4 Feb 2016 – Across the globe, HNWIs (High Net Worth Individuals) are a very special demographic. This influential segment is composed of individuals who have at least USD$1,000,000 in investable assets and are a key segment so valued by financial institutions around the world, most global banks have specific divisions created to service them. As they command a large amount of liquid assets, this demographic is also key to many high profile luxury brands that sell high margin products. Not only do HNWIs buy, but they also influence the mass affluent market through various mediums like high profile events, social media, or the society pages.
However, HNWIs are not a homogenous group. Agility Research and Strategy’s 2015 Affluent Insights report covered this hard-to-reach demographic in detail across 4 key markets (US, China, Singapore, and Hong Kong), and uncovered the similarities and differences across HNWIs from these countries, especially those from Mainland China. These insights help paint a clearer picture of how HNWIs from other markets are driven differently from their counterparts in China, thus helping luxury brands customize their marketing to appeal to these individual markets, and especially to the Mainland Chinese HNWIs who are a segment that continue to grow in size and spend in luxury.
At this meeting, Amrita Banta, Managing Director, Agility Research, shared with us some findings, notably, that,
- HNWIs in the US are past mid-life, while those in China have yet to hit 40
- For all HNWIs, luxury is defined by the quality of their experience, but Chinese also require it to drive their status
- China’s HNWIs demand exclusivity much more than those in the USA, SG or HKG
- Chinese HNWIs are most likely going to drive the luxury market in the years to come
- Unlike other HNWIs, Mainland Chinese awareness financial services is also influenced by brand placements in movies and TV show. In contrast, their Singaporean neighbours are influenced mostly by printed newspapers. However, peer recommendations are commonly cited as a leading financial services influencer across all countries covered
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