The Luxury Market
Luxury, like beauty, is in the eye of the beholder. "Luxury" and "the luxury market" are nebulous concepts that cannot be defined in objective, quantifiable terms. As a result, the size and composition of the market cannot be determined with any degree of accuracy.
Our ground breaking research study, "Luxury Defined: What the Affluent Will Spend for Luxury; Price Points for 37 Products and Services", demonstrates the ambiguity of the word "luxury". This ambiguity is evidenced by the broad range of price points that the affluent use to define luxury for the different products and their apparently limited familiarity with brands normally associated with the high end luxury products.
In the absence of being able to objectively define and quantify the luxury market, the American Affluence Research Center believes it is best to "follow the money" and understand the size, attitudes, and behavior of "the affluent market", i.e. the people who can afford the higher priced items in the categories of products and services that would be considered expensive by middle income consumers.
The American Affluence Research Center has always defined the affluent market as the wealthiest 10% of U.S. households, as determined by The Federal Reserve Board, based on net worth. This is an objective, quantifiable definition of a market segment that should be the focus of marketers who believe they are offering a luxury product or service.
A focus on the affluent market, as opposed to the nebulous luxury market, will be more productive, accurate, and practical for marketers of "luxury" goods and services, in our opinion.
How Important Are Affluent Consumers?
The wealthiest 10% of U.S. households, as defined by net worth in the most recent Federal Reserve Board study, have an average annual income of $256,000. They earn 36% of the income earned by all American households and control 70% of the total net worth of all US households. Their average net worth is $3.1 million. The average value of their financial assets is $1.3 million. As a group, these 11.2 million households hold 89% of the value of all publicly traded stock and stock mutual funds in the U.S.
Our Mission
The American Affluence Research Center was established in 2001 to provide unique, highly effective marketing research, mailing lists, and consulting services to businesses and organizations targeting the affluent market. Focusing exclusively on the affluent market, The AARC offers four primary services:
- Research-validated, highly- targeted mailing lists of the affluent
- A twice-yearly, multi-client tracking study of the affluent
- Custom surveys of the affluent
- Strategic marketing consulting
With its exclusive focus on the affluent market, the American Affluence Research Center has become a recognized authority and a credible source of reliable insight and marketing information about the values, lifestyles, attitudes, and purchasing behavior of America's most affluent consumers.
Who We Serve
Our clients and customers include organizations that sell and promote products and services to America's most affluent households. Among the more recognizable are American Express, Sony, NBC, Town & Country Magazine, Four Seasons Hotels, Ritz Carlton, Wells Fargo, Cayman Islands, Silversea Cruises, Seabourn Cruise Line, Ferragamo, Leo Burnett, BMW, BBDO, John Hancock, Coldwell Banker, Travel & Leisure Magazine, Best Buy, Marriott, Moen, Chicago Merchandise Mart, and Conde Nast.
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Phone: 770-740-2200
Fax: 770-740-2205
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