Our world is changing, more and more consumers are able to buy luxury goods as never before. But where the world has more and more millionaires and billionaires, they do not consume the product in the same way, let’s see how different these consumers can be.
The 5 main Types of Luxury Consumers
The Aspirationals: Aspirationals have $85,000 or more in annual income in developed markets or $29,000 in emerging markets and account for four out of every five luxury purchases. They aren’t big spenders individually, but together they account for a third of all luxury spending, says BCG.
Rising Middle Class: This group has incomes of $170,000 or more in the U.S. and $55,000 in emerging markets – which makes them far more affluent than the real “middle class.” They account for 25% of luxury spending.
New Money Households: New Money has investable assets of $1 million or more, and they spend about $90 billion a year on traditional luxury, or about a third of the market. New Money tends to like fashion and clothes.
Old Money Households: The Old Money group inherited its money and is far more frugal, accounting for only 7% of luxury sales, says BCG. There are one million of these households in the markets studied.
Beyond-Money Households: This group is self-made but unlike New Money, it eschews status and tasteless spending. There are about a half million of these households. When they do spend, they spend on watches, jewellery, furniture and decorations.