Click here to close now.




















Welcome!

IBM Cloud Authors: Liz McMillan, Elizabeth White, Cloud Best Practices Network, Patrick Hubbard, Carmen Gonzalez

News Feed Item

The Future of Retail and Luxury: Digitas' "Affluence in America: The Next Generation"

Research Identifies Five GEN Y Segments Wielding the Greatest Spending Power; By 2017 Could Be Outspending the Boomer Generation

NEW YORK, Dec. 11, 2012 /PRNewswire/ -- What makes the high-rollers of Generation Y tick? Digitas, a digitally led global integrated brand agency, answers that question in a new proprietary study on consumer preferences and affluence: "Affluence in America: The Next Generation." The study synthesizes insights from a variety of sources, including the industry-leading Mendelsohn Affluent Survey.

(Logo: http://photos.prnewswire.com/prnh/20100616/NE22345LOGO )

The study, which follows on previous research released last year—"Affluence in America: The New Consumer Landscape"—reveals just how crucial Generation Y has become for luxury marketers. The affluent segment of Generation Y (those ages 18-34, living in a household that earns over $100K in annual income), has both the largest current and potential spending for luxury items. Research shows that by 2017, they could be outspending the boomer generation.

"Luxury spending is increasingly becoming the domain of Generation Y" said George Scribner, SVP/Account Planning, Digitas and leading force behind the study. "It's important for luxury marketers—and really, all retail marketers—to hone in on how the millennial generation is redefining the experience of luxury. Only then can they create the bold ideas and programs that connect with the Gen Y growth engine."

"Luxury has changed significantly in the past few years, becoming more personal, more intimate, more value-focused, and more tech-savvy. Looking ahead, Gen Y will lead these and other trends in luxury – marketers must heed this generational shift, and heighten their understanding of Gen Y and its many sub-segments," said Dr. Stephen Kraus, SVP & Chief Insights Officer, Audience Measurement Group, Ipsos MediaCT.

Key Findings:

The study broke down affluent millennials (population: 16.6 million) into five segments across Aspiring, Emerging, and Affluent.

ASPIRING: Annual HHI: $100-$199K

1. Aspiring Head of Household: Mean Age: 30/ Location: Midwest, South

  • They tend to be married with children, and are likely to prioritize family (and work-life balance), which can impact future earnings. They are considered the least wealthy of the Gen Y subsets.
  • Career paths: Technology or finance, but in non-metro regions.

2. Aspiring Children: Mean Age: 23/ Location: Northeast

  • They live at home with their parents. They earn a modest personal income, but are spending four times that due to access to household income.
  • Career paths: Retail jobs rather than careers, or pursuing "passion" careers like acting or entertainment.

EMERGING Annual HHI: $100-$199K

3.  Emerging Head of Household: Mean Age: 28/ Location: South, West

  • They tend to be unmarried. They spend frugally now, but many are pursuing career paths that will put them on track to become wealthy in the next decade.
  • Career paths: Creative, upwardly mobile in financial services, technology, architecture, advertising and real estate.

AFFLUENT Annual HHI: $200K+

4. Affluent Children: Mean Age: 23/ Location: Northeast, South

  • They live at home with their parents. They spend 3x what they earn due to access to a household income that's 10x their own earnings. 
  • Career paths: "Mission" careers like education, the arts, nonprofits or counseling.

5. Affluent Head of Household: Mean Age: 30/ Location: Northeast, West

  • They're likely to be married with children, and say that work dominates their lives.
  • Career paths: Traditional high-paying careers like medicine, legal and finance, as well as software design and engineering.

A large portion of affluent Generation Y attains their wealth from their parents—but they may not be on track for it in the future:

  • Affluent and Aspiring Children spend between two and four times their own income, due to access to their parents' wealth.
  • Many of these millennials choose careers that do not put them on track to become as affluent as their parents.

The takeaway for marketers: Luxury goods marketers must balance between catering to this financially dependent Gen Y subset now, and cultivating those who will eventually support themselves by building their own wealth and assets as they grow in their careers.

What makes millennials buy luxury products? Authenticity, nostalgia and utility.

