There’s a new class of consumers on the block and while they’re spending plenty, they’re also earning. In fact, nearly ten million Gen X and millennial households fit the bill for this group, with an income of $120–$249K. Though it may seem like there are bigger fish to fry, evidence suggests that the new affluents are a group brands can’t afford to overlook.
Several traits about the new affluents distinguish them as ideal prospective customers for brands of all sectors. In particular, luxury brands looking to woo customers with a little extra in their pockets might find this group a good place to start. Gen Xers’ share of national wealth is forecast to grow from under 14% in 2015 to nearly 31% by 2030, while Millennials’ share is forecast to grow from just 4% in 2015 to 16% by 2030, according to Gartner research. Additionally, this group is likely to be raising families and becoming first-time homebuyers, making them prime targets for home and CPG brands.
Though the new affluents want to save, they are likely to be in the midst of costly life transitions related to family and are also paying off significant debt, meaning money management is definitely on their mind. This perfectly sets them up to become a wealthy cohort willing to turn to professional help when it comes to financial advice. Smart financial brands should reach out now and begin building relationships with this group, such as offering them a new set of products and services to help them accomplish their distinct money goals now and down the line.
Gen Xers and Millennials have the potential to become brands’ best customers. However, it’s important to note that many of them often struggle to find the information they need to make purchasing decisions. By simplifying language used on digital assets and reducing any fees to entry, brands of all sectors can best capitalize on the new affluents.
Gartner will host a webinar on this topic on August 21. Register here.