Affluent Consumer Market in the U.S., The

In early 2007, when the last edition of Packaged Facts The Affluent Consumer Market in the U.S. was published, affluent consumers in America as well as wealthy individuals around the globe were going about their business of making, borrowing and spending money in blissful ignorance of the perfect financial storm that lay ahead. At the time, it was unimaginable that the housing bubble would deflate and leave behind a wreckage of foreclosures and worthless subprime mortgage securities. It was unthinkable that the stock market would collapse, financial markets would come close to imploding and a storied institution such as Lehman Brothers would simply disappear from the Wall Street landscape. Practically no one could foresee the onset of the most severe recession in more than 70 years.

The 2009 edition of Packaged Facts The Affluent Consumer Market in the U.S. provides a timely, in-depth analysis of how affluent consumers are responding to the most profound economic crisis since the Great Depression. The report uses multi-year data from Experian Simmons National Consumer Studies to track affluent consumer attitudes and behavior from the years preceding the onset of the Great Recession into 2009. This trend analysis gives marketers an insightful, up-to-date view of what's changed and what's stayed the same in the psyche and behavior of affluent consumers, who account for 22% of the nation's households but still generate more than half of the household income of the country and remain responsible for more than one-third of all consumer spending.

This Packaged Facts report begins with an assessment of the strategic trends shaping the affluent consumer market today, including a data-driven analysis of how affluent consumers are coping-or not-with the Great Recession. The next chapter describes how marketers are adapting to change in the affluent consumer market and highlights key opportunities in what remains the single most attractive market segment in the American consumer economy. Following a chapter that includes an in-depth demographic profile of affluent consumers, the report assesses the size of the affluent market today and projects its growth through 2014.

The second section of the report examines how affluent consumers manage and spend money. It includes a chapter offering insights into changes in the attitudes of financial consumers toward risk and includes an analysis of credit card use and ownership of insurance policies and investments. The next chapter explores affluent consumer spending and shopping patterns. It includes a trend analysis of affluent consumer expenditures from 2005 through 2008 that demonstrates where affluent consumers are cutting back and in some cases adding to their household budgets. It also provides an overview of the behavior of affluent shoppers-in stores, online and from catalogs.

The third section of the report includes separate chapters highlighting key aspects of affluent consumer behavior. These include chapters on health and well-being, affluent consumers and their homes and cars, how affluent consumers spend leisure time and affluent consumers and the media.

• Chapter 1 Executive Summary: Background
  • Introduction
  • Overview of the Report
  • Scope and Methodology
    • Scope of the Market
    • Methodology
  • Strategic Trends in the Affluent Consumer Market
    • Research Suggests Affluent May Feel the Recession More
    • Average Income of Super-Affluent Subject to More Ups and Downs
    • Pessimism Reigns among Super-Affluent Consumers
    • Affluent More Afflicted by Feelings of Financial Insecurity
    • Even the Super-Affluent Lose Their Mojo
    • Spending Plans Reined In
    • Dividend Income Down, Unemployment Compensation Up
    • Increase in Household Net Worth for First Time in Two Years Fosters Optimism
