Atlanta, GA October 15, 2015 ─ Eighteen fine jewelry brands were tested in the new Millionaire Monitor, the 27th tracking study of the wealthiest 10% of U.S. households by the American Affluence Research Center.
The millionaires were asked which of the brands they were aware of, which they had made a prior purchase from, and which they would consider for a future purchase.
The awareness of the brands ranged from around 20% for Graff and Buccellati to a high of 98% for Tiffany and Cartier. Four other brands were at 95% or higher (Chanel, Kay, Zales, and Jared).
On average, the millionaires recognized just under 12 brands. A few more names were recognized by those under age 50, women, and those with higher income and net worth.
Prior purchases of the brands ranged from a low of zero for Graff to a high of 50% for Tiffany. The four other brands named most frequently were Chanel, David Yurman, Kay, and Cartier. All were named in the range of 20% to 27% of the millionaires.
On average, the millionaires reported purchases from 3.2 brands. The higher income and net worth groups were more likely to have purchased from a few more brands.
Among the brands of which the respondent was aware, the brands that would definitely or possibly be considered for a future purchase ranged from a low of 14% for Graff to a high of 50% for Tiffany. Of the remaining brands, the top four were David Yurman (49%), Chanel and Cartier (both 35%), and Buccellati (32%).
The limited awareness and prior purchase experience with many brands presents them with opportunities for strengthening their market position.
The survey had good news for retailers as the millionaires have a relatively positive 12 month outlook about the economy, the stock market, their personal wealth, and their spending plans.
December holiday gift spending is expected to show a year over year increase. About $24 billion or three quarters of total holiday gift expenditures by millionaires will be spent on gift cards and other gift “currency” such as checks and cash.
Gift “currency” will be over three times that of gift cards. “Conversion of this “currency” to gift cards through creative marketing is a huge opportunity for retailers and brands”, according to Ron Kurtz, President of the American Affluence Research Center.
The 12 million households represented by the American Affluence Research Center survey are the wealthiest 10% of U.S. households based on net worth. All have a minimum $1 million net worth and account for about 40% of total consumer spending.
Additional data on the mood and spending plans of the affluent for 8 major expenditures and 17 products and services is available upon request.
About Us: Established in 2001 and with an 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. AARC conducts the original and only continuous tracking studies of the mood and future spending plans of the wealthiest 10% of U.S. households, based on net worth and consistent with the latest research by the Federal Reserve Board, the best source of data on the distribution of wealth in the U.S.
The new survey is based on a national sample representative of the wealthiest 10% of Americans based on net worth of $1 million or more. Net worth has been shown to be a more stable indicator of wealth than income in studies by both the Federal Reserve Board and the Internal Revenue Service.