|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.
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform and how we integrate our thinking to solve complicated problems. In his session at 19th Cloud Expo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm ...
Sep. 29, 2016 07:00 AM EDT Reads: 3,408
DevOps at Cloud Expo, taking place Nov 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 widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long dev...
Sep. 29, 2016 07:00 AM EDT Reads: 3,483
Fact is, enterprises have significant legacy voice infrastructure that’s costly to replace with pure IP solutions. How can we bring this analog infrastructure into our shiny new cloud applications? There are proven methods to bind both legacy voice applications and traditional PSTN audio into cloud-based applications and services at a carrier scale. Some of the most successful implementations leverage WebRTC, WebSockets, SIP and other open source technologies. In his session at @ThingsExpo, Da...
Sep. 29, 2016 06:45 AM EDT Reads: 1,671
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 & ...
Sep. 29, 2016 06:45 AM EDT Reads: 3,178
SYS-CON Events announced today that Roundee / LinearHub will exhibit at the WebRTC Summit at @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. LinearHub provides Roundee Service, a smart platform for enterprise video conferencing with enhanced features such as automatic recording and transcription service. Slack users can integrate Roundee to their team via Slack’s App Directory, and '/roundee' command lets your video conference ...
Sep. 29, 2016 05:45 AM EDT Reads: 1,502
Digital transformation is too big and important for our future success to not understand the rules that apply to it. The first three rules for winning in this age of hyper-digital transformation are: Advantages in speed, analytics and operational tempos must be captured by implementing an optimized information logistics system (OILS) Real-time operational tempos (IT, people and business processes) must be achieved Businesses that can "analyze data and act and with speed" will dominate those t...
Sep. 29, 2016 05:15 AM EDT Reads: 1,245
IoT is fundamentally transforming the auto industry, turning the vehicle into a hub for connected services, including safety, infotainment and usage-based insurance. Auto manufacturers – and businesses across all verticals – have built an entire ecosystem around the Connected Car, creating new customer touch points and revenue streams. In his session at @ThingsExpo, Macario Namie, Head of IoT Strategy at Cisco Jasper, will share real-world examples of how IoT transforms the car from a static p...
Sep. 29, 2016 05:00 AM EDT Reads: 1,640
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.
Sep. 29, 2016 04:30 AM EDT Reads: 4,685
Almost two-thirds of companies either have or soon will have IoT as the backbone of their business in 2016. However, IoT is far more complex than most firms expected. How can you not get trapped in the pitfalls? In his session at @ThingsExpo, Tony Shan, a renowned visionary and thought leader, will introduce a holistic method of IoTification, which is the process of IoTifying the existing technology and business models to adopt and leverage IoT. He will drill down to the components in this fra...
Sep. 29, 2016 04:00 AM EDT Reads: 1,817
The Transparent Cloud-computing Consortium (abbreviation: T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data processing High speed and high quality networks, and dramatic improvements in computer processing capabilities, have greatly changed the nature of applications and made the storing and processing of data on the network commonplace.
Sep. 29, 2016 04:00 AM EDT Reads: 1,215
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...
Sep. 29, 2016 03:30 AM EDT Reads: 3,039
I'm a lonely sensor. I spend all day telling the world how I'm feeling, but none of the other sensors seem to care. I want to be connected. I want to build relationships with other sensors to be more useful for my human. I want my human to understand that when my friends next door are too hot for a while, I'll soon be flaming. And when all my friends go outside without me, I may be left behind. Don't just log my data; use the relationship graph. In his session at @ThingsExpo, Ryan Boyd, Engi...
Sep. 29, 2016 03:30 AM EDT Reads: 1,380
SYS-CON Events announced today that Pulzze Systems will exhibit 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. Pulzze Systems, Inc. provides infrastructure products for the Internet of Things to enable any connected device and system to carry out matched operations without programming. For more information, visit http://www.pulzzesystems.com.
Sep. 29, 2016 03:15 AM EDT Reads: 1,909
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 ...
Sep. 29, 2016 03:15 AM EDT Reads: 3,585
There is growing need for data-driven applications and the need for digital platforms to build these apps. In his session at 19th Cloud Expo, Muddu Sudhakar, VP and GM of Security & IoT at Splunk, will cover different PaaS solutions and Big Data platforms that are available to build applications. In addition, AI and machine learning are creating new requirements that developers need in the building of next-gen apps. The next-generation digital platforms have some of the past platform needs a...
Sep. 29, 2016 03:00 AM EDT Reads: 1,888
If you’re responsible for an application that depends on the data or functionality of various IoT endpoints – either sensors or devices – your brand reputation depends on the security, reliability, and compliance of its many integrated parts. If your application fails to deliver the expected business results, your customers and partners won't care if that failure stems from the code you developed or from a component that you integrated. What can you do to ensure that the endpoints work as expect...
Sep. 29, 2016 02:45 AM EDT Reads: 1,721
As ridesharing competitors and enhanced services increase, notable changes are occurring in the transportation model. Despite the cost-effective means and flexibility of ridesharing, both drivers and users will need to be aware of the connected environment and how it will impact the ridesharing experience. In his session at @ThingsExpo, Timothy Evavold, Executive Director Automotive at Covisint, will discuss key challenges and solutions to powering a ride sharing and/or multimodal model in the a...
Sep. 29, 2016 02:30 AM EDT Reads: 543
Is your aging software platform suffering from technical debt while the market changes and demands new solutions at a faster clip? It’s a bold move, but you might consider walking away from your core platform and starting fresh. ReadyTalk did exactly that. In his General Session at 19th Cloud Expo, Michael Chambliss, Head of Engineering at ReadyTalk, will discuss why and how ReadyTalk diverted from healthy revenue and over a decade of audio conferencing product development to start an innovati...
Sep. 29, 2016 02:30 AM EDT Reads: 2,182
WebRTC adoption has generated a wave of creative uses of communications and collaboration through websites, sales apps, customer care and business applications. As WebRTC has become more mainstream it has evolved to use cases beyond the original peer-to-peer case, which has led to a repeating requirement for interoperability with existing infrastructures. In his session at @ThingsExpo, Graham Holt, Executive Vice President of Daitan Group, will cover implementation examples that have enabled ea...
Sep. 29, 2016 02:00 AM EDT Reads: 1,597
SYS-CON Events announced today that Numerex Corp, a leading provider of managed enterprise solutions enabling the Internet of Things (IoT), will exhibit at the 19th International Cloud Expo | @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Numerex Corp. (NASDAQ:NMRX) is a leading provider of managed enterprise solutions enabling the Internet of Things (IoT). The Company's solutions produce new revenue streams or create operating...
Sep. 29, 2016 01:45 AM EDT Reads: 2,058