    • Wall Street Bonuses Expected to Rebound in 2009
    • Optimism Starts to Return among Affluent Consumers
    • More Affluent Shoppers in High-End Stores
  • Taking Advantage of Affluent Consumer Market Opportunities
    • The New Normal Challenges Marketers
    • Affluent Buyers Search for Value
    • Marketers Combat "Luxury Shame"
    • "Stealth Sales" On the Increase
    • Some Marketers Focus on Protecting the Brand
    • Discount High Fashion Websites Thrive
    • Affluent Consumers Continue to Offer Most Attractive Opportunities
  • The Demographics of Affluence
    • Population of Affluent Consumers Tops 61 Million
    • Affluent Consumers Disproportionately Non-Hispanic White
    • Education Differentiates Affluent Consumers
    • Few Retirees among Affluent Consumer Population
    • Multiple Earners Common in Affluent Households
    • Marriage More Common
    • Affluent Households Are Larger
    • Northeast Has the Most Super-Affluent
    • Affluent More Likely to Congregate in Urban Centers
  • Looking Ahead: The Affluent Consumer Market in 2010 and Beyond
    • Number of Affluent Households Tops 25 Million
    • Affluent Generate More than Half of U.S. Household Income
    • Affluent Consumer Market Will Grow 23% by 2014
  • How Affluent Consumers Manage Their Money
    • Affluent Lose Appetite for Risk
    • Super-Affluent Show Increasing Interest in Getting Financial Information
    • Choice of Banking Institutions Differs across Income Lines
    • Frequent Credit Card Use a Hallmark of Affluence
    • Even Affluent Carry Balances on Credit Cards
    • Debit Cards Used Frequently
    • Paying Bills Online Popular among Affluent
    • Affluent Taxpayers Look to CPAs
  • How Affluent Consumers Spend Their Money
    • Affluent Consumers Wield Ever-Increasing Influence
    • Huge Spending Gap between Affluent and Non-Affluent Consumers
    • Expenditure Patterns Reflect Differences in Available Choices
    • Highly Affluent Consumers Cut Expenditures in Great Recession
    • Affluent Shoppers Attuned to Brand Names
    • Affluent Consumers Are Careful Shoppers
    • Incentive Offers Appeal to Affluent Consumers
    • Super-Affluent Are Big Online Spenders
    • Affluent Consumers Turn to Catalogs More Often
    • Keeping up with Fashion More Important to Affluent Consumers
  • Taking Care of Themselves: Health and Well-Being in the Affluent Consumer Market
    • Exercise Has High Priority
    • Fewer Wimps among the Affluent
    • Affluent Healthier than Other Americans
    • Visits to Doctors More Common
    • Trust in Physicians Lower
    • Super-Affluent Will Pay More for Medications
    • Healthy Eating Important to Affluent Consumers
    • Losing Weight a High Priority for Affluent Consumers
  • Affluent Consumers and Their Homes and Cars
    • Home Décor of Interest to the Affluent
    • Affluent Lead Way in Home Improvement Market
    • Affluent Big Spenders in Household Furnishings Stores
    • Organic Food a Must for Many Super-Affluent Chefs
    • New Cars More Likely to Be Found in Affluent Owners' Garages
    • Foreign Cars Highly Rated
    • Multiple Vehicles More Common
    • One in Four Affluent Consumers Plans to Buy New Vehicle in Next Year
  • How Affluent Consumers Spend Their Leisure Time
    • Affluent Consumers More Active in Their Spare Time
    • Audio Books Favored by Super-Affluent Readers
    • Affluent Households Filled with Electronics Gear
    • Affluent Prove Tough Customers for Wireless Service Providers
    • Affluent Heavy Users of Internet
    • Live Entertainment Events Attract More Affluent Consumers
    • Affluent Consumer Segment Includes More Frequent Moviegoers
    • Super-Affluent Consumers Are Frequent Travelers
    • Interest in Cruise Ship Vacations Rebounds among Top Tiers of Affluent Consumers
    • Affluent Consumers and the Media
