How to keep HENRYs engaged with luxury brands instead of trading down when the next recession hits
With inflation running at a 40-year high and the U.S. economy on the precipice of recession, if it already hasn’t entered it, consumers are pulling back, tightening their belts and looking to stretch their dollars farther.
The affluent, those at the top third of U.S. households based on income, are not immune either, with 33% of HENRYs believing we are already in a recession and another 32% convinced a recession will arrive within the next six months.
Already 45% of HENRYs have cut back luxury spending from a year ago and an overwhelming majority (63%) say now is a good time to limit purchases, according to a recent Research The Affluent Luxury Tracking survey.
For luxury brands, this comes on the heels of the pandemic’s disruption which resulted in a 22% loss in the personal luxury goods market from 2019 to 2020, according to Bain. While the industry recovered immediately in 2021, even topped 2019 revenues by 1%, luxury brands face another test if a recession sets in.
While HENRYs are not the luxury industry’s primary target consumer – that is the high-net-worth and ultra-affluent consumers with incomes over $250k+ – they still depend upon the lower-income but still affluent, next-generation HENRYs for a good portion of revenues and growth.
This trend report digs into the demographics, values and attitudes of HENRYs as they confront potential financial challenges in the current economy, in the face of which, HENRYs are more likely to trade down not up to luxury.
Luxury brands need HENRYs to continue trading up and this report will provide research and insights to help them keep their HENRY customers engaged through whatever the economy throws at them.
The report includes:
- Setting the Stage (p. 2-6)
- Demographics of Affluence (p. 7-24)
- Making the Emotional Connection with HENRYs (p. 25-34)
- Elevating the Value Equation (p. 35-62)
- Trading Up to Luxury (p. 63-80)
This report will help luxury brands get closer to their next-generation HENRY consumers on whom their future depends and the subscription price is $99.
Or a copy of this report is FREE to those who qualify and complete this year’s State of Luxury 2023 survey.
Now in its seventh year, we are asking a cross-section of companies that compete in the luxury market, partner with luxury companies, or individuals who study the luxury market to share their opinions and experiences. The survey will take between 10-to-15 minutes to complete and all respondents remain anonymous.
The survey is a collaborative project of Luxury Daily, Unity Marketing, and the Home Trust International.
In addition to a copy of this report, all respondents will receive an executive summary of the survey results. Plus your company will be entered into a drawing to win a customized digital advertising campaign targeting 100,000 High-Net-Worth individuals (HNW) — a $1,000 value — provided by Precise Luxury Marketing.TAKE SURVEY. GET COPY OF THIS REPORT FREE.