LIGHTNING RELEASES — March 25, 2014, Stevens, PA – Mass market retailers and marketers bemoan the post-recession loss of spending power among the middle-class customers they have traditionally depended upon. Yet the –ultra-affluents, those consumers making more than $250K annually, are far too small a group to singlehandedly replace discretionary spending by the middle class, explains Pam Danziger of Unity Marketing.
Meet the HENRYs. These affluent consumers – their name means High Earners Not Rich Yet – are doing well, with an income between $100K and $250K. But they’re a far cry from wealthy; reserve that adjective for the ultra-affluents, who earn more than $250K per year, or for those with high net worth, with amassed wealth of more than $1M. The HENRYs are the unassuming mass segment of the affluent consumer market, and they are your most important target now and for the future.
The latest Unity Marketing white paper “What Do HENRYs Want?” highlights just why these lower-income affluents are so important to marketers. “The recent recession has left the true middle class severely limited in their ability to purchase goods and services in the near future,” says Pam Danziger, president of Unity Marketing and author of the report. “This means HENRYs are the ‘new mass market’ for marketers and brands up and down the pricing scale.”
The HENRYs are ready to respond in force, if not necessarily in high levels of individual spending. While HENRYs spend about half as much as do ultra-affluents on luxury and high end purchases, their significantly greater numbers (22.5 million households) mean that the total value of the HENRY market is about four times that of the ultra-affluent market (about 2.5 million households).
“Marketers have historically felt that ultra-affluents were their ideal consumer, but there simply aren’t enough ultra-affluents to keep luxury and mass market brands afloat,” says Danziger. “Instead, luxury brands need to broaden their reach to include these consumers. This creates a unique challenge, as they are now competing with mass market brands that would also like to reach up tap into HENRY spending.”
Danziger also found that targeting HENRYs is a sound strategy for helping brands position themselves in the future. “Not only can we fairly call HENRYs the ‘new middle class,’ we also know that the younger HENRYs are poised to become ultra-affluent as their earning power increases over time. Regardless of a brand’s original target market – ultra-affluent or mass-market – the HENRYs are the demographic key to success in the coming years.”
About What Do HENRYs Want? Reaching the Most Important Affluent Demographic
In this latest, free white paper from Unity Marketing, you will learn:
Who are the HENRYs?
What is their market potential?
Why are HENRYs the most important market for the coming decade?
Four tips for effectively marketing to the HENRYs, including real-world case studies from successful brands like Alex and Ani, Costco, Havaianas, Timex, Uniqlo, and PANDORA.
Order this free white paper by clicking here to understand the important dynamics of this customer for the future growth of your brand. And to help you assess the value-potential for the HENRYs and how tapping their unique psychology can help grow your brand, call Pam Danziger at 717-336-1600 or email at [email protected]
About Pam Danziger and Unity Marketing
Pamela N. Danziger is an internationally recognized expert specializing in consumer insights for marketers targeting the affluent consumer. She is president of Unity Marketing, a marketing consulting firm she founded in 1992. Pam received the Global Luxury Award for top luxury industry achievers presented at the Global Luxury Forum in 2007 by Harper’s Bazaar. Luxury Daily named Pam to its list of “Women to Watch in 2013.” She is a member of Jim Blasingame: The Small Business Advocate’s Brain Trust and a contributing columnist to The Robin Report.
Pam’s latest book is Putting the Luxe Back in Luxury: How new consumer values are redefining the way we market luxury (Paramount Market Publishing, 2011). Her other books include Shopping: Why We Love It and How Retailers Can Create the Ultimate Customer Experience, published by Kaplan Publishing in October 2006; Let Them Eat Cake: Marketing Luxury to the Masses-as well as the Classes, (Dearborn Trade Publishing, $27, hardcover) and Why People Buy Things They Don’t Need: Understanding and Predicting Consumer Behavior (Chicago: Dearborn Trade Publishing, 2004).