about the whole package of you as a person – to be happy yourself. If you work and you are not happy, then there is no point. Now it's about experience and not just comparing yourself with others” (Male Affluent, Hong Kong)

In Japan, this togetherness of body and soul is taken a step further – the Japanese Super Affluent want to be awed. Both man made extravaganzas and natural phenomena can stimulate their sense of being a part of something larger than themselves.

“I happened to have the chance to go somewhere near Mount Fuji in April and I tried shooting some pictures. The sunrise against the clear air made an impressive picture. Since then, I have become so interested in nature and have been waking early to take sunrise photos. This totally changed my life and I am very grateful” (Male Affluent, Japan)

“I get away from the city several times a year. I spend the time at golf courses, fasting centers, where I only drink juices and eat fruits everyday. To my surprise I do not feel hungry or tired, on the contrary I feel alive and very alert... so refreshed” (Affluent, Japan)

Implications for Marketers

• Finding ways to connect more deeply with health, emotional or personal growth aspirations, and importantly family, is key to service providers. New products, services or experiences that help the Affluent explore their inner wealth are limited only by the imagination of the market place.

• There is an opportunity for services which make more time and space for people to pursue their own personal agenda.

THE HIERARCHY

There is clearly a progression in affluent behaviour, as a group of affluent become more comfortable and experienced with their wealth. The parallel can be drawn with Maslow's hierarchy of needs which demonstrates that deficiency needs must be met first. Once these are met, seeking to satisfy growth needs drives personal growth. The higher needs in this hierarchy only come into focus when the lower needs in the pyramid are satisfied.

Once an individual has moved upwards to the next level, needs in the lower level will no longer be prioritized. If a lower set of needs is no longer being met, the individual will temporarily re-prioritize those needs by focusing attention on the unfulfilled needs, but will not permanently regress to the lower level (see Figure 6).

Figure 6

This theory can be observed and contrasted with the evolution of values and behaviours among the Super Affluent. At the most basic level, once the milestones have been achieved, people seek social superiority; once they feel secure in this, they begin to value connoisseurship and knowledge and so on.

However, the true value of this research operates at three levels:

1. The knowledge that there is a progression and that some markets such as Japan and Australia have consumers operating across the spectrum of needs. This is an important point. Even though some consumers may have reached 'inner wealth', the 'new blood' coming into the market will be 'achieving milestones'. Thus, understanding each level and the implications for marketers at each level is important in targeting the Super Affluent. Even within one market, they are not a homogenous group.

2. The speed in which the Super Affluent move up the hierarchy also varies considerably. In Japan, Super Affluent operate largely at the top three layers; in Hong Kong, there is evidence of behaviour across the total spectrum. Despite the recently of affluence in China and India, there is already evidence of them seeking connoisseurship, although the majority are still experiencing their wealth and seeking superiority from the masses. But their ancient cultures may provide a catalyst to move more quickly up the hierarchy.

3. The knowledge of the motivation is only the first step. This is what enables a brand to focus on a way to connect with the consumer in a way that is meaningful. One can 'invite the consumer in' knowing that their core motivation is, say, seeking connoisseurship. However, the expression of the motivation will differ in each market because what people acknowledge and desire, for example, as an expression of connoisseurship will be culturally sensitive.

EVOLVING THE PARADIGM

The fundamental starting point is that there is significant growth among the High Net Worth Individual universe. Who we see as the 'super affluent' now will not be an elite, minority group in the future. There will be significantly more of them ... and their influence in society will be felt more greatly as a result.

Therefore, the shape of the market could shift with some of the higher order motivations becoming more dominant. We found through this research that the Super Affluent do take care – consciously or unconsciously – to set themselves apart from the mass affluent.

Therefore, as the mass affluent increases there is greater likelihood of the super affluent wanting to further set themselves apart. There could therefore be more people seeking connoisseurship and a greater demand for 'authenticity' across the spectrum (see Figure 7).

Figure 7

In terms of anticipating the mass affluent, it is highly likely that as people start to gain wealth that they will share the same motivations as the super affluent. Although there was no direct evidence in this research, subsequent trends have been identified in markets across the region:

For example, in India, the recent opening of malls has seen the mass affluent flock to enjoy the experience of shopping ... where goods are more expensive and the store takes longer to reach. While the mass affluent will seek the conventional branded goods in such environments, super affluent seek specialist outlets that offer organic groceries/veg or exotic delis ... some possibly only available by phone.

A unifying trend in India, however, could be the 'ethnic chic'. Given that India and Indians have risen significantly at global levels, pride in Indian-ness is high. Mass affluents will latch onto existing Indian designers who launch prêt-a-porter lines (e.g. Ritu Kumar), super Affluents will find new Indians who are showing 'for the first time in Paris, e.g. Manish Arora.

The result is that lifestyle/best in class are now becoming more accessible thanks to the economic boom. The lesson is that those ahead of the curve in terms of affluence will constantly seek to remain above the mass to highlight their uniqueness. Thus the service providers who similarly stay ahead of the curve will continue to attract this rapidly growing Super Affluent group.

THE ACTION: FOUR KEY IMPLICATIONS FOR SERVICING THE SUPER AFFLUENT

1. Service providers must raise their own game in terms of what they know about the products and services they are offering. They need to engage them on equal terms, meeting their desire to acquire knowledge and expertise. They must increasingly cater to their emotional need to be a discriminating and informed buyer.

2. The Super Affluent are 'beyond the badge'. Everything they buy should have a story – about the product's provenance, about the mystery of its heritage ... or it should provide an experience – in purchase or usage – which differs from the competition. Service providers need to use this to keep the services they offer the Super Affluent above those of the mass.

3. The Super Affluent may not always look as you expect. Treating all equally, unless known, should be a base level service guideline for staff training – particularly in those markets which have had a longer duration of time serving affluent consumers. While not all affluent consumers expect to be treated specially, they all do have high expectations about quality when it comes to the details of the purchase experience from packaging to follow through.

4. Focus on the intangible elements that can be provided – be that in service, experience ... something/anything that money cannot buy. It is a way of moving the high price service you offer away from those who can buy but who are not in the Super Affluent set.

REFERENCES

Global Wealth Predictions 2005/Tapping the Indian Wealth Market, Data Monitor
Asia Pacific Wealth Market Database 2005
CapGemini/Merill Lynch: World Wealth Report 2007
Inside the Affluent Space by American Express: White Papers on
Changing Lifestyle Expectations of the Affluent in Singapore: the New Ritual of Luxury, March 2006
Changing Lifestyle Expectations of the Affluent in Hong Kong: The Connoisseur Emerges as the new persona of the Affluent, June 2006
Changing Lifestyle Expectations of the Affluent in India: Fusion of Changing Economic and Social Factors Fuels the New Mindset: “I've made it”, September 2006
Changing Lifestyle Expectations of the Affluent in Australia: Emerging Affluent Mindset Redefines Value: Is it Worth it to Me?, March 2007
Changing Lifestyle Expectations of the Affluent in China: In Search of a World-Class Lifestyle: The New Pioneers Fast Forward into the Affluent Space, November 2007
Willmott and Young, “The Symmetrical Family”, 1973 Routledge
Abraham Maslow, “A Theory of Human Motivation”, 1943

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