  • Authenticity: Unique, 'ever-cool' brands, i.e. Ray-Ban, Levi's, Volvo, and YSL.
  • Nostalgia: Heritage brands with a sense of history, i.e. Louis Vuitton, Chanel, and BMW.
  • Utility: Products that fit specific needs of the users, i.e. Hulu, Netflix, and HBO on Demand.

Definition of "Affluence":

  • The minimum threshold for living a consistently affluent life is $200K HHI—for all generations.
    • Generation Y segments are middle class in their spending habits and attitudes if their earnings are between $100-$199K.
    • But the Generation Y segments that have over $200K in HHI are affluent in the brands they buy and activities they engage in.
    • This correlates with last year's Affluence in America study, which showed that those 35 and older and making between $100-$199K consider themselves middle class.

Generation Y Media Habits: Affluent millennials are the most digital of all possible segments.

  • Technology has become a new driver for consumer patterns of Gen Y, and also as a means to affluence.
  • Media use is moving toward digital, and younger consumers are early and frequent adopters of new devices. Whereas earlier analysis found that youth was a greater indicator of digital behavior, Digitas found that affluence is a better predictor of device ownership.
  • Therefore, affluent millennials are the most digital of all possible segments, with both the means to buy devices and the inclination to use them heavily.

Digitas—Leader in Research and Insights

This second "Affluence in America" study comes on the heels of a number of other research initiatives launched by Digitas. Just recently, the agency released research on holiday shopping that analyzed over 2.6 million social media conversations. And right before that, Digitas released a survey that predicted the rise of "Mobile Thursday" for the Thanksgiving holiday—and was proven right through later data from IBM and others.

The agency has also launched a series of industry predictions for 2013 on its blog, with global insights across mobile, brand content, design, and more.

