|By PR Newswire||
|December 11, 2012 01:05 PM EST||
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.
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.
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.
IoT offers a value of almost $4 trillion to the manufacturing industry through platforms that can improve margins, optimize operations & drive high performance work teams. By using IoT technologies as a foundation, manufacturing customers are integrating worker safety with manufacturing systems, driving deep collaboration and utilizing analytics to exponentially increased per-unit margins. However, as Benoit Lheureux, the VP for Research at Gartner points out, “IoT project implementers often ...
Jun. 27, 2016 04:00 PM EDT
Presidio has received the 2015 EMC Partner Services Quality Award from EMC Corporation for achieving outstanding service excellence and customer satisfaction as measured by the EMC Partner Services Quality (PSQ) program. Presidio was also honored as the 2015 EMC Americas Marketing Excellence Partner of the Year and 2015 Mid-Market East Partner of the Year. The EMC PSQ program is a project-specific survey program designed for partners with Service Partner designations to solicit customer feedbac...
Jun. 27, 2016 03:15 PM EDT Reads: 254
Machine Learning helps make complex systems more efficient. By applying advanced Machine Learning techniques such as Cognitive Fingerprinting, wind project operators can utilize these tools to learn from collected data, detect regular patterns, and optimize their own operations. In his session at 18th Cloud Expo, Stuart Gillen, Director of Business Development at SparkCognition, discussed how research has demonstrated the value of Machine Learning in delivering next generation analytics to imp...
Jun. 27, 2016 03:00 PM EDT Reads: 694
In his general session at 18th Cloud Expo, Lee Atchison, Principal Cloud Architect and Advocate at New Relic, discussed cloud as a ‘better data center’ and how it adds new capacity (faster) and improves application availability (redundancy). The cloud is a ‘Dynamic Tool for Dynamic Apps’ and resource allocation is an integral part of your application architecture, so use only the resources you need and allocate /de-allocate resources on the fly.
Jun. 27, 2016 03:00 PM EDT Reads: 1,111
It is one thing to build single industrial IoT applications, but what will it take to build the Smart Cities and truly society changing applications of the future? The technology won’t be the problem, it will be the number of parties that need to work together and be aligned in their motivation to succeed. In his Day 2 Keynote at @ThingsExpo, Henrik Kenani Dahlgren, Portfolio Marketing Manager at Ericsson, discussed how to plan to cooperate, partner, and form lasting all-star teams to change t...
Jun. 27, 2016 02:45 PM EDT Reads: 1,187
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life sett...
Jun. 27, 2016 02:30 PM EDT Reads: 1,156
Basho Technologies has announced the latest release of Basho Riak TS, version 1.3. Riak TS is an enterprise-grade NoSQL database optimized for Internet of Things (IoT). The open source version enables developers to download the software for free and use it in production as well as make contributions to the code and develop applications around Riak TS. Enhancements to Riak TS make it quick, easy and cost-effective to spin up an instance to test new ideas and build IoT applications. In addition to...
Jun. 27, 2016 01:01 PM EDT Reads: 212
There are several IoTs: the Industrial Internet, Consumer Wearables, Wearables and Healthcare, Supply Chains, and the movement toward Smart Grids, Cities, Regions, and Nations. There are competing communications standards every step of the way, a bewildering array of sensors and devices, and an entire world of competing data analytics platforms. To some this appears to be chaos. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, Bradley Holt, Developer Advocate a...
Jun. 27, 2016 12:00 PM EDT Reads: 782
Connected devices and the industrial internet are growing exponentially every year with Cisco expecting 50 billion devices to be in operation by 2020. In this period of growth, location-based insights are becoming invaluable to many businesses as they adopt new connected technologies. Knowing when and where these devices connect from is critical for a number of scenarios in supply chain management, disaster management, emergency response, M2M, location marketing and more. In his session at @Th...
Jun. 27, 2016 10:00 AM EDT Reads: 1,023
The cloud market growth today is largely in public clouds. While there is a lot of spend in IT departments in virtualization, these aren’t yet translating into a true “cloud” experience within the enterprise. What is stopping the growth of the “private cloud” market? In his general session at 18th Cloud Expo, Nara Rajagopalan, CEO of Accelerite, explored the challenges in deploying, managing, and getting adoption for a private cloud within an enterprise. What are the key differences between wh...
Jun. 27, 2016 09:30 AM EDT Reads: 866
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, wh...
Jun. 27, 2016 07:30 AM EDT Reads: 1,033
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....
Jun. 26, 2016 05:00 PM EDT Reads: 1,314
SYS-CON Events announced today that Bsquare has been named “Silver Sponsor” of SYS-CON's @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. For more than two decades, Bsquare has helped its customers extract business value from a broad array of physical assets by making them intelligent, connecting them, and using the data they generate to optimize business processes.
Jun. 26, 2016 05:00 PM EDT Reads: 1,226
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - comp...
Jun. 26, 2016 04:00 PM EDT Reads: 1,282
19th Cloud Expo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterpri...
Jun. 26, 2016 04:00 PM EDT Reads: 1,346
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportuni...
Jun. 26, 2016 12:00 PM EDT Reads: 1,304
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo Silicon Valley Call for Papers is now open.
Jun. 26, 2016 12:00 PM EDT Reads: 1,137
There is little doubt that Big Data solutions will have an increasing role in the Enterprise IT mainstream over time. Big Data at Cloud Expo - to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA - has announced its Call for Papers is open. Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is...
Jun. 26, 2016 12:00 PM EDT Reads: 1,360
Cognitive Computing is becoming the foundation for a new generation of solutions that have the potential to transform business. Unlike traditional approaches to building solutions, a cognitive computing approach allows the data to help determine the way applications are designed. This contrasts with conventional software development that begins with defining logic based on the current way a business operates. In her session at 18th Cloud Expo, Judith S. Hurwitz, President and CEO of Hurwitz & ...
Jun. 25, 2016 03:00 PM EDT Reads: 1,632
SYS-CON Events announced today that ReadyTalk, a leading provider of online conferencing and webinar services, has been named Vendor Presentation Sponsor at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. ReadyTalk delivers audio and web conferencing services that inspire collaboration and enable the Future of Work for today’s increasingly digital and mobile workforce. By combining intuitive, innovative tec...
Jun. 24, 2016 01:00 PM EDT Reads: 1,376