Nearly half of affluent consumers will redecorate, remodel or renovate.
Half of the $1.9 trillion that affluent Americans spend annually will be concentrated in four categories, including the home category, according to a recent study from Ipsos. Moreover, 45% of affluents are planning to redecorate, remodel or renovate their home or grounds in the next 12 months.
The Ipsos Affluent Survey USA, a valuable source of information about the lives, lifestyles, purchase patterns and media habits of affluent Americans (adults 18+ with $100k+ HHI), reveals the top categories by share of annual spending by affluents (with associated annual dollar amounts):
- Automotive (18% share): $343 billion;
- Personal insurance (11%): $223 billion;
- Home and garden (11%): $209 billion;
- Education expenses (10%): $186 billion;
- Groceries (9%): $177 billion;
- Travel (8%): $161 billion;
- Apparel, accessories and eyewear (7%): $134 billion; and
- Computers, electronics and home entertainment (6%): $115 billion.
One driving factor is the growing affluent population, which Ipsos estimates is currently 62.5 million Americans, up 6% from 59 million a year ago. Not only are their numbers growing, but so is their average household income (up 4.6% to $200,200), liquid assets (up 9.1% to $551,400) and net worth (up 2% to $1,006,600).
So how can marketers of high-end home brands ensure they capture a portion of this $209 billion in home-related spending? I recommend utilizing a balanced, integrated approach – as the media habits of this key audience continue to show strength in print, digital and mobile.
“Affluents continue to show a great enthusiasm for entertainment, information and connectivity across media and platforms,” says Dr. Stephen Kraus, Chief Insights Officer for the survey. “Affluents’ growing digital media use tends to supplement – rather than replace – their traditional media use, and the result is real growth in their engagement with media as a whole.”
For more information about the Ipsos study, click here.
