A new framework for segmenting affluent buyers

Affluence alone does not guarantee that an individual is a luxury buyer, so brands and marketers are in need of a new framework that goes beyond relying on behavioural, demographic and financial metrics to segment their audience. 

Why it matters

The global luxury market is on the cusp of a tremendous opportunity. In the coming years, demographic shifts in emerging economies will create more than one billion first-time consumers, concentrated in China, India and South East Asia. Their purchasing power is worth trillions of euros, supported by rapid digital adoption amongst a youthful, urban and tech-savvy population.

For brands and marketers, this brings opportunities and challenges – both of which intensify the need to better understand luxury buyers.

Takeaways

• Based on the 49-country Ipsos Affluent Survey (IAS) and 18,311 respondents, the segmentation shows that affluence alone does not equate luxury buying. Rather, people have different reasons for how much they spend on luxury products, or when and if they buy.
• Ipsos’ segmentation shows that luxury buyers reflect these trends. With an average age of 41, they skew around four years younger than the typical affluent consumer, and a higher proportion live in economies outside of the West.
• In fact, the Asia Pacific region holds the most luxury buyers after the United States. Nine in 10 live in urban or suburban areas, and they spend close to seven hours per day online – almost an hour more than the affluent average.
  

Read more in Nouveau Luxe: A new framework for luxury and affluent segmentation