Attraction Marketing

Image courtesy miniwatts-email-marketer.com By Christopher Zoukis

According to the Luxury Marketing Council, the regular retail mass market experiences a 4% to 6% growth annually. Contrast those numbers to the annual growth of the luxury retail market, which has averaged growth of 20% to 32% each year for the last fourteen years (from 1998 to 2012).  Forecasters predicted the luxury market would approach $2 trillion per year in 2014. 

Who is purchasing all these luxury products? There are 2.7 million customers in the United States with liquid portfolios of $1 million or more. Of those 2.7 million affluent customers, 1.2 million have a net worth of over $5 million. And their numbers are increasing at the rate of 100,000 per year. Add to that the fact that there were 215 million people in the United States over the age of 50 in 2010. This means over the next 20 years $12 trillion in inheritance will change hands. 

The rich are definitely getting richer

Of those getting richer, 10 million of them are self-employed women, entrepreneurs who are running and growing their own businesses. In fact, at least 20% of the people in the workforce are self-employed, and they control a whopping 70% of the wealth. Of those classified as ultra-rich, 50% are self-employed.

The U.S. Census reports provide much interesting information about the affluent self-employed. Seventy

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Red Cape Marketing

By Christopher Zoukis

Many people are wine aficionados. They are passionate about wine, and some of their purchases are made as investments. A fine bottle of wine can go for $600 or more. These investment-wines require proper storage, which includes temperature and humidity control, along with security.  Image courtesy alleywatch.com

Jim LaBonte, who owns Tropical Storage in Miramar, Florida, saw a unique opportunity. He expanded his self-storage business, adding separate wines storage facilities, with 24-hour keypad access. A computer-monitored refrigeration system keeps the temperature at 55 degrees. Humidity is maintained at 5 to 70 percent.  “It’s important for our customers to feel their investment is well cared for,” says LaBonte. So LaBonte has back-up air conditioning units and a security system, which give customers assurance.

Marketing wine storage to aficionados is vital to its success. It is not merely a case of “build it and they will come.” LaBonte used the following marketing techniques:

~A custom website that made aficionados aware of the facility’s unique offerings.

~He joined a local wine tasting club, which gave further exposure to the wine storage, and added to his reputation as a wine expert.

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Pushing The Right Buttons

By Christopher Zoukis

Pawsible Marketing (PM), a marketing firm specializing in luxury pet marketing, believes that quality is the driving factor in luxury pet products. PM forecasts that the retailing sector of luxury pet products will see massive growth in not only brick and mortar stores, but in online stores. The biggest retailers will begin offering luxury products to customers that want even greater luxury and “green” products. PM also sees new companies jumping onto the luxury pet products bandwagon. Most of these new companies will “feel” their way along, because they have no previous experience in the pet market segment.

According to PM, boutique stores will focus more on luxury pet products to niche markets. If their niche market is lucrative enough, and if their marketing is effective, these boutique stores will be acquired by larger companies seeking to expand their offerings.  Image courtesy crystal-fox.com

Green products and services will prove to be a key niche market. Affluent pet owners are concerned about pet foods and products with potentially harmful constituents. So they will seek out and patronize foods, toys, clothing items, medicines, and other products that are pet friendly.

PM also sees affluent pet owners seeking health insurance for their pets. These owners will respond to marketing targeted to the health of their pets, including alternatives such as pet massages, pet acupuncture, pet chiropractic care, pet hydrotherapy, pet nutrition, pet herbs, and pet homeopathy. In other words, now is the time to carefully plan marketing and promotional campaigns in these areas.

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Tall, Dark, Handsome, and Affluent

By Christopher Zoukis

Traditionally, the marketing of luxury products and services has targeted older men, because they had the money. Things are changing. Not only are women being targeted more and more, but young rich single men are a growing market that is often neglected.  Image courtesy zillowblog.com

In their book, The Affluent Consumer, Michman and Mazze state that the singles market accounts for $600 billion in spending power. Of course, the number contains both male and female singles. Nevertheless, the number is impressive. According to Michman and Mazze, wealthy single men spend their money on dining out, alcohol, transportation, entertainment, tobacco, and retirement investments. They spend more on housing than any other segment of the wealthy, are educated, fashion conscious, and pursue their hobbies intently. They are more likely to indulge themselves than any other segment of the rich or ultra-rich.

Teasley, a Manhattan-based firm that specializes in data analysis to improve marketing, did a survey to find out where single, rich men live. The results were published by Cathryn Conroy under the title of Top 10 Cities to Find Rich, Single Men.

Here they are:

San Francisco Bay area, including Oakland and San Jose.

Anchorage, Alaska.

Washington D.C. and Baltimore, Maryland area.

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Marketing to Daddy Warbucks

By Christopher Zoukis

What makes a customer affluent? How much money does someone have to make or have to be considered affluent? How is wealth defined? For the sake of convenience, this discussion defines three categories of wealthy customers.

            The moneyed customer.

            The rich customer.

            The ultra-rich customer.

Later on, each of these categories will be divided into sub-categories, such as women, men, same-sex, baby-boomers, and the self-made. But generally speaking, the three basic categories are defined as follows.  Photo courtesy top5s.net

Moneyed customers. The people in this category make $200,000 to $1 million dollars per year. They are usually young professionals, what used to be called “white-collar workers.” More often than not they are highly educated, having graduated from colleges or universities. However, this is not always the case. There are many exceptions. Some have graduate degrees, and many attended professional schools, where they received specialized training in a specific discipline. This group includes doctors, lawyers, computer sciences and dentists. Others graduated from professional business schools. Some are entrepreneurs, who hope to grow their small-businesses into large corporations. In reality, this category is difficult to define, other than the fact that they are motivated to succeed.

This category is experiencing rapid growth, and is in the upper 3 percent based on income. In other words, they make more than 97% of the population in the United States. Unique to this category are the baby-boomers, who are not young. Indeed, they are close to retirement. Some are from blue-collar backgrounds. Nevertheless, they have tremendous wealth.

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