Do You Sell to the Mass Affluent?
For a few years back in 2005, 2006, and maybe even 2007, it became popular to sell the “mass affluent.”
Why?
Because there were lots of them… and… they had lots of disposable income to spend.
But it seems the “mass affluent” may be dwindling. It may now be more accurate to call them the “minority affluent.”
From the front page of the July 17, 2010, New York Times, there’s this headline: “Wealthy Sector of Buying Public Is Cutting Back.” The article begins:
The economic recovery has been helped in large part by the spending of the most affluent. Now, even the rich appear to be tightening their belts.
Late last year, the highest-income households started spending more confidently, while other consumers held back. But their confidence has since ebbed, according to retail sales reports and some economic analysis.
It’s my personal opinion that this trend won’t reverse anytime soon. If anything, consumers of all income levels will continue to cut back or hold the line on their spending.
What does this mean for your business?
Simply this:
Offers that help your clients and customers save money have the potential to be big winners.
And while luxury items have been quite profitable in recent years, it may be time to offer products that are practical rather than indulgent.
-Ryan M. Healy
