How the luxury market and the affluent market differ

The luxury market and the affluent market are surprisingly different. Many would believe that the two are equated with each other, but not necessarily. Everything is connected with the definition of each one, one is definable and the other defies all definition.

No matter how many people have tried to define luxury, it cannot be described in financial or marketing terms. The reason is that, although luxury is subjective and is in the eye of the viewer, wealth is objective because it can be defined. To explain it further, I could, for argument reasons, claim that every household earning more than $ 250,000 a year is wealthy, or that wealth covers 10% of American households in terms of disposable income.

Whichever definition you choose, it defines the rich market and everyone knows if they are rich or not. Not so for the luxury market. Let's try the same financial definition for luxury. Every item that costs more than $ 100,000 is a treat, and everything that follows is not! So a $ 80,000 vacation treat is not a treat? Is a fairly ordinary 10-year-old jet with parts hanging and selling for $ 100,001 a luxury jet? Nonsense!

luxary cannot be defined in financial terms, because it is relative to both the article and the people. Some believe that a boondocks condo is luxurious, while others would look no further than a mansion in the Hamptons. Professor Bernard Dubois stated that luxury could be defined as a "price level" in any kind of product, but this is naive because there is a difference in the definition between "expensive" and "luxury". It does not convert an average product into a luxury product by increasing the price.

Luxury is generally viewed as a term indicating quality and comfort, while wealth is related to income, or more accurately, to disposable income. Income that can be spent. However, is there really a big difference between the luxury market and the prosperous market in real terms? We can discuss semantics and terminology, but what really matters for luxury goods producers is whether or not they will meet market demands. Will they sell? Are they of adequate quality and what will be the demand?

Definitions are irrelevant to the manufacturer or service providers. What they are concerned about is what the wealthy will buy next year and how much. Will your spending habits be the same as this year or will they change? Whether they are buying luxury goods or not is irrelevant; what they intend to buy is, in any case, the important thing.

The difference between the luxury market and the wealth market, if it exists, does not mean anything to you. If you're contributing to your conception of the luxury market, it makes no difference if others refer to it as the thriving market or anything else - you need access to the way these guys think. How do you do that?

In fact, there are organizations that have created databases of wealthy people who have agreed to undergo market surveys, affluent market surveys, if you want to call them that. They are prepared to answer questions about their past, current, and future spending habits because they realize that doing so will make them more likely to meet their needs in the future.

If the wealthy don't provide information on what they might be looking for next year, or even later this year, who else will provide manufacturers and producers who meet their needs with the data they need? The wealthy understand that even those who produce luxury goods need something to continue in order to plan for the future, in other words, luxury research.

Therefore, they agree with highly respected companies or organizations that they will participate in wealthy surveys, or consumer surveys of the wealthy, on the condition that their identities are kept secret and that the information they provide is provided only to Those companies that can use it well In other words, they will participate, but confidentially, and the data should be used only by those involved in the production of luxury goods or where their release is beneficial to the prosperous market.