    • Newspapers Maintain Hold on Super-Affluent
    • Affluent Viewers less Likely to Turn to TV for Information
    • Premium Cable a Fixture in Affluent Homes
    • TV More Popular among Affluent Men than Women
    • Radio Important Information Source for Affluent Men
    • Internet Changes Media Habits of Affluent
    • Cellphone Important Media Platform for Affluent
    • Affluent Consumers Pay Attention to Out-of-Home Ads
    • Product Placement Effective Way to Reach Super-Affluent Consumers
• Section I Overview of the Market
• Chapter 2 Strategic Trends in the Affluent Consumer Market: Affluent Consumers in the Great Recession
  • Affluent Consumer Population Peaked in 2007
  • Survey Details Global Decline in Population of the Very Rich
  • Wealthy in the U.S. Share the Pain of Their Counterparts around the World
  • Research Suggests Affluent May Feel the Recession More
  • Average Income of Super-Affluent Subject to More Ups and Downs
  • Affluent More Likely to Claim to Be Worse Off Financially
  • Pessimism Reigns among Super-Affluent Consumers
  • Affluent More Afflicted by Feelings of Financial Insecurity
  • Even the Super-Affluent Lose Their Mojo
  • Spending Plans Reined In
  • Affluent More Concerned about Their Financial Future in the Event of Job Loss
  • Affluent Consumers Surprisingly Hard Hit by Job Losses and Business Failures
  • Dividend Income Down, Unemployment Compensation Up
  • Affluent Living in Trophy Houses Feel Pinch
  • A Glimmer of Hope in the Affluent Consumer Market
    • Affluent Consumer Market Starts to Stabilize
    • Increase in Household Net Worth for First Time in Two Years Fosters Optimism
    • Wall Street Bonuses Expected to Rebound in 2009
    • Optimism Starts to Return among Affluent Consumers
    • More Affluent Shoppers in High-End Stores
• Chapter 3 Taking Advantage of Affluent Consumer Market Opportunities: How Marketers Are Adapting to Change in the Affluent Consumer Market
  • The New Normal Challenges Marketers in Affluent Consumer Market
  • Affluent Buyers Search for Value
  • Marketers Combat "Luxury Shame"
  • "Stealth Sales" On the Increase
  • Some Marketers Focus on Protecting the Brand
  • Luxury Marketers Move Online
  • Discount High Fashion Websites Thrive
  • Customization Used as Strategy to Lure Affluent Buyers
  • Selected Opportunities in the Affluent Consumer Market
    • Affluent Consumers Continue to Offer Most Attractive Opportunities
    • Affluent Provide Bulk of Shoppers for Many Retailers
    • Affluent Consumers Biggest Spenders Online
    • Affluent Consumers Prime Targets for Consumer Electronics Marketers
    • Leisure Pursuits of Affluent Provide Multiple Opportunities
    • Affluent Consumers Vital to Travel Industry
    • Affluent Critical Element in Home Improvement Market
    • Affluent Hold Key to Automotive Market
    • Affluent Main Driver of Financial Services
• Chapter 4: The Demographics of Affluence : Demographic Profile of Affluent Consumers
  • Population of Affluent Consumers Tops 61 Million
  • Gen-Xers and Younger Boomers Predominate
  • Affluent Consumers Disproportionately Non-Hispanic White
  • Education Differentiates Affluent Consumers
  • Few Retirees among Affluent Consumer Population
  • Multiple Earners Common in Affluent Households
  • Vast Majority of Affluent Consumers Own Homes
  • Vacation Homes Part of Super-Affluent Lifestyle
  • Marriage More Common
  • Affluent Households Are Larger
  • Where Affluent Consumers Live
    • Northeast Has the Most Super-Affluent
    • Affluent More Likely to Congregate in Urban Centers
    • New York Metro Area Tops List of Affluent Metro Areas
    • Silicon Valley and Suburban Connecticut Have Highest Concentration of Affluent Households
• Chapter 5 Looking Ahead: The Affluent Consumer Market in 2010 and Beyond: Size of the Affluent Market
