Shanghai by night, the land of the newly-affluent

The study entitled “Affluents Online” conducted by Unity Marketing found that among nearly 1,000 affluent consumers (avg. income $248.9k) surveyed, 98 percent used the internet to shop and make purchases in the  three-month study period. They spent on average $3,702 on their high-end online purchases.

Pam Danziger, president of Unity Marketing and lead researcher in the study said, “Online shopping is ubiquitous among affluent consumers. The typical affluent consumer spends about 5 hours a week online conducting shopping-related activities.

“In comparing last year’s survey with the one just conducted, we found similar strong interest among affluents in online shopping.  What has trended up significantly from 2011 to 2012 is the use of mobile devices to make online purchases.

In the latest study nearly 40 percent of affluent shoppers made an online purchase in the past three months using a mobile device; this rose from only 22 percent a mere 12 months ago.  But unlike computers, mobile usage still lags among the mature affluents (aged 45-70 years). For example, 49 percent of young affluents (under 45 years) made a purchase through a mobile device in the past three months, as compared with only 22 percent of mature affluents.  The consumers’ age, not income or gender, is the key determiner of whether they use a mobile device to power their luxury lifestyle.”

Another key finding about affluents use of the internet is that social media usage (defined as having one or more profiles on a social networking site) has effectively plateaued at over 80 percent, showing no significant growth from 2011 to 2012.  Young affluents are the most active on social media (93 percent from 24-34 years), but some 74 percent of even the oldest age segment, 55-70 years, use social media, so social media is a viable way for businesses that target an older demographic to connect with their customers.

“Today social media have the potential to reach most any luxury consumer – young or old and the HENRY affluents (high earners not rich yet), the top 2 percent ultra-affluents, even the high-net-worth rich. And while overall usage of social media hasn’t risen in the past year, more affluents, especially women, have created a connection with a brand through social media.  In 2012 some 43 percent of social media users liked a product or brand (43 percent) on Facebook, as compared with 34 percent in 2011,” Danziger said.

The study also reveals that affluents connect with brands primarily to gain access to discounts and special offers, but other important reasons they connect are related to sharing their passion for brands with their social networks.  For example, 31 percent connect with brands to show others that they like and support this brand.

The report contains case studies about online marketing and social media success from leading brands, including as American Express, Burt’s Bees, Luxury Link, Carnival Cruise Lines, Diageo and Lacoste.

• More at http://www.4hoteliers.com/4hots_nshw.php?mwi=10840&awsb_c=4hdm&awsb_k=dnws

• Copy of the report available here