Lower Income Affluents: They’re Baaaack!

If you own or run a hotel, cookware company, fashion house, or a restaurant, you may be nodding your head in agreement. According to Unity Marketing, these are the places where spending has been up this year among what they call HENRYs (High Earners Not Rich Yet) — those with incomes from $100,000 to $249,000. If you work in the travel industry, this is especially good news. HENRY spending on travel rose up to 40.8% from 2009 to 2011.

But if you’re selling watches, jewelry, furniture or lamps, you are SOL. For some reason, spending is down in those categories.

I think I know why.

Like those who are considered rich, the HENRYs don’t care as much about bling and showing off what’s inside their homes as they do about things they’re passionate about (things they’ve been missing out on for the past few years): travel, food and having a good time. And let’s face it, they like to look and feel great when they do it.

Those of you who are benefiting from this should be doing the happy dance  (HENRYs make up 80% of the affluent category). But don’t get too content. You need to do everything you can to keep these people coming back for more; that means building and maintaining relationships. It’s hard work, but well worth the effort if you have the manpower to make it happen.

On the other hand, if you’re not benefiting from this spending uptick, you may want to consider aligning yourself with a brand that is. Over the past few years, fashion designers like Armani and Oscar de la Renta have been aligning with hotels, designing rooms and suites from floor to ceiling. There’s no reason why a watch company can’t make a clock for a hotel room or a more upscale rental car. Just look at the cross-sell between Parmigiani and Bugatti. There’s more than one way to skin a cat. All it takes is a lot of brainstorming and a little sweet-talking.

Whichever category your brand falls under, this is nothing but good news. Let’s do everything we can to keep it coming.

 

 

Leave a Comment