  • Defining the Affluent Market
  • Number of Affluent Households Tops 25 Million
  • Affluent Generate More than Half of U.S. Household Income
  • Super-Affluent Have Super Impact on Affluent Consumer Market
  • Factors Affecting the Growth of the Affluent Market
    • Optimism Gradually Returning amidst Uncertainty about the Future
    • Slow Economic Growth Expected in Near Term
    • Forecasters See Gradual Uptick in Global Luxury Market
    • American Affluent Consumers Expected to Lose Ground in Global Shift
  • Projected Growth of the Affluent Consumer Market
    • Forecasting Assumptions Analyzed
    • Affluent Consumer Market Will Grow 23% by 2014
• Section II How Affluent Consumers Manage and Spend Money
• Chapter 6 How Affluent Consumers Manage Their Money: Key Trends in Attitudes toward Personal Finances
  • Affluent Lose Appetite for Risk
  • Super-Affluent Show Increasing Interest in Getting Financial Information
  • Financial Management Practices
    • Choice of Banking Institutions Differs across Income Lines
    • Frequent Credit Card Use a Hallmark of Affluence
    • Even Affluent Carry Balances on Credit Cards
    • Debit Cards Used Frequently
    • Paying Bills Online Popular among Affluent
    • Affluent Taxpayers Look to CPAs
  • Ownership of Investments and Insurance
    • Investment Ownership Analyzed
    • Insurance Vital Part of Affluent Lifestyle
• List of Tables
  • Table 2-1: Growth in the Population of Affluent Consumers by Selected Time Periods, 2005-2009
  • Table 2-2: Number of Affluent Households Identified by Experian Simmons National Consumer Study, Selected Time Periods 2005-2009
  • Table 2-3: Mean Household Income 2000-2008, Super-Affluent vs. All Other Consumers
  • Table 2-4: Financial Status of Affluent and Non-Affluent Consumers, Fall 2008 vs. Spring 2009
  • Table 2-5: Economic Outlook of Affluent and Non-Affluent Consumers, Fall 2008 vs. Spring 2009
  • Table 2-6: Percent of Affluent and Non-Affluent Consumers Who Feel Financially Secure by Selected Time Periods, 2005-2009
  • Table 2-7: Percent of Affluent and Non-Affluent Consumers Expressing Low Level of Consumer Confidence by Selected Time Periods, 2005-2009
  • Table 2-8: Percent of Affluent and Non-Affluent Consumers Expressing High Level of Consumer Confidence by Selected Time Periods, 2005-2009
  • Table 2-9: Spending Plans of Affluent vs. Other Consumers, Fall 2008 vs. Spring 2009
  • Table 2-10: Percent of Affluent and Non-Affluent Consumers Reporting They Lost Job, Were Laid Off or Went Out of Business by Selected Time Periods, 2005-2009
  • Table 2-11: Number of Highly and Super-Affluent Consumers Shopping in Selected High-End Retail Stores in Last Three Months, 2007-2009
  • Table 3-1: Changes in Shopping Behavior of Super-Affluent Consumers by Selected Time Periods, 2005-2009
  • Table 3-2: Number of Highly and Super-Affluent Consumers Shopping at Nordstrom and Nordstrom Rack, April 2008-December 2008 vs. November 2008-June 2009
  • Table 3-3: Average Household Income, Affluent vs. Other Households
  • Table 3-4: Average Annual Expenditures, Affluent vs. Other Consumer Units
  • Table 3-5: Selected Affluent Consumer Market Opportunities Related to Shopping in Stores in Last Three Months
  • Table 3-6: Selected Affluent Consumer Market Opportunities Related to Catalog Shopping
  • Table 3-7: Selected Affluent Consumer Market Opportunities Related to Online Shopping
  • Table 3-8: Selected Affluent Consumer Market Opportunities Related to Ownership of Cellphones
  • Table 3-9: Selected Affluent Consumer Market Opportunities Related to Consumer Electronics
  • Table 3-10: Selected Affluent Consumer Market Opportunities Related to Leisure Activities
  • Table 3-11: Selected Affluent Consumer Market Opportunities Related to Travel
