Truth about affluence executive summary

THE TRUTH ABOUT AFFLUENCE A Global Study by McCann Truth Central

The Truth About Affluence, McCann Truth Central’s latest study, explores the modern meaning of affluence and delves inside the homes and minds of affluent individuals in cities all over the globe.

METHODOLOGY

To unpack Affluents’ passions, priorities and brand relationships as well as to capture both the similarities and differences between affluent consumers across regions, we conducted a 4,000-person online survey of the top 20% of populations around the world, as defined by annual household income and net worth. This was complemented by multiple in-home discussions, or ‘dinner parties,’ with groups of affluent individuals.

‘I’M NOT AFFLUENT’ Although we surveyed the top 20% of the population according to income and assets, when our respondents were asked to assess their own level of affluence, 88% put themselves outside of this top 20%.

IDENTIFYING AFFLUENCE

Our study determined that 70% of Affluents expect other affluent individuals to own multiple properties and more than half expected ownership of multiple luxury cars, exclusive club memberships, elite credit cards, and financial advisors. The top physical indicators of affluence for a man were his shoes, coat, and

FOR A MAN Poise & Posture

53% 47%

Poise & Posture

for a woman

Shoes

31% 45%

Jewelry

Expression

27% 19%

Bag

Coat

22% 19%

Expression

Watch

16% 12%

Cosmetics

jewelry. For women, her jewelry, bag, and cosmetics were most telling.

However, these indicators do not tell the whole story.

If we consider the general democratization of luxury goods then it’s hardly surprising that 84% of affluent individuals agree that nowadays it is harder to tell how affluent someone is just by looking at them. It’s clear that there is more to being affluent than the clothes you wear or the size of your bank account.

THE SUBTLE CLUES

If external indicators can’t always be trusted to identify an affluent individual, then how else can we tell if an individual is affluent? Globally, the primary indicator of affluence for both men and women is “poise and posture.”

If nowadays more people have access to luxury labels, the truly affluent have honed their affluence antennae and are looking to the more understated signs of affluence.

AN AFFLUENCE FRAMEWORK

How does one become affluent? Do we need to take a Steve Jobs-type risk by dropping out of college and starting our own business? Most Affluents would say no. In fact, only 18% of affluent individuals said that they got to the place they are in life by taking risks, as compared to 51% who attribute it to hard work.

In actuality, hard work is just one of the requirements for achieving affluence. Our research indicates that a thirst for education and cultural knowledge, combined with a passion and dedication to hobbies and interests round out today’s true affluent individual.

The resulting message is that everyone has the opportunity to become affluent if they try hard enough—a sentiment that is shared by two-thirds of Affluents.

MONEY CAN’T BUY HAPPINESS … BUT IT DOESN’T HURT

Wealth does not assure happiness and does not erase problems from our lives. Although, as one dinner party guest in the U.S. said, “Money allows me to arrive at my problems in style.” 90% of affluent consumers say that it is more important to be happy than to be affluent although two-thirds believe that it’s easier to be happy if you’re wealthy.

So how do we attain happiness? According to affluent individuals, happiness is a product of three things; time, family, and freedom. Having money may make you wealthy, but according to our respondents, being truly ‘affluent’ is much more.

INNOVATIVE BRANDS REFLECT THAT WHICH IS MOST PRECIOUS TO AFFLUENT INDIVIDUALS

Brands can resonate with affluent individuals by reflecting the brave new world of global affluence where traditional indicators combine with more subtle clues.

Affluent individuals admire communication that understands the things that really matter: family, time and freedom.

However, it is important to reflect these things in a relevant way. Affluent individuals celebrate family, but a progressive and contemporary vision of the traditional family. They not only make time for each other, but they support each other’s diverse passions. Affluent individuals strive for the freedom to do whatever they want, without anything—like money—holding them back. Strong and innovative affluent brands will celebrate the passion these consumers have for their family, the dedication and time they put into their personal and professional pursuits, and their desire for a life of freedom and endless opportunity.

This is a snapshot of The Truth About Affluence study, and we have a comprehensive data set on all markets. If you would like the full presentation or a workshop on affluence, please contact us at truthcentral@mccann.com.