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The Annual Survey of Affluence & Wealth in America 2008

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The Luxury Marketing Council -
Upcoming Breakfast Event

Date:
Tuesday July 29th, 2008

Time:
8.00 - 9.30am

Location:
Time & Life Building
1271 Avenue of the Americas
(Between 50th and 51st Streets)



Please RSVP by replying to this email or by writing rsvp@luxurycouncil.com

In the event that your plans change, we would appreciate the courtesy of a cancellation

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The Annual Survey of Affluence & Wealth in America 2008

Presented by:
Dr. Jim Taylor, Vice Chairman of the Harrison Group
Ms. Cara David, Senior Vice President, Strategic Insight, Marketing & Sales, American Express Publishing


You are invited to a special presentation of The Annual Survey of Affluence & Wealth in America 2008 produced by American Express Publishing and Harrison Group.  The survey represents the top 10% of the American population based on discretionary income, yet hold over 70% of all its assets.  They account for over 50% of all retail purchases in America and approximately 80% of all non-retirement account assets.  The 2008 study finds that the vast majority of today's affluent and wealthy individuals came from relatively modest backgrounds, and created their own tremendous riches via  entrepreneurship.  As a result, today's well-to-do are largely new to the experience of abundance which shapes many aspects of their experiences - yet they have a profound impact on the economy.  This study will help you understand what makes these big-spending customers tick.  How do they define themselves?  What are their dreams, needs, fears, influences and core values?  What, where and how these consumers buy, and the reasons behind their choices.

Join Cara David, Senior Vice President, Strategic Insights, Marketing & Sales, American Express Publishing, and Dr. Jim Taylor, Vice Chairman of Harrison Group as they take you through the study findings just recently revealed for the first time at the American Express Publishing Luxury Summit. Plus, the April and June 2008 re-contact surveys that reveals how the recent economic challenges are affecting their purchasing.  We look forward to sharing these results with all of you.


Some Stats to Whet Your Appetite:

The top 10% represent:
      -     Over 50% of all retail purchases in America
      -     Approximately 80% of all non-retirement account assets

We are currently in the 4th wave of American affluence and wealth (Agricultural, Industrial, Corporate, Entrepreneurial), driven today by an entrepreneurial spirit

Most wealth (72%) has been made in the last 12 years

8-in-10 grew up in “Middle Class” or lesser conditions
      -     96% of today’s wealth is self-made (only 4% inherited)
      -     Most (over 80%) still feel middle class at heart
      -     There is concern for their children who are not growing up middle class

Major household decisions are now made as a family unit…
      -     Don’t overlook the importance of Mom… they are the CEO’s of the home and own the relationships with the kids
      -     Kids’ preferences are important and they are often included in major purchase decisions as well

Most new wealth follows a path of learning how to live with abundance.  They must master hundreds of categories on their journey in luxury consumption.  Their relationship with brands over the course of approximately 15 years move from an education phase, to experimentations  and, finally, to “bundling” their favorite brands within the household.

Regardless of the level of wealth, over 9-in-10 believe the U.S. is either already in a recession or is heading toward a recession
      -     Fewer than 6-in-10 feel they are in good shape to endure the current economic climate
      -     Even the wealthiest consumers, who are more protected against financial turmoil, participate in today’s recession on an emotional level… optimism in the future continues to fall among all levels of affluence
      -     Affluent consumers have moved from and iWant to an iNeed mentality
      -     Yet most say that luxury is important in hard times

There is a “retail therapy” trend going on…  an increase in the enjoyment of shopping overall, as well as shopping at malls and with friends
      -     There exists a polarization of marketplace priorities, where there is a growing appreciation of a high-end shopping experience and  a growing appreciation for stores like Costco that have a reputation for low prices
      -     The polarization also feeds the two primary shoppers… those who enjoy “high touch” and those who incorporate “high tech” in their shopping

The Internet and print are the primary medias used by the affluent to navigate their lives.
      -     Time spent with magazines increase with the levels of wealth
      -     Magazines are the #1 media used in education about purchase choices (followed closely by the Internet)
      -     The increased use of DVRs has impacted nearly a quarter of all commercial viewing



ABOUT CARA S. DAVID

Cara DavidCara S. David, Senior Vice President, Strategic Insights, Marketing, and Sales, oversees strategic corporate integrated sales across all American Express Publishing Corporation brands: Travel + Leisure, Food & Wine, Departures, Travel + Leisure Golf, and Executive Travel.

She is responsible for the company's targeted research initiatives, such as the Annual Survey of Affluence & Wealth in America, produced by American Express Publishing and the Harrison Group, as well as branding initiatives for the division, including The Luxury Summit.

David joined American Express Publishing in 1997, as Senior Account Manager of Travel + Leisure, where she handled luxury and corporate accounts as well as the New England territory. Later, she became the company’s first Corporate Sales Director, spearheading significant incremental sales gains. David was promoted to Corporate Sales and Marketing Director, expanding her role to include corporate marketing, promotion, and events in addition to advertising sales, and was named Vice President of Corporate Sales and Marketing in 2002. She was promoted to her current position in 2006.

Before joining the company, David was Director of Advertising Sales at Saveur. From 1994 to 1996, she was Publisher of Modern Bride. David began her career at Interior Design, where she held various positions, ultimately serving as Publisher from 1991 to 1994.  David received the Time Inc. President’s Award in 2003, the company’s highest honor.

ABOUT DR. JIM TAYLOR

Jim TaylorDr. Jim Taylor is Vice Chairman of Harrison Group, where he directs syndicated research and provides clients with strategicmarketing and branding advice.

Ranked among the country’s most-respected marketing and branding consultants, Taylor is also an acknowledged expert in media usage, future forecasting, and customer acquisition and retention. He provides advice at the highest level to many of the world’s leading media, financial-services, technology, real estate, travel, and luxury-goods and services corporations.

Taylor served as Chief Executive Officer of Yankelovich, Skelly & White. He was Chief Marketing Officer of Ernst & Young, and held similar positions at Gateway Computers, Iomega Corporation, and The Lyle Anderson Company.

Named Marketer of the Year by Brandweek and one of America’s five leading business futurists by the Wall Street Journal, Taylor is a highly sought-after speaker. His teachings, writings, and lectures focus on the future; technology and marketplace strategy; wealth marketing; company branding; and the integration of technology, culture, and business profitability. Taylor has contributed articles to a range of publications, including Advertising Age, American Demographics, Consumer Insights, National Geographic, and The New York Times. He is co-author of The 500 Year Delta: What Happens After What Comes Next and The Visionary’s Handbook.




   
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