  • Table 3-12: Selected Affluent Consumer Market Opportunities Related to Home Improvements and Furnishings
  • Table 3-13: Selected Affluent Consumer Market Opportunities Related to Automotive Vehicles
  • Table 3-14: Selected Affluent Consumer Market Opportunities Related to Financial Services
  • Table 3-15: Selected Affluent Consumer Market Opportunities Related to Investments Owned
  • Table 4-1: Number of Affluent U.S. Adults, 2009
  • Table 4-2: Affluent Consumers by Gender and Age Group
  • Table 4-3: Households with Income of $100,000 or More by Race and Hispanic Origin, 2008
  • Table 4-4: Affluent Consumers by Educational Achievement
  • Table 4-5: Employment Profile of Affluent Consumers
  • Table 4-6: Number of Employed Adults in Household, Affluent vs. Other Consumers
  • Table 4-7: Affluent Consumers by Homeownership Status
  • Table 4-8: Ownership of Vacation Homes, Affluent vs. Other Consumers
  • Table 4-9: Affluent Consumers by Marital Status
  • Table 4-10: Affluent Households by Size of Household and Presence of Children
  • Table 4-11: Affluent Consumers by Region of Residence
  • Table 4-12: Percent of Affluent Consumers Living in Selected Metro Markets
  • Table 4-13: 40 Largest Metropolitan Areas Ranked by Number of Affluent Households
  • Table 4-14: 40 Largest Metropolitan Areas Ranked by Affluent Households as Percent of All Households in Area
  • Table 5-1: Number of Affluent Households by Amount of Household Income, 2008
  • Table 5-2: Affluent Consumer Segments as Percentage of Affluent Consumer Households
  • Table 5-3: Aggregate Household Income, Affluent vs. Non-Affluent by Category of Affluent Household, 2008
  • Table 5-4: Aggregate Income of Affluent Households by Category of Affluent Household
  • Table 5-5: Projected Size and Growth of Affluent Market, 2009-2014
  • Table 6-1: Attitudes toward Risk, Affluent vs. Non-Affluent Consumers by Selected Time Periods 2005-2009
  • Table 6-2: Interest in Obtaining Financial Information, Affluent vs. Non-Affluent Consumers by Selected Time Periods 2005-2009
  • Table 6-3: Percent Owning Bank Accounts by Type of Account and Institution, Affluent vs. Other Consumers
  • Table 6-4: Use of Credit Cards, Affluent vs. Other Consumers
  • Table 6-5: Percent of Credit-Card Holders Paying Off Entire Credit-Card Balance Each Month, Affluent vs. Other Consumers
  • Table 6-6: Ownership and Use of ATM/Debit Cards, Affluent vs. Other Consumers
  • Table 6-7: Methods Used to Pay Bills, Affluent vs. Other Consumers
  • Table 6-8: Methods of Preparing Tax Returns in Last 12 Months, Affluent vs. Other Consumers
  • Table 6-9: Ownership of Investments, Affluent vs. Other Consumers
  • Table 6-10: Ownership of Property and Vehicle Insurance, Affluent vs. Other Consumers
  • Table 6-11: Value of Life Insurance Owned, Affluent vs. Other Consumers
  • Table 6-12: Percent with Health Insurance by Type Owned, Affluent vs. Other Consumers
• List of Figures
  • Figure 2-1: Average Household Income of Super-Affluent Consumers, 2000-2008
  • Figure 2-2: Percent Expressing Low Consumer Confidence, Super-Affluent vs. Non-Affluent Consumers
  • Figure 2-3: Percent Expressing High Consumer Confidence, Super-Affluent vs. Non-Affluent Consumers
  • Figure 2-4: Average Income from Interest, Dividends, Rental Income and Other Property Income, Highly and Super-Affluent Consumer Units, 2005-2008
  • Figure 2-5: Aggregate Income from Unemployment Compensation and Veterans Benefits, Highly and Super-Affluent Consumer Units, 2005-2008
  • Figure 2-6: Average Market Value of Homes Owned by Highly and Super- Affluent Consumers by Selected Periods, 2004-2008
  • Figure 2-7: Number of Affluent Consumers Living in Houses Worth $1 Million or More by Selected Periods, 2005-2009
  • Figure 3-1: Percent of Super-Affluent Consumers Shopping at Costco in Last Three Months by Selected Time Periods, 2008-2009