SOURCE Digitas

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
WebRTC has had a real tough three or four years, and so have those working with it. Only a few short years ago, the development world were excited about WebRTC and proclaiming how awesome it was. You might have played with the technology a couple of years ago, only to find the extra infrastructure requirements were painful to implement and poorly documented. This probably left a bitter taste in your mouth, especially when things went wrong.
SYS-CON Events announced today that IceWarp will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. IceWarp, the leader of cloud and on-premise messaging, delivers secured email, chat, documents, conferencing and collaboration to today's mobile workforce, all in one unified interface
With the proliferation of connected devices underpinning new Internet of Things systems, Brandon Schulz, Director of Luxoft IoT – Retail, will be looking at the transformation of the retail customer experience in brick and mortar stores in his session at @ThingsExpo. Questions he will address include: Will beacons drop to the wayside like QR codes, or be a proximity-based profit driver? How will the customer experience change in stores of all types when everything can be instrumented and analyzed? As an area of investment, how might a retail company move towards an innovation methodolo...
The Internet of Things (IoT) is about the digitization of physical assets including sensors, devices, machines, gateways, and the network. It creates possibilities for significant value creation and new revenue generating business models via data democratization and ubiquitous analytics across IoT networks. The explosion of data in all forms in IoT requires a more robust and broader lens in order to enable smarter timely actions and better outcomes. Business operations become the key driver of IoT applications and projects. Business operations, IT, and data scientists need advanced analytics t...
A producer of the first smartphones and tablets, presenter Lee M. Williams will talk about how he is now applying his experience in mobile technology to the design and development of the next generation of Environmental and Sustainability Services at ETwater. In his session at @ThingsExpo, Lee Williams, COO of ETwater, will talk about how he is now applying his experience in mobile technology to the design and development of the next generation of Environmental and Sustainability Services at ETwater.
Consumer IoT applications provide data about the user that just doesn’t exist in traditional PC or mobile web applications. This rich data, or “context,” enables the highly personalized consumer experiences that characterize many consumer IoT apps. This same data is also providing brands with unprecedented insight into how their connected products are being used, while, at the same time, powering highly targeted engagement and marketing opportunities. In his session at @ThingsExpo, Nathan Treloar, President and COO of Bebaio, will explore examples of brands transforming their businesses by t...
SYS-CON Events announced today that Pythian, a global IT services company specializing in helping companies leverage disruptive technologies to optimize revenue-generating systems, has been named “Bronze Sponsor” of SYS-CON's 17th Cloud Expo, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Founded in 1997, Pythian is a global IT services company that helps companies compete by adopting disruptive technologies such as cloud, Big Data, advanced analytics, and DevOps to advance innovation and increase agility. Specializing in designing, imple...
While many app developers are comfortable building apps for the smartphone, there is a whole new world out there. In his session at @ThingsExpo, Narayan Sainaney, Co-founder and CTO of Mojio, will discuss how the business case for connected car apps is growing and, with open platform companies having already done the heavy lifting, there really is no barrier to entry.
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
SYS-CON Events announced today that Micron Technology, Inc., a global leader in advanced semiconductor systems, will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Micron’s broad portfolio of high-performance memory technologies – including DRAM, NAND and NOR Flash – is the basis for solid state drives, modules, multichip packages and other system solutions. Backed by more than 35 years of technology leadership, Micron's memory solutions enable the world's most innovative computing, consumer,...
Through WebRTC, audio and video communications are being embedded more easily than ever into applications, helping carriers, enterprises and independent software vendors deliver greater functionality to their end users. With today’s business world increasingly focused on outcomes, users’ growing calls for ease of use, and businesses craving smarter, tighter integration, what’s the next step in delivering a richer, more immersive experience? That richer, more fully integrated experience comes about through a Communications Platform as a Service which allows for messaging, screen sharing, video...
As more intelligent IoT applications shift into gear, they’re merging into the ever-increasing traffic flow of the Internet. It won’t be long before we experience bottlenecks, as IoT traffic peaks during rush hours. Organizations that are unprepared will find themselves by the side of the road unable to cross back into the fast lane. As billions of new devices begin to communicate and exchange data – will your infrastructure be scalable enough to handle this new interconnected world?
As more and more data is generated from a variety of connected devices, the need to get insights from this data and predict future behavior and trends is increasingly essential for businesses. Real-time stream processing is needed in a variety of different industries such as Manufacturing, Oil and Gas, Automobile, Finance, Online Retail, Smart Grids, and Healthcare. Azure Stream Analytics is a fully managed distributed stream computation service that provides low latency, scalable processing of streaming data in the cloud with an enterprise grade SLA. It features built-in integration with Azur...
Too often with compelling new technologies market participants become overly enamored with that attractiveness of the technology and neglect underlying business drivers. This tendency, what some call the “newest shiny object syndrome,” is understandable given that virtually all of us are heavily engaged in technology. But it is also mistaken. Without concrete business cases driving its deployment, IoT, like many other technologies before it, will fade into obscurity.
Akana has announced the availability of the new Akana Healthcare Solution. The API-driven solution helps healthcare organizations accelerate their transition to being secure, digitally interoperable businesses. It leverages the Health Level Seven International Fast Healthcare Interoperability Resources (HL7 FHIR) standard to enable broader business use of medical data. Akana developed the Healthcare Solution in response to healthcare businesses that want to increase electronic, multi-device access to health records while reducing operating costs and complying with government regulations.
For IoT to grow as quickly as analyst firms’ project, a lot is going to fall on developers to quickly bring applications to market. But the lack of a standard development platform threatens to slow growth and make application development more time consuming and costly, much like we’ve seen in the mobile space. In his session at @ThingsExpo, Mike Weiner, Product Manager of the Omega DevCloud with KORE Telematics Inc., discussed the evolving requirements for developers as IoT matures and conducted a live demonstration of how quickly application development can happen when the need to comply wit...
The Internet of Everything (IoE) brings together people, process, data and things to make networked connections more relevant and valuable than ever before – transforming information into knowledge and knowledge into wisdom. IoE creates new capabilities, richer experiences, and unprecedented opportunities to improve business and government operations, decision making and mission support capabilities.
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Architect for the Internet of Things and Intelligent Systems, described how to revolutionize your archit...
MuleSoft has announced the findings of its 2015 Connectivity Benchmark Report on the adoption and business impact of APIs. The findings suggest traditional businesses are quickly evolving into "composable enterprises" built out of hundreds of connected software services, applications and devices. Most are embracing the Internet of Things (IoT) and microservices technologies like Docker. A majority are integrating wearables, like smart watches, and more than half plan to generate revenue with APIs within the next year.
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Opening Keynote at 16th Cloud Expo, Sandy Carter, IBM General Manager Cloud Ecosystem and Developers, and a Social Business Evangelist, d...