HENRYs account for 20 percent of Americans, but are responsible for 40 percent of U.S. consumer spending according to Pam Danziger, consumer insights and marketing expert and President of Unity Marketing. So while HENRYs have a much lower spending capability per household, they make up for it in their volume with a market potential three to four times greater than that of the ultra affluent.
THE 3 KEYS TO MARKETING TO HENRYS
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COMPELLING BRAND STORY THAT SHOWCASES HIGH-CRAFTSMANSHIP
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MASS VS. CLASS — FINDING THE SWEET SPOT
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They want to know what the brands they purchase stand for, their stories, origins, and why they exist. They like seeing pride in craftsmanship that sets the brands apart from mass-market offerings.
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They tend to be careful money-managers who evaluate various purchasing options, often online, and then balance trade-offs with value to achieve the right return on investment.
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They pride themselves on their intelligent buying choices and the research they put into their purchases.
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They want to be able to communicate what makes the brands they invest in worth the cost — the value proposition.
They want something in between the lower-tier options and the overinflated price tag of the ultra-luxury products. In other words, they are seeking a high-value proposition without the luxury price tag.
HENRYs don’t want a luxury product that solely serves as a status symbol; rather they see the brands they choose as an extension of themselves and their savvy purchasing abilities.
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PROVIDE A LUXURY VALUE PROPOSITION
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HENRYs don’t leave their budget analysis and research abilities behind at the office. Instead they tend to employ a rigorous evaluation process and rely heavily on the internet to help determine the best products and brands with the highest value proposition that they can invest in.
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The “smart buy” and the reasons behind it are what constitute bragging rights for this market, not an extravagant price tag. Practical, simple and minimalistic, as opposed to gaudy, showy or ostentatious branding is what attracts HENRYs.
Craft spirits brands are well staged to take advantage of the highvalue proposition to price-point offering so critical to HENRYs. Paramount to supporting this proposition will be developing engaging, well-crafted stories and exceptional packaging that support a luxury positioning coupled with intelligent pricing to hit the sweet spot. Because HENRYs research products extensively online prior to making purchase decisions, a strong online brand presence can’t be overlooked. Be sure to put your brand essence and storytelling — particularly details on craftsmanship — into your web presence. Keep in mind many consumers, including HENRYs, may actually discover you online first. If distilleries can develop their stories to be compelling, real and supportive of the quality of their products and package them in engaging designs at affordable luxury price points, HENRYs will take notice and could provide a compelling market segment for many craft spirit producers to focus on for years to come.
David Schuemann is the owner and creative director of CF Napa Brand Design. For more information, visit www.cfnapa.com or call (707) 265